Who won the Piper and pizza2007 debate
- Thread starter pizzatime
- Start date
Pakula_s_Pizza
New member
This is ridiculous. Can someone lock this.
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NicksPizza
New member
what did I miss? Someone PM me please?
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LOL… I somehow missed this thread until today. Since I was the culprit, I will fill you in on what happened. It really wasn’t that dramatic!
I posted a thread about a new Exchange Traded Fund that is designed to track the price of corn. My contention was that us pizza operators could potentially use it to hedge our cheese prices. You buy the fund, and if the correlation is good it will go up in price along with cheese and vice versa. When cheese prices rise, you make money on the fund (offsetting your increased cheese expenses.) When they decline, you lose money on the fund (but make it up on your reduced cheese expenses.)
Pizza2007 posted that the only people that make money on funds are fund managers. My response to that was that we were talking about an ETF, not a mutual fund, and if you’re using it to hedge the 1% management fee wouldn’t much matter anyway; it’s the cost of the hedge. I then lit the fire by stating even the contention that only fund managers make money on mutual funds was completely incorrect.
Trying to lend some credence to what I was trying to say, I pointed out that I have a lot of formal training in the field - and in fact used to do things like that for a living before getting in the pizza business. Pizza2007’s contention was that Bernie Madoff was trained in finance too. I refrained from pointing out that Mr. Madoff’s degree is in Political Science (Go figure!) I was just trying to provide something valuable to the board that falls in my area of expertise.
Pizza2007 asked me to provide one example of a fund that I have turned a profit off of, in my mind implying that no mutual fund has ever turned a long term profit. Being that there are about 10,000 mutual funds in the U.S. alone, with over $26 trillion invested in them, with thousands and thousands of them sitting on good 10-year returns, I didn’t think it was worth arguing about. Beyond that, I still wasn’t even referring to a mutual fund in my original post, I was referring to an ETF - there’s a major difference. It was about to veer wildly off-topic and I bowed out before it got ugly.
In retrospect, perhaps Pizza2007 was arguing that managed funds underperform the market and an investor would just be better off buying an index fund. I don’t disagree with that.
There was another thread a while back where I posted some factual information (as in the current law in my state) regarding uniforms. Pizza2007 quickly denounced it as “BS”. I suppose that shortened my fuse for this time around.
No hard feelings Pizza2007, we’ll just agree to disagree
I posted a thread about a new Exchange Traded Fund that is designed to track the price of corn. My contention was that us pizza operators could potentially use it to hedge our cheese prices. You buy the fund, and if the correlation is good it will go up in price along with cheese and vice versa. When cheese prices rise, you make money on the fund (offsetting your increased cheese expenses.) When they decline, you lose money on the fund (but make it up on your reduced cheese expenses.)
Pizza2007 posted that the only people that make money on funds are fund managers. My response to that was that we were talking about an ETF, not a mutual fund, and if you’re using it to hedge the 1% management fee wouldn’t much matter anyway; it’s the cost of the hedge. I then lit the fire by stating even the contention that only fund managers make money on mutual funds was completely incorrect.
Trying to lend some credence to what I was trying to say, I pointed out that I have a lot of formal training in the field - and in fact used to do things like that for a living before getting in the pizza business. Pizza2007’s contention was that Bernie Madoff was trained in finance too. I refrained from pointing out that Mr. Madoff’s degree is in Political Science (Go figure!) I was just trying to provide something valuable to the board that falls in my area of expertise.
Pizza2007 asked me to provide one example of a fund that I have turned a profit off of, in my mind implying that no mutual fund has ever turned a long term profit. Being that there are about 10,000 mutual funds in the U.S. alone, with over $26 trillion invested in them, with thousands and thousands of them sitting on good 10-year returns, I didn’t think it was worth arguing about. Beyond that, I still wasn’t even referring to a mutual fund in my original post, I was referring to an ETF - there’s a major difference. It was about to veer wildly off-topic and I bowed out before it got ugly.
In retrospect, perhaps Pizza2007 was arguing that managed funds underperform the market and an investor would just be better off buying an index fund. I don’t disagree with that.
There was another thread a while back where I posted some factual information (as in the current law in my state) regarding uniforms. Pizza2007 quickly denounced it as “BS”. I suppose that shortened my fuse for this time around.
No hard feelings Pizza2007, we’ll just agree to disagree
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