Forum Archive Index - October 2000

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

don't quite see the need to weed out Montana quite so vigorously.
NZ wines are competing at the top end of the market on taste, 
quality & and not on price and volume so hence they are not commodities
by definition. Its to their advantage they are small high quality
international players - I think 1% of the market for high quality NZ
wines was quoted in the Economist wine survey article earlier this year.
The remaining questions are then of the type do they have a strong cash
flow, reliable earnings, good trends etc etc.
I know Buffett rubbishes diversification for its own sake which he sees as
a way of hiding ones mistakes instead of concentrating on not making
any....but the golden four? I'd be quite happy with any number between
one and say 20....


----------
> From: Krypt Or <kryptz@hotmail.com>
> To: sharechat@sharechat.co.nz
> Subject: [sharechat] Focused Investor cont.
> Date: Monday, 16 October 2000 22:12
> 
> I'd like to make a couple of comments on the list:
> 
> 1) 'Does the business have an identifiable consumer monopoly'.
> 
> Firstly Montana. I can't see why a wine producer could ever hold a
monopoly. 
> In the domestic market I (an avid wine drinker) rarely buy Montana and
see 
> no edge for them at all. Internationally they are just a small player
with 
> serious competition (I think) from the likes of Chile.
> Moreover they are vulnerable to the seasons and disease - not a reliable!
> 
> IFT owning Wellington Airport and some of POT warrants a medium rating.
> 
> 2) Are the earnings of the company strong and showing an upward trend*
> 
> TEL earnings are flat.
> 
> Also I feel not all weightings should be created equal, some are more 
> important and should have a higher rating:
> 
> - Management Capability/Adequecy
> - Does the business have an identifiable consumer monopoly
> 
> Finally - I agree with the slash and burn method - lets get a dozen to
work 
> on to get our 'Golden Four' otherwise it'll take too long.
> 
> Brian I have a feeling your >15s are not going to leave many companies on

> the board but maybe I will be pleasantly suprised!
> 
> 
> 
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