Hi guys,
Thanks for the posts. It seems to me these Pharma companies will not win as sma3 said. It will turn everything upside down and cause chaos for years to come. I mean someone has to set prices for drugs.....so why not the biggest user, Medicare? They seem to have the right since they pay the most bills in the country. All you see on TV nowadays are commercials about drugs. So I think everybody is making money. And with elections coming, this should get lots of playtime all over the country. But if I remember.....they were only going to start with the 10 to 12 most widely used drugs first, and add some every year. So this will take time. This story could go on for years.
So, coming back.....I'm not sure what to do. Have owned these funds for years. Maybe hold tight for awhile and see how things go. All the talking heads are recommending it.....lol.
God bless
the Pudd
p.s.,
Crash +1

May have been a problem with Google’s pricing Friday. One of my tracking apps uses Yahoo pricing and one uses Google.
Same CEF’s closing price + change on Friday:
Google pricing $3.83 +1.32%
Yahoo pricing $3.79 +.26%
M*, M/W, & Fido all have the lower price which is obviously correct. The tracker using Google is still incorrect.
Also, something I’ve noticed with funds that pay very large / frequent dividends is the linear charts or graphs may display only the actual price change over time, leading you to interpret that (incorrectly) as total gain or loss. M* gives (or attempts to) the actual gain or loss with dividends factored in. So, on a Google price chart the fund may appear to have lost $$ over several months, while at M* with dividends factored in it may show a substantial gain over that time as the dividends more than offset the decline in share price.
Honestly, I’m amazed at how much is available free at M* (albeit not always accurate). I have better luck (better access) at M* when I login using the DuckGo browser than with some other ones.

Morningstar Legacy Portf. Mngr:
I can still see it. I got it back after trying a couple of steps, a week or so ago. As was mentioned here at MFO, apparently, M* was doing something internally, and I was involuntarily logged out. On a logged-out basis, the default switched to the "Investor" flavor. I much prefer Legacy to the "new and improved" "Investor" version.
But bear in mind, everyone: numbers at M* get updated when they feel like doing it. And it must be asked, whether or not the updates are even accurate.
Example:
In X-Ray, I'm looking at some ridiculous discrepancies, when compared to the chart display:
X-Ray says BHB is down YTD by -25.16%. The chart shows -15.54.
NHYDY X-Ray = down -16.41. Chart shows -15.37.
ET on X-Ray: +13%. But the chart shows +11.63.
PSTL on X-Ray: +4.1. Chart says +3.23.
When M* actually offers ACCURATE info, it is extremely useful. But it's a hit or miss proposition.
And I did not check to compare FUNDS in the same way.

There are many imperfections/flaws that have existed for years and years with M*. Their "evaluations", star ratings, categorization, etc. became virtually useless to me. About the only things I found useful were their data on funds, and their portfolio watchlists, where I could compare selected funds using selected data measures. I focused on TR performance measures, and risk management measures. I was only interested funds that met my "momentum" criteria, with a risk adjusted measure I chose. When M* quits allowing the free access to the watchlists and data components, it appers I will be forced to consider paying them a subscription fee, which I have NOT done in years--I have not decided i I think it is worth paying them a subscription fee with the many warts that exist with M*.

See current Barron's for a feature on pharma (just 1 segment of healthcare), LINK1 LINK2
The PHARMA industry (MRK, JNJ, BMY, ALPMY, etc) is launching legal wars against Medicare/CMS on its new DRUG PRICING negotiation authority. The pharma industry is hoping to delay, slow or reverse the implementation by winning a national injunction in SOME court and then eventually fighting it before the SUPREMES. The US Chamber of Commerce has also asked a federal court for injunction against Medicare/CMS. CONGRESS passed the related law as part of the Inflation Reduction Act, and since then, the pharma index has lagged. (The current system is that private PBMs and healthcare systems negotiate drug prices, and then the Medicare/CMS just goes along. This system was seriously broken by Biogen’s/BIIB greedy pricing of its 1st Alzheimer drug that was approved by the FDA. Eventually, that drug failed in the marketplace due to resistance from Medicare/CMS. Biogen’s 2nd Alzheimer drug has done better.)

Big Pharma pig-farts.

Morningstar Legacy Portf. Mngr:
I can still see it. I got it back after trying a couple of steps, a week or so ago. As was mentioned here at MFO, apparently, M* was doing something internally, and I was involuntarily logged out. On a logged-out basis, the default switched to the "Investor" flavor. I much prefer Legacy to the "new and improved" "Investor" version.
But bear in mind, everyone: numbers at M* get updated when they feel like doing it. And it must be asked, whether or not the updates are even accurate.
Example:
In X-Ray, I'm looking at some ridiculous discrepancies, when compared to the chart display:
X-Ray says BHB is down YTD by -25.16%. The chart shows -15.54.
NHYDY X-Ray = down -16.41. Chart shows -15.37.
ET on X-Ray: +13%. But the chart shows +11.63.
PSTL on X-Ray: +4.1. Chart says +3.23.
When M* actually offers ACCURATE info, it is extremely useful. But it's a hit or miss proposition.
And I did not check to compare FUNDS in the same way.

