Ann: 6th Supplementary Prospectus, page-62

Good post @kvz

We don't always have to agree but we can respect other points of view and the person making a point. I sincerely hope you make a truck load of cash. And only investing what you can afford to lose is one way to manage your capital. I think somewhere around 2 to 3% of available cash could be put into a well researched spec stock.

In my view, the first thing to research in a spec stock, is the management. It is the management that will get a small company / project off the ground and making money for shareholders - in my view.

If you have 100k available I wouldn't put much more than 3k into a spec stock - just my rule that works for me. I have been around the stock market for some time now. Over time, I have noticed (assuming people on HC are relatively honest) that some seem to treat the ASX more like a Crown Casino than a particular class of investment. I think it is why emotions get out of hand sometimes. I think about like this - if your house is worth 1.5m would you be happy throwing away 45k (3%) every year of the value of the property? Not me. If, I have dollars to throw out, I would prefer to give it to The Smith Family.

Rule No. 1: Never lose money.

Rule No. 2: Never forget rule No. 1.

(Buffet)

I have one spec that I have held for about 7 years. It's a long term investment for me as I know one of the directors and the management is first class and committed - in my view. They have managed the company very well and don't spend truckloads of cash - no overseas trips etc. They have stuck to the their project objectives and they look like developing that project. They have signed an astute JV and ensured that they did not damage shareholders interests by doing so - that's what I call a good spec stock investment. It might not work but these guys are determined and prudent so I will stick with them until they do otherwise. And best of all they - fly well under the radar.

None of us are right all of the time. It's the effort and quality of research that can cushion one's capital management practices against the inevitable poor decisions that we all make from time to time.

"Man, I need a life, wife and less strife..... Please Sholom, make this work so I can stop doing overtime. Getting a little old for shift work....

Have a good night Bas, mines unfortunately come to an end..."

Get the life first - then the wife - and absolutely avoid the strife. Good luck with that 5.00am start - I reckon 5.00am is the best time of the day!