Sector investing

[Joshuatree]

Ive done well (mainly) with pairings in sectors
FPH and RMD in Healthcare
ZEL and NZR retail and refining fuels
MEL and Genesis Power gen and retail
AOG and EHE in retrement villages in Aus
VOC and AMM ,telco merger in progress thru VOC in Aus
SKE and PRG providers of staffing ,merger in progress thru SKE(s/p up today) in Aus
a bunch of Goldies whose time is arriving ( i hope).

[GTM 3442]

Ive done well (mainly) with pairings in sectors
FPH and RMD in Healthcare
ZEL and NZR retail and refining fuels
MEL and Genesis Power gen and retail
AOG and EHE in retrement villages in Aus
VOC and AMM ,telco merger in progress thru VOC in Aus
SKE and PRG providers of staffing ,merger in progress thru SKE(s/p up today) in Aus
a bunch of Goldies whose time is arriving ( i hope).

A bit specific for me, I'm afraid. I'm quite happy picking sectors, but less keen on picking individual stocks within my selected sectors.

[fish]

I 'kind of' do this Harvey. My current strategy is to invest in about a dozen NZ companies with a low speculative bias. The dozen are not held in equal amounts because my portfolio is a 'work in progress'. I tend to focus on 'food' 'clothing' 'shelter', the basic three needs of humanity for which demand is unlikely to dry up. However I make an immediate lie of this by investing in the farming sector (via PGW) and various NZ Manufacturers (SCT and SKL) too.

Under the 'shelter' umbrella I put the power companies. As it happens I hold roughly equal holdings of MRP and CEN, with a rather smaller helping of GNE. That smaller helping of GNE is not by design. It is because I like everyone else was restricted in what I could buy at float time.

I like to hold two shares in any targeted sector, to negate individual company risk and to give me a force feed of information on what the competition is up to. I view my holdings of CEN/GNE and MRP as 'one' from an investement perspective (but 'three' from my portfolio of 12). I am comfortable with holding around 1/4 of my NZX portfolio in the electricity sector. But currently my electricity sector investment is significantly less than that. This means I have the problem of three relatively underweight holdings and what to do with them. One is targeted for the chop, but which one?

I can't answer this question for sure, but long term I want the two best companies in the sector provided I don't have to pay an exorbitant price to buy into them.

SNOOPY

.
Snoopy no doubt your work in progress will include the impact of falling interest rates on company profits.
Also falling exchange rates have an impact if the investment is in us dollars.
borrowings in the form of long-term bonds must also negate any advantage.
Looking at the power companies are there any in a position to reduce their borrowing costs?
Looking at chorus-will it help their profits?