What are your Investment Rules?

[kiora]

"Where are tomorrow’s winners?

Today's popular stories aren't tomorrow's winners. So where are they?
If it’s in the news, it’s in the price."

All too true.I've tracked returns of companies tipped in last few months.The returns have been -3.65%

https://www.livewiremarkets.com/wire...THE%20INSIGHTS

[kiora]

Why organic growth so much better:FPH,MFT,IFT

"There are many paths to growth, and high performers take more than one—
supported by reinforcing capabilities such as advanced analytics and digital
customer-experience management"

https://www.mckinsey.com/~/media/McK...nic-growth.pdf

"Why are some firms consistently able to grow faster than their rivals in the same industry? We employ dynamic capabilities theory to show that organic growth leaders excel because they have innovation prowess. Their prowess is gained by combining discipline in their growth-seeking activities with an organizational ability to innovate. Empirical indicators of these constructs were assessed by a
sample of senior leaders in 168 companies. We found that innovation ability (comprising the interconnected elements of innovation culture, innovation capabilities and how the firm is organized to enable innovation) explained most of the performance differences between growth leaders, average performers and growth laggards. However, it is the interaction of innovation ability and discipline in pursuing the growth strategy, that explains why growth leaders outperform the average organic growth
rate of their industry."

https://mackinstitute.wharton.upenn....WP_2018Apr.pdf

"Foreign misadventures: 5 mistakes companies make when expanding offshore

Many Aussie companies are attracted by bigger offshore markets. History shows that many have failed in their expansion attempts."

https://www.livewiremarkets.com/wire...ROWING%20PAINS

[Valuegrowth]

Thank you Kiora for posting some good stuff .

1. “Today's popular stories aren't tomorrow's winners. So where are they?
If it’s in the news, it’s in the price."

2. "Why are some firms consistently able to grow faster than their rivals in the same industry? “

Those who invest in strong companies can sleep peacefully. They just have to sit and wait. Their sitting will make money for them.

[kiora]

Always good to reflex on timeless ideas

"If you were starting out again today in your early 30s, what would you do differently or the same in today's environment to replicate your success? In short, Mr. Buffett, how can I make $30 billion?"

"timeless blueprint for building wealth, emphasizing the importance of starting early, harnessing compounding interest, and practicing disciplined investing."

https://finance.yahoo.com/news/warre...190315104.html

[kiora]

Be Wary of Dividend Traps

"Buy Hold Sell: 3 dividend darlings (and 2 traps)"

https://www.livewiremarkets.com/wire...AD%20%20LISTEN

"But what happens if that dividend yield is not sustainable? Well, to help you avoid the traps, there are a few signs you can look out for:

Double-digit yields are usually a red flag - indicating the market does not believe a company's dividend yield is sustainable.
A falling share price can cause the yield of a stock to rise - meaning, investors believe earnings are likely to follow that share price downwards.
Payout ratios of 100% or more, should also sound alarm bells. "

"We think, in the banking sector, scale is everything. You've got to spend money on IT and systems, and the smaller number of customers that you've got, the greater that spend is on a relative basis. We think the benefits of scale are huge in the banking sector, so the regional banks are continuing to struggle"

[kiora]

How To Loose Time & Money

"When we sold our startup in 1998 I suddenly got a lot of money. I now had to think about something I hadn't had to think about before: how not to lose it"
" The way most fortunes are lost is not through excessive expenditure, but through bad investments."
"If you start trading derivatives, you can lose a million dollars (as much as you want, really) in the blink of an eye."
"The alarms that prevent you from making bad investments have to be learned, and are sometimes fairly counterintuitive."
"The most dangerous way to lose time is not to spend it having fun, but to spend it doing fake work."
"With time, as with money, avoiding pleasure is no longer enough to protect you"

https://paulgraham.com/selfindulgence.html

"But the key point – that fortunes are often lost through bad investments, and not excessive expenditure – is a point worth remembering and reiterating, again and again."

https://wealthandrisk.nz/how-to-lose-wealth/

[kiora]

Not for me,but?

Is this concerning?
Is it any different to investing in gold?
US$ ?
How would it effect other investments in NZ?


"Almost 50% Of Kiwis Consider Crypto As A Possible Alternative To The ‘Quarter Acre Dream’"

https://www.scoop.co.nz/stories/BU24...y+11+June+2024

[Jaa]

Not for me,but?

Is this concerning?
Is it any different to investing in gold?
US$ ?
How would it effect other investments in NZ?


