why does it matter..? his conviction obviously is not high if only 5-6% position.
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I have 75% of my NW invested in OCA :t_up:
Wouldn't necessarily recommend it for all, I'm working with peanuts compared to the rest of you.
ANZ ups their stake by another 7.5 million shares to total 70.68 million, 9.76% of shares on issue.
10%. I like to keep it very simple, the only time I use DCF's is when I need to prove how unrealistic it is that a company will grow into its price. I used this logic to sell my Mader position for $4.80 before it went to $8... But. Process vs Outcome...
Really you're doing DCF's in your head all the time but they're so simple that it's just automatic.
So take the numbers Mav and I were discussing for 8 years out and discount them to the present using a 10% rate.
Often I'll just do a cap rate calculation on an earnings number, so for a House in the burbs as an 'investment' rent = $600/week, net margin 50%, (52*300) / 8% = $195,000. So if you want an 8% return that's what you pay. Any higher return than that requires someone willing to get a lower than 8% return buying it off you, or you skimping on maintenance and finding someone willing to overlook etc.. All the immigration and construction costs in the world cannot change this calculation (unless rent rises).
So if you use a term deposit rate as your discount and assume declining rates, you can get to a FAR higher present value for OCA but we like to be very conservative such that there is a very low chance what you are assuming does not occur.