TranÂscripÂtion
QAV 717 Club
[00:00:00] Cameron: WelÂcome back to QAV, TK. This is episode 717. Uh, I think 23rd of April, 2024. MarÂket’s up today. Uh, what’s up with you, Tony? Apart from the marÂket.
[00:00:27] Tony: Yeah, not much. It’s been a nice, uh, nice week. WeathÂer’s good in SydÂney.
[00:00:33] Cameron: Sold your house yet?
[00:00:35] Tony: Nup, still tryÂing. We had anothÂer meetÂing with an estate agent this mornÂing. Send our rental furÂniÂture back, waitÂing for our stuff to come out of storÂage. Just a slow, painful process.
[00:00:47] Cameron: How long’s it been on the marÂket now? Like three months?
[00:00:49] Tony: Yeah. Yeah, it’s unbeÂlievÂable, isn’t it? Give it a litÂtle, every time I open a paper, it’s like record prices, marÂkets upside draÂmatÂiÂcalÂly. Yeah. So anyÂway, we’ll just keep proÂgressÂing, I guess.
[00:01:04] Cameron: Is it the fact that peoÂple know that you have bodÂies in the walls? Is
[00:01:07] Tony: We don’t have bodÂies in the walls.
[00:01:09] Cameron: it’s an AmerÂiÂcan psyÂcho thing?
[00:01:12] Tony: No, no, I don’t know. There’s like, there’s about, um, there’s anothÂer couÂple of pentÂhousÂes around near us, which aren’t sellÂing artists. I think it’s just a marÂket thing at the moment.
[00:01:22] Cameron: Bizarre.
[00:01:23] Tony: Yes, it is.
[00:01:24] Cameron: What hapÂpened to all the ChiÂnese that were snapÂping up all the propÂerÂty in AusÂtralia? It’s
[00:01:29] Tony: I know. So we’ve been told ChiÂnese don’t like this neighÂborÂhood. They like, they preÂfer BeranÂgaÂroo and inner SydÂney.
[00:01:36] Tony: But frankly, I don’t believe a word of what anyÂone tells me in the real estate indusÂtry anyÂmore. They are so full of shit. It’s just, uh, I thought, uh, I thought my faith was, um, you know, placed in the right places. And, um, but yeah, just being let down time and time again.
[00:01:55] Cameron: Wow.
[00:01:57] Tony: And look, this is a, this is a, look, I shouldÂn’t bag peoÂple, but, um, cause it probÂaÂbly is the marÂket, but look.
[00:02:02] Tony: AnyÂbody out there who’s young and conÂsidÂerÂing a career in any sort of serÂvice indusÂtry, don’t bullÂshit peoÂple. You might think it’s gonna get you a quick sale, but it just comes around to bite you again in the future. Just be, be straight, be transÂparÂent, be honÂest. If you can’t do it, say you can’t do it.
[00:02:20] Tony: Don’t, don’t bullÂshit peoÂple and lead them on,
[00:02:24] Cameron: I’ll tell you who’s had a crash course in that is TayÂlor. It’s interÂestÂing, like, you know, TayÂlor got startÂed with the drop shipÂping and all those sorts of things and he saw, you know, very earÂly on in his entreÂpreÂneurÂial career, a lot of shonÂky peoÂple doing a lot of shonÂky stuff and now he’s a few years into it and he’s, he’s just, you know, DevelÂoped a good sniff test on him now for all these guys that are wavÂing their hands around and claimÂing big things.
[00:02:52] Cameron: And you know, they’re all talk. He’s, he was sayÂing to me the othÂer day, I was just like, they’re all just full of shit. EveryÂone’s full of shit. He knows, he sort of knows how to tell the real peoÂple from the bullÂshit artists now. So, which is I think good, you know, it’s good to have figÂured that out at 23 or whatÂevÂer he is.
