That is all well and good. But...
Quote:
Originally Posted by
Snoopy
How well have I done out of SKC? I have been a shareholder since the BIL sell out a long 11 years ago. However the median holding time for my holding is just 4 years and 2 months. In those 4.167 years I have received a total of 54.9cps in dividends. A ‘buy and hold’ investor buying at that time would have paid $4.40 per share. My average purchase price is $2.60. So purchase timing, has been brilliant.
My total return has been (2.60) (i^ 4.1667)= (3.16+0.549), where ‘i’ works out at 1.089. This represents a compounding gain of 8.9% per year.
Over that same time period the NZX50 has declined from 4000 to 3300. That represents a loss of:
4000(f^4.1667)=3300, where ‘f’ works out as 0.955.
This represents a compounding loss of 4.5% per annum. My net gain relative to the NZX50 index is therefore 13.4% per year compounding and after tax.
SNOOP
Great though that is I still fail to understand the attraction of shares like Sky City, and the second post on this thread is me saying so.
Now I first posted about Mainfreight and claimed to be a holder on 11-Aug-2004. On that day the close was $2.00 if you had simply kept those shares then at todays close of $6.57 and calling today six years later (actually less) your annual compound growth for capital gains alone is 22%. Add in the regular dividend as well and it gets better.
Buying shares with a good yield but poor growth prospects is not the best way to make money.
However I will state that I consider that Mainfreight is currently overpriced.
regards
Paper Tiger
Disc: Own MFT; Do not own SKC.