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Thought I'd throw our portfolio criteria into the
pit:
Working with our accountant and our share broker we select our shares
based on the following crtrieria:
- No
one share is greater than 10% of portfolio value at the time of
purchase
- Shares purchased are for New Zealand companies whose net
profit after taxation over opening equity is greater that 20% Preferably
for three or more years. Its my money I'm giving the company so I want to make
sure they use it wisely. (We dont invest in companies who promise high returns
at some future time while returning losses year on year at
present)
- Net
portfolio dividend yield is in excess of 5%
- We
buy for the long term reinvesting the dividends to increase our
portfolio.
We do
not work sectors, or chase IPO's. Rather we invest in proven performers
(quality companies)
Our
portfolio includes:
CAV,
DTL, HLG, HBY, SKC, TEL, WHS, LPC, FPH, FBU
Cheers
Graeme
-----Original Message-----
From:
sharechat-owner@sharechat.co.nz [mailto:sharechat-owner@sharechat.co.nz] On
Behalf Of Matt & Vanessa
Sent: Sunday, September 28, 2003 8:18
PM
To: sharechat@sharechat.co.nz
Subject: [sharechat]
Portfolio Theory
Alright guys, here's a different
topic. I'm interested in what sort of concepts different people use to
construct their portfolios. I've heard a lot about people picking
individual shares, about the merits of a number of individual
companies (the breadth of some of the research flowing through this forum is
extremely enlightening). But how do you hang it all
together?
Surely you can analyse a share 'til the cows come
home, but what does that mean for the performance of your portfolio?
Some of the questions that come to mind are: have you got a balance between
income producing assets and growth assets? What sort of sectoral
exposure do you have to the main drivers of the NZ economy? Are you thin
in one area, thick in another etc etc etc .....
I spent a lot of time building our (albeit small)
portfolio from the ground up, working out what sort of balance of companies
would give us the return we were after. Having worked out the categories
I wanted to cover - Income, Growth, Stability - and then having applied a
relative weighting to each, I looked for the companies that I could fit into
each of those gaps.
Over the past eight months we've put together the
eight companies that comprise our portfolio, and barring any particularly
interesting buying opportunities (if only they would float the Nat. Bank!!)
we'll probably just deepen on these until we get them into something close to
our target weightings.
So that's what we've done. Anybody got
anything they want to share....? I'm sure even you techies have got a
plan of sorts!
Best Regards,
smasha
Our Portfolio (fair's fair: can't receive
without giving)
Income Shares
* Capital Properties
* Wrightson
* Powerco
Core Shares
* Contact
* Fletcher Building
* Waste Management
Growth Shares:
* Baycorp Adv.
* Tower
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See IRG research reports
