There used to be a Coffee-Con fund manager who was really good at marketing & selling stories.
He went on to heights telling retail investors to Buy At Any Price (BAAP) irrespective of valuations. For him valuation is for suckers.
He only bought high PE stocks.
You wouldn’t find a single digit PE stock in his portfolio.
What next. A disaster was bound to happen when you don’t follow the fundamentals.
Today I read that 2 of his 4 funds are in the lowest bandwidth of total 300 PMS. Underperformance so pathetic, that the fund has posted a CAGR of 0.02% in last 2 years. In this bull market. See underperformance is normal. But this level of underperformance is simply unacceptable when public have trusted you with thousands of crores rupees.
Another fund of the same fund manager, so called compounders which as per them should have been consistent, failed consistently, to deliver just 8% CAGR in last 3 years.
The market’s told the truth. You can write all the books (or ghostwrite for a better word), appear in hundreds of podcasts, be a star panelist on various investing forums & talk nonsense statistics day in & out; but you won’t make money if you don’t care for valuations. As. Simple. As. That.
The verdict is clear. Coffee-Con fund manager is the… later one. Did someone say, snake oil salesman?
