happypunter wrote in Re: green ...
I think what we are seeing is more and more investors taking a long term perspective when buying, no doubt driven by the increase in smsfs and learning from the likes of Warren Buffet who famously bought the top brands/companies in the USA when the market was bad in the late 1980s and simply held them for many years, even decades.
It is also my philosophy, I buy with an aim to hold for 5, 10, 15 years or more......I will sometimes trim off some profit when things go up a bit too quickly but unless something drastically changes with a company I will continue to hold a stake in the very best and well managed companies I can find in the market even if PEs look a bit stretched in the short term. RHC firs the bill perfectly.
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Yes, I think you're probably -shall we say- right on the money.
When I got my superannuation lump sum several years ago my financial advisor recommended putting it into a managed fund.
So I did.
While the money was in there it became clear that
1) my portfolio wasn't exactly setting the world on fire
2) hefty fees were being taken out (as seen in end-of-FY statements)
3) invisible persons were deciding how, where and when to use my money
After years of unremarkable returns I said to my wife, "I know bugger-all about this caper but I really think I could self-manage my money at least as well as these managed fund guys."
So in mid April 2016 I closed down the managed fund, put some in a bank (yep, at 2.5%pa!) and lodged a goodly part of it into Ramsay.
Why Ramsay?
Well, I had a prostate op about 7 years ago and it happened to be in a Ramsay hospital (Hollywood) here in Perth -wonderful treatment and op was a big success.
After that, and with my underwhelming managed fund returns, I started thinking about investing in healthcare ...my many pre and post-op Hollywood Hospital visits showed me how many other baby boomers were going in for treatments of one kind or another (not just -as with me- to see a urologist).
Mentioned to my financial advisor that I was considering taking my money out of the managed fund and putting some of it into Ramsay Healthcare.
He -surprise surprise- advised against.
Anyway I took his advice (after all, he was the expert, and he assured me that managed funds are run by extremely well qualified, savvy people).
When I got my last statement from the managed fund and saw that it had dropped in value I thought, "OK, that's it, I'm going to close it down and go with what my heart, and now my head (I'd done a lot of research by then), are telling me.
Have watched CSL, COH and a couple of other Aussie health care companies bringing in excellent returns for their shareholders.
And as for my Ramsay investment ....it's returned a stunning +18.37% profit in just 3.5 months.
I'm in for the long haul.
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