At the facebook's "Investing for the Long Term" forum to discuss Bob Brinker, Runner Twentysix said:
Runner Twentysix replied to Honey's post on June 18, 2009 at 12:03pm
I wonder if anyone ran out and bought CA GO's after Brinker, over the past month said there was not chance of the Federal Gov. letting CA go bankrupt. Remember how he said that if CA went bankrupt, there would be no Highway Patrol! There is no chance of that he SHOUTED. If anyone followed his advice and bought, and then heard this weekends show, they have to feel that old Bob just blindsided them. And maybe they loaded up because Bob never mentioned the 1% bond rule before, only his no more than 5% in one stock. It is obvious that he just makes this stuff up as he goes.George Johnson replied to Runner's post on June 18, 2009 at 6:06pm:
That's why I don't listen to him. Even though he may have some good and wise investment advice, how can you trust a snake oil salesman?Unlike Brinker, I sold my CA GO bonds as soon as California ran into budget trouble back in 2008. I think Brinker takes too much risk with his fixed income portfolios. Brinker's fixed income results for 2008 were horrible as all four of his "fixed income only" model portfolios lost money while the Total Bond Fund at Vanguard gained 5.1%!
Bob Brinker's 2008 Fixed Income Performance
Every six months, major investment newsletter tracker Mark Hulbert publishes a performance summary for the large investment letters he follows. From "The Hulbert Financial Digest January 2009 Long-term Performance Ratings" Mark lists for last year, 2008:
- Brinker's "fixed income advisor" model portfolio #1 lost 21.7%
- Brinker's "fixed income advisor" model portfolio #2 lost 11.5%
- Brinker's "fixed income advisor" model portfolio #3 lost 5.2%
- Brinker's "Fixed income only" portfolio in “Marketimer” lost 2.1%
Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 104% (over a double!) vs. the S&P500 DOWN 11% vs. NASDAQ down 17% vs. Warren Buffett's Berkshire Hathaway (BRKA) ONLY up 24% (All through
Does Bob Brinker Pay Attention to President Obama?
In past months, Brinker surprised me by saying he still liked CA GO bonds because they were by law second in line to be paid from CA revenue after teacher salaries. I thought this was odd to say given President Obama was at the same time attacking Chrysler bond investors, including retired teachers, as speculators when they objected to giving union employees Chrysler assets that they were legally entitled to. My thinking was if President Obama thought it was OK to take assets legally due Chrysler bond investors to give to powerful auto unions, then he would have no problem taking assets due CA GO bond holders to pay salaries of powerful California public employee unions. I am sure there are far more voters working for California than investing it its bonds.
Doubled Money in a Down Market!
Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 104% (over a double!) vs. the S&P500 DOWN 11% vs. NASDAQ down 17% vs. Warren Buffett's Berkshire Hathaway (BRKA) up 24% (All through
vs. DJIA DOWN 2.7%
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