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I sat down on the weekend and wrote down a list of Australian companies that I would be prepared to put 10% of my net worth in (and in some cases already have).

I would be interested to see other people's list/ideas.

My list in alphabetical order with general thoughts is:

ANZ Bank
Run by perhaps the best of the bankers at present and the lowest cost provider. Strategy of fixing up the weak link in wealth management is being addressed. Only copany on my list that I still consider buying at current prices.

ARB Corporation
Run by the Brown Brothers who still own 20% of the company. May very well become the success story of the next decade with international expansion. Increasing market with "nudge" bars for smaller 4WD market. Perpetual currently buying into the company.

Commonwealth Bank
Such a strong franchise with customer base and while I think they paid too much for Colonial the funds management should become the jewel in the crown in years to come.

Hunter Hall International Ltd
Established and run by Peter Hall. Has an excellent temperament for investing and eye for undervalued assets. From a standing start in 1994 with $100,000 of seed money from his employer, Hancock & Gore, has grown the Value Trust to $250m and his management company floated last year now has a market value of over $70m - Peter's stake is worth $36m. He's only 38 and my prediction is he will be the next Ron Brieley and make BRW richest 200 within 10 years. Currently my equal 2nd largest holding and would love to buy some more if the price were right. This will be my Westfield Holdings. Biggest problem will be outgrowing the local market.

Milton Corporation
Boring listed investment company but have a portfolio with heavy emphasis on financial companies that could not be replicated for a number of years by another investment company/fund. Management are VERY ethical.

Perpetual Trustees
Love this company and management is excellent. John Lamble and Graham Bradley have turned this company into I think the best financial services company in Australia currently. Funds management, share registry, trustee services, superannuation - it's the complete shop.


I limited myself to 5 companies and they come from my small universe of stocks. That's why there is no resource companies or high-tech companies in there - I don't know them well enough.


Up & Comer:
Funtastic: could be a bumpy ride with inconsistent profits depending upon the latest toy craze but I like the sound of the management team.

Text Media; bought some shares in November at $1.20 but Fairfax rumour made the price jump up and haven't bought any since. Eric Beecher founded the company and has a significant stake as well as some of the other managers. Even the accountant owns nearly $400,000 of shares.

Both Funtastic and Text Media will make good takeover targets in years to come.

Food for thought....
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Novogen, Novogen, Novogen and err...........Novogen.

25% in each should just about take care of all your investment problems........one way or the other. <grin>

applefoot
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Thank you for the list Wayne.

I like all those except for FUN.
I especially like ARB.



and I've been looking at MLT actually.
Good to know the management are ethical, thats something special
these days considering all the Hooray Henrys out there, sitting on boards and running companies
I have bookmarked your list,

Cheers.




FC
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Wayne

thanks for you list - the only one I already own is ANZ. I like Hunter Hall and have been waiting for it to be a bit cheaper - am thinking I should buying into his unit trust.

I suppose the one I have been looking at with interest over the past year is the Guiness Peat Group. I also like paperlinx.

I am very slow to invest because I still don't understand the financial statements very well.

regards

Judy
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Interesting list Wayne.

My 2 largest holdings- ANZ & ARB.

I don't really have favourites but my most recent acquisition was PLF.
They build retirement villages, sell the units with a plan to maintain management rights. They are the largest player(18%) in a fragmented market.
The elder proportion of the Oz population is going to grow significantly over the next 30 years.
They have just had a $20m convertible note raising which closed early. This is to be used to fund growth & pay down debt.
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The elder proportion of the Oz population is going to grow significantly over the next 30 years

Yepper I'm into DVC(DCA Group) with the same thoughts.

Thats a nice break by your plf.

JR
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Barcoo..

So it was YOU who wrecked the price on PLF !!

here I was stalking the company for months and I blinked and the
price shot away from me.. aha now I know who to blame..


FatCassie the procrastinator..going to take some antacid now..
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Judith, hold off on the Hunter Hall shares and I would recommend the Value Growth Trust if you're going into the Funds.

HHL, by my calculations, is very over priced at the moment.

These are my rough calculations. As they say you don't need to know someone's weight to know if they're fat so these are very "round" numbers.

As a rule of thumb fund managers sell for 5% of Funds under Management. HHL has approx $270m under management at the moment.
If we allow that this will grow by 20% this year and because of their no-load policy which improves their profitability (I won't explain this here) and so therefore allow a 10% value for FUM. This implies value of approx $32m for that part of the business.

They also have an investment portfolio in their own right which is probably around the $7m mark now.

Add the profit bonus for the past half year of $2m.

I get a business value of about $40m give or take.

The business has no borrowings so we can divide this figure into the shares on issue (20,000,000) and I calculate a current business value of approx $2.00 per share. Current price is $3.65!!

Why I haven't I sold - Really like the company and its management and I hate paying tax so next question please.
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