Forum Archive Index - March 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Once a few more large companies " go " then we could finish up with say TEL having 60-70 % of the 40 index leaving the rest to the middle range and small cap stocks.

 

The NZSE may want to have a look at the index:

 

I think that the time is rapidly approaching when we need a dual structure with TEL on its own and a 30 index.

 

Others may prefer to wait till some more larger companies are sold off. 

 

Some may prefer to maintain a 40 index but I think that at the speed companies are being taken over, a 30 index will give ample opportunity to other good quality companies to come in.

 

I for one would not be very keen to leave cash with a fund manager who is pre-occupied with indexing.

 

One would say that too much money in one stock could spell trouble: however, returns to managers have so far not been good, considering that they would be " closer " to companies than the average investor can be.

 

And we all know that they have the advantage in a take-over!!

 

 

Gerry.