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MaichBlack		#11 Posted : Sunday, January 30, 2011 6:37:29 PM
Rank: Elder Joined: 7/22/2009 Posts: 7,845		For Sport wrote: Then there’s the management fee and some such other costs – there’s nothing as annoying as paying someone to babysit your money when your investment is in the red. Some funds even structure their fees such that you pay a “performance fee” which essentially is a percentage on your returns. Most of these fellows are just leeches. I visited Britak some years ago to learn more about their unit trust and I have never thought about unit trusts again! This fellow lists for me a number of charges including joining fee - never mind that there is a difference of approximately 10% between the buying and selling price. That is, if you buy and sell immediately you lose approx. 10% of the value invested - in addition to a raft of 'joining' and 'management' charges. The best part was yet to come! The fellow tells me "If your returns are more than 25% p.a. we will charge you x% on the first bla bla bla on top of the difference and y% on top of...." What??? I ask the guy, "And if I lose more than 25%, nay, you lose more than 25% of the investment on my behalf, how much do you pay me?". He started giving me memorized answers... If you hit 25% which is above the industry average bla bla bla... you are lucky... bla bla bla. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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MaichBlack		#12 Posted : Sunday, January 30, 2011 6:48:24 PM
Rank: Elder Joined: 7/22/2009 Posts: 7,845		bartum wrote: @BGL you only managed 59% last year? It was a good year fellows got over 100% It depends how much you are investing! The higher the amount, the lower the actual return - in percentage of course. You can read on this - must be something to do with investment psychology. Even Warren Buffet is on record saying that he could definitely have higher returns if he was to invest a million dollars than Billions of dollars. Picture this. I have 20,000/= to invest and you have 20,000,000/=. I can wake up one day and [speculatively] put my 20k in nEveready at 2.90/= a share and somehow - fundamentals or no fundamentals - the share hits 6.20/= and and I'm out! Voila - 100%. I would like to see you pulling the same off with your 20m. Your action alone would actually drive the share to 10/= and then the price heads south after you are done buying. Monkey time!!! And also the kind of stunts we are willing to pull reduce with increasing amounts! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Aguytrying		#13 Posted : Sunday, January 30, 2011 9:09:06 PM
Rank: Elder Joined: 7/11/2010 Posts: 5,040		Thanks ppl. This is why i love wazua so much. Unbiased investment info based on facts. I'll check out the zimele post. I've seen its not as rosy as i thought. The investor's chief problem - and even his worst enemy - is likely to be himself
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