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International Investing / Australia (All-Ordinaries)


Subject:  Re: Feedback on small Portfolio Date:  9/6/2007  6:00 AM
Author:  jeffrubinstein Number:  6137 of 6186

Hello Folks,

Anvil Mining - AVM

AVM is growing like theres no tomorrow, I bought it a few months ago and it has just posted a new record profit, something like 35% higher than the 6months to June last year.

Miners will continue to do well while the Chinese are hoovering up anything not firmly nailed to the floor. At some point there will (no doubt) be a hiccough and the price of all the miners will drop like a stone. But not until after the Beijing Olympics, I would be thinking.

BHP Biliton - BHP

BHP is massive, I didn't do all that much research on it (yeah yeah) but I bought it during the volatility of the last few months when it was down a bit. It had (has) a peg of less than 1 which is good and it ain't going anywhere any time soon. Could have got it much cheaper but oh well. My only beef with BHP is that they don't have a DRP program. Which really sucks, considering the fact that it's already so big. Then again it has tones of growth potential, even at a cap of $100billion.

BHP is potentially fairly cheap. However, a lot of this depends on there being enough energy (particularly petrol/diesel) available to run their mines. At some point, this too will come to a screaming halt, but as with the above, not just yet.

Macquarie Office Trust - MOF

MOF is probably my only 'mistake' so far although it's not too bad. They have really good dividend, like 8% and a DRP program. Plus I bought them at about their book value, not at the time, but the book value now is what I payed a few months ago, they had some pretty big gains on their property. I guess everyone gets lucky sometimes.

Two factors: what are the buildings owned and who is managing them? I have some investments in Mirvac Trusts, partly because they are legacy investments - Mirvac bought the businesses from the original owners. But, I keep them because I think the investments are sensible ones, being mostly regional shopping centres, and because Mirvac appear to be competent managers and good developers. Also, I paid about 80% of book from memory. I'd never buy a trust at book. Where would the appreciation come from ? Plus i like a fat cushion ...

Finally, what I found worked best was to buy shares in companies that would last for a LONG time and then hold onto them. It's funny, but there was a piece about how the mega-rich got that way and one of the companies that was written up in the article was boring old Unilever! And it turned out to have provided a double digit return for over 50 years!


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