HGH - Heartland Group Holdings

[newbieinvestor]

Everyone needs to find what suits them best in terms of portfolio allocation strategies. What's appropriate for me, a few years away from retirement may not suit someone a lot younger who's prepared to take a more risky approach. I a few years back I would sometimes go to 15% for a really high conviction position but these days I am more comfortable with a 10% maximum allocation and only go there for very high conviction stocks.
Holdings vary depending on the level of conviction, for example OCA was 3.5% but was raised to 5% yesterday.

Hope that helps.

Thanks very much Beagle!

[newbieinvestor]

I'm already close to my self imposed maximum portfolio allocation to any one stock on this one.

Hi Beagle - Thinking of investing in some HGH & IFT for the long term via ASX. For a NZ tax resident would there any difference in the imputations via NZX vs ASX? (AUD seems like a better hedge to be in...eventhough the volumes on ASX are much thinner...) TIA!

[Beagle]

Nobody has ever asked me that before so I am not sure on that one mate, sorry. I don't think its an effective strategy anyway because the main board listing for those two is here and the Aussie price will generally track the N.Z. price adjusted for the exchange rate. I think 99.99% of people wouldn't bother with that because all other things being equal, liquidity is never a bad thing.

For example in some classic valuation models I have seen over the years a paucity of liquidity needs to be rewarded with an extra 2% per annum return vs a stock with great liquidity.

[newbieinvestor]

Nobody has ever asked me that before so I am not sure on that one mate, sorry. I don't think its an effective strategy anyway because the main board listing for those two is here and the Aussie price will generally track the N.Z. price adjusted for the exchange rate. I think 99.99% of people wouldn't bother with that because all other things being equal, liquidity is never a bad thing.

For example in some classic valuation models I have seen over the years a paucity of liquidity needs to be rewarded with an extra 2% per annum return vs a stock with great liquidity.

Thanks Beagle! Come to think of it yes - you right, it doesnt seem like an effective strategy... I guess I was just looking to stash them someplace away out of sight for a while.. .. Thanks!

[BlackPeter]

Thanks Beagle! Come to think of it yes - you right, it doesnt seem like an effective strategy... I guess I was just looking to stash them someplace away out of sight for a while.. .. Thanks!

Just a general clarification. Any shares of NZ companies traded as well on the ASX (or the other way around) are the same shares of the same company, i.e. the tax treatment is as well the same. However - your NZ return might look a bit different, given that you need to declare foreign dividends in a different form than domestic dividends. Bottom line (i.e. tax you need to pay) however should not change (but potentially some rounding errors due to exchange rates and similar).

You can as well transfer these shares through your broker (was for me free of charge, but it does cost you some paperwork) from ASX to NZX and vice versa. This might help to remedy any potential arbitration losses the low liquidity otherwise might cost you. Takes however time - i.e. no selling on the press of a button ... complete the form and wait some days.

Personally - I don't see any advantage of investing in the respective lower liquidity market but a possible arbitration gain (or loss) and more paper work.

[newbieinvestor]

Just a general clarification. Any shares of NZ companies traded as well on the ASX (or the other way around) are the same shares of the same company, i.e. the tax treatment is as well the same. However - your NZ return might look a bit different, given that you need to declare foreign dividends in a different form than domestic dividends. Bottom line (i.e. tax you need to pay) however should not change (but potentially some rounding errors due to exchange rates and similar).

You can as well transfer these shares through your broker (was for me free of charge, but it does cost you some paperwork) from ASX to NZX and vice versa. This might help to remedy any potential arbitration losses the low liquidity otherwise might cost you. Takes however time - i.e. no selling on the press of a button ... complete the form and wait some days.

Personally - I don't see any advantage of investing in the respective lower liquidity market but a possible arbitration gain (or loss) and more paper work.

Thanks BlackPeter! for all the inputs and also pointing out that could possibly transfer them across exchanges albeit with paperwork! (which might be worthwhile in case an investor happens to move across either side of the ditch!) ..Cheers

[Rawz]

New CEO for Heartland bank. Nabbed a Westpac exec. Good stuff.

Chris Flood moves up to group deputy CEO and will help old mate Jeff take over Aussie.

Endless growth ahead for HGH and they have a proven track record of growing. Great long term compounder. Hope to pick up a bunch sub $2 during the current storm

[percy]

New CEO for Heartland bank. Nabbed a Westpac exec. Good stuff.

Chris Flood moves up to group deputy CEO and will help old mate Jeff take over Aussie.

Endless growth ahead for HGH and they have a proven track record of growing. Great long term compounder. Hope to pick up a bunch sub $2 during the current storm

Yes all good stuff.
Flood and Greenslade work well together.

[thegreatestben]

Rawz - do you really think we'll see sub $2? I'll be buying if we do get there but I have my doubts.

[Rawz]

I have no idea. But wouldnt surprise me in this market.

During the covid crash it dropped from $1.80 to $0.90 a share.