QAV Light Weekly Update #69

Hel­lo QAV Light Brigade

It’s Mon­day and this is my week­ly report. Wel­come to all of our new sub­scribers! 

The US debt ceil­ing issue wreaked hav­oc on the AORD last week, but now that it’s resolved, the AFR is predic­it­ing a “surge” today. Let’s see what hap­pens.

It’s the start of a new month, so let’s review the per­for­mance of the Light port­fo­lios.

It’s been a tricky month, as we’ve been forced to sell a lot of stocks and been unable to find much to buy, so we’ve been sit­ting on a lot of cash in all of our port­fo­lios. This, of course, is going to neg­a­tive­ly affect their short-term per­for­mance ver­sus the bench­mark, because that cash isn’t doing any­thing.

But, as we keep say­ing on the pod­cast — this is nor­mal. When the mar­ket even­tu­al­ly begins to recov­er, as it always does, we’ll be able to buy lots of great com­pa­nies at cheap prices and ride the mar­ket back up. That’s how it has always worked in the past and this time should­n’t be any dif­fer­ent. It just requires patience and the resolve to wait it out and have the con­fi­dence that the sys­tem will tell us when the time is right to buy back in. 

GROUP SUMMARY

The Light port­fo­lios as a group are down 2.76% CAGR p.a., ver­sus the STW which is up 9.99%.

22.1 Portfolio 

Incep­tion date 18/4/2022. We’re still try­ing to make up for the hit we took when the Ukraine war crashed the mar­ket just as we start­ed this port­fo­lio. We don’t even have it in a bond or sav­ings account.

Port­fo­lio 22.1 is still cur­rent­ly down 18.48% vs the bench­mark, which is up 0.2% over the same peri­od.

22.2 Portfolio 

Incep­tion date 08/08/2022. This port­fo­lio con­tin­ues to per­form very well, despite sit­ting on a lot of cash, demon­strat­ing the dif­fer­ence a few months can make. Of course, we expect all of the port­fo­lios to deliv­er rough­ly the same kind of long-term per­for­mance.  Port­fo­lio 22.2 has come back a bit since last month, but is still up 24.01% vs the bench­mark which is up 6.51%.  So this one is doing bet­ter than 3.6X the bench­mark.

22.3 Portfolio 

Incep­tion date 7/11/2022. Port­fo­lio 22.3 is also sit­ting on a lot of cash and is down 7.4% ver­sus the bench­mark which is up 6.03%.

23.1 Portfolio 

Incep­tion date 23/1/2023. Sit­ting on lots of cash, and it’s down 0.89% vs the STW which is now down 2.75%.

BUYS

DISCLOSURE

In the inter­est of full dis­clo­sure, we would like to advise that, as of the date of this email, the QAV team cur­rent­ly hold these stocks in their per­son­al port­fo­lios:

AFG FHE FPR IGL JHG MQG QAN QBE RMS SGM WAM

Please note that our per­son­al hold­ings might not include the stocks we rec­om­mend in QAV Light. This is because we already have full port­fo­lios (15–20 stocks) and can only add new stocks if we have to sell some­thing.

If you’re inter­est­ed in learn­ing more, please review our trad­ing and dis­clo­sure pol­i­cy.

FOR NEW MEMBERS

If you’re new to QAV Light, here’s a quick reminder on how it works.

1. We send you an email every Mon­day advis­ing which stocks we are adding to our Light port­fo­lio.
2. You can copy our trades, but please remem­ber to review our Trad­ing Guide­lines to under­stand which cap you should be look­ing at and oth­er impor­tant con­sid­er­a­tions. And con­sult a finan­cial plan­ner before mak­ing any deci­sions.
3. We don’t rec­om­mend that you add stocks which are already in our port­fo­lio. Their posi­tion on our buy list might have changed since we rec­om­mend­ed them. Just start with the stocks rec­om­mend­ed after you become a mem­ber.
4. If one of the stocks we add breach­es one of our sell con­di­tions, we will sell it from our port­fo­lio and you’ll get an email advis­ing of the trade. Again, you can copy our trades, but seek finan­cial advice before mak­ing any deci­sions. And please check your Rule #1 price (see Trad­ing Guide­lines).

That’s it for today!

If we decide to buy or sell some­thing, we’ll let you know.