Forum Archive Index - January 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Mike, Chris and all fellow Competitors,

I would like to add my congratulations to Chris for his 'win'.  And 
his subsequent admission that he didn't actually put his money where 
his entry was!  However, I suspect he was not alone and that most 
entrants didn't.

For myself, my portfolio of five ( AIRVB, CEN, RBD, TEL and 
SKC ) was real.  It was deliberately structured as an 'income' 
portfolio.  Number one reason for this was to show that you can still 
do well without chasing 'high flyers'.   Number two was that overall 
high yielding shares have a lower downside risk and this was real 
money that I was playing with.

My goal at the start of the year was a 12% return, or more or less 
double what I could get from a fixed interest investment at the bank. 
  I am pleased to note that this was achieved (actual return just 
under 20%).

Note that this return was achieved despite holding what turned into a 
disaster - AIRVB!   Do I regret choosing AIRVB?   With hindsight 
obviously yes, but at the time I still believe my decision to 
include AIRVB was the correct one.  It looked like the high yielding 
recovery share that all my other selections turned out to be.

So what does all this prove?   It shows that a certain amount of 
diversification is desirable and that none of us have all the 
answers.  It also proves that successful investors can have 
catastrophic failures, yet still come out ahead overall.   And it 
proves that failure of one of your share selections shouldn't scare 
you.  Sharemarket investing is risky and if you can't take the losses 
on the chin you shouldn't be here. 

My suggestion to those of you who didn't have such a good year is try 
being a bit more boring with your share selection.  And make sure 
your expectation is not too high!  My goal for FY2002 will be 
a 10% return, again around twice what I could get from a term 
deposit at the bank.  That might sound dull, but over 10 years such a 
return can create quite a little nest egg with relatively low risk.

Prosperous investing to all in 2002.  SNOOPY

( who despite a successful 2001 and top ten finish in 'Beat the 
Brokers'  is nevertheless not quite in the position to put a deposit 
on that Superyacht. )






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