Ann: Weekly NTA Update, page-8

It isn't a justification, but don't forget many LIC's, not just VGI, are in the same boat of underperformance. I'm going to assume that Luciano, those at RF1, et al. are professional and intelligent investors. Combining the intelligence and research of the two firms is an advantage. What that advantage is will likely not be simple multiplication or addition but rather some other improper faction.

I don't necessarily agree that RF1 would be unhappy with the VG1 holdings except for perhaps Pinterest since I felt it risky to hold from $80. There is some value now but why he held all the way down was beyond me. I would certainly like to see small holdings in the EV theme since this is the next big thing. High petrol prices, it is so obvious what happens next. Rob would attract investment in his fund if he had the skills to pick good stocks in this area. Every car I have ever owned has been in the <55k bracket with the most recent being $30k 5 years ago. I just paid $110k for a new EV and I couldn't care about the price because I just don't want the hassle of petrol anymore.

@cutty you mention that investment philosophy isn't working and I do agree but have you ever wondered when you change lines at the supermarket checkout that the outcome was not too different and sometimes the outcome is worse and almost always is never better? I think the same reasoning applies here to investment philosophy. Yes, the performance is just awful and well under the advertised rate of return but what happens if they change investment philosophy and the NTA collapses further? Then it really would be game over for all of us. Best to stick to the plan as the time now is wrong to change.

The big question is why does the market not see the same value these professionals see? As I said I like most of the holdings for the long term. Hard to see them fail even though they have sold downward for months on end. I once saw a paper put out by VGI partners on a short holding and I was reasonably impressed by the level of research/intelligence. If Rob actually wanted to improve the NTA all he needs to do is to sell the idea of why he holds the stocks he holds or why he sold the stocks he sold. I feel he never does this effectively in his monthly newsletters. Occasionally we get more detailed information but it is still just a bit shy on reason and analysis. To be a good investment manager you need to be a great researcher and also an effective salesman. Going quiet isn't a good idea. Perhaps he just wants to let the NTA fall and then buy everything for himself. Could this be stage 2 of doing over the retail investor with stage one the high fees? At some point, there may be panic though I hope it does not get to this.

We go XD today and yes I topped up in the last few days. A lot of the advertised long holdings had a good run overnight so we should see a stable share price or perhaps selling again. Hard to see it rising today being XD.