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08-04-2010, 12:59 PM
#1311
I've read Buffetology, that's what I'm basing my investment strategies on so far. Just started reading One Up On Wall St and have got a few basic tips.
One quote I remember is never buy a stock for the reason that it's value is going up. RDB are doing much better than they were 1-2 years ago in their financial statements but it's sure going up in a hurry. Everyone needs to eat though which is good for KFC.
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08-04-2010, 01:36 PM
#1312
WITH all the pedictions for KFC the thing that will happen is the dividend will rise to at least 14 cents in the next YEAR.. YIPPIE..
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08-04-2010, 06:42 PM
#1313
CEO Creedy bought some more shares at $2.05 yesterday. Encouraging SNOOPY
Last edited by Snoopy; 08-04-2010 at 06:44 PM.
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08-04-2010, 07:05 PM
#1314
Originally Posted by Snoopy
CEO Creedy bought some more shares at $2.05 yesterday. Encouraging SNOOPY
I give you this one snoopy. I remember a few years ago bagging RBD when it was below $1 on sharechat. can eat my words now... but im sticking to bagging telecom.
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11-04-2010, 09:21 AM
#1315
Junior Member
The reason rbd has soared is because the majority of people during this recession have eaten there. as things improve sales will drop again If you bought in below $1.00 GET OUT AND TAKE YOUR PROFIT.. iT IS UNLIKELY THAT ANOTHER ASIAN TAKEOVER WILL ARISE.
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11-04-2010, 10:41 AM
#1316
Originally Posted by Brian
The reason rbd has soared is because the majority of people during this recession have eaten there. as things improve sales will drop again If you bought in below $1.00 GET OUT AND TAKE YOUR PROFIT.. iT IS UNLIKELY THAT ANOTHER ASIAN TAKEOVER WILL ARISE.
LIVE & LEARN, Brian RBD will go on for ever just like the eaters ever day there is a requirment for KFC to make a quick profit sounds good to younger people but with the ageing
processe an exerlent DIV is more important as they go on FOREVER..
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13-04-2010, 12:33 PM
#1317
Levin kfc store..
WELL tenders have been acepted for the new store and rebuilding will start shortly,[THATS NICE] and hope is all up and running by JULY.. Tomorrow is an open recruitment day so if you want a job slip along and see Nick Thomson
Mobile 021 536194 he is your man..
Statement of the month :
"As you can imagine we are excited about our new store and cant wait to be back in bisiness".
Either can RBD shareholders..
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14-04-2010, 06:06 PM
#1318
Originally Posted by ENP
I've read Buffetology, that's what I'm basing my
investment strategies on so far. Just started reading One Up On Wall
St and have got a few basic tips.
If that is the original Buffetology book, I think there was a mistake in the
calculations in the equity growth model spreadsheet type calculations.
It was subsequently fixed in Mary Buffett's following publications, the
Buffettology Workbook and the New Buffettology.
Still that doesn't diminish the ideas and theme of the book.
One quote I remember is never buy a stock for the reason that it's value
is going up. RBD are doing much better than they were 1-2 years ago
in their financial statements but it's sure going up in a hurry. Everyone
needs to eat though which is good for KFC.
Yes, hit $2.19 today? Still the book doesn't say you shouldn't buy a
share because it is going up either.
In fact, coming from a similar investment church to yourself ENP, I think
you need to ask whether a share is value at the market price. It may
well be value even as the price is going up rapidly if the trough it is
recovering from is deep enough! I think long term fair value will settle
at around $2.40 over the next couple of years. So not a tremendous
amount of capital gain to come, but those dividends should remain
'finger lickin'.
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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14-04-2010, 06:08 PM
#1319
Originally Posted by ENP
Time "ing" the market, is it possible? And is it what successful investors
do?
Yes timing the market is possible. But you have to ask is it practical?
And do you have the diligence to follow your system?
'Practicality' in this sense is another way of talking about liquidity, by
my way of thinking. You can study historical charts ad nauseum. But
just because a chart says that a share was available at a certain price
at a certain time does not mean *you* could have bought the number of
shares you wanted at that price on the day in question. If a share is in
the NZX50 this isn't usually a serious issue for the Mum and Dad
investor. But there are plenty of investment choices that are not in
the NZX50. I have observed that the liquidity of RBD has
dramatically improved since it entered the NZX50.
Phaedrus IIRC (hopefully he will correct me if my memory is faulty) ,
prefers to trade in blocks no greater than one third of a share's daily
liquidity. This solves the liquidity issue, but does limit the investment
horizon as well.
'Diligence' means a willingness to stick with your system and put in the
effort to make a proper go of it. Phaedrus is undoubtedly diligent. But
I remember buying some RBD in 2002 at $2.08 on the premise of a
rising trend and anticipating a successful diversification in Australia.
When the Australian venture started to prove troublesome the share
price tanked and I didn't have the stomach to sell. This taught me that
you cannot adopt 'half a system' and expect to be successful and
signalled the end of my attempts at fine timing.
If you go back to the start of this (and previous RBD) threads you will
find all sorts of posts by Phaedrus explaining how poorly timed my
entry into RBD was at $1.20, 87c, 76c etc over the years. However, in
thc cold light of today, and $2.19, you can see that all of these were in fact
good entry points. IME you can spend a lot of time timing the minutae
of entry. But if you can buy something that is cheap enough relative to
fundamentals none of this fine timing matters, *providing you have the
time horizon to wait until the market reverts to fair value*. The biggest
risk IMO is being so tied up in the timing detail that the share price
jumps and you end up not investing at all, as most readers of this
thread have done (not done?) with RBD!
The final difficulty in timing is that you have to get both the entry and
the exit point right to make it work. If you remain largely fully invested
then there are less timing decisions to worry about. There are sage
investors on this forum who have congratulated themselves on the
wisdom of their exit from 'the market'. But then they sit on the
sidelines *for years* having missed the upturn. The other problem is
that not all individual shares follow 'the market'. RBD was a drain on
my investment portfolio for years, while the market boomed. But when
the downturn came RBD went from strength to strength.
I want to conclude with idea that there is always more than one 'right'
way to invest. Phaedrus has certainly made more than me on RBD in
percentage terms if he has tripled his capital. My RBD capital has
'only' doubled. But as a trader, Phaedrus has to pay tax on his share
gains. Whereas as a dividend investor I do not. So I would wager
that our respective 'after tax investment performance' with RBD is
almost identical to date.
SNOOPY
Last edited by Snoopy; 14-04-2010 at 06:10 PM.
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14-04-2010, 09:19 PM
#1320
Member
Snoopy IIRC Phaedrus buys shares on the NZX for the *purpose* of obtaining dividend income from them, so I would expect his capital gains to be non-taxable. He simply times his entries into such stocks based on sound technical analysis, thereby maximising his chances of picking up a capital gain along the way. For the most part I do the same thing, probably on a smaller scale but I would guess with similar rationale and results.
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