Ann: Macquarie Group Appendix 4E March 2020, page-54

That is fabulous advice. Never chase the market up.

However I have an exception to that rule, based on my rules around investing. If I have $20,000 that I have “allocated” to investing in MQG today after doing all my due diligence, and I had none at all right now, I would put $5,000 into MQG on market immediately.

Nothing puts you more on heightened alert to what a company is doing than having actual skin in the game. I find that many great companies on my watchlist continue being on my watchlist even after continually performing, as I continue to be “anchored” to the price before.

Examples are APT at $3.6 when I added to my watchlist, XRO at $12.50 when I added to my watchlist and REA at $50 when I added to my watchlist.

I am certain that if I had at least purchased one bite of either of those 3 companies, I would have followed their progress a LOT closer and purchased 2, 3, 4 or even 5 more times. But I’ve “given up” on purchasing those companies now, and haven’t read up on their reports since. For all I know, they could still go up 10x in the next 5 years, but because I don’t hold any, I will most likely miss out on all of that.

Coming back to MQG, I would then wait for opportune moments to work my remaining $15,000 into MQG. I agree that it will oscillate up and down over the next year.

My take is that the lows have been breached, and that 23rd of March lows was indeed the low, and we will not retest $70. My thoughts are that this will oscillate between $80 - $125, so 10am tomorrow is a good chance to purchase your first parcel to get your skin in the game. After that, waiting for $90 to load up more could be prudent.