Your $1m inheritance is locked for 10 years in one company, which one ?

[Snoopy]

Same here Couta... thoroughly agree.

I don't wish to turn this thread into a treatise on gambling in general and Sky City in particular. I know there are forum members out there with strong views on this topic. And I don't expect any more posting on my part will convince them that Sky City is anything more than a den of sin.

Yet on the positive side of the ledger there are a couple of things that potential shareholders and moral crusaders should know about though.

1/ The ’20 by 2020’ ($20 per hour) initiative will see SKYCITY increase the hourly rate of its lowest-paid employees by 21 per cent over the three years, compared to the official Statutory Minimum Wage of $16.50 as of 1 April 2018. SKYCITY is the first major listed New Zealand company to commit to a $20-an-hour minimum wage.

2/ The National Convention Centre that Sky City are building in Auckland will cost them $430m, and they have negotiated a similar sized contribution from Fletcher Building. That means an $800m project for Auckland at no financial cost to the taxpayer or ratepayer. Even these days, $800m can go a long way to alleviating poverty in Auckland.

SNOOPY

[Brain]

This has been a popular thread. Well done Mr Beagle.
My approach to this would be a tad different to others. Having never received an inheritance to date and all the dosh I have accumulated has been hard earned and honestly acquired I would not particularly welcome such an inheritance because I take pride in calling myself a self made cat.

So I would invest the money in an outsider - a long shot. Hopefully the returns would be substantial and at the end of the 10 years I would be able to start up a very substantial Charity.

My Long Shot would be either NTL where I may be competing with the tea lady or PLX where my main competition could be Scooby Doo. On the basis that a million bucks would not push up the share price too much and after the 10 year period yields a great return I would hopefully be able to improve some lives by the way of a well funded charity.

That at would make me a very happy cat.

[Leftfield]

All cool snoopy.... if you don't get it, you don't get it.

Ethical investing is a personal choice, it's one that makes me sleep well at night, even if it makes no financial sense to some.

On with the competition.

[winner69]

This has been a popular thread. Well done Mr Beagle.
My approach to this would be a tad different to others. Having never received an inheritance to date and all the dosh I have accumulated has been hard earned and honestly acquired I would not particularly welcome such an inheritance because I take pride in calling myself a self made cat.

So I would invest the money in an outsider - a long shot. Hopefully the returns would be substantial and at the end of the 10 years I would be ableism to start up a very substantial Charity.

My Long Shot would be either NTL where I may be competing with the tea lady or PLX where my main competition could be Scooby Doo. On the basis that a million8uu bucks would not push up the share price too much and after the 10 year period yields a great return I would hopefully be able to improve some lives by the way of a well funded charity.

That at would make me a very happy cat.

Great sentiment Brain

So would it be NTL or PLX?

Of the two I’d go NTL ....even though about as sinful as SKC

[Filthy]

good posts snoopy - thanks.
perhaps RBD has ruined more lives with unhealthy food than SKC has with gambling debts?
anyway, back to the thread
my pick would be IFT (because of its diversification & track record)
other 'safe' picks would be VHP & AIA (yes the latter is expensive, but 'current price' does not matter so much over the long-term)
given the chance, I doubt anyone on this forum would invest in 'just one' company though..... lol

[Brain]

Great sentiment Brain

So would it be NTL or PLX?

Of the two I’d go NTL ....even though about as sinful as SKC

Ntl would be the better bet. It would be hard to compete with Scooby Doo’s deep pockets

[Beagle]

'Sin warriors' should note that Sky City can ban you from entering their premises if you own up to having a gambling problem (no pubs with pokies will do that). I intend to ask if this practice can be extended to their 'buffet restaurants' where Mr and Mrs Beagle admit to being responsible for ongoing shareholder losses due to continual overfilling of their respective dog bowls!

LOL thanks...a good bit of humor to start the week. You're safe for the next couple of months as Mrs Beagle is getting some very expensive implants done and is not feeling very "chewey" at present The Beagle household is eating a lot of soup at present...just as well its winter.

Here's why I choose 10% compounding yesterday instead of 15%. RYM's stated goal is to grow underlying earnings 15% per annum and they've achieved that over the long term but have missed in the last two years, 12% in 2017 and 14% in 2018. In the last 20 or so years we've seen considerable expansion in house prices at vastly greater than the inflation rate and the listed retirement companies have benefited from that. N.Z's real estate on a multiple of average Kiwi's earnings is now amongst the most expensive in the world so going forward I think its more prudent to plan on a more modest growth rate.

I guess the thing I wanted to reinforce to myself is the profound wisdom of investing in companies that will grow strongly and simply keep holding them for the long term. Sometimes, and I am certainly as guilty as anyone else here and possibly more so, (perhaps this is an occupational hazard), I get bogged down into trying to assess fair value to within a tight range and take action based on under or over valuation when perhaps more time should be spent thinking about the long game. In recent times I've spent a bit of time vision casting about where I believe XYZ company will be in 5 years time. I struggle to try and think 10 years out but that's what Warren Buffet does so that's the next trick for this old dog to learn

[Joshuatree]

NTL would be perfect for anyone with Dementia (rinse and repeat for many years?)imo, the quality of which is not even in the gambling stocks sector. ideal for people who want to make $1million and start with $10 million. Now what did i just say.....?......

[Aaron]

HBL, or TRA,or MEL or GNE,or EBO.or POT,or MFT,and or as Couta1, RYM..

Hey Percy, you have MEL & GNE why not MCY or CEN?

[winner69]

Somebody mentioned compounding the eighth wonder of the world ...and reinvesting divies boosts returns heaps

Lets say our $1,00m worth of shares grow consistently at 10% pa and we collect a 5% divie along the way and we reinvest that divie into our holding. Essentially assumes earnings will grow at 10% and the divie increases as earnings grow.


At the end of the 10 years we will have about $4.0m (assuming we didn’t spend the divies)

If we had not reinvested our divies we would have $3.4m

Reinvesting the divies gives returns a decent boost eh

No gurantee numbers are right ...indicative only

Also highlights why the NZX50 outperforms the world with divies counted and reinvested