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- TRA - Turners Automotive Group [previously TNR - Turners Limited]
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21-02-2019, 09:44 PM
#4181
Originally Posted by percy
Be greedy when others are fearful.............Warren Buffett.
So you're buying/accumulating, not just sitting on a massive capital loss?
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21-02-2019, 10:00 PM
#4182
Originally Posted by Baa_Baa
So you're buying/accumulating, not just sitting on a massive capital loss?
Not buying as I have taken the position I want.Not selling either.
It is my third largest holding.
Capital loss......... yes.
Fat divies............ yes.
Strong conviction. yes.
Last edited by percy; 21-02-2019 at 10:02 PM.
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21-02-2019, 10:11 PM
#4183
Originally Posted by percy
Not buying as I have taken the position I want.Not selling either.
It is my third largest holding.
Capital loss......... yes.
Fat divies............ yes.
Strong conviction. yes.
So confusing, why would you quote Warren Buffet "Be greedy when others are fearful." and ignore that advice? It could be many years before your dividends exceed your capital losses if you do nothing, though taking Warren's advice you could have a much larger earner at substantially lower holding price. Conviction?
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21-02-2019, 10:23 PM
#4184
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21-02-2019, 11:02 PM
#4185
Member
Originally Posted by RupertBear
I no longer hold and pleased I got out without a capital loss.
I must confess I struggle to understand how one can be happy getting a fat divie while your capital is going down. Bears hate loosing capital
Better than not getting fat divies... And it's not an actual loss unless you sell.
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22-02-2019, 07:20 AM
#4186
Originally Posted by Elles
Better than not getting fat divies... And it's not an actual loss unless you sell.
That is a comforting theory some hold to, but as the sharemarket is very liquid etc, it is a loss even if you do not sell. There is always the opportunity cost one must consider to of being in "the market". I think you will find in the time that TRA has gone down the broader NZ market has gone up. So a double loss in effect. But I am arguing semantics.
I too hold some TRA as part of a diversified portfolio and have not given up on the story yet.
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22-02-2019, 07:33 AM
#4187
Originally Posted by RupertBear
I no longer hold and pleased I got out without a capital loss.
I must confess I struggle to understand how one can be happy getting a fat divie while your capital is going down. Bears hate loosing capital
My capital loss on TRA is unrealised.
What has been the goal of my investing.?
My goal was to build my capital to the point where when I retired ,I had the capital to provide me with a good income.
My capital is over twice what i aimed for,[and I have paid off both daughters' mortgages].
My dividends far exeed what my income was before I retired.
Goals achieved.I remain "well positioned"with a large diversified portfolio,which includes income shares,Australian shares,and still has some fun stocks.In fact my largest holding is a fun stock .
Last edited by percy; 22-02-2019 at 08:00 AM.
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22-02-2019, 08:30 AM
#4188
Originally Posted by RupertBear
I must confess I struggle to understand how one can be happy getting a fat divie while your capital is going down. Bears hate losing capital
If you own a rental property, do you get a valuer in every day to value that property? Do you then get worried because sipping on your Saturday latte, your house price has gone down by 1% over the last week? I would suggest the answer is 'no' to both questions for two reasons:
1/ You don't have to look at your investment every day to know whether that investment is fulfilling your longer term investment goals.
2/ Paying real estate fees every week buying and selling your property would soon destroy any capital profit you made.
However, as a property investor, do you care if your tenant stops paying the rent? I would suggest the answer is 'yes', very much so.
Looking back at Turners, as Sharemarket investors, we are in a privileged position:
1/ We do not have to call in our own valuer each day to tell us what our Turners shares are worth.
2/ Using our ability to buy and sell Turners shares will incur much lower sales commissions that doing the same with a property.
However, these two advantages are not a 'call to action'. We can choose to accept market offers to buy our shares or ignore them. If we choose to focus on the dividend income from our Turners shares, we see that it is continuing to increase. Long term an increasing income stream will lead to an increasing share price. So there is no long term driving force to sell. Indeed, the rational investor would be more inclined to buy more because the lower the share price, the better the investment yield.
If you want to criticise Percy's Turners position, you could say that perhaps he should have staggered his Turners share purchases over a longer time frame. That would have meant that the 'with hindsight view' (which is never apparent at the time a purchase is concluded) that he paid too much for his TRA shares would mean he paid 'slightly less too much' (in effect that is my own position). But as Percy has told you, he bought for the income stream and the ability of that income stream to increase, and so did I. Neither of us are planning to sell over the medium term, and we are satisfied with our own yield return, which does not decrease if the share price falls.
Others have suggested that those of us still with investment capital to buy more ought to wait until share price rises to $2.57 or something to commit more capital to the company. For a yield investor this is BS. The lower the price you can buy your shares, and that could mean buying today, the better the investment yield. No matter what the share price does in the future, there are no exceptions to this rule.
SNOOPY
Last edited by Snoopy; 22-02-2019 at 08:55 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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22-02-2019, 08:48 AM
#4189
Originally Posted by RupertBear
I no longer hold and pleased I got out without a capital loss.
I must confess I struggle to understand how one can be happy getting a fat divie while your capital is going down. Bears hate loosing capital
If someone knocks on your door and offers to buy your house at half of the value that you think it is worth you wouldn’t sell it because you would consider it a low ball offer. With shares you have to decide what is a fair price for the share. You do not have to accept low ball offers.
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22-02-2019, 09:02 AM
#4190
Originally Posted by Brain
If someone knocks on your door and offers to buy your house at half of the value that you think it is worth you wouldn’t sell it because you would consider it a low ball offer.
Unless you knew the tide was rising and devaluing your property every week and after a period of time it was going to be worth nothing.
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