Forum Archive Index - August 2000

["hugh webber" <hugh.webber@clear.net.nz>]

Is this realistic re CAH....the newspaper share tables show a low
gross yield for CAH but the main point is that it is into commodities
and one of Buffetts guiding principles is not to get into commodities.
(I was very happy to sell out of CAH at $3.80 in the partial takeover 
by IP). They've spent the money from Chile not on returning the capital
but on more commodity investment. There was an article in the press 
recently that timber products are proving a mirage because of substitutes
such as PVC and aluminium and this is why the death of the rain forests
meaning a killing for NZ's pinus radiata hasn't been happening/isn't going
to
happen.
On the other hand people have been pointing out that a handful of cases
such
as Auckland Airport are Buffett consumer monopolies and its proving true.
One of Buffetts tricks is to analyse a share who's price is thought to be 
too high; look at its growth trend and rate of return and in a couple of
years the price thought to be too high seems a magnificent bargain.

cheers,
Hugh
----------
> From: Derek <dkw@paradise.net.nz>
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] CAH & CEN
> Date: Saturday, 26 August 2000 9:12
> 
> At $1.79 there must be an easy 5% gain to be had with CAH, maybe 10% by
the
> end of the year. Then there's the dividend if you hang on long enough.
Also
> the chance of a takeover for an added bonus. 
> 
> The above also goes for CEN, the dividend yield with CEN is running at
> 9.4%, better than the bank?
> 
> Derek
> 
> 
> Disclosure: Moving money out of speculative shares [need a cup of tea!]
> bought CAH & CEN yesterday.
> 
> 
> 
> 
> 
> 
> 
>
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