Liquid Millionaire, drying up?

[sigmund1]

never count your chickens

Glen, an ISACO client back in 2008 had some good luck and wanted to share it.

“WOW...Just letting you know ISA and SIPP at new highs...so far your healthy call has been spot on!...one of the funds I chose is up 8.5% Jupiter Managers European Opportunities”.

Cue the cheerleaders...Go Glen, Go Glen!

Unfortunately for Glen his euphoria was a tad premature and just a few short weeks later the markets started to really tank south in a big big way....wiping some 50% off of the price.

Is this what’s called irrational exuberance, first the pleasure then the pain.

We know that the markets recovered as they always do, but what about Glen did he recover!

Glens healthy call was 25 APRIL 2008...page 187 LM.

That’s a bit like going to the beach just before the Tsunami hits or being told, it’s safe to go back in (twin towers)

So, Brother Stephen got his clients out the market 8 months to soon and got them back in right in the middle of credit crunch...ouch, that's gotta hurt!

But what about the Jupiter Fund...since the 2009 bottom it has been well and truly done over by the SP Index.

Our Nan say’s they all sound like a bunch of Wally’s.

Paul, our Nan also say’s...WHERE’S THE AUDIT?

 

[sigmund1]

cowboys

Our Nan was on her lap top, she took a mooch at ISACO's web site.

She noticed that when Brother Stephen compares ISACO'S performance to the FTSE100 he's left out the FTSE Dividends.

Our Nan says, if you don't include the Dividends it makes you like a bunch of Cowboys!

I showed our Nan page 3, LM book, Quote..."In Maths I remember getting an F"

Our Nan wonders what he got in Common Sense!

 

[sigmund1]

Buffett's Million Dollar Challenge

Guru Stephen say's..."you do not need to buy index tracker funds because it is possible to beat the index's if you know what your doing". (page 1. LM)

Warren Buffett say's... "my advice is simple, just buy a low cost SP500 Index Tracker"

My question is, why didn't the Guru Brothers take Buffetts Challenge?

Our Nan say's, "that's obvious"

Our Nan also says to remind you, WHERE'S THE AUDIT?

 

[sigmund1]

know all, know nothing.

"There's nothing wrong with a Know Nothing Investor who realizes it.
The problem is when you are a Know Nothing Investor but think you know something"...Warren Buffett.

"Because of my absolute certainty and belief in my abilities, I decided to bet the ranch"...Brother Stephen...page 10, LM.

"I blame the parents"...our Nan.

Brother Paul...where's the AUDIT?...Our Nan.

 

[sigmund1]

sounds like a waste

Page 14 Liquid Million...Brother Stephen writes “Many people want to know how many hours I have put into learning my craft. Since 1999 my estimate is over 20,000 hours and of course this number keeps increasing week on week.”

Found on ISACO’s web site their Long Term Performance record over 18 years is 121%.

Our Nan says, Sounds like a waste of 20,000 hours when an SP500 tracker returned around 30% more!

 

[sigmund1]

oh no,not again

Recall my message 16...the Brothers Sutherland belong to the Church of William O'Neil.

Not happy with the original CANSLIM Fund's performance...who would be?

We now find another CANSLIM Fund, for those who are interested it's called FFTY.

They tell us it's an ETF and it comprises of the Top 50 Strongest stocks that make the CANSLIM formula.

Well, that has to be good news...doesn't it?

Well not quiet...oh Double Pooh Sticks!

Since inception this Super Duper ETF Fund hasn't exactly out performed.

To be honest, it's a dog. Woof, Woof.

Will this ETF go the same way as the original fund?

Our Nan say's she not holding her breath!

ps, where's the AUDIT?

 

[sigmund1]

you must be kidding

Page 154, How To Make Money In...

We find Brother Stephen explaining, "How to Spot Market Tops".

Really, Brother Stephen, you need to take a reality check.

You must have forgot how well you timed the 2007 market top.

Recap, you advised your clients to EXIT 8 FULL MONTHS BEFORE THE TOP IN OCTOBER!

You advised your clients to get back in, March 2008 just in time to catch the markets worldwide falling off a cliff.

