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Oakmark Select I Message Board

  • vensh vensh Sep 2, 2010 10:51 AM Flag

    HRB the next WM

    Don't like HR Block. It's killed the fund's returns.

    What's the future here?

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    • kbjb Jun 27, 2011 6:06 PM Flag

      Hey Vensh, tried to send you a message but got knocked off, guess Oakmark is upset with me. I respect your opinion based on previous posts and just wanted to know your take on the present market. What are you buying, selling, thinking, etc.? Whatever your thoughts, it will be good to hear from you.

      • 1 Reply to kbjb
      • It’s not Oakmark, it’s the low-grade service of Yahoo! Finance which is buggy and poorly maintained. This message board disappeared entirely for a dew days!

        The older I get, the less I try to have a “take” or “thoughts” on the market. I am lucky enough not to rely on the market for income. I am smart enough to know I have no way of guessing short-term trends. I am a student of Ric Edelman whose simple philosophy is that Mr. Market will treat you well over the long, long haul. He points out that inflation doubles prices every 22 years but the market beats that hands down. Thus he constructs portfolios of index funds in various sectors and re-balances when the relative allocations get out of whack. If you have been reading the past year’s financial blathering, you will find a great appreciation for index funds, with research showing few managed funds beat the indices over long periods of time. I think I read only 30% beat the averages over one-year periods and 5% over 20 years. That is sobering. If the “pros” can’t beat the market, what chance do I have?

        So the vast bulk of my investments of in index funds - ETFs because they are the cheapest. SCHB and VEU are my major holdings, with a little dash of SCHA and VWO. I also have VNQ, IGE and MOO. In some areas, like bonds, I think a capable manager is an advantage so I have GIM and PRHYX. I also have HYD.

        But, being a guy, I do a little hobby investing, such as OAKLX with the belief (delusion?) that a focused fund has the best chance of beating the averages.(Of course, it has the best chance of blowing up, as with the WM disaster!) I also bought some PAYX a few years ago which has a chance of doing well if the economy starts growing.

        The only sales I have made are those required by the IRS from my retirement funds, so I’m putting the money into my taxable account, seeking tax efficient products. So I bought a bunch of BRKB, which pays no dividend and over the decades has been a good growth stock.

        My only words of wisdom are to do some reading about using index funds as the core of your portfolio. Also, read some reviews of the book “Warren Buffett Invests Like a Girl - And So Should You.”

    • kbjb Nov 23, 2010 5:32 PM Flag

      I've decided to trade in stocks that pay me a high dividend now, and also rising in price or at least staying neutral. I'm willing to forget about the "promise land" of capital gains that may never happen, or may only happen once or twice in a ten year period.

    • P.S.

      Your age has nothing to do with your investment plan. You could live another 30 years or get wiped out by an asteroid tomorow. Only your financial needs and planning desires should govern your decisions.

    • Why doesn’t OAKLX meet your needs? Do you need dividends because you need to supplement your income? If so, you also want a mix of bonds in there, short, intermediate and long. Also, instead of buying individual stocks or bonds, you may want to think about a mix of funds - preferably ETFs - to spread the risk.

      If you don’t need income, why are you fixed on dividend payers? What’s the magic there?

      Note that one of the worst things an investor can do is engage in market timing. What makes you think this fund will have a “good price increase” before what you want to exchange it for has a gooder price increase? Either an investment product is appropriate or it isn’t. Current price has nothing to do with its suitability.

    • kbjb Oct 18, 2010 6:23 PM Flag

      Good question, and sorry about the late response. My feelings, especially at my age, 73, I enjoy owning stocks that pay a decent dividend. I like a steady 5-6% dividend. I will sell Oakmark Select on their next good price increase, assuming that ever happens, and buy additional stocks that pay dividends. Oakmark Select does not fit my needs any longer.

    • Learn what?

    • kbjb Sep 23, 2010 7:08 PM Flag

      As the Bud Light commercial says, "Here we go!" Down, of course. When will I ever learn?

    • kbjb Sep 3, 2010 6:08 PM Flag

      Vensh, good to hear from you, and you are right, HR Block could be a problem and it will be interesting to see if Nygren makes a move. Probably not, since he is seriously stubborn. Why not sell the loser and buy something that is actually making money? We'll see.

      • 1 Reply to kbjb
      • Thanks for the hello. I think Bill may be too much enamoured with numbers crunching and not enough with human resources.

        To me, the abandonment by HRB of its famous trademark "TaxCut" in favor of "H&R Block at Home" was truly stupid, the sign of a deficient management, flailing around for a magic bullet and thinking that a name change would do the trick. Shades of New Coke!

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