MF3d Picking a portfolio of currently attractive stocks is becoming more difficult around the world, both for the portfolio managers and business managers. This is emphasized by the media’s attention on popular indices, where a small number of stocks are driving performance. The media, marketers, and unsophisticated investors chatter about “the market”.
However, today there are multiple sub-markets within the entire universe of available stocks. The job of a good portfolio manager is to carefully select individual securities or funds. No single account should be identical to another.
Even if the two started out identical, over time cash flows will create differences. There is a fundamental problem with what most scribes write about securities, as most significant differences result from key critical elements. I will discuss the way the late and great Charlie Munger and Warren Buffett might discuss a particular investment.
(Both our clients and me personally own shares in Berkshire Hathaway ( BRK.A , BRK.B ).
) Large-Caps on the NYSE Product producers and marketeers are responsible for the bulk of large-cap volume. They are fabricators who repackage raw materials into useable products. The better ones have skills in both purchasing and selling.
Currently, the overall stock market view is that many of these product-producing companies are in pre-recession mode. New orders are falling behind current deliveries. The market reflects this, with 77% of stock transactions on the.