Forum Archive Index - October 2000

[Brian Gale <brigale@i4free.co.nz>]

It's a good Name, Brian .....well thought out.

Re the exercise itself I can't see much point in bringing up possible
stocks, that might fit the formulae, at this point in time. I think the
analysis of at least the Top40 needs to be completed and the securities
listed in order of merit and then the debate can start. ( although I do
realise that the last request was for Coys with extra management
skills)

I haven't studied the Buffet concept, although I think I know the
fundamentals, but I am looking forward to the outcome of the
exercise.  As far as PEG is concerned, if this isn't a Buffet
criteria, perhaps it could be included as an extra for at least
comparison purposes.  David Reid's posting gives some very
interesting pointers in this regard.

Regards
Brian G

At 20:02 14-10-00 +1300, you wrote:
> Couple of
> issues:
>  
> Management: Some people have suggested TRH as a stock
> for consideration. I don't believe it fits enough criteria and in
> particular where management is concerned. I have a very uncomfortable
> feeling about the way they have denied what is undeniably the terrible
> damage the fast ferries are doing to the Marlborough Sounds. The evidence
> is there for all to plainly see and you don't have to be a raving tree
> hugger to be saddened by what's happening. It seems the denial will be
> persistant until someone is killed and even then.....?.
>  
> Portfolio name: As Phil commented, I suggested we
> drop the name Buffett from the title, by no means because I wanted to
> distance myself from him, to the contrary. However I feel we should make
> it quite clear that we are following principles used religiously by a
> number of extremely successful investors who have very similar principles
> to Buffett and in some cases indeed mentored and motivated the man.
>  
> I suggested the word "Focused" because it is the
> common theme of many of these guys. The arguement is that the more stocks
> you own the more avaerage you become, the more difficult it is to beat
> the index, the more difficult it is to manage and keep track of you
> portfolio and most important, the more difficult it is to make informed
> and well researched investment decisions.
>  
> If you have a strictly focused or concentrated portfolio you
> are forced to research your stocks very thoroughly before making an
> investment decision and the only time you pay any attention to "Mr
> Market" is when you have identified and want to invest in a
> partnership in a company and then, "the price you pay will dictate
> the return you get". 
>  
> I have openly admitted that I am a relative newbie to this
> game but before I committed any real money to equity investing I made a
> conscious decision to study the various ways of investing and decided
> that this one suited me best because in many ways it is the most simple,
> stress free and arguably the most successful. I think it is these three
> factors we are collectively putting to the test with the Focused
> Portfolio (or whatever name is chosen).
>  
> Someone recently suggested that this style is for the
> chicken s..ts. I disagree because the real fun comes when you see the
> market sell down a particular stock you like or when there is a general
> "grizzly" period which lets you in boots and all.
>  
>  
>  
> Pohuenui Island Lodge 
> Fiona & Brian Brakenridge
> P. B. Havelock
> Marlborough, New Zealand
> Tel. 64-3-579 8161 Fax. 64-3-579 8361
> Email:
> pohuenui.island@xtra.co.nz
> http://www.marlborough.co.nz/pohuenui/
>  
>  
>  
>