Future Capital Allocations, page-22

My couple of cents worth. Firstly, I admit it wouldn't appeal to many as it appears these days a long term investment is measured in months, but as Buffett would say, it's not timing the market but time in the market. With this in mind:
I did my DD a couple of years ago and went back and read all announcements, even when VMT was a different company. I was at first terrified VMT originated from IOCOM, a money mining tech company during the dot-com days. It then attempted to become a 'real' company by going into the latest fad, surfwear. Not very inspiring, but then I became convinced it was attempting something worthy. I still have this faith in VMT, even more so.

So as money starts 'pouring' in, the first thing is a consolidation, say 1 for 10.With that a small divvie to show sustainability. And with that I would introduce a DRP. That would allow holders who don't need the money to increase their holdings without holders who need income to chase income stream elsewhere.

I wish to remind newbies, some benefits of a good longterm investment (many years) if you choose wisely. A couple of examples. Westfields. A $1000 investment became several $millions from 1960 to 2000. More recently CSL, a $10000 investment from float in 1993(?) would be $1.25m now and the yearly divvies would probably be more than $10000.

We all like taking profits, but as Livermore said, most people remain por beccause they take profits too early. I bought CSL, from float, and sold in 1996 for $11. more than 4 bagger. A friend I recommended it too, still holds. CSL went from $2.30 to $50+, back to $11 and now $270 after splits. (Him smart, me DUMB)

The benefits of DRP. In 1995? I bought NAB at $10. In 2007 before GFC I sold for $44, but with DRP I had nearly twice as many.


I believe most serious VMT holders would invest in DRP, so that the divvie wouldn't make much of a hole in the cash flow and allow VMT to maintain growth.