Ann: REH - ASX Announcement Equity Raise, page-27

"Why are you happy to ignore systematic risk?
Never mind. I have banged on about that point enough."

You keep asking me this question and I keep giving you the same answer [*].
And yet you keep asking.


[*] I ignore systematic risk because it is impossible to predict when it will impact market valuations. In response to your persistent questioning me on this, my response has always been to ask you to provide examples of someone who has successfully been able to factor in systemic risk on a sustainable basis. Yet you have not been able to do so. (At one stage you held up Ray Someone-or-Other as an example of such as person, until it was pointed out to you that he spent a decade horribly under-performing the broader market.)

I can point to hundreds of investment managers around the world that invest with great success - over long periods of time - on the basis of fundamental valuation, without trying in the least to "time" the equity market cycle. Yet no one can show me any "market timers" who are able to do so successfully on any sustainable basis.

So I just try to do what has been proven to succeed.

.