MFG Fair Value, page-91

I don't mean that in a bad way by the way. And I completely subscribe to the Buffett philosophy of "be greedy when others are fearful" but that really applies when you have a great business with the financial and intellectual strength to turn itself around.

Let's think back to examples like Woolworths. It screwed up with Masters and lost sight of groceries and its SP was in the doldrums. Woolworths had a clear strategy of getting out of Masters and reinvesting back into providing good pricing on its groceries and it turned itself around.

Or CommBank - which was being hit with one piece of bad news after the other (AUSTRAC, financial advice scams etc. etc.), but we all knew that this bank always hires great CEOs and its fortress balance sheet would see it through tough times. All the while it was investing in technology to become the retail bank of choice and win the home loan wars.

The point is these companies had good reasons for a turnaround.

What can Magellan possibly do from here? Once you're this far behind the benchmark and you've restructured your portfolio into slow-growth companies, there is no coming back.