April 24, 2008
Deferred Outperformance
Legg Mason Value Trust Letter to Shareholders: First Quarter 2008
“For investors who are trend followers, or theme driven, or who primarily build portfolios around forecasts, or who employ momentum strategies, price is dispositive. When they do badly, it is because prices moved in a direction different from what they thought. For value investors, price is one thing, and value is another. When prices move against us, it usually means that the gap between price and value is growing, and our future expected rates of return are higher.”
Try using that “deferred outperformance” line when you have a two-year track record, lol. To everyone I buried in my Ten Favorite Financial Stocks, don’t worry, our outperformance has just been deferred.
Cat: | Time: 10:34 am (utc+8)
April 24th, 2008 at 10:48 am
I sent Bill Miller a check after the birth of my near 4 year old. At this point his college fund would have been better off in a Series EE Savings bond. I don’t know what deferred value he is going to get out of his Bear Stearns position at this point.
April 24th, 2008 at 11:37 am
miket: Direct all future checks to the Chairman instead (beer fund).
Miller is holding a bunch of dogs at the moment, but it’s OK because he’s scouring the latest scientific research in an effort to improve results!
April 24th, 2008 at 5:41 pm
In the end every investing or trading approach can be reduced to a bet. Has Miller anything to say about the timeframe of his convergence bet :-)?
Cheers,
Markus