Another Ponzi scheme bites the dust

Warren Buffett has been quoted as saying "when the tide goes out do you discover who's been swimming naked" and for Managed Investment Scheme Timbercorp the tide has well and truly gone out. Curiously named investment advisor "Intelligent Investor" flounders for an explanation as to why they had previously recommended TIM to investors;

We bought this business in the full knowledge that it was selling an unsavoury product...

.. we thought it was making enough money out of the whole charade to justify a substantially higher share price. The lesson here is that it’s impossible to build a sustainable business selling a dud product. And investing in an unsustainable business is almost never a profitable exercise, no matter the apparent value on offer..

Disclosure: The author, Steve Johnson, owns shares in Timbercorp and Timbercorp Convertible Notes, as do other staff members.

All this and more from an operation calling themselves VALUE INVESTING EXPERTS

Clearly "intelligent" is relative term; if they had only listened to instead of misquoting Charlie Munger;

If you mix raisins with turds, they are still turds.

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