looks like we are on target still , sailor boy will be very happy lol
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Not really, the ones I bought originally had a net present value that I was more than happy with and the ones I have bought subsequently have a a similar net present value but I'm paying much less for them.
You're not taking any hammering at all, if someone yells out to you on the street oi you fat prick, but you're anorexic then you're not going to feel abused are you.
Forget about obsessing over the current market quote and focus on the amount of earnings that your business will generate over the next 10 years and how the assets that you are buying the equity portion of, are funded.
Value the business yourself.
After purchasing any shares, what you should pray for is that they collapse in price on the market while the business either improves or remains the same.
Fifty years ago I was a serious spearfisherman. For pelagics like kingfish, I would start on the surface pretty close to neutrally buoyant with my weights balancing the buoyancy of my wetsuit. I would dive down to 15m or so and my wetsuit would compress so I was overweight and had to fin a bit to stay level and avoid sinking further underwater. I often looked up at the surface and wondered whether I had overestimated my breathholding capacity. It was important to remind myself that I needed to stay relaxed, because to panic would make things worse. If the worst came to the worst, I knew I could always ditch my weights and become positively buoyant to speed my way back to the surface.
In terms of OCA, I am a long way overweight, and a very long way underwater. Fortunately I have enough in reserve so I don't have to ditch my weightbelt and go for the surface just yet!
Interesting analogy.
So if the board of directors presented the company in it's present form to you as the single owner and even gave up their own shares, instead of celebrating with your family, you would regale them with a tale of being at the bottom of the Mariners trench?
Are UBS shareholders currently crying or is it the former Credit Suisse equity and bondholders?
arv trying to catch up to oca , oca better get a move on.
anyway i think the company should tell us if they use kumera or not ?
Often, this happens.
Ultimately, over the long term, and because if nothing else of rising dividends and improving and obvious fundamentals, the market will eventually revalue to intrinsic or above.
What you suggest relies on being able to find another opportunity and be as familiar with it, and that the rise to above intrinsic value happens fast enough that you get your required return on capital and then do this again and again, which is entirely possible but very difficult.
You will make a lot more money if a very high quality business goes on sale and remains so for a while and you reinvest dividends and purchase more as you can, than having a one off revaluation.
Just saying, you're not talking to yourself, there are people here and presumably some lurkers and watchers, who 'get it' about investing long term. Acquiring/accumulating on-market and/or via dividends/DRP, when the market decides to underprice the equity and the company spews out profits as additional equity or money to shareholders every 3-6-12 months by distributing profits. The long terms maths on this is indisputable, assuming the company remains profitable.
This imho and observation though, is a very mature investment approach and can take many years for share market participants to get a grip of, especially mentally when their capital value is being destroyed on paper. Those that do though, really don't concern themselves too much about their current capital portfolio valuation as they have no intention to sell, realising either capital profits or losses. They didn't buy to sell, they bought to lock-in a long term income and/or equity accumulation. They accumulate more by buying or reinvesting dividends.
Thing is though, there are probably a lot more people who are really only focused on the share price and especially so when it goes against their buy-in price, i.e. they're under their buy-price and trying to decide whether to lock in capital losses and move elsewhere. The share price watchers who don't or didn't realise they were really just capital traders, and didn't react early will be hurting. So many though don't have any tools to help with when to exit a capital trade (or get in). It's all gut feel, emotional, subject to whim. All they will see is the red number on their portfolio and counting how much the will lose if they sell. Professional traders are a lot more nimble and move early, getting in, or out.
This place is 'Sharetrader' and its legacy goes back two decades, the debate between hard core investors, casual investors, momentum traders, short term and day traders, noobs and experienced never stops.
The thing I like the most about your posts is that you are very patient about explaining the maths of long term investing in sound prosperous and long term companies. Though sometimes a bit rude and dismissive towards people who don't get it, regardless of their reasons, for example, they want the trade, the quick buck, the thrill of a win.
OCA is and has been for me a long term investment, the repeated extreme capital volatility which I never expected over the past few years has been a windfall enabling me to accumulate a much larger position on-market and via DRP than originally intended based on the original capital I had to invest. Personally I have no intention to sell OCA.
I think people should ponder your expose' of the power of free money that the RV's build up (debt to ORA's) and how that is leveraged. It's quite unlike most industries and core to understanding long term investing in RV's.