Forum Archive Index - September 2003

[Matt & Vanessa <vibez@paradise.net.nz>]

Alright guys, here's a different topic.  I'm interested in what sort of concepts different people use to construct their portfolios.  I've heard a lot about people picking individual shares, about the merits of a number of individual companies (the breadth of some of the research flowing through this forum is extremely enlightening).  But how do you hang it all together?

 

Surely you can analyse a share 'til the cows come home, but what does that mean for the performance of your portfolio?  Some of the questions that come to mind are: have you got a balance between income producing assets and growth assets?  What sort of sectoral exposure do you have to the main drivers of the NZ economy?  Are you thin in one area, thick in another etc etc etc .....

 

I spent a lot of time building our (albeit small) portfolio from the ground up, working out what sort of balance of companies would give us the return we were after.  Having worked out the categories I wanted to cover - Income, Growth, Stability - and then having applied a relative weighting to each, I looked for the companies that I could fit into each of those gaps.

 

Over the past eight months we've put together the eight companies that comprise our portfolio, and barring any particularly interesting buying opportunities (if only they would float the Nat. Bank!!) we'll probably just deepen on these until we get them into something close to our target weightings.

 

So that's what we've done.  Anybody got anything they want to share....?  I'm sure even you techies have got a plan of sorts!

 

Best Regards,

 

smasha

 

 

Our Portfolio (fair's fair: can't receive without giving)

 

Income Shares

* Capital Properties

* Wrightson

* Powerco

 

Core Shares

* Contact

* Fletcher Building

* Waste Management

 

Growth Shares:

* Baycorp Adv.

* Tower