Thanks , so Eaasy astock to set and forget about atpit for me.
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Thanks , so Eaasy astock to set and forget about atpit for me.
What effect will the bushfires have on this stock?
I notice the SP has levelled off over the last few weeks.
Good question and something I have been pondering at quite some length. There will unquestionably be some temporary effect on retail and tourism (sectors BRM is not really exposed too in any major way).
As the rebuild gets underway with the expenditure of billions of dollars on new construction I expect the effect to reverse.
I note significant rain last weekend and more forecast for the coming weekend. Well worth noting that the average forward PE for the Aust market is more than 10 lower than for N.Z. The trade deal is a very good thing for economic growth and China is a large importer of Australian base resources.
Worth noting that the Australian market is currently trading 2% higher than it was last Wednesday when last NTA was calculated at 74.4 cents so I expect tomorrow's announcement of NTA as at close of business today to be about 76 cents per share. Even at 73 cents as at the time of this updated post it trades at about a ~ 4% discount to my estimated current NTA. Going off performance in the last couple of years I see no valid reason for any discount at all !
All things considered I am happy to maintain my significant ~ 20% portfolio allocation to BRM for the foreseeable future.
For what its worth this is my largest single share portfolio allocation, albeit into a fund that's very well diversified across various sectors in Australia and performing exceptionally well.
I don't have the time or inclination to bother with individual share picking in Australia and why would you bother when these guys do all the hard work and outperform the index by a whopping 13% !
Even though I'm usually very happy to back myself to beat the NZX50, I wouldn't back myself to beat the Australian index by 13%.
surprised to see these guys doing this
we increased our weightings in the Australian banks, ANZ, CBA, NAB and Westpac in the middle of March
Looking clearly through the impenetrable mists of future time and playing the long game.
Disc: them, not me!
If they bought in mid-March, it could have been at a great price (in the long term scheme of things). And Governments certainly seem keen to support the banks, so could be an astute purchase.
Looks like BRMs fund manager jumped the gun... they'll (we holders) will be annoyed about this!. Shouldn't he loading up anything in this market. Twits
Well my friend I know BRM and it's two siblings VERY well. Bought BRM at IPO in 2006...14 yrs ago at $1. Current nta around 57c...and about to fall further in a week?..I recall you joined the BRM team last Nov. To keep ahead you've had exercise multiple issues of diluting warrants and reinvest all the divvies to give effect to the famous TSR.
But not quite. Skipping the DRP last dec I took the usual 'capital return' aka divy and bought them at 46c a week or two back. You'll get wise in time too.
For a bit more on this, see an interview with Robbie Urquhart who manages the Australian share portfolios, posted 7 April (Banks, property & Australia - chatting to Australian Portfolio Manager Robbie Urquhart)
The interviewer (Frank Jasper, Fisher Funds CIO) specifically asks about the increased position in AU banks at the 5:00 minute mark.
They also talk about an increase in REA at the 10:00 minute mark.
Thanks, PP, an interesting interview. I have taken the liberty of referring your post to readers of the Bank Stocks thread.
:)
yes it was a good interview
looking at all the banks charts there is great similarity with the falls occurring during March but not reaching the bottom (so far?) until later in the month.
So if they bought Mid march then they will still be underwater on those. So they did jump the gun a bit probably. He explained their reasoning in the video and it was acceptable.Very young but spoke wellDid anyone notice he was very very recently appointed to the role. It would appear having faith in management at this point is true faith.
I'm tempted to start off with Barramundi with my Aussie portfolio (starting soon) but that would kind of defeat the purpose of building a portfolio. I guess I could use it to smooth out my returns and keep me close to the index.
But that said if Aussie dollar keeps going up I may decide to bring it all back!
BRM under Jasper in the early days put it's focus on small cap growth punts. It didn't work out so more recent gurus have gone main stream on cos that make money. Like banks. But this is not without risks. Ive owned ANZ of and on for years. Bailed at $29 3 yrs ago. In recent times ANZ share price has sagged after each divy announcement, pre xdiv and never recovered. Theoretically it should be cheaper soon based on history?. Hence my observation.
Oh and just a point on Pennypickers appraisal of fund manager vids..maybe also worth watching Jonathan Windust of Milford explaining why they OFF loaded Au banks in March. Believe what makes you feel good I guess.
I don't hold Milford but have often thought I should.
He spoke quite well at the BRM annual meeting last year mate. I think adding banks is a "brave" call and I am not sure its the right one. For what its worth the ASX has not bounced anywhere near as hard off its March 2020 lows as our one and I think it represents much better value and more correctly prices the Covid 19 risks than the NZX. That said I continue to be extremely cautious with how the markets per se are currently pricing the economic fallout of Covid 19.
The thing to be careful about with these funds, (including Marlin and Kingfish), which was explained at the last annual meeting, is they have no mandate to make calls on holding significant level's of cash and they will be more or less fully invested at all times. They made it clear they leave the decision on what cash holdings investors should have in their portfolio to individual investors.
https://www.nzherald.co.nz/business/...ectid=12328577
https://www.marketwatch.com/story/do...day+1+May+2020
I bought more too - divvy date coming