Forum Archive Index - December 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Bill,

> 
>You have whetted my curiosity. what is this Focus Investment 
>all about? Are you allowed to tell? 
> 

In the sharechat context the 'focus investment group' is a discussion 
board on the sharechat website.   If you hit the 'Message Board' link 
on the front page of 'sharechat' you will get there.   Reading the 
'mission statement' is probably a good place to start.

The basic idea behind the 'FIG' is to use the general principles of 
Warren Buffett, generally regarded as the most successful investor of 
our times, and apply them to the New Zealand market for selecting 
shares here.  We don't call it the 'Buffetology' group because we 
don't wish to exclude the ideas of other successful share investors 
around the world who have good ideas we can apply.

In the focus investment group, we give companies an initial screen to 
see if they are worth studying in detail.  If they are, the idea is 
to go back five to ten years into the company's past and get a real 
understanding of the culture of the company and where the underlying 
business is heading.  From this we can get an idea of how the market 
values this company over a full business cycle.   This gives us a 
long term overview as to whether today's market price is fully valued 
or whether it represents a spectacular buying opportunity.  Naturally 
we hope to seek out examples of the latter.

SNOOPY



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