Tuesday, July 18, 2023

Investment staff, are you listening???

The Nasdaq has just had the best first six months returns in the last 40 years, earning 32%. 

Do you think our genius STRS Investment Staff will report any substantial earnings this fiscal year? Doubtful. 

Then if not, why not? 

Answer:  Because they can't beat the indexes!

Rudy Fichtenbaum: An explanation of private equity a layman can understand

From Rudy Fichtenbaum
July 18, 2023

Warren Buffett and Charlie Munger on pension funds and private equity

From Rudy Fichtenbaum
July 18, 2023
You have also heard investment expert Richard Ennis say that STRS would have been better off investing in index funds. Now you can listen to what Warren Buffet and Charlie Munger have to say about pension funds and private equity. 
Warren Buffett is well-known for promoting the clear success of value investing, but one lesser known attitude he holds is his disdain for private equity firms. In this video, Warren and Charlie explain why they dislike private equity and so-called "alternative investments".

Monday, July 17, 2023

The "Untouchable"?

From John Curry

July 17, 2023

Facebook (MOF)

This is especially for you newbies out there. I'll bet your school superintendent never had a "Section D" in your Board Policy that reads like this Section D in the STRS Board Policy! This is why you elect "reform" Board members and pray for a majority on the Board. If you don't believe it here is the Board Policy - look it up!

Sunday, July 16, 2023

From John Curry

July 16, 2023

Did you know that the current (full time) Secretary/Treasurer (Mark Hill) of the OEA is an "active member of STRS?"
But, you say, he stopped teaching after 30 years at Worthington and now he is working for the OEA...and he is STILL is an "active member" of STRS? How can he still be an "active" member of STRS....and paying into STRS for his current OEA job??
Did you know that the vast majority (about 99%) of OEA employees DO NOT PAY INTO STRS for their labors, they pay into Social Security! WHY should Mark Hill, and two other OEA elected officers, be an exception to this rule and be "special?"
It is because STRS allows it, that's why. This sweetheart arrangement with the OEA and their two other elected officers has been going on long before Mark moved on from teaching and into working for the OEA? Why should WE supplement his current non-teaching job at the OEA?
After I left teaching and went to work at a non-teaching job I was not allowed (nor was my employer) to contribute to STRS....instead I (and my employer) were forced to pay 6.2% each into Social Security .... not the 14% amount into STRS .
I'll bet you also weren't allowed to continue contributing to STRS after you took a non-school teaching job, were you? What's wrong with this picture? This is a minor point...... but is the principle, not the amount. This certainly sweetens ye old FAS (Final Average Salary), doesn't it? Is this legal?
A. Yes....remember. the STRS has the authority to determine who is and who isn't a teacher! Is this ETHICAL? You and I both know the answer to this, don't we? This applies to the President, Vice President and Secretary Treasurer of the OEA.....and now you know the rest of the story.
P.S. The OEA also "picks up" Mark's 14% contribution into STRS....a practice that many local school boards do for only their superintendents. How would you actives like to add 14% on to your salaries?
Q. Why weren't you aware of this sweetheart deal?
A. The OEA doesn't go around bragging about it, do they? Gee...I wonder why not!
Larry KehresMount Union Collge
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