tag:blogger.com,1999:blog-28360876.post1988064542914962847..comments2023-10-26T11:34:14.369-04:00Comments on MFI Diary: Down The Stretch on 12/31/15 TrancheMarsh_Gerdahttp://www.blogger.com/profile/01375422931807610092noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-28360876.post-26345439716233574452016-12-27T18:55:30.219-05:002016-12-27T18:55:30.219-05:00Thanks!! I thought we were on the same page. Get...Thanks!! I thought we were on the same page. Getting excited again! Did a review today of some paper trades. GILD came up as a biotech but fits with cap and dividend. So we still have 11 names. Anonymoushttps://www.blogger.com/profile/09978720984878572417noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-10685253065865619032016-12-27T17:11:52.599-05:002016-12-27T17:11:52.599-05:00JC - that is indeed my plan. I know it seems "...JC - that is indeed my plan. I know it seems "risky", but my data shows that these types of names are much less likely to have a really bad year "stinker". And I also believe that by buying it at different points in time, you reduce riskiness. Yes, you might get GME twice, but once might be at $36 and the other $25. Seth Klarman wrote a great book discussing what people consider "risky". If you have done your homework and buy a lot of a stock at 50 cents on the dollar, his view is that is not as risky as spreading your bets with many of the stocks being fairly valued.<br /><br />Marsh_Gerdahttps://www.blogger.com/profile/01375422931807610092noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-59470031092859508342016-12-27T17:05:51.958-05:002016-12-27T17:05:51.958-05:00Steve - I did a study of MFI stocks that have drop...Steve - I did a study of MFI stocks that have dropped by more than 40% over a year and a disproportionate percentage of them were in the biotech sector. To your point, I think you need to differentiate between biotechs with a steady earnings stream (like AMGN or BIIB) and ones that got a one time large royalty payment like NLNK or XENE.Marsh_Gerdahttps://www.blogger.com/profile/01375422931807610092noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-32271430582990526802016-12-27T15:57:36.733-05:002016-12-27T15:57:36.733-05:00So the plan going forward is to just use the 11 na...So the plan going forward is to just use the 11 names or so and be willing to buy the same stock twice or three times if it come to you on a random sort. Of course you will apply certain industries filters along with the >2.4 dividend and big caps. Stinkers fall to 3 or 4% hopefully. And you win by beating the market and avoiding hugh losses. Anonymoushttps://www.blogger.com/profile/09978720984878572417noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-7733526298116702772016-12-27T14:27:55.194-05:002016-12-27T14:27:55.194-05:00Why avoid biotech? Isn't the whole idea of MFI...Why avoid biotech? Isn't the whole idea of MFI to buy good stocks when the price is good? AMGN, GILD, BIIB, JAZZ are all descent biotech stocks at bargain prices.Anonymoushttps://www.blogger.com/profile/13739906372117009033noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-59610480188228524752016-12-27T14:27:37.526-05:002016-12-27T14:27:37.526-05:00Why avoid biotech? Isn't the whole idea of MFI...Why avoid biotech? Isn't the whole idea of MFI to buy good stocks when the price is good? AMGN, GILD, BIIB, JAZZ are all descent biotech stocks at bargain prices.Anonymoushttps://www.blogger.com/profile/13739906372117009033noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-53848638022063227242016-12-27T10:59:54.104-05:002016-12-27T10:59:54.104-05:00I get it John. I think my ramble a couple weeks a...I get it John. I think my ramble a couple weeks ago highlighted the real key. You need to reduce your exposure to MFI stocks that can really crash and burn. Dividend stocks and larger stocks is one approach, but I gave a few other ideas (avoidance of biotech).Marsh_Gerdahttps://www.blogger.com/profile/01375422931807610092noreply@blogger.comtag:blogger.com,1999:blog-28360876.post-25135689154763485912016-12-26T13:26:42.169-05:002016-12-26T13:26:42.169-05:00Marsh,
Using a 600 million minimum I get 16 names...Marsh,<br /><br />Using a 600 million minimum I get 16 names. A little better. Got 5 more if you lower the dividend to > 1.8%.<br /><br />I have a hard time doing a double or trible on any of the MFI names. The larger the investment the harder it is to put 15% in a MFI stock.Anonymoushttps://www.blogger.com/profile/09978720984878572417noreply@blogger.com