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Sequoia Message Board

  • dpriver1 dpriver1 Sep 29, 2011 4:56 PM Flag

    Hey Sequoia

    The stock market indexes are way up today (9/29/11). How do you manage to lose money on a day like this? Please explain. Possibly dividends?

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    • Why the mediocre / poor performance lately?

    • Because of its conservative value orientation, it will tend to preserve capital better in down markets but not skyrocket in boom markets. Daily fluctuations are just static. Instead, you should read what the managers say about their approach to investing, and see if it makes sense to you.

      These guys are very shareholder friendly both in communications and in the money they themselves have invested in the fund. They eat their own cooking. But, as Morningstar just noted, If you invest now, you're investing when the fund is at the height of publicity and popularity, so you'd better be investing for the long term. This is a core holding you can hold the rest of your life.

      Before Berkshire Hathaway offered its cheaper B shares, this was a great way to get exposure to it. Now, Sequoia's holding of Berkshire is much, much smaller than it was in the past. But if you like Warren Buffett (whose holding period is "forever"), you'll like the guys at SEQUX.

    • Is there anybody out there who has shares in this? I would like to hear opinions on this investment.

      • 2 Replies to dpriver1
      • I have allocated most of my retirement account to SEQUX since 2010 and could not be more pleased with the results - my main issue was that the transaction fees imposed by my brokerage were so high, so i had to wait long periods between purchases in order to make sure that the fee would be reasonable percentage of my investment - but have since found out that if i make a regularly scheduled purchase, my brokerage won't charge a fee at all - so now i'm making monthly additions to my Sequoia holding.

        I feel it's one of the best available mutual funds out there and, so long as they don't undergo any massive changes in leadership and structure, will be happy to continue investing in them - i know i've caught a few good years here, and they won't always be so, but their philosophy and the lengths that they go to to protect their shareholders interests have made me a believer.

        It's also very tax efficient, so it almost seems wasted being in my IRA only - I would like to segment off a bit of money from my regular brokerage account to put under their management one of these days - only problem being that I, like them, am a buy and holder, and with some large unrealized gains at this point, making sales in order to generate cash to invest in SEQUX will have a negative tax effect. But, some point soon, i'd like to have an investment with them in a non-retirement account.

      • i started buying at around $90 and contribute monthly. I am very happy with the performance, and hardly monitor this fund, but read the quarterly reports. i'm a "buy and hold" so will probably hold and contribute for the next 10 years and then reassess. Given that the price is around $150 and my average is around $110, I am pretty happy with the fund. It aint' fancy, but buys core companies for the long-term and mgmt fees are very reasonable.

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