Snoops ..you need to outline what happens to Shareholder A if he doesn’t want to front up with more cash ..they prob screwed as well eh
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Snoops ..you need to outline what happens to Shareholder A if he doesn’t want to front up with more cash ..they prob screwed as well eh
I think the most important thing about any investment is knowing what could happen, rather than what is certain to happen. No-one knows with absolute certainty what is going to happen. But if you are aware of what could happen, then you are a much better informed investor in evaluating a particular investment risk. If you go into a investment blissfully unaware of bad things that 'could happen', but nothing negative happens, that doesn't make you an investment hero. It just means you are a lucky gambler.
I hasten to add that I am not suggesting that investing in OCA is a bad thing to do. What I do know is that the retirement industry is extremely complex from an investment perspective. So many balls to juggle at once: government funding, the care business relationship with the independent living business, staffing issues, the construction cycle, affordability of village entry and its relationship to the housing market, etc, etc. Truly, I believe it is the most difficult sector of all in the investment market to understand. And hats off to those who have a much better understanding of the retirement sector than me, because of all the time you have put into studying it. I respect you all for the work you have done, I really do .....BUT........
I don't think it is in investors interest for a thread to become a self congratulatory love fest. If there are things that come up that I do not believe 'fit the narrative' I am going to call them out. I may be right in my thoughts, or it may be my opinions and fears are groundless. But this what this forum is about - debate of ideas. One thing I have learned over the years is that, particularly with the constituents of the NZX50, Mr Market is more often right than not. If all of the major retirement sector shares are trading well below fair value 'in your opinion', then to me that is a signal that maybe you should look a little deeper. Just to see if Mr Market knows something that you haven't considered.
SNOOPY
discl: Not invested in the retirement sector. Too difficult for me to analyse in a satisfactory way for now.
Nice post Snoop and I agree re your last point as it underlines to me that you shouldn't ignore the macro as some have suggested on here.
Balance, finding interesting ways to hedge your bet does not make it any less appealing for me.
You need to ask yourself what the implications are for SR standalone.
If you can hedge your side in ways that you think reduces your risk, that's great but it does not make my side any different for me.