ATM - A2 Milk Corporation Limited

[Valuegrowth]

http://teroluoma.blogspot.co.nz/2014...-investor.html

I quoted following information from the above link.

A great company is not a great investment if you pay too much for the stock.

"Put all your eggs into one basket and then watch that basket" proclaimed Andrew Carnegie a century ago. "Do not scatter your shot. ...The great successes of life are made by concentration." As Graham points out, "the really big fortunes from common stock" have been made by people whp packed all their money into one investment they knew supremely well. Nearly all the richest people in America trace their wealth to a concentrated investment in a single industry or even a single company (Bill Gates, Sam Walton, Rockefellers...). The Forbes 400 list has been dominated by undiversified fortunes since it was first compiled in 1982. However, almost no small fortunes have been made this way - and not many big fortunes have been kept this way. What Carnegie neglected to mention is that concentration also makes of the great failures of life.

[BlackPeter]

http://teroluoma.blogspot.co.nz/2014...-investor.html

I quoted following information from the above link.

A great company is not a great investment if you pay too much for the stock.

"Put all your eggs into one basket and then watch that basket" proclaimed Andrew Carnegie a century ago. "Do not scatter your shot. ...The great successes of life are made by concentration." As Graham points out, "the really big fortunes from common stock" have been made by people whp packed all their money into one investment they knew supremely well. Nearly all the richest people in America trace their wealth to a concentrated investment in a single industry or even a single company (Bill Gates, Sam Walton, Rockefellers...). The Forbes 400 list has been dominated by undiversified fortunes since it was first compiled in 1982. However, almost no small fortunes have been made this way - and not many big fortunes have been kept this way. What Carnegie neglected to mention is that concentration also makes of the great failures of life.

Sure - some people play roulette by putting all their chips onto one number and some people make big money by putting all eggs into one investment basket. Some (actually quite a number of) people survive as well by driving a car without buckling up!

The story however is not complete as long as you don't talk as well about all the people who put all their money into one basket and lost ... and the people who just died because they didn't buckle up. Nobody sings about them.

Nobody has all information about one company and its future - i.e. making money by putting all eggs into one basket is not clever, it is just lucky.

The point of diversification is not to get quick rich ... but it is to make money without taking undue risks, and to still have some money left if one of your (skillfully chosen) investments go pear shaped due to unforeseen circumstances ....

[couta1]

Sure - some people play roulette by putting all their chips onto one number and some people make big money by putting all eggs into one investment basket. Some (actually quite a number of) people survive as well by driving a car without buckling up!

The story however is not complete as long as you don't talk as well about all the people who put all their money into one basket and lost ... and the people who just died because they didn't buckle up. Nobody sings about them.

Nobody has all information about one company and its future - i.e. making money by putting all eggs into one basket is not clever, it is just lucky.

The point of diversification is not to get quick rich ... but it is to make money without taking undue risks, and to still have some money left if one of your (skillfully chosen) investments go pear shaped due to unforeseen circumstances ....

There's so much about this post I disagree with, I don't no where to start, so I won't. PS-The biggest mistakes I have made is not holding onto my XXOS baskets for longer in a few instances.

[silu]

http://teroluoma.blogspot.co.nz/2014...-investor.html

I quoted following information from the above link.

A great company is not a great investment if you pay too much for the stock.

"Put all your eggs into one basket and then watch that basket" proclaimed Andrew Carnegie a century ago. "Do not scatter your shot. ...The great successes of life are made by concentration." As Graham points out, "the really big fortunes from common stock" have been made by people whp packed all their money into one investment they knew supremely well. Nearly all the richest people in America trace their wealth to a concentrated investment in a single industry or even a single company (Bill Gates, Sam Walton, Rockefellers...). The Forbes 400 list has been dominated by undiversified fortunes since it was first compiled in 1982. However, almost no small fortunes have been made this way - and not many big fortunes have been kept this way. What Carnegie neglected to mention is that concentration also makes of the great failures of life.

I found that I sleep better being a bit p*ssed off about lost opportunities than worrying about a non-diversified portfolio. If age has shown me something is that I can't take anything for granted. I possibly can't foresee major macro events that severely could affect my investments or that maybe a company that has promised so much has suddenly stopped firing. I might not get rich with my current strategy but then all I want to be is comfortable.

[BlackPeter]

There's so much about this post I disagree with, I don't no where to start, so I won't. PS-The biggest mistakes I have made is not holding onto my XXOS baskets for longer in a few instances.

Couta, your personal experience is just one data point in a sea of data. Great you've been lucky so far by not diversifying, but does this mean this strategy will work for everybody else as well?

Only people who are able to see the future should put all their money on one card ...

Are you sure you are able to see the future with 20/20 foresight?

I know only about one who can ... and we are not even sure about her ;

[see weed]

I am surprised you guys are taking such big positions.

see weed reporting from the Black Beagle Café. Last month collected divs on about 14 or so companies. This month only have 2 companies, next month who knows, but we all still in the same boat waiting for ATM next update, then up up and away to $15, as Beagle says today was last years update date, so not long now.

[Nasi Goreng]

How many crazy people out there have loaded up on property as their number 1 investment. They have no shares, just 1, 2 or 3 investment properties. These people are not diversified yet most people would think, nice one, you can't go wrong there...

The way I see it, if someone wants to go load up on a particular sector that they like the look of and make that 50, 60 or 100% of their portfolio, then they are not necessarily following the rules of diversification but they are backing themselves, their research and going for it.

It is high risk and the high rewards and potential losses reflect that. Also, most people who buy shares do so with their own money, so in my opinion this is way less risky than someone buying a rental property at todays prices and borrowing $800k.

[Beagle]

“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land” Ecclesiastes 11:2 (NIV)

Predicting the future is extremely difficult. A wise man follows time honored biblical principle's because it is prudent to hedge one's investments and diversify risk.

This company looks very good but it is trading a four times the share price of just on one year ago. (I have it recorded at $2.99 in last years balance sheet as at 31 March 2017).

[couta1]

“Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land” Ecclesiastes 11:2 (NIV)

Predicting the future is extremely difficult. A wise man follows time honored biblical principle's because it is prudent to hedge one's investments and diversify risk.

This company looks very good but it is trading a four times the share price of just on one year ago. (I have it recorded at $2.99 in last years balance sheet as at 31 March 2017).

Seven or eight ventures mate, not necessarily different stocks.See you at $20 a year from now.

[winner69]

Diversification per se is ones worst enemy ......most of the richest people in the world are not ‘diversified’