achtung . serious money talk . beware , page-22

What a falling market does to people.

The major concern one must worry about, especially in those securities that have too many itchy shareholders is the amount of leverage they have taken on.
However, this is to continue for many years to come and thus bring about irrational swings.

For the long term value investor and to those that have similar investment habits (buy and hold quality) this will become a walk in the sun. To continue on a path without the hype of too much debt or the next best 'rock' or 'mine' will inevitably lead to success. I have no idea on how to value such complex things and prefer to keep things much simpler.

We must remember that the market increased 12% (correct me if im wrong) last calender year. Of that, only a handful of securities/businesses made up that number. So there is value out there!
Forget the life holds (BHP, WOW, WPL - all of which contributed to that magic 12%), there are great businesses to park some 'unwanted' cash.
1. Property; Yes out of flavor. Yes the dogma of CNP. But do you really think that companies like GMG and GPT who have great assets and experience management have deserved the beating of 10-25% of the value to be wiped off?
2. LICs; All appear to be below their value. Top LICs include AUI, DUI, ARG & CHO.
3. Two that are of interest at the moment and probably many will disagree is TCL and BLD. Very much out of scope, very much depressed. But in the case of TCL - a near monopoly and BDL - well branded and managed.
4. Overseas. NYSE listed in particular. BSC and BRK.B.


I welcome those with similar thought in investment style for a discussion.



Cheers.