Gotta accept greater fool risk if you want to buy a piece of this great company.
No chance to ever make money on dividends at that pe.
Therefore buying into fph is a bet that the pe will always be astronomical.
Shame really.
He ate two strategies I've used to buy fph:
1. A while ago I bought some of these then sold down after the price increased to reduce my average buy price.
2. Ive also bought a small parcel so the risk of pe drop doesn't bother me.
Both strategies are arguably flawed, as they start to get into increasing psychology. On both points i was left with some shares that were priced to sell and had no way to earn a decent dividend rate for the amount of money the shares were worth.
In the end, after all my trading, im left with just a small parcel that i hold simply because i like the company and don't mind writing off that cash. The only strategy i will use to buy fph in future is buying significant dips, and possibly option 1 again if i find myself in a position to see significant tailwinds that i don't think the market has noticed.
Hey, maybe after 10 years my small parcel will be worth something, and i can sell up to buy something that will give me a little income.
Perhaps a good stock if you want to leave an inheritance for someone?
Notably a bad result could easily half the value of this stock, dropping that high pe.
Been a great investment stock for me , my entry av $3.02, have sold some over the years but it usually kept going up after. I may possibly sell some more to build some cash if things really start to look grim bear wise globally but its been a great long term premium investment grade story. The penny finally dropped and i invested in competitor RMD Resmed later, at average A$6.65. Very similar 10 year charts with incredibly similar gains.
If you bought 5 years ago at $3.5 (right at the start of the stella growth) you'd be getting a dividend of about 5.5% on your initial investment. You'd also have stock in a very good growth company.
I guess if the growth continues at that rate, it's a good investment!
I wonder what a dividend return chat would look like against a company that constantly spits out a higher div, like nzx.hlg?
As a long term investment (assuming you never sell)... How many years before you'd get a total dividend return from fph greater than hlg?
Speaks for itself doesn't it?Who would have suggested FPH outperformed by EBOS though.Can EBOS continue to grow at this rate by acquisition.Have they got the future management in place to facilitate? https://www.nzherald.co.nz/best-of-b...+December+2018
Compared to infratil which is similar returns and in my view the right ethos and succession in place https://infratil.com/for-investors/
Speaks for itself doesn't it?Who would have suggested FPH outperformed by EBOS though.Can EBOS continue to grow at this rate by acquisition.Have they got the future management in place to facilitate? https://www.nzherald.co.nz/best-of-b...+December+2018
Compared to infratil which is similar returns and in my view the right ethos and succession in place https://infratil.com/for-investors/
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Originally Posted by kiora
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