Forum Archive Index - January 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

The Sharechat Growth Index is going well with the index up 4,6% over the last two weeks. The NZSE 40 (both capital and gross) up 2.5%. I hope you all are enjoying watching the progress.

In a moment of boredom (again in the Qantas Club Lounge) I thought maybe I could use the same methodology on the brokers tips  (as published in the Herald and taken from Warner's post earlier in January) and create a Brokers Tip Index..

Mikes 'Beat the Brokers' competition implies that we take some small satisfaction in doing just that...........

The brokers tips were more widespread than those of the combined wisdom of  Sharechat contributors. Therefore the brokers portfolio needs to include 7 stocks to give a better representation of their popular stocks in the index...

These are FFS, WHS, SKY, CEN, TEL, FLB  and AIRVA.

As with the Sharechat Growth Index I have weighted the portfolio on the basis of  the number of selections each stock received. In the portfolio for example FFS and WHS have a 19% weighting. being selected 5 times out of the total of the 26
times these seven stocks were selected. This weighted portfolio therefore represents the combined wisdom of the participating brokers.

Interesting result after 2 weeks (12/1 to 26/1)

Sharechat Growth Index            UP  4.6%
NZSE40                                   UP  2.5%
Brokers Tips Index                   DOWN  0.1%

The Brokers are ahead with SKY, CEN and TEL  but down with FFS, WHS and FLB. With WHS and FFS being the most popular and heaviest weighted selections it's just as well I put 7 stocks in their Index.

To date the combined wisdom of Sharechat contributors is beating the combined wisdom of brokers - and the efficient market. .

No bother to keep reporting progess if contributors think worth while

 

Peter