Forum Archive Index - October 2000

["Philip Robinson" <robph639@student.otago.ac.nz>]

 

Brian,

 

I like your suggestions and I also came to the conclusion that it was probably a better to idea to split the two categories like you have done, but I hadn't got as far as to decide on anything more.

 

I see you have some criteria there for the quantitative, are you proposing to have five categories with set out criteria, scoring from 1 up to 5 eg. ROE: <5% = 1; 5-10% =2; 10-15% = 3; 15-25% = 4; 25+% = 5. or are you proposing to have a system where they either get 5 or get 0, I am a little unclear. I would like to suggest a system like the former because it means that there will be a nice spread in numbers over the seven categories and it lets the good companies differentiate themselves from each other, which my sheet does not do a good job on.

 

On investment companies I tend to feel that you are investing in a person eg. GPG, and on transactional profits. This then means that there is the potential for the person to leave or the transactions to dry up or not be so good, so I really don't count them as potential companies for our purposes. I sort of see them as quasi-semi listed unit trust because you are "giving" your money to some else to try and maximise.

 

Cheers

Phil.