First Quarterly Report for Value Fund
First Quarterly Report for Value Fund
The Value Fund's first available to download. As you'll read in the report, we've invested about 50% of the more than $10m contributed to the fund so far. Two thirds of that has been in infrastructure stocks and the rest in a bunch of small to medium businesses that we're still trying to buy more of (at the right price).
We've tried to dislcose enough information to give investors a feel for what we're up to and to write a reasonably interesting report. But we don't plan on giving our best ideas away before we've established a meaningful position on behalf of the fund, so you may find it a little light on if you're looking for investing ideas.
Gareth and James have already given me stick about taking two weeks to get it out so don't be afraid to critisise. Your thoughts and suggestions for improvement are welcome.
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As you mentioned Steve, the report is a bit light on for me personally - but considering subscribers of II should already be quite familiar with the portfolios holdings and the fund is yet to fully establish positions in the remaining companies I think you're off to a good start. I look forward to reading next quarters report.
Well done Steve. I like your approach in not disclosing those shares you are trying to buy at the right price. Exactly the reason I invested in the fund - to make money.!!
Good work with the report. Even though I have not YET invested in the fund (II has kept me "caught fully invested"), when capital becomes available, I will certainly be stumping up for my slice of the pie. The big test for the report is going to be what to put into the next one. Hopefully it will become as good a read as Platinums Quarterly Report.
There was one part of the report I didn't understand, You mentioned "At some point, the citizens of western economies are going to have to adjust to a lower standard of living". This statement rattled me as an investor, and as a consumer. Why do you believe this? Is it that individuals as well as companies are carrying too much debt?
Tim - I'm glad you noted this. I'm yet to invest (although I likely will do so), but I hope Steve responds to this. It looks like a "get out of gaol" comment if things don't work out too well. Robert
Not that I'm pretending to speak on behalf Steve, but if the western world has been living beyond its means for several years, then it follows that if things are to get back in balance, that people will have give up some of the french champagne and caviar, for a while.
I thought I'd written that many articles about this that everyone was sick of the idea - then I went to find them and couldn't locate one. It was a key part of our seminar presentations in 2007 and 2008 ... but it seems I need to write!
I'll write a full post on this but, for much of the past decade Australia's consumers (along with their comrades in the rest of the Western world) have been spending more than they earn. They've been able to do this because of the great debt binge (credit cards, reverse mortgages, 5 years interest free, etc etc). In Australia, the debt-to-disposable-income ratio has gone from less than 90% at the end of 1999 to more than 150%. There's no reason it can't go to 200%, of course, but at some point this trend must come to an end - and when it does I won't be left holding the can.
More to come soon ...
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