Saturday, August 21, 2010

Billionare Ken Fisher is buying, but his track record?

From: Mish's global economic analysis:
Ken Fisher says high levels of pessimism are a reason to buy stocks. Fisher, who oversees $35 billion from Woodside, California, said in an interview on “Bloomberg Surveillance” with Tom Keene. “My bias when pessimism is high is to own equities.”

In 2007, Mr Fisher said:
This is a time to own stocks. Here are some companies that will participate in the prosperous economy of 2007:

Home builder Pulte Homes - PHM
Toll Brothers - TOL
Beazer Homes - BZH


Look - Anyone can be wrong, but quite frankly that is absurdly wrong.
Pulte Homes was $34 then. It is $8 now.
Toll Brothers was $34 then. It is $16 now.
Beazer Homes was $44 then. It is $3.75 now.

Someone let me know if he ever issued a sell signal on those.

Regardless, Ken Fisher is consistently bullish. In fact he HAS to be bullish because you cannot manage $35 billion without being bullish. Ken Fisher's advice is designed to do one thing - make money for Ken Fisher.


My Notes: Readers know that I do not have a high opinion of investment bankers and super rich financial wizards. So, I am not surprised that Mr Fisher seems to make money only for himself.
Please vote in a poll that I have set up. Look at the right column whenere you will find the poll.


Sunil Malhotra said...

Anybody can be wrong at anytime. I have made money listening analysts after I am satisfied that it suits me for time horizon and target only then I go with that. After Satyam's failed bid to acquire Maytas Satyam was down to Rs.170 form 220 and Mitali had said anybody can get 200 from this stock and I had believed his call and researched it’s balance sheet etc. and found reasons to believe in her call and invested in 4500 shares. But lator Satyam's fraud was exposed and stock was down to Rs.10. I can not blame Mitali or any other analysts for loss. This was an exceptional case. This is normal for some % of analysts predictions going wrong there is nothing wrong with as one can not become god and always predict 100% correct.

Jeanette said...

Actually, Fisher has a great track record you can independently verify. There's a great new book on him from Forbes called "The Making of a Market Guru." Go to the Introduction and it's got a matrix with the performance history of his Forbes writings through the end of 2009. 2009 was terrific for him, but overall he beat the S&P 500 in 11 out of 14 years. That's a good record but I also like the integrity it shows in letting someone publish how you did each year in a mass market book, warts and all. I don't know Mish or his record. I think he writes for a blog

Jeanette said...

Mish is just pointing out a 3 year old column from someone else because he's been so wrong about stocks for the past year and a half and doesn't want you to focus on that.