Hi Nathan,'Indeed if the GFC had taught us anything, it would be...

Hi Nathan,

'Indeed if the GFC had taught us anything, it would be that the whole basket of equities falls in unison regardless of underlying value. We had Leighton trading at $16.85 at one point but their underlying Net Asset Value was $32.00. Individuals who understood this concept knew when to buy and had the courage and conviction to make those purchases at the correct price points.'

The classic and most ridiculous example of the above I have seen in a long time was Brockman Resources (BRM), at the height of the GFC, trading at 40 cents with (at that stage) over 900 million tons of indicated and inferred iron ore resource and cash backing in Australian term deposits of 72 cents per share. It was the equivalent of selling $20 notes for $10 each then giving the buyer a couple of dollars in change to sweeten the deal. Simply amazing!

Naturally, I sold two of my children at that stage to buy more BRM. Who wouldn't?

Regards,
Bones