CGM Focus is dead last in Ivnestor's Buiness Daily Mutual Fund Index with a year to date return of minus 9 percent. The average for the index is a plus .56%. The highest return YTD is plus 8 percent. IBD Mutual Fund Index consits of 20 mutual funds.
I OWN FAIRX and CGMFX bought them the same time FAIRX is up 20% hebner down 45%, Heb has bben wrong on every move he has made in the time I have had it,the adds in IBD about only a select few stocks make his grade makes me throw up. I have called them several times and offered to buy him a new dart board to help his picking!
You guys really need to read those two books before speaking on this further, it's clear that none of you have. You basically have no idea what you're talking about. Have you read the bottom of each prospectus? "Past performance is no indicator of future results."
When you talk about a fund as "exciting", that already show me what state of mind you are in. Good luck to you.
Index funds are nice and I use them a fair amount, but I'm in FAIRX, seen that one? I don't know if he's ever under performed the market for more than 1.5 year time frame. That fund is incredibly exciting, now doing investing in bankrupt companies reemerging to the public market and stuff like that. The whole "you can't beat the average" doesn't work because then Warren Buffet wouldn't be the 3rd richest guy in the world.
You sound like jack bogle. Me, i don't believe in the negativity. Bill miller, for one, beat the market for how many years in a row? Yup, he did blow up for a couple of years but i understand he's outperforming again. Heebner, even with the past couple of years, still has a record that beats the s&p handily, i think it's an average of 7% points per year, for the last 10 years average. I don't believe in randomness. I do believe in long term performance and experience. Both positive and negative experience. I just hope heebner's learned from the negative.
Have any of you read a book called A Random Walk Down Wall Street? What about Fooled by Randomness? It amazes me that people still think there are fund managers out there who can beat the market or that if there are, YOU are capable of identifying in advance who they might be. Simply put, you can't. There is no empirical evidence that you can, this has been shown in study after study. You take things out 20 years and you inevitably lose even with the best managers because of the fees. Heebner is a classic example of how top performers typically lag in subsequent years, there's a whole chart showing that in Malkiel's Random Walk book, and he first wrote that almost 40 years ago now.
I bought $10,000 of CGMFX and for some reason, that was the only fund I kept around after 2007, I ditched all my other stocks and funds because (1) mutual fund managers are scammers and (2) stock picking is no different than casino gambling. You guys can keep buying them if you want, but I hope you realize you are really investing because of some irrational emotional reaction, not some objective investment strategy. Just look at how some of you talk about Heebner like he some sort of god, he's not. You are mistaking survivorship bias for skill. Until America figures this out, the financial industry is just going to continue to loot all our hard earned savings. That's what they do.
heebner is a top down trader/ investor buying shares in the top percentile leading stocks. These tend to fall the most when hte decline in market comes. He also buy at tops in markets and tops in stocks since it is at a stocks high point where some believe even more strength will come, only to get sucked into an undertow instead of catching a wave.
Bad analysis Challenge. This was not his methodology back in the early through mid 2000's when as i recall he was heavy in the real estate area from before it ran and then on up, sold out of normal real estate (excludes the mining/minerals types) when it got well overbought, and had begun paring back his mining/minerals at the top in the june 2008 quarter). Nor is it his methodology today. His methodology is to buy stocks in sectors that he believes will either turn strong in the near future or continue strong up from today, whenever today is. Simple as that. Easy to step on a dog when he's down but we'll see who has the last laugh.