The article is a brief overview but read the Health Affairs article linked in the article for a better legal analysis. These authors think it is unlikely to succeed, as doctors, and hospitals voluntarily accept Medicare prices.
It would appear to me ( as a retired MD who had to participate in Medicare for my career if I wanted any patients) that no one is forcing Pharma to sell it's drugs, only that Medicare should be able to determine what price it will pay, just like it does for hospitals and physicians and all other services it has covered since 1965.
This is not a "taking" which seems especially true if Pharma is willing to sell these same drugs to veterinarians ( see Baron's article last week on dog vs people allergy med costs) and in Europe for far far cheaper prices.
If in fact this cases are successful, it will mean the end of Medicare, and probably health care in general, as the proposed costs for the Alzheimer's and Obesity drugs alone may bankrupt it.
Every hospital chain and doctor's group (even the "non-profits" like Ascension with it's billion dollar plus hedge fund
https://www.statnews.com/2021/11/16/ascension-running-wall-street-style-private-equity-fund/) will sue Medicare and Medicaid to force them to pay them what they think they are worth.
This will eventually come back to bite Big Pharma, when citizens see the absolutely unaffordable prices for life saving drugs that will result, and health insurance companies go bankrupt, and patients stop all but life saving operations and procedures, even then people die.

July 28th Episode:

Discover the future of AI investments with Michael Lippert, Head of Technology Research at Baron Capital. He believes AI is now at its transformative inflection point.
Join us for an insightful discussion on his recently published report, ‘Investing in AI: Opportunities and Risks,’ where we explore the potential of AI as a game-changing technology.
As the Portfolio Manager of Baron Capital’s high-growth stock-oriented Baron Opportunity Fund, he shares his strategies for identifying companies with durable competitive advantages and cash-generative business models, fostering double-digit multi-year projected annual returns.
Gain valuable insights into the growth potential of AI investments from a seasoned expert’s investment perspective.

Just a quick ”sobriety check” …
Some YTD numbers for the first 7 months of 2023 along with the annualized rate of increase …
NASDAQ +36.79% YTD (Annualized= +63%)
S&P 500 +19.34% YTD (Annualized = +33.15%)
DOW +6.98% YTD (Annualized = +12%)
STOXX (Europe) +17.74% (Annualized = +30.4%)
Nikkei 225 (Japan) +25.54% YTD (Annualized = +43.80%)
Most EM markets have done well. Argentina sports a +126% YTD increase, which corresponds to an annualized rate of +216%
(Data from Bloomberg)
Than there’s this from January 2 : ”2023 to be a tough year: IMF”
https://www.mutualfundobserver.com/discuss/discussion/comment/158208/#Comment_158208

See current Barron's for a feature on pharma (just 1 segment of healthcare), LINK1 LINK2
The PHARMA industry (MRK, JNJ, BMY, ALPMY, etc) is launching legal wars against Medicare/CMS on its new DRUG PRICING negotiation authority. The pharma industry is hoping to delay, slow or reverse the implementation by winning a national injunction in SOME court and then eventually fighting it before the SUPREMES. The US Chamber of Commerce has also asked a federal court for injunction against Medicare/CMS. CONGRESS passed the related law as part of the Inflation Reduction Act, and since then, the pharma index has lagged. (The current system is that private PBMs and healthcare systems negotiate drug prices, and then the Medicare/CMS just goes along. This system was seriously broken by Biogen’s/BIIB greedy pricing of its 1st Alzheimer drug that was approved by the FDA. Eventually, that drug failed in the marketplace due to resistance from Medicare/CMS. Biogen’s 2nd Alzheimer drug has done better.)

Morningstar has never reconciled its Manager of the Decade award for Bruce with Fairholme's stewardship.
Here's its Fairholme Parent Rating "Q" assessment:
"Fairholme has a ways to go to become an industry-standard steward, resulting in a Below Average Parent Pillar rating."
The firm has "just" $1.44B in AUM, well below its high of $20B+.

