WCDF General Assembly

[MostFamousDane]

Ok just a quick update on how that went

- All the resolutions of the execute board were passed unanimously. Which means that the decision to forfeit Jan Mortimer stands. No sanctions against Jan.

- A committee to review the bidding process shall be formed.

- Gene Lindsays money shall not be spent but invested in a index range of shares and the divendends used.

[MostFamousDane]

- Gene Lindsays money shall not be spent but invested in a index range of shares and the divendens used.

Thanks for the update. Does this refer to a separate gift that Gene made to the WCDF, or to the entire fund? I ask because I know some was earmarked specifically for the ACF.

Only the WCDF part of the money - the money given to the ACF, EDA is up to them to spend

[Alex_Moiseyev]

but invested in a index range of shares and the divendens used.

Dividents or interest ?

[MostFamousDane]

If you invest in shares you don't get interest you get divends (http://en.wikipedia.org/wiki/Dividend)

[Ingo_Zachos]

You must be mistaken.
As far as I know only interest should be used.
I would not like the WCDF doing speculation with that money.

Greetinx from Dortmund at midnight,

Ingo Zachos

[MostFamousDane]

You must be msitaken.
As far as I know only interest should be used.
I would not like the WCDF doing speculation with that money.

Greetinx from Dortmund at midnight,

Ingo Zachos

Hi Ingo

No I'm not . If you buy shares you get dividends

And investing in index ranged shares is not speculation - that is only if you buy and sell individual shares for a profit. If you buy a lot of shares that you plan to keep over a long period it is not speculation it is just following the first page in investment for dummies .

[Ingo_Zachos]

Sune, I have made my diploma in economics on the CAPM and capital markets.
There is no such thing as a risk free investment in shares.

I know your investment banker tells you the opposite.
He is wrong and ask him why he demands a wage if he is really that good.
He can't make a profit on investment.

In theory and practice no one can beat the market and gain with shares.

Greetinx,

Ingo

[tommyc]

No investment is "risk free".....but what are the alternatives ? put it in the post-office!!

[liam stephens]

No, give it to Anglo Irish Bank.

[tommyc]

Madoff may take it??

[Ingo_Zachos]

Tommy, you are right most of the time.
But for now I beg your pardon.

You are wrong.

Ingo

[tommyc]

Well Ingo with yu degree................you know
its gota be put somewhere,so wats you suggestion as its not enuff just to stamp yur foot dig yur heels in throw the toys out of the pram,and say......im wrong??

[Alex_Moiseyev]

If you buy a lot of shares that you plan to keep over a long period it is not speculation it is just following the first page in investment for dummies .

ACF putted it's money into secured assets - CD's. It would be interesting to see how good is WCDF investment strategy.

As far a I know - today it's only gambling for normal, ordinary people and individual investors ... if you are not insider.

Good luck !

Alex

[MostFamousDane]

Sune, I have made my diploma in economics on the CAPM and capital markets.
Ingo

I also have a university level course in economics .

There is no such thing as a risk free investment in shares.
Ingo

True nothing is risk free - if you put the money in the bank the bank might go under. You have to make a reasonable assumption about risk. You cannot live your life risk free - in that case you can never leave your house . Again what we decided was to buy shares in all the companies in the index. Which effectively means that we spread our risk - we are not putting all our eggs in one basket. If all of these shares suddenly lose their value we probably all have more important things to worry about than the Gene Lindsay money like: do we have something to eat or what is the raditation level today.

I don't know how your pensions work in Germany but here in Denmark and also in the states - it is common practise to buy shares when your pension is many years in the future and the closer you get too your pension age more and more is converted into bonds. This is done because there is little risk in having shares if you plan to have them over a long period. Having a wide range of shares over a LONG period have historically always given better results than putting them into bonds or the bank. It is simply a question of liquidity the more need you have for liquidity the more money you should put in the bank or in bonds and we have no need for liquidity.

Just so we are clear we voted NOT to use the money which means that there is no need to sell the shares.

I know your investment banker tells you the opposite.
He is wrong and ask him why he demands a wage if he is really that good.
He can't make a profit on investment.

In theory and practice no one can beat the market and gain with shares.

Ingo

True if you give your money to an investment banker some of it is going to profit for him and usually few people beat the market in the long run (and if they do they are probably going to do it with their own money ). That is probably why nobody proposed that. Instead we just want the average of the market which historically have given higher returns than putting the money into bonds or the bank.

[MostFamousDane]

Finally if the WCDF doesn't have a trained finance professional doing the investing (I hope they do), then I hope whoever decides considers the tax implications that may be present. Jurisdiction treat the gains from investments differently. Interest payment may not be the same as dividends in some countries, thus may have different tax rates. All expected returns should be considered on an after tax basis.

Hi Josh

The finer details are of course left up to the executive committe. The decision of the GA is more on a principal level - like do we want to use the money or do we want to live off the "interest" etc.