Club Mulgoa

Friday, November 25, 2016

"Alternative" investment

The term 'alternative' is very vague.  On Wednesday, we attended a super seminar.  One of the presenters showed how profitable it can be to invest in alternatives during financial crisis.  The lady who presented the talk mentioned private equity and contrarian fund managers.

However, she pointed out that "AQR" is not performing that well recently.  While lots of trades are done today using computer algorithms, mine is basic, basic, basic.  My father's philosophy still reverberates in me.  He bought when others were selling but he only bought stocks that deliver good dividends.  These are stocks that reward with dividends that are higher than interest earned on the same capital.  In the last few buying, I bought SYD and WBC for its consistent dividends.  Investors have been dumping them.

I also buy based on value.  Hence TAS is my favourite top-up stock.  Read my postings on EDE/TAS.

While the above stocks have turned positive for me, FLN has not.  However, based on what I read on its announcement, I wonder why its investors are dumping it.  Until the message is clearer, I would preferentially invest in dividend stocks and... TAS!

Overall, over the last 5 months, I think I have well :-)

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