MFG Fair Value, page-42

My companies are rock solid and have continued to increase their dividends through COVID and high inflation because they have structural advantages, brand strength, significant cash balances, and excellent management teams. Microsoft, Costco, Visa, Apple, Macquarie, etc. They ain't going anywhere. That's just stocks - my rentals are spitting out more cash than ever.

The issue here is not that the funds management industry is cyclical, that has nothing to do with it. It's that this business is badly run and put all its bets on one business line (global equities). What were they doing all these years? Just launching more global equity products, a global high conviction trust, and a global income fund. Instead, they should have been building or buying capabilities in things like private equity, unlisted infrastructure, small caps, etc. like Macquarie did so that if one strategy underperforms, there are many others doing well and earning sticky fees.