"Almost 50% Of Kiwis Consider Crypto As A Possible Alternative To The ‘Quarter Acre Dream’"

https://www.scoop.co.nz/stories/BU24...y+11+June+2024

Press Release: Easy Crypto

[kiora]

Not for me but
Interesting piece on ETF's.Be aware not all ETF are born equal


On X "Henry Jennings VIEW
Recently Andrew Wielandt and I were sent the list of stocks to cover on 'the call' next time we're on. I know it looks like we talk about these stocks off the cuff, but the truth is we have time to research them. One of the stocks chosen was ROYL. This is an ETF from Betashares for Global Royalties. What a load of codswallop. It has $6m worth of ETFs outstanding.



This is a fine example of the absolute marketing wizardry of the ETF industry. This is another managed fund of stocks that Betashares makes up, whacks in a basket, calls it an ETF and tracks a supposed index. Sorry but this is just ETF madness. Slick marketing (actually given it has been ignored by mostly everyone not such slick marketing!)



I have been in this ‘industry’ for over four decades, and it never ceases to amaze me how much time, energy, and brain power is consumed for mediocre returns. No wonder Buffett stands out. Really why don’t all these boffins do something useful than dream up a list of stocks that it can market as an ETF. Low fees, no performance fee, and some are just, trust me, Black Boxes. Yet we are constantly told by the ETF industry that stock picking is a joke and buying an ETF is the answer. Their ETF, of course.



I have no issue with NDQ, FANG or the like. No issue with the one vanilla ice cream ETF to rule them all, QAL, it is these crap ones that are just a marketing exercise for gullible investors. Enough. I know. One thing to remember with ETFs they can go down as well. Maybe that is something that isn’t in the marketing blurb.



I reckon I should get in on the ETF business. I have a great code and a marketing spiel. The code is DART. The list of stocks in the ETF is chosen by throwing darts at the AFR and putting 10 stocks in at random. I might as well. It would probably outperform. At the very least, it would not take up too many little grey cells, and they could be better used elsewhere.



I have used a random three-letter generator to create 10 stock codes.



CGB, GLB, BKL, ICG, BMT, TON, SOP, PAI, MCT, GML.



I give you the DART. My very own ETF as chosen by a random code generator. Updates every month!"

[kiora]

So many simple points Charlie RIP.Often worth rereading

https://finance.yahoo.com/news/charl...140024373.html

"The legendary duo of Warren Buffett and Charlie Munger transformed Berkshire Hathaway into a multibillion-dollar empire through astute investments and a unique approach to market inefficiencies. Munger, who passed away last year, was known for his straightforward and often blunt insights into the investment world.

During the 2015 Berkshire Hathaway annual meeting, Munger remarked to Buffett, "If people weren't so often wrong, we wouldn't be so rich." This statement encapsulates the core philosophy that guided their investment strategy: taking advantage of market misjudgments and maintaining a contrarian stance.

Buffett, widely recognized as one of the greatest financial minds of this era, has often shared his perspective on Berkshire's investment strategies. At the same 2015 meeting, he explained why Berkshire Hathaway refrains from "talking up" its investments.


Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."

Contrary to the common practice on Wall Street, where investors promote their holdings to boost stock prices, Buffett emphasized Berkshire's long-term strategy. Promoting their investments could drive prices up prematurely, which would be counterproductive for their ongoing acquisition strategy. This pragmatic approach underscores Berkshire's commitment to long-term value over short-term gains.

For Munger, investment success wasn't necessarily about having the highest IQ. He often emphasized the importance of understanding one's "circle of competence" and investing in what you know and what makes sense. As he famously said in his book "Poor Charlie's Almanack" in 2005, "You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time." This highlights the value of steady, incremental wisdom over time rather than the need for extraordinary brilliance.

One of the key insights Munger offered was the importance of avoiding common investment mistakes. He believed understanding and steering clear of errors was as crucial as making smart investments. Munger advised investors to avoid trying to predict the future, as this often leads to poor decisions. He emphasized that neither he nor Buffett had any special ability to foresee market movements; instead, they focused on identifying and sticking with good businesses.


Munger often warned against over-diversification, a practice commonly endorsed by modern financial education. He argued that holding too many stocks dilutes the quality of investments, and it is better to concentrate on a few high-quality opportunities. Munger also stressed the importance of patience, noting that significant gains often come from holding investments over the long term rather than frequently buying and selling.

Buffett's perspective on not promoting Berkshire's investments offers a glimpse into the nuanced world of investment strategies. It reminds us that not all investors have the same goals and that Wall Street’s conventional wisdom doesn't always apply. For Berkshire Hathaway, focusing on long-term value often precedes short-term market sentiment, even when considering investment opportunities beyond traditional stock holdings.

Charlie Munger's legacy and investment principles continue to influence and guide investors worldwide. His straightforward advice and keen insights remain a cornerstone of Berkshire Hathaway's enduring success, demonstrating the power of disciplined, long-term investing in navigating the complexities of the market."