AHZ - Lets go!!!, page-164

Thanks Ralom.

Deep in the red for me is less than 30% down on my average buy price. However, as a large holder the amount is a reasonable sum.

It is easy to suggest that the reason I have enthusiasm is because I am down. However, I would argue that that is contrary to usual behaviour. Most people down a lot of money either sell at a loss, do not feel confident adding at lower prices and generally are waiting to get back to even so they can sell out. (AHZ will be a 10 year plus holding for me.)

The researching has nothing to do with justifying my holdings and everything to do with understanding to the best of my ability what I own. This allows me to have a concentrated and focussed portfolio that has generated fantastic results for me. I mostly own medical device and healthcare companies and most of those I have owned now for 5 to 12 years (think RMD, CSL, COH, NAN and MVP). I actually really enjoy the research. I suppose it is only unusual because I find most investors simply don’t do it.

In fact AHZ is the only stock in the red that I own as I usually always cut my losses early. However, I believe in Admedus and it’s potential and while the fundamentals have improved out of sight the share price has declined to record lows. For me it is a no brainer to hold and add to for the long term.

I understand your skepticism and that’s fine. You like to take one or two line shots across the bow. An unual amount of time spend for a “non holder”. However, we are all different. I shared the deep in the red comment so others know that I am in the same boat as most otters but I am still positive. (That does not mean that I am right.)

In terms of researching I do that level for all stocks I hold. I read annual reports back to front, I read every announcement (often more than once), I travel to AGM’s, I meet with management and the board, I research the science, I read competitors reports and results, I speak to Doctors and Nurses, I keep
my eyes and ears open when in hospitals, I research key management and staff on Linkedin, I look at trends and I read all I can on all the companies I own.

That level of research is simply what I believe separates speculators / traders from genuine long term investors and it is the level of research that should be undertaken when anyone wants to hold a volitile stock in a concentrated way for the long term. Without it you do not have the confidence to hold and importantly add to your position in times of weakness.