Seems to anyone with more than 2 brain cells that you can't spot market tops or bottoms.

Our Nan thinks you could'nt spot a fly on the end of your nose.

And where's that AUDIT.

 

[sigmund1]

Reality Check 2

This just gets weirder and weirder, even I am having trouble believing what I am reading in the Sutherland’s book's and I went to spec savers!

Page 84, How to Make Money In ISA ‘s etc etc

“Our aim is to help our clients beat the NASDAQ COMPOSITE”.

Now hold that thought.

Page 14, same book...

”My Best Year was 2009, when I returned 56.4%”

REALITY CHECK...

Nasdaq Composite returned 57% during 2009.

The QQQ’S returned 65.87%. 2009.

Even your best year you failed to beat the Index's.

Looks like the Index’s gave you a thick ear again.

Remind me, what is it you have to offer?

Oh do prey tell.

Our Nan say’s it about time you pair got a proper job and where’s that bloody AUDIT.

 

[sigmund1]

read em and weep

I've got this charting programme, it's got this thingy on it that when I hover the mouse over a date, left click, hold down and drag, it tells me what the percentage change on the price chart is...Don't know about you but I think that's proper cleaver!

So I did just that on a chart of the SP500, Nasdaq Comp and the DJI.

My start date was December 31 1997 and my end date was 31 December 2015.

Good grief, what a coincidence, just happens to be the exact dates anyone can find on ISACO's web site under their long term performance record.

According to ISACO, their long term TOTAL RETURN WITH DIVIDENS between these two dates is 121%.

I can tell you, I was dead impressed and no kidding either!

But wait a minute, my percentage draggy mouse toolbar icon thingy tells me that the...

DJI returned 140%...SP500 returned 133%...Nasdaq Comp returned 253%.

I tell you, I nearly fell out of my seat, but what nearly gave me a tachycardia episode was that my chart % did NOT INCLUDE DIVIDENDS, unlike ISACO's return.

The Index's simply out performed ISACO's performance and without including dividends.

Our Nan say's...does ISACO come with a wealth warning?

And where's that bloody AUDIT?

 

[sigmund1]

Warren Buffett

A passively-managed investment strategy will deliver better results in the long-run than those achieved by most investors – whether individual or institutional – who use high-fee active managers....Warren Buffett.

Our Nan say's could you remeind her how much you charge per year for your Fund Tipping service?

And where's that ruddy Audit.

 

[sigmund1]

I like it

I'm having a lot of fun with my click and drag, pointy icon percentage calculator thingy.

And guess what, I just couldn't resist it.

I know I've done it before on ISACO'S 18 year performance record and boy was that crap.

So I was wondering if the Brother's Paul and Stephen were having better luck on shorter time periods.

Both the brovers are very obliging because on their web site they tell us their 7 year performance record ending December 31, 2015 was, wait for it...drum roll, marching band, ring the church bells, ticker tape, light the fires...11.5% pa.

Crickey, I can hardly contain myself, where's the gents?

Anyway, my percentage calculator thingy tells me that the...

Nasdaq Comp returned 18% pa and the SP500 returned 13.9% pa for exactly the same time period.

Bloody heck, the PASSIVES HAVE OUTPERFORMED THE AGGRESSIVE BROTHERS AGAIN.

Long term, short term the brothers just can't keep up.

I tell you I'm really gutted for them.

Our Nan's baking a chocolate cake and say's she can't be bothered with that pair of silly bolloks today!

 

[sigmund1]

Brother Stephen uses William O’Neil’s method called MARKET PULSE and the BIG PICTURE to judge the “MARKETS HEALTH”. But how accurate is this method?

Crystal Bull, Pragmatic Trader, Thomas Bulkowski and Stock Checklist have all independently tested this method and all have one thing in common when it comes to accuracy...IT DOSEN'T WORK!

Crystal Bull has an in depth look on their web site of the 2007 Bull Market Top and IBD's real time market calls as the Credit Crunch Crash unfolded.

IBD got it wrong time and time again.

This was the real reason Brother Stephen ended up costing his clients a 45% loss.

Our Nan say's you two are just a couple of Lurkers and need to grow a pair. AUDIT!

