So you're buying/accumulating, not just sitting on a massive capital loss?
So confusing, why would you quote Warren Buffet "Be greedy when others are fearful." and ignore that advice? It could be many years before your dividends exceed your capital losses if you do nothing, though taking Warren's advice you could have a much larger earner at substantially lower holding price. Conviction?
That is a comforting theory some hold to, but as the sharemarket is very liquid etc, it is a loss even if you do not sell. There is always the opportunity cost one must consider to of being in "the market". I think you will find in the time that TRA has gone down the broader NZ market has gone up. So a double loss in effect. But I am arguing semantics.
I too hold some TRA as part of a diversified portfolio and have not given up on the story yet.
My capital loss on TRA is unrealised.
What has been the goal of my investing.?
My goal was to build my capital to the point where when I retired ,I had the capital to provide me with a good income.
My capital is over twice what i aimed for,[and I have paid off both daughters' mortgages].
My dividends far exeed what my income was before I retired.
Goals achieved.I remain "well positioned"with a large diversified portfolio,which includes income shares,Australian shares,and still has some fun stocks.In fact my largest holding is a fun stock .
If you own a rental property, do you get a valuer in every day to value that property? Do you then get worried because sipping on your Saturday latte, your house price has gone down by 1% over the last week? I would suggest the answer is 'no' to both questions for two reasons:
1/ You don't have to look at your investment every day to know whether that investment is fulfilling your longer term investment goals.
2/ Paying real estate fees every week buying and selling your property would soon destroy any capital profit you made.
However, as a property investor, do you care if your tenant stops paying the rent? I would suggest the answer is 'yes', very much so.
Looking back at Turners, as Sharemarket investors, we are in a privileged position:
1/ We do not have to call in our own valuer each day to tell us what our Turners shares are worth.
2/ Using our ability to buy and sell Turners shares will incur much lower sales commissions that doing the same with a property.
However, these two advantages are not a 'call to action'. We can choose to accept market offers to buy our shares or ignore them. If we choose to focus on the dividend income from our Turners shares, we see that it is continuing to increase. Long term an increasing income stream will lead to an increasing share price. So there is no long term driving force to sell. Indeed, the rational investor would be more inclined to buy more because the lower the share price, the better the investment yield.
If you want to criticise Percy's Turners position, you could say that perhaps he should have staggered his Turners share purchases over a longer time frame. That would have meant that the 'with hindsight view' (which is never apparent at the time a purchase is concluded) that he paid too much for his TRA shares would mean he paid 'slightly less too much' (in effect that is my own position). But as Percy has told you, he bought for the income stream and the ability of that income stream to increase, and so did I. Neither of us are planning to sell over the medium term, and we are satisfied with our own yield return, which does not decrease if the share price falls.
Others have suggested that those of us still with investment capital to buy more ought to wait until share price rises to $2.57 or something to commit more capital to the company. For a yield investor this is BS. The lower the price you can buy your shares, and that could mean buying today, the better the investment yield. No matter what the share price does in the future, there are no exceptions to this rule.
SNOOPY
If someone knocks on your door and offers to buy your house at half of the value that you think it is worth you wouldn’t sell it because you would consider it a low ball offer. With shares you have to decide what is a fair price for the share. You do not have to accept low ball offers.