update on fps, page-2

I think it is time for me to do an update on this stock. It is a bit embarrassed to say that despite I intended to hold this stock for a long time, I sold it when I realized I made a mistake, one would make all my work void because of its significance. I assumed that AUM will grow continuously. However, this is not what happened in the real world.

No matter how good the management, it is impossible to make money in this business without growth in AUM. I realized it quite a while ago and sold all my shares at a paper thin profit, which I am glad I did. If market continues to drop, shares in AM businesses like HHL, KAM and FPS will drop even faster because of its operating leverage. However, now it is time, as I said on HHL's board, to pay attention to those solid businesses and be ready to benefit from panic selling. I made the most money in 09-10 when I bought cheap stocks in 08 and it is my sincere hope that the market will be even more cooperating this time, that is, drop even further.