 

[sigmund1]

4.5% return long term, pathetic.

BIG NUMBERS alway's look better than small numbers, that's why Brother Stephen uses BIG NUMBERS with his long term performance record.

So I decided to pop the wart and take a closer look.

ISACO report a 121% total return over 18 years ending December 31, 2015.

So how does that look on an ANNUAL BASIS?

According to the Calculator Web Site it works out around 4.43%.

Yep, that's 4.43% per year.

NASDAQ returned around 7.2% without dividends.

"It's all about results. You want to be teamed up with someone who can deliver the goods year in, year out". Say's Brother Stephen on page 113 Liquid Millionaire.

Our Nan say's, pity they can't do what they think they can do!... and that they remind her of that old Monkey's song...Day Dream Believer.

And where's that AUDIT?

 

[sigmund1]

4.5%, flaming pathetic.

I mean, let's face it, 4.5% pa return over 18 years is pretty rubbish. No it's worse than pretty rubbish, it's flaming pathetic!

Our Nan said that's CASH ISA.

What makes it worse, is that the Brother Sutherland's, on ISACO'S web site state that they aim for 8%-10% annual return.

They wrote that knowing full well they can only produce half that amount!

What, the Sutherland's think, for some reason they can get twice as better, somehow produce out of thin air twice the return...What a pair of silly bollox's.

They been watching too much Paul Daniels. Personally, I was more interested in Debbie MaGee.

I wonder what their clients make of all this, you know all those Plonker's that had their pictures printed in the back of Liquid Millionaire Book.

£3000 a year to get rubbish returns. You've all been had-over!

Maybe I could sell them something...I've got a bridge in London they might be interested in...great views, good price, only a few grand.

 

[sigmund1]

10% is better than 4.5%

Makes me wonder just what sort of person would invest with the likes of ISACO?

The book, Investing for Dummies seems to come to mind, or how about Investing for Morons...Investing for No-Hopers...Investing for Silly Bolloxs...Investing for Numb-Nuts. Investing for Those who Demand a Low Return.

Below, an article I tripped over, courtesy Moneystepper web site.

"I just want to summarize where that 10% return figure comes from as many people may have heard it (or similar figures) quoted, but not seen the backing support.

At Moneystepper, we use the figure based on the average return of major UK and US indices over the past 30-50 years.

• FTSE 100 at 6.1% per annum over 31 years plus dividends of around 3% per annum gives around 9%

• FTSE 250 at 8.3% per annum over 29 years plus dividends of just over 2% per annum gives around 10.5%

• Dow Jones Industrial Average at 9.3% per annum over 30 years plus dividends of just over 2% per annum gives around 11.5%

• S&P 500 at 7.6% per annum over 65 years plus dividends of just over 3% per annum gives around 11%

An average of all the above gives around 10% per annum average returns in the long term".

Our Nan says, 4.5%, their clients must be feeling quiet sick about now and where's that AUDIT you pair of Lurkers.

 

[sigmund1]

WHERE'S the AUDIT?

From the previous thread started by cliff back in 2011.

Paul Sutherland replied...

"After consulting with our finance director, and in the interest of our clients, prospects and future clients we feel it would be best that if we were to officially audit Stephen’s ISA Stocks and Shares ISA account, it would be best conducted by one of the four largest accountancy companies in the UK. The result of this would be a completely unbiased and transparent audit. I will be signing off now as I feel we have covered all the points brought up".

Please post future comments and questions to my personal email account paul (at) ISACO.co.uk
Also as I’ve mentioned on quite a few occasions now, if you prefer please feel free to call me on 0870 757 8554.

OK, 5 YEARS LATER WE ARE STILL WAITING FOR THAT AUDIT!

Clue...an audit looks like a long row of numbers detailing end of year profits and loss's...some audits even have monthly columns.

So, like your promise above, when are we going to see that "UNBIASED AND TRANSPARENT AUDIT" ???

 

[sigmund1]

talking out there arses!

What does John Bogel and Warren Buffet have in common, answer, they're both opposed to aggressive investing.

Crickey, does that mean, they think the likes of Brothers Sutherland are talking out their arses...you got it one!

