Decoding the Stock Market

[luutzu]

I can say that the portfolio is about 70% weighted to international stocks.

So give us a couple of names, tell us why you think they're undervalued or reasonably valued... why you got into them.

'cause even a guy like me could managed to double my portfolio over the past two years. Just don't ask me how I did two years prior.

 

[luutzu]

My objective with the text is to stimulate a debate among investors about certain falsehoods prevalent in investing. For instance, about the definition of risk.

So what's your definition of risk?

 

[AlexDrys]

It's important to remember that anything multiplied by zero is zero!

Hence, the key to long term, successful wealth accumulation through the stock market is defining and limiting risk.

I have defined risk in the text.

'cause even a guy like me could managed to double my portfolio over the past two years. Just don't ask me how I did two years prior.

Care to share any performance data compared to a benchmark Alex?

Certainly…

As of this month, my clients are ahead by 16.5% after fees since inception in Oct 2014. This is about 7 points ahead of the ASX 200. Calendar year return is about +30%. Holdings remain meaningfully undervalued. All this done while assuming as good as zero risk.

 

[luutzu]

 

[AlexDrys]

Great! I'm a big fan of The Office and Ricky Gervais.

 

[luutzu]

Great! I'm a big fan of The Office and Ricky Gervais.

Yea, the UK original was a lot better.

 

[AlexDrys]

My clients' portfolios will revert to 100% in international stocks now, as Westfield WFD looks like it will accept a A$10 takeover offer.

When you focus on pricing failures it is uncanny how often your holdings become takeover targets.