https://www.sec.gov/Archives/edgar/data/1096344/000119312523197702/d486209d497.htm
FAIRHOLME FUNDS, INC.
The Fairholme Allocation Fund
(the “Fund”)
Supplement to Prospectus and Summary Prospectus
Dated March 30, 2023
Supplement dated July 28, 2023 to the Prospectus and Summary Prospectus of the Fund dated March 30, 2023.
On July 27, 2023, the Board of Directors (the “Board”) of Fairholme Funds, Inc., at the recommendation of Fairholme Capital Management, L.L.C., the investment adviser to the Fund, approved the liquidation and termination of the Fund. Effective at market close on July 28, 2023, the Fund will suspend the offering and sale of its shares. The Fund expects to make the final liquidating distribution on or about August 31, 2023 (the “Liquidation Date”).
At any time prior to the Liquidation Date, shareholders may redeem shares of the Fund, or exchange shares of the Fund for shares of the Fairholme Fund or the Fairholme Focused Income Fund, both of which will remain open to investors, in the manner described in the Fund’s Prospectus. In connection with the liquidation, the Board has approved the waiver of the redemption fee of 2.00% imposed on Fund shares redeemed or exchanged within 60 calendar days of their purchase.
Shareholders should be aware that the Fund may convert assets to cash and/or cash equivalents before the liquidating distribution is made to shareholders. Accordingly, the Fund will no longer pursue its stated investment objective or engage in any business activities except for the purposes of winding up its business and affairs, paying its liabilities and distributing its remaining assets to shareholders. If a shareholder has not redeemed his or her Fund shares prior to the Liquidation Date, the shareholder’s account will be automatically redeemed and an amount equal to the shareholder’s proportionate interest in the Fund’s assets will be distributed to the shareholder on the Liquidation Date.
The redemption, sale, exchange or liquidation of Fund shares may be a taxable event to the extent a shareholder’s tax basis in the shares is lower than the liquidation proceeds per share that the shareholder receives. Shareholders should consult with their personal tax advisers concerning their particular tax situation.
If you hold Fund shares in a tax-deferred retirement account, you should consult with your personal tax adviser or account custodian to determine how to reinvest your liquidation proceeds on a tax-deferred basis.
* * * * * *
YOU SHOULD RETAIN THIS SUPPLEMENT WITH YOUR PROSPECTUS AND SUMMARY PROSPECTUS FOR FUTURE REFERENCE.

Has VUSXX been less state tax exempt than VMFXX in recent memory?
I posted in a hurry and should have qualified that VUSXX was 100% state tax exempt in 2022.. At the current 7 day yield why would not I park my money in VUSXX over VMFXX, which was my point. I will be surprised Yogi to whom the post was addressed to alert him as he was planning to park money in VMFXX did not understand the info & context.

When it came to fame, the 1st decade of century, FAIRX was a much more docile fund ... relatively low vol. That changed in 2nd decade. Good to see the fund and its long-time believers rewarded.

Notable, sure ---- but how long did he have to hold the position to see that gain? IIRC that's been a dog stock for well over a decade and I suspect he's been underwater for most of it as their largest shareholder.

As a result of these promising developments [in 2021], Berkowitz commented that Charlie Munger (Trades, Portfolio) was correct when he said, “The big money is not in the buying or the selling, but in the waiting.”

https://www.forbes.com/sites/gurufocus/2021/08/02/berkowitzs-fairholme-fund-takes-a-spade-to-largest-holding-st-joe/
The fund has landed in the top 5% or the bottom 5% every year in the past nine. It seems not so much a matter of having to wait a decade for a big pop as it is a matter of having more losing years than winning ones.

VUSXX is yielding higher than VMFXX and is 100% state tax exempt.
One third of its portfolio is currently (June 30th) in repurchase agreements. Those are not state tax exempt. The fund has owned even more than a third at times this year. 2023 seems to be the first year (at least in the past several) in which substantial VUSXX assets are invested in repurchase agreements.
See, e.g. Vanguard's 2019 tax info, showing that 2.21% of VUSXX income was state-taxable.

But not the whole truth. The first quote continues: "This can be seen in its five-year alpha calculated relative to the category." The second quote continues: "lagging both the category benchmark and average peer over the past 10-year period."
Over the past YTD, 1,3, and 5 years, M* reports that FAIRX finished in the top 4% or better. Over the past 10 years, FAIRX finished in the bottom 5%.
This shows that time frames matter. That, and the fact that recent performance can skew figures for several years. FAIRX returned over 34% YTD vs. about 7% for the category. That supercharged performance is enough to make all the trailing results through five years look great, but not enough to make the 10 year performance look good.

Hi @Yogibearbull,
Also, can I cancel the auction order after I enter it and how late?
In the auction results, why is Investment Rate always higher than the High Rate? I thought it would be the other way around.
https://www.treasurydirect.gov/auctions/announcements-data-results/
P.S.: VUSXX is yielding higher than VMFXX and is 100% state tax exempt.

It has been mentioned by others. BUT I have verified it in my Fido a/c.
I have a margin a/c at Fido. But Fido is very aggressive in sending margin notices even when those aren't really required. For example, if I sell $x in mutual fund/OEF (T+1) and right away buy about $x in ETF (T+2), OR if I put in a T-Bill auction order for Monday that will settle on Thursday with a maturing T-Bill, Fido will send margin alerts anyway. But everything will even out on the settle date. So, I just ignore Fido margin alerts in such cases - NOT a good idea generally.

Hi Yogi,
I am thinking of the up coming 52 wk auction. At Fidelity and Vanguard, do you by any chance know if I can enter my order for a Treasury Bill auction on the date of the auction, say before 10AM EST, or do I have to enter the order the prior day?

Well, that's one of those "Yeah buts" I was talking about :)
Annualized return for St. Joe over the past decade is 11.53%

I'll just plead ignorance - I really haven't thought of that stock since the mid-00s!

Well, that's one of those "Yeah buts" I was talking about :)
Annualized return for St. Joe over the past decade is 11.53%