An additional myth that is busted by both Vanguard and Standard and Poor’s is the notion that actively managed funds tend to outperform in bear markets because active managers can move into cash or rotate into defensive securities to mitigate the downturn. As the authors of the Vanguard study observe, “In reality, the probability that these managers will move fund assets to defensive stocks or cash at just the right time is very low.” In four of seven bear markets since January 1973, the average active fund did not outperform the index.
The Case for Index-Fund Investing1 from Vanguard Research. As with the Standard and Poor’s Index versus Active (SPIVA) Scorecard2, the conclusions reached are:

1) The average actively managed fund has underperformed its benchmark, and the extent of underperformance increases directly with the length of the evaluated time period. There are no “inefficient” market segments where active funds have an advantage.

2) The performance gap worsens once “survivorship bias” is taken into account (i.e., once the performance of terminated funds is included).

3) Persistence of performance among past winners is no more predictable than a flip of a coin.

 

[sigmund1]

What a load of drivel

The Brothers Sutherland just keep on, keeping on...with DRIVEL!

I copied the below direct from their web site.

Seems the Brothers are really pround of their LONG TERM UNDERPERFORMANCE RECORD. 4.5% PER ANNUM.

They can't even present the facts without making mistakes (that might have something to do with an F in Maths)

Brother Stephen's first mistake...he forgot to include DIVIDENDS in FTSE calculations.

Brother Stephen, REALLY, FYI, that makes the FTSE 8.9% LONG TERM.

Brother Stephen, just to remind you...ISACO only managed 4.5%. LONG TERM.

Are they both really that thick?


What is your investment track record?..."We are extremely proud of our long, medium and short term ‘market beating’ performance. The FTSE 100, our benchmark, has annualised 5.9% since its inception 32 years ago1. That tells us that if we can beat the FTSE 100 over the long term, we’re going to be blessed with a reasonable rate of return".

 

[sigmund1]

How to Look Good

How to look good? ...Use the Brothers Paul and Stephen method.

It's easy, just pick one of the worst performing Index's and say...look everybody...we can beat it.

Bloody amazing, why doesn't every one do that?

Answer, cos they don't want to look like a bunch of dodgy cowboy's.

But for the Cowboy Brothers it's the newly adopted FTSE 100, an Index, that even Stevie Wonder could see has been under performing since Queen Victoria's time.

Newly adopted, yes.

Strangely, there is no mention of the FTSE100 in Liquid Millionaire book, not one mention, no where, none, nada, zilch, zero!

But what is mentioned, oh yea, the Nasdaq, the Nasdaq is the bench mark back then.

There are dozens of references to the Nasdaq....we aim to beat the Nasdaq...Beat the Nasdaq over the long term...What you now know is that the system my clients and I use is capable of beating the Nasdaq, p97.

It just goes on and on and on.

OK, we got it...the benchmark is the Nasdaq.

Well, it was back in 2007.

But why did the Cowboy Brothers change the benchmark?

You guessed it...because they started to UNDER PERFORM THE NASDAQ.

I wonder where the Cowboy Brothers will go when the FTSE starts to out perform their fund picking method?

 

[sigmund1]

Spiva

What is SPIVA?

SPIVA is what garlic is to Vampires. Silver Bullets to Werwolves.

It's a web site dedicated to comparing ACTIVE MANAGED FUNDS v THEIR RESPECTIVE BENCHMARK.

I doubt very much that Brother Paul and Brother Stephen have heard of this web site and even if they have I doubt they could understand it anyway!

Recall, they got an F in maths. page 3 Liquid Millionaire.

But what is certain is that SPIVA is a double massive pain in the arrse for ACTIVE FUND MANAGERS like the Sutherland's.

The reason, SPIVA simply tracks the performance of active funds and it aint a pretty sight.

"According to the S&P Persistence Scorecard, relatively few funds can consistently stay at the top. Out of 641 domestic equity funds that were in the top quartile as of March 2014, only 7.33% managed to stay in the top quartile at the end of March 2016. Furthermore, 8.5% of the large-cap funds, 3.26% of the mid-cap funds, and 0.68% of the small-cap funds remained in the top quartile".