Happy Tuesday! (The market was closed yesterday.)

There’s no way out of here
When you come in
You’re in for good
There was no promise made
The part you played
The chance you took

“No Way Out Of Here”, written by Dave Gilmour (recorded by Unicorn for their 1976 album Too Many Crooks, which Gilmour produced), describes the world of a long-term value investor. It’s a long-term strategy. You’re in for good. Or at least you should be. We just ignore the market’s cycles and just focus on executing our strategy – buying shares in companies with good records of generating cash, and only when we can buy them at a discount to their intrinsic valuation. Just buy good businesses when they are cheap. Sell the ones that don’t perform well and hold the ones that do, and wait for regression to the mean. It’s a very simple idea.

Fortunately everything seems to be running pretty smoothly for us at the moment. The market is still going strong and our portfolios are all stable.

 

 

 

 

 

PORTFOLIO UPDATES

As a group, our four Light portfolios had an excellent week vs the benchmark. They are currently tracking at about 60% of the STW since inception (Feb 2022), whereas last week they were less than 50%.

QAV is a long-term strategy, and that entails some years where we outperform, and some where we underperform. Our five-year old QAV portfolio is still doing double the STW and we expect these to as well.

 

As it’s the start of the month, let’s take a look at how our individual Light portfolios are performing.

PORTFOLIO 221

This portfolio closed 18/04/2022, just as the market crashed due to the Ukraine war. Horrible timing. As a result, we were sitting on a lot of cash for a long time, looking for something to buy. It’s now in the green, up 0.44% pa (last month it was still down ~1.5 % pa) vs SPDR 200 +9%, so it’s still got some catching up to do.

For most of this FY it has been outperforming the STW.

 The big winner this week has been WGX, up nearly 10%. 

 

PORTFOLIO 222

This portfolio closed 08/08/2022 and is up ~16% pa (vs SPDR 200 +7%), performing at better than double market, which is our goal. 

PORTFOLIO 223

This portfolio closed 07/11/2022 and has recovered back to a positive position, up 3% pa (vs STW +12%). It spent a lot of the last year holding cash waiting for the market to recover.

 

PORTFOLIO 231

This one closed 20/06/2023 and is currently up ~3.5% (vs SPDR 200 +12%). As you can see in the chart, it took a few big losses in Sep – Nov.

The big winner for this one in the last week was NZM, up 11%. However ATP was down 18% for the week. It’s still up 17% overall though, and that doesn’t include the 13% dividend it just paid out either (which explains the recent price drop). 

SELLS

THIS CONTENT IS ONLY AVAILABLE TO QAV LIGHT AND CLUB SUBSCRIBERS.

 

 

BUYS

THIS CONTENT IS ONLY AVAILABLE TO QAV LIGHT AND CLUB SUBSCRIBERS.

CURRENT HOLDINGS

THIS CONTENT IS ONLY AVAILABLE TO QAV LIGHT AND CLUB SUBSCRIBERS.

** Please remember to review our Buying Guidelines to understand which cap bands you should be looking at and other important considerations. 

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:

ADH ALD ANZ BOQ DTL EHE FHE FPR GNC MMS QBE RMS SSM SUL VUK WAM WGX GEM OML

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).
  5. If you come across any QAV terminology that you don’t understand (eg Rule 1, 3PTL, Possibles, etc), please review our terminology guide or just email us for clarification.

That’s it for today! 

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

Got a question? 
info@qavpodcast.com.au