Picking great companies for the long run

[kiora]

VG I am not a believer in diversification for investors over long time periods.
Over the last 40 years of investing I have participated in every listing then sold the "losser's" and added to what I think are the "winners"
There has been a noticeable lack of new listings over recent years.
My "share portfolio' has been pared back over time to 2 stock holdings(IFT & FPH) that I am relaxed that the next generation that knows squat all about investing can hold for the long term. Both of them have management that have long term horizons.
If I knew back then what I know now the "portfolio" could have another 2 companies(MFT & EBOS) that I rate very highly because their management have added a lot of value over the long term.
Over long time periods "Trading" for me is just a lot of wasted time and energy . Yes there maybe some "good traders" but is it worth it time & energy wise?
Isn't there other things you would rather be doing?
Maybe its fun to do for the thrill if it comes up a winner but how often does that happen?.
What companies shares do share owners trade?
Ones that have a volatile share prices?
But then why has it got a volatile share price?


https://rutherfordrede.co.nz/latest-...r-the-long-run
"Stocks For the Long Run" has some insight full ideas.

[kiora]

Comparisons graphed 1995-2023
Doesn't include dividends
Allow it time to load fully
https://finance.yahoo.com/quote/%5EG...NoYXJ0In19fX0-

[Bobdn]

Nice links. I listened (Audible) to the latest edition of Stocks for Long Run. I think I might also buy the hard copy and use as a coffee table book. It's a beautiful thing.

[Bjauck]

and just to show that i'm not talking nonsense, i've managed to hunt down the exact regulations from the horse's mouth (highlighted in red):

https://i.imgur.com/taztgbg.png

I had to use Wayback Archive as the FMA website has taken this down and mentions nothing about this in it's current form. Though i'm very certain nothing has changed since these rules were put in place 5+ years ago.

The horse’s mouth doesn’t use a spell check. “Servises”? It’s not even an American spelling variant. It is a minor thing I know yet….

[Valuegrowth]

Thank you Kiora. Some market gurus say we should not time the market. I don’t agree with it. With my experience, I will avoid buying stocks when markets are hot. I am pretty sure Markets are going to hit hard.

I used to participate actively in a stock market forum based in the USA. Surprisingly, I never owned a stock listed in the USA. Hopefully, I will be able to find a good company to invest in the USA.This year will be my learning period as I have forgotten lot about the USA stock market. Finally, I came to conclusion. Out of 10 companies, 5 will be in NZ. I am not hurry to buy stocks yet.

Risks involved in stock markets:

Currency risk
Wars
Different types of crises
Fluctuation of commodity prices
Industry risk

VG I am not a believer in diversification for investors over long time periods.
Over the last 40 years of investing I have participated in every listing then sold the "losser's" and added to what I think are the "winners"
There has been a noticeable lack of new listings over recent years.
My "share portfolio' has been pared back over time to 2 stock holdings(IFT & FPH) that I am relaxed that the next generation that knows squat all about investing can hold for the long term. Both of them have management that have long term horizons.
If I knew back then what I know now the "portfolio" could have another 2 companies(MFT & EBOS) that I rate very highly because their management have added a lot of value over the long term.
Over long time periods "Trading" for me is just a lot of wasted time and energy . Yes there maybe some "good traders" but is it worth it time & energy wise?
Isn't there other things you would rather be doing?
Maybe its fun to do for the thrill if it comes up a winner but how often does that happen?.
What companies shares do share owners trade?
Ones that have a volatile share prices?
But then why has it got a volatile share price?


https://rutherfordrede.co.nz/latest-...r-the-long-run
"Stocks For the Long Run" has some insight full ideas.

[kiora]

VG
Will they be essential service companies for the long haul that you invest in?

[Valuegrowth]

Good Morning Kiora
Definitely, essentials will be part of my portfolio. They need even during period of war, recession and great depression.

[kiora]

Some wise words
https://www.livewiremarkets.com/wire...MEET%20JACKSON
"In my opinion, intelligence is a lousy predictor of investor success. What I believe most important, is the ability to regulate our emotions and stay calm - letting the investment strategy we set for ourselves play out, without getting in our own way," Jackson says."
"In my opinion, intelligence is a lousy predictor of investor success. What I believe most important, is the ability to regulate our emotions and stay calm - letting the investment strategy we set for ourselves play out, without getting in our own way. "
"If there was one thing I'd also like investors to understand, it's that sometimes it's riskier not to invest than to invest"
.

[Valuegrowth]

Some wise words
https://www.livewiremarkets.com/wire...MEET%20JACKSON
"In my opinion, intelligence is a lousy predictor of investor success. What I believe most important, is the ability to regulate our emotions and stay calm - letting the investment strategy we set for ourselves play out, without getting in our own way," Jackson says."
"In my opinion, intelligence is a lousy predictor of investor success. What I believe most important, is the ability to regulate our emotions and stay calm - letting the investment strategy we set for ourselves play out, without getting in our own way. "
"If there was one thing I'd also like investors to understand, it's that sometimes it's riskier not to invest than to invest"
.

Thank you. Very informative.Currently, I have invested in a subsidery company of a large food related company in Singapore. It,s a debt free and cash rich. It also has a strong balance sheet. I have kept it nearly 15 years. I see at least another 10 years of growth thanks to rising population in Asia.

[kiora]

Great companies to invest in often have a large addressable market and leaders that plan for growth

"Growth begins with the core, however, growth leaders expand beyond the core to drive growth.

https://www.mckinsey.com/capabilitie...ders-blueprint