l disagree totally with the comments of this poster.
Magellan reducing risk, in a risky 1 in 100 year event situation, lost clients nothing. They merely did not participate in a most extraordinary abberation of global economic irresponsibility that saw asset prices rise to unsustainable heights, rather than deal with the reality that the world's borrowing excesses come at a price. Opportunity cost as a measure of returns is the game often played by losers rarely by doers
As for Warren, he is an active manager. He made his fortune for himself and others by buying assets at less than their underlying value. That will NEVER happen in a passive fund.
Warren simply believes there are not many as good as him so he recommends index funds. He is rare, but not one of a kind.
I have no clearer view if future asset prices than any one else. I will back my judgement that most investors will be crushed within the next 3 years deluding themselves that asset prices are not extremely extended.
ln this context, Magellan like many other successful investors, will protect capital when return of capital will trump return on capital.
No one gas a crystal ball, but I find little value in criticisms that come from the gallery of 20/20 hindsight.
l can absolutely assure most investors the path to success is built on making money, then not losing.
MFG Price at posting:
$29.36 Sentiment: Buy Disclosure: Held
(20min delay)