Ann: Letter to Shareholders , page-12

joewolf

i have posted that i thought bkw was undervalued in terms of assets - i liked the fact they were buying out some of their competitors and reducing carbon usage etc -

i actually think bkw may have been the most well managed in the portfolio of sol's - however, sometimes things just dont go your way

- perpetual were a sell when the price was high - they lost a lot of key managers etc etc and the banks have not done real well with their fund managers ; look at platinum also!

- ANYWAY , THE REAL COMPARISON THAT SHOULD BE MADE IS WITH PERPETUALS FUNDS PERFORMANCE AND NOT THEIR SHARE PRICE - i would not even know what that is like as i gave up on fund managers over 20 years ago ( when i was still in my 20's) .

I see you have not tried to justify why their skiting of how well they did in the 1930's was relevant to today, let alone the future!

I can also state that my performance in shares has been better that sol patts returns! Does that mean that i dont try and learn how to improve? - No.! Does that mean that what i write on hotcopper is words of wisdom not to be challenged ?? - of course not!! I write lots of dribble and have lots of dog stocks! I am however, fairly pleased with what i have written on the general thread during times of turmoil over the past few years or so.

I also wonder if my past techniques may need tailoring to new conditions in future - i do compare short term ( week to a month or two holds ) versus long term ( 2 to 3 to 10 years )every year- my recent conclusion is that it is getting harder to trust long term investing due to : poor management; fund managers short term focus; internet competition ; and, generally poor environments in australia - high wages and currency, poor political and workplace environment, supermarket duopoly, high transport costs, media focused on consumers rather than producers and home borrowers versus business borrowers etc

I know the greatest enemy to good returns is hubris - you need to be constantly aware of getting 'too confident" - discipline is also important - I would give sol patts high marks for discipline ( and hence some of their recent less than successful forays dont really dent performance too much!).I think the jury is still out as to if there is not a bit too much hubris lurking about!