Addleson, M.
A icle
Commen s on: Gold sha es o k uge ands - Which is he
be e in es men ?
Sou h A ican Jou nal o Business Managemen
P o ided in Coope a ion wi h:
Uni e si y o S ellenbosch Business School (USB), Bell ille, Sou h A ica
Sugges ed Ci a ion: Addleson, M. (1986) : Commen s on: Gold sha es o k uge ands - Which is he
be e in es men ?, Sou h A ican Jou nal o Business Managemen , ISSN 2078-5976, A ican Online
Scien i ic In o ma ion Sys ems (AOSIS), Cape Town, Vol. 17, Iss. 2, pp. 117-,
h ps://doi.o g/10.4102/sajbm. 17i2.1043
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/217930
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s.
A .
J.
Bus. Mgm . 1986, 17(2)
Le e s
Commen s
on:
Gold
sha es
o
k uge ands
-
which
is
he
be e
in es men ?
The
abo e-men ioned a icle in ol es he applica ion
o
a
s anda d
po olio selec ion model o da a on gold-sha e and
k uge and p ices
as
well
as
yields
on easu y
bills
(S.
A .
J.
Bus.
Mgm .
17:
1 -
00).
The da a co e a pe iod o h ee
yea s
(May
1980-Ap il
1983).
The pu pose
is
o de e mine
whe he
o e
his pe iod an 'e icien
(gold)
po olio'
would
ha e
included k uge ands.
The
i le
o
he a icle
is
misleading
in
ha he e idence
p esen ed
does
no , and canno , o m a basis o ex-an e
o ecas s
o
e icien po olios. A mos he s udy p o ides
insigh
in o he ela i e pe o mances
o
di e en
asse s
o e
a
limi ed
pe iod
in
he pas . I o e s a
iew
on he much
mo e
es ic ed ques ion
o
wha would ha e been he be e
in es men .
The
s udy
is
echnically compe en ,
ye
i
only amoun s o
an
applica ion
o a
ela i ely
simple
model
and
does
no o e
any
insigh s in o he na u e
o
he ma ke s in ol ed.
No
a emp
is
made o gene alize abou he implica ions -pe -
haps
wisely
in
iew
o
he limi ed scope -bu ,
in
his
sense,
i
does
no ep esen a con ibu ion o knowledge
in
he a ea
o po olio selec ion. The ac ha gold- ela ed asse s a e
in ol ed
does no disguise he na u e
o
he
exe cise.
M.
ADDLESON
G adua e School
o
Business Adminis a ion, Uni e si y
o
he Wi wa e s and, P.O.
Box
3JJ70, B aam on ein, 2017.
No embe
1985
Au ho s'
esponse
The
majo
c i icism
o
he a icle conce ns he
ac
ha he
analysis
is
an ex-pos s udy. I
is
co ec ly poin ed ou ha
117
in es o s
make
ex-an e
decisions
and hus one has o
be
cau ious
in
making
conclusions
abou ex-an e beha iou on
l.ie
basis
~
~-pos
esul s.
Indeed,
we
ag ee
en i ely
wi h
hese
VIews
which
JS
why
we
included
a sepa a e
sec ion
in
he
a icle
en i led 'Ex-pos
s
ex-an e A gumen s'.
In
his
sec ion
we
di ec ly
add ess he
issues
aised.
Howe e ,
al hough
ag eeing
wi h
hese
sen imen s
in
gene al
we
canno
ag ee
ha
his
p oblem
ende s
he
a icle
wo hleM.
I
empi ical s udies,
which
a e
by
necessi y
based on ex-pos
da a, a e o
be
conside ed
alueless,
one
would
ha e
o
c~nclude
ha
highly
espec ed
jou nals
such
as
he
Jou nal
o
Finance, he Jou nal
o
Financial and Quan i a i e Analysis,
he Accoun ing Re iew, he Jou nal
o
Accoun ing Resea ch,
e c.
ha e
had
in e io
academic
s anda ds
o e
he pas
25
yea s.
Indeed,
mos
o he majo
ecen
wo ks
in
Finance
ha e
been
empi ical
s udies
and one only
needs
o
lis
he names
o
men
such
as
Fama, Jensen,
Roll,
Bea e ,
and Sha pe o
ealize
ha
empi ically
based
esea ch
is
uni e sally
accep ed.
The
key
o cou se
is
o
ind
a consis en esul . The e o e,
in
unde aking an
analysis
such
as
ou s
i
is
ue ha i only
one pe iod
we e
examined,
his
would
cons i u e a
one-obse -
a ion
s udy.
Howe e ,
whe e
se e al
pe iods
a e
independen -
ly
examined
and a consis en
esul
is
ound, hen su ely his
mus
p o ide
some
in o ma ion
which
migh
cause
in es o s
o modi y hei cu en (ex-an e) beha iou .
In
his
a icle,
wha
we
a emp ed o show
was
ha o e
all pe iods
examined,
on
a isk-adjus ed
basis,
k uge ands
we e
ne e
a desi able
asse
o
SA
in es o s o hold
in
hei
po olios.
I
his
was
a
well
known and accep ed
ac
hen
i
is
ue ha ou s udy
has
no
alue.
Howe e ,
ou belie
based on he
olume
o
sales
in
k uge ands o e he
pe iods
examined
is
ha
his
was
no he
case.
As
such
we
belie e
h~
esul s
o he s udy
may
cause
in es o s
o
adjus hei
ex-an e
decisions.
Su ely
ha cons i u es in o ma ion and
hence
a con ibu ion o
knowledge.
J.F. AFFLECK-GRA
es
and G.D./. BARR,
G adua e School
o
Business, Uni e si y
o
Cape Town,
P i a e
Bag,
Rondebosch,
7700.
Decembe
1985