Originally Posted by
Maverick
Definitely an "underlying" guy
I have no interest or idea how OCA might do this Friday based on building valuations.
Trouble with my style of investing as a contrarian investor is that IFRS (which include paper profits on buildings) can look good on paper but doesn't pay for toys and lollies. When buying an unloved or shunned company I have to wait for years for the market to realize its` oversight on a company's value so in the meantime the real cash profits both keep me going and prove the business is fundamentally working. Much easier to sleep at night too.
Also IFRS can evaporate at the stroke of a building revaluation.
Done rudely well this way from HLG, Bendon, RBD,SKL, WHS etc over the years...you get the idea. OCA fits firmly in this category and after waiting 4 years so far, due to underlying profits, I can wait indefinitely.
Sorry for such an obvious lecture to a man of your expertise BP but its NO1 fundamental to my style and worth repeating, even if its just to myself.