What I like about my blogger situation is that, while I don't get any pay, any recognition, any groupies, any privilege and so on... I however can say what I want about any stock and any fund manager. And I can be honest about what I do with my portfolio. I can say that I've done shitty things and say that, if I had any courage, I'd hara-kiri when I'm beaten by the market by 20%.
In this period of post-mortems about performance in 2020, we can read a bunch of letters from money managers.
This year again, I'm pretty upset to read that some managers that I respect are comparing their performance with some imaginary index. Tell me who can really be sure that any fucking made-up benchmark is reliable?
I don't give a fuck if you're 100% techno or 100% banks. Compare yourself to the market. Even if the market is not made of only banks or only tech companies. The market reflects the average performance that anybody should expect when investing on the market. That's all.
OK, now, let's take a look at some canadian funds. Let's remind that the S&P500 performance for 2020 has been 16%.
Giverny Capital (Quebec): 12,9% and they compare themselves to an abstract index that did 15%
Medici (Quebec): 11,9% and they compare themselves to an abstract index that did 10,8%
Barrage Capital (Quebec): 25,9% and they compare themselves to the S&P500
Donville Kent (Ontario): 22,4% they vaguely compare themselves to the S&P500
While I respect the first two funds and while I'd never give my money to the last two funds, I have to admit that these last two seem more honest to me. But maybe they're more honest because they beat the S&P500? Who fucking knows?
Let's think about the average investor who doesn't know anything about the market. All he wants is to make money without any effort. That guy just takes a look at the information given by the fund and, he's got it in the ass. Because he believes that his fund did better than the made-up index that did 3% (while the S&P500 did 15%).
I know that a fund manager may say that some stock he holds isn't represented on the S&P500, so he should take another part of another index and blah blah blah. But I don't care. Once you've started manipulating multiple indexes, you make it more and more opaque.