I mostly agree with you here. A stock price of $1.17 makes no sense in the context of GQGs investment performance and FUM.
But $1.17 suggests the market is anticipating flattening or decreasing FUM and/or a decline in investment performance- what else can it mean ?
I thought I was smarter than the market buying MFG on the way down. What I didn’t fully appreciate was the extent to which market sentiment rules all else......to the point where the whole thing becomes self perpetuating. Once FUM starts departing there can be an irrational rush for the exits.....but I still ask myself ....all those $billions that were pulled out of Magellan - has it landed in a better place in terms of returns since ? The answer is academic - it’s gone and it ain’t coming back.
That’s why I would worry about piling in at $1.17 - I just don’t trust the market when it comes to this sector.
But I totally respect your views - things may be different for GQG and it may well prove great buying at these levels.
GQG Price at posting:
$1.17 Sentiment: None Disclosure: Not Held
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