Forum Archive Index - October 2000

["Brian Brakenridge" <brianbrak@xtra.co.nz>]

I'm gonna sound like a hypocrite but how about I throw a curve ball at you and say it would be fun to add something just to liven the portfolio up a tad. Maybe a shot of caffeine and sugar. FRU

 

Ben, I think I might have asked this before but how difficult would it be to set up a portfolio or two to follow. I think the group taking part in this particular thread are a genial bunch and it won't take too much for us to reach a consensus on the stocks we're discussing now. Set up the agreed portfolio and then every month or so discuss anything that may have happened that drastically changes the dynamics of a particular company in the portfolio but more importantly look at contributing say $1000 (hypothetical) each month to one of the companies. If for some incredible reason the market is very strong at the time and all of them are riding high then we accumulate the cash and add it when the time is right.

 

This in effect mirrors what is arguably a sound saving and investment philosophy and long term it may help encourage more people who are sitting on the sideline to take a more active part in the sharemarket.

 

Why? Well I'm thinking way way long term and slightly outside the square. A lot of the debate on this board is quite rightly political and economy orientated and people have a chance to vent their spleens. But every negative comment should be balanced by some positive action. I've suggested before that one of the things that will kick start the sharemarket is getting more people involved and to do that I believe we need to collectively as a group demonstrate that equity investing over the long term has consistently outperformed everything else and that with the right attitude and backed by sound investment philosophies it is actually a safe place to have your money.

 

I think also that one of the very clear messages it will send is that a portfolio of stocks selected on sound business like fundamentals can quite happily ride the waves and come out smiling. I also wouldn't be at all adverse to a suggestion that we include in the portfolio an international index fund, to the tune of 50%. I believe the MSCI over the past 20 years has grown 16%pa and should be included in any portfolio.

 

IMHO

 

brianbrak