Dod101 wrote:But as we have already agreed that was not Woodford's problem with WEIF. It was simply one of liquidity. When I say 'simply' that it is what it is, a simple fundamental issue. Borrow short and lend long and you are asking for trouble, however rosy things may look.
No, I don't think it was just a liquidity issue. Sure, that is what has caused him to have to close the doors but if you look at the holdings there are some serious dogs that he held onto like grim death even when the investment thesis changed and he should have sold i.e. RM2 International, Purplebricks, Utilitywise, Kier Group, the list goes on, and that's without the ridiculous decision to "double down" on the total dog that is Provident Financial.
Not only was his stockpicking rubbish, but he was clearly unable to spot when he'd made a mistake, be honest with himself, and sell out of positions. That's the behaviour of either an absolute novice investor, or someone who truly believes he is a master of the universe who can do no wrong. That may have worked big time for him in 2007-08 but it will not work in general. That's what he's now discovering along with his all you can eat humble pie buffet...
All the best, Si