# Masters of the Market, 2nd Edition



## KnightsTour (15 February 2012)

It has been more than half a decade since the 2nd Edition of Masters of the Market by Hughes, Wilson and Kidman was published. I have only just begun reading the book.

I was wondering if anybody who has read the book could reflect upon the accuracy of certain predictions made by the 'masters' and how their subsequent investments have fared.

For example, Peter Guy (one of the 'masters') made a significant investment in ABC Learning when it floated. At the time of the book's publication, Guy still held his shares in ABC Learning. Although he may well have pulled out of it by then, the same company fell into receivership in November 2008. Given he was a Buffett and Graham advocate (both investors who like concentrated investments and who prefer holding shares for extremely long periods of time), if Guy had kept his shares in ABC, he would have made significant losses.


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## tech/a (15 February 2012)

KnightsTour said:


> It has been more than half a decade since the 2nd Edition of Masters of the Market by Hughes, Wilson and Kidman was published. I have only just begun reading the book.
> 
> I was wondering if anybody who has read the book could reflect upon the accuracy of certain predictions made by the 'masters' and how their subsequent investments have fared.
> 
> For example, Peter Guy (one of the 'masters') made a significant investment in ABC Learning when it floated. At the time of the book's publication, Guy still held his shares in ABC Learning. Although he may well have pulled out of it by then, the same company fell into receivership in November 2008. Given he was a Buffett and Graham advocate (both investors who like concentrated investments and who prefer holding shares for extremely long periods of time), if Guy had kept his shares in ABC, he would have made significant losses.




He got it right
The company got it wrong.

If it wasn't for a signature on a document
Buffett was to sign to secure some credit default swaps
Buffett would today be billions poorer having purchased all of 
LONG TERM CAPITAL MANAGEMENTS portfolio.

Reading Masters won't ensure you'll emulate one


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## KnightsTour (15 February 2012)

tech/a said:


> He got it right
> The company got it wrong.



That's a good point. ABC Learning was a very sound investment when it was floated. I tried to find more information about Peter Guy's investments using Google, but couldn't find anything.

On second thought, I apologise for jumping to conclusions in my previous post. Given his thorough investment strategy, Guy would probably have been alert enough to sell all his ABC Learning shares once the company starting taking on aggressive levels of debt (since, according to Graham's principles, 'something fundamental in the business has changed').


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## tech/a (15 February 2012)

KnightsTour said:


> That's a good point. ABC Learning was a very sound investment when it was floated. I tried to find more information about Peter Guy's investments using Google, but couldn't find anything.
> 
> On second thought, I apologise for jumping to conclusions in my previous post. Given his thorough investment strategy, Guy would probably have been alert enough to sell all his ABC Learning shares once the company starting taking on aggressive levels of debt (since, according to Graham's principles, 'something fundamental in the business has changed').




It's very difficult to find someone that mere mortals can emulate.


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