having faith in MFG, page-30

Too many products, poor macro-analysis and often no obvious understanding of the stock market they were investing in, China for example. Fees too high, bad performance over the short, medium and long term in their flagship fund, a significantly lesser reputation of the fund manager, a weaker sales team, poor marketing. Greater expenses for revenue generated, more staff. Decreasing funds under management. Add to that and compare Magellan's smart acquisitions and more substantial marketing/teasing of new products.

From darling to dud sure, but not overnight. The performance of Magellan's fund and particularly Hamish's record in down-cycles has been consistently boom, he's been the most level headed in examining macro-trends in Australian fund management and since the inception of the company hasn't had a major blunder beyond certain stocks. Maybe after five years of horrible performance and under-performing the relevant index like Plat it'll be in the same position, but there's little evidence of that at this point.

Add to that and underline, simply one bad investment *cannot* turn the tide. Companies like Plat are brought down by fundamental flaws in approach and understanding of macro-trends, not one bad investment. The company didn't simply fall out of favour by chance, their long term track record was quite frankly, shit.

On the other hand, the prices here are undoubtedly beginning to become a little eye watering. Bernie's poll numbers should be starting to scare people a little more at this point too imo.