Market Experts- Not!!!
Many think that there are Gurus or market experts. One of my colleagues was expressing to me how great Legg Mason is and that they are as he called them…“Market Experts“. I went to their webpage and read that they have ” “Outstanding Investment managers with proven performance…” Great…it seems my colleague is correct. Sign me up and let the cash come rolling in…..
Well…I read on the internet more about Legg Mason and to my chagrin I read that Legg Mason Capital Management (LMCM) was the largest shareholder of Countrywide Financial (CFC), holding about 11.8% of the company’s shares outstanding as of December 31, 2007. Wow…interesting…In 2007, Countrywide Financial was being touted by some of the most successful money managers as a well-run company offering solid value for investment.In January 2008, Countrywide announced it had agreed to be acquired by Bank of America (BAC), with CFC shareholders receiving 0.1822 shares of BAC for each share of CFC. CFC shares traded over $40 per share a year earlier. The BAC offer valued them at under $8.
Outstanding and proven performance….I am sure they have many winners…but this was a big loser!
My point…there are no gurus…there are no market experts…
You need to focus on risk and money management. Have a plan. Trade your personality!