Picking great companies for the long run

[Valuegrowth]

Still I am in 100% cash fund. Looking forward to find a kiwi saver provider who will allow me to pick individual stocks.

How can you choose individual companies with your KiwiSaver? Which provider are you with?

[Valuegrowth]

Very interesting. I think I have to learn lot of things. Thank you for educating me.

For my next rant I will talk about Genesis Energy. A real moral 'bad boy' as they produce maximum carbon dioxide for electric power output by burning coal and turbocharging the evil effects of climate change in the process. That is enough to put Genesis Energy on the sooty black list of many fund managers. Except these fund managers obviously have no idea how the electric power system in New Zealand works.

The NZ electric power generation system runs in 30 minute auction blocks. Power from all the generators is offered up on a sliding price scale with the lowest bids being accepted first and progressively higher bids accepted until demand is fulfilled. Then all the power is paid for at the highest bid offer price that is accepted. Wind energy is generally tendered at the lowest price because it cannot be stored. Then the price increases steadily for other forms of energy until fossil fuel generation kicks in as the final backstop at a high price, boosted by the company having to buy carbon credits for fossil fuel burned as well. This means that fossil fuelled electricity is often only accepted into the market as a 'supply tender of last resort'. Thus fossil fuelled electricity has its biggest place in the market when no form of renewable energy alternative is available. Thus the choice is not between coal and hydro (for example) as an energy source. The choice is between coal fired energy or nothing. And no coal burning means granny drinking cold soup for dinner and going to bed early with a cold water bottle to avoid the worst of the winter chills. These moralising managers who won't invest in Genesis Energy are nothing more than 'granny haters' in my view.

Personally I don't invest in Genesis Energy. But this isn't for moral reasons. The reason is I prefer my gentailer investments to own their generation assets, not exist as 'middle men'. And Genesis is going down a path of buying power from generation stations owned by others - not funding their own power stations. But I digress as that point has nothing to do with morality or environmental sustainability.

SNOOPY

[Bjauck]

Still I am in 100% cash fund. Looking forward to find a kiwi saver provider who will allow me to pick individual stocks.

That would be great. I will add to my wish-list with respect to the KiwiSaver regime.

[SailorRob]

The Role of government is to confer private property rights too. Without the social legal structure of “the state” there would be no private rights.

You soon understand that the state has full ultimate rights over your “private property” when they can compulsorily take it, subject to whatever conditions the state has enacted.

Very true...

[Valuegrowth]

If I am correct Craigs is allowing members to pick stocks. Shareshie could be next.

That would be great. I will add to my wish-list with respect to the KiwiSaver regime.

[SailorRob]

Man I've told you guys before...

Craigs lets you pick individual stocks...

They have a list but it's reasonably extensive.

[Valuegrowth]

Long term investment is good as well as bad.

I own stocks of Sea legs. After their poor performance even I didn’t bother to look at their share prices and what is happening to them etc. As my broker closed the business I tried to transfer shares of sea legs to another broker and process involved was very complex. Hence I decided to write- off it without doing anything. Later I found their name has changed as “Future Mobility Solutions Limited(FMS)”. When I bought long time ago I got excited about their amphibious marine craft technology.

Lesson 1 : Not to invest in business that I can’t understand and not to buy stocks without doing home work.

Lesson 2: Invested in Dominion Finance as it had a good balance sheet compare with other Finance companies. I can understand finance companies some what.But I didn’t expect that much of tsunami type of hit on the sector. Fortunately, I was able to sell two thirds of my Dominion Finance. Some analysts said if something happen to DF, the last one to go. Now I know what types of companies I should own and at what price and what should I do before buying stocks.

Rule number one: Never make losses again.

https://www.fma.govt.nz/about-us/enforcement/cases/finance-company-collapses/
https://www.scoop.co.nz/stories/BU1410/S00848/finance-company-failure-in-new-zealand-was-predictable.htm

[Valuegrowth]

Perky[/B];1005076]
NZ. MFT or EBO
Aus: MQG
HK: PRudential or HSBC
US. Berkshire
London. Shell
chose to ignore your esg criteria.

SailorRob[/COLOR];1005082]1. OCA
2. Don't know
3. C K Hutchinson
4. Berkshire Hathaway
5. Unilever

chose to ignore your esg criteria.[/QUOTE]

I looked at Berkshire Hathaway Inc Class A stocks.

Current trading price: around 487,000.00 USD
Traded in 1995: around 17000 USD
Traded in 2000: around 60000 USD
Traded in 2020: around 300,000.00 USD
Line is straight up From 2020 to 2022 and smashed 500,000 USD

Curent PE ratio: 93.52

Good companies have appreciated behind their true business value. As value investors we should find out stocks which are trading below the intrinsic value. It is true Berkshire Hathaway is a great business but it’s extremely over valued for me now.

I believe there could be pull back or correction in this stock. Even if it drops I can only buy very tiny fraction of that company as 100 shares of Berkshire cost lot. Rather better try another strong company.Next decade is belongs to the long-term investor and value investor.

[Valuegrowth]

chose to ignore your esg criteria.

I looked at Berkshire Hathaway Inc Class A stocks.

Current trading price: around 487,000.00 USD
Traded in 1995: around 17000 USD
Traded in 2000: around 60000 USD
Traded in 2020: around 300,000.00 USD
Line is straight up From 2020 to 2022 and smashed 500,000 USD

Curent PE ratio: 93.52

Good companies have appreciated behind their true business value. As value investors we should find out stocks which are trading below the intrinsic value. It is true Berkshire Hathaway is a great business but it’s extremely over valued for me now.

I believe there could be pull back or correction in this stock. Even if it drops I can only buy very tiny fraction of that company as 100 shares of Berkshire cost lot. Rather better try another strong company. Next decade is belongs to the long-term investor and value investor.[/QUOTE]

[mistaTea]

I looked at Berkshire Hathaway Inc Class A stocks.

Current trading price: around 487,000.00 USD
Traded in 1995: around 17000 USD
Traded in 2000: around 60000 USD
Traded in 2020: around 300,000.00 USD
Line is straight up From 2020 to 2022 and smashed 500,000 USD

Curent PE ratio: 93.52

Good companies have appreciated behind their true business value. As value investors we should find out stocks which are trading below the intrinsic value. It is true Berkshire Hathaway is a great business but it’s extremely over valued for me now.

I believe there could be pull back or correction in this stock. Even if it drops I can only buy very tiny fraction of that company as 100 shares of Berkshire cost lot. Rather better try another strong company. Next decade is belongs to the long-term investor and value investor.

[/QUOTE]

Here I was thinking BRK was undervalued when you consider owner earnings.