[00:03:10] Tony: yeah, absoluteÂly. No, that’s great. Are you
[00:03:14] Cameron: Lot of shysÂter. Well, speakÂing of ShysÂters, bank of QueensÂland. Um, the actuÂal
[00:03:26] Tony: callÂing my wife a shysÂter, are you?
[00:03:29] Cameron: yeah, well, I did have in my notes, not hapÂpy gen, but I think the ComÂmonÂwealth, I’ve takÂen the ComÂmonÂwealth Bank’s old sloÂgan and changed it to not hapÂpy gen.
[00:03:37] Tony: No, that’s the YelÂlow Pages old sloÂgan.
[00:03:40] Cameron: was it?
[00:03:41] Tony: Yeah, yeah, yeah.
[00:03:41] Cameron: I thought it
[00:03:42] Tony: What do you mean you didÂn’t get my ad in for the YelÂlow Pages this year? Not hapÂpy Jan.
[00:03:48] Cameron: Oh, well there you go, I had that wrong. So, as we talked about last week, I had to sell Bank of QueensÂland after rumours came out that their results were going to come out on the 17th and they were going to take like a 40 perÂcent hit, and the share price crashed ahead of that, and last week I was like, what the helÂl’s going on, on peoÂple sellÂing on rumours?
[00:04:09] Cameron: So I had to sell it, rule one it, results came out, share price jumped, and the results came out. Sell on the rumour, buy on the fact, or buy on the, whatÂevÂer,
[00:04:19] Tony: right, yep.
[00:04:21] Cameron: um, I mean, it didÂn’t jump all the way back, so it was like at 6. 37 on the 4th of April, by the 16th, it was down to 5. 79, on the 17th, it shot back up to 5.
[00:04:33] Cameron: 99. 6. 15, dropped to 0. 05, back up, back down. It’s curÂrentÂly at 6. 20 today, so it hasÂn’t recovÂered all of where it was at. But, um, and I don’t rememÂber what I bought it for. Let me see. Nah, I don’t want to go back. It just hurts too much. Don’t want to go back and look, but I am going back and look. I bought it at 6. 22 and 6. 41 in a couÂple of difÂferÂent trenchÂes. So, um, I probÂaÂbly, what did I say it is? 5 what? 6. 27. I still would have held it if it hadÂn’t have tanked. So, um, what the hell hapÂpened? They did take a hit, right? They did, their results did. The rumours were right. They did, I think it was 33 perÂcent or someÂthing.
[00:05:17] Tony: I’m going to read from a couÂple of, um, from an artiÂcle on The Fin about it, and then a research paper from Ord MinÂnett, which LXA sent through. Uh, this is from The Fin. Bank of QueensÂland flags profÂit presÂsures after earnÂings surÂprise. This was last week. Bank of QueensÂland shares surged on their best day on the share marÂket in almost 18 months after the regionÂal lender beat half year earnÂings foreÂcasts, despite Chief ExecÂuÂtive Patrick AllÂaway warnÂing that it could still fall short of a key turnÂaround tarÂget.
[00:05:48] Tony: RalÂlyÂing against an unfair playÂing field that stopped regionÂal lenders from seriÂousÂly comÂpetÂing with bigÂger banks, Mr. Alloway said profÂit presÂsure at BOQ meant the bank had to conÂsidÂer addiÂtionÂal ways to improve shareÂholdÂer returns. We do not rec we do recÂogÂnize that the chalÂlenge is large. And if the curÂrent headÂwinds are strucÂturÂal, we won’t be there, get there with the curÂrent pathÂway, he said.
[00:06:09] Tony: We are lookÂing at mulÂtiÂple opporÂtuÂniÂties to get to where we need to be. So he’s referÂring to his interÂnal tarÂgets. So basiÂcalÂly, I think you’re right, Cam. And this is, you know, my quesÂtion out of all this is where the f Frack is the ASX, because I know when JenÂny received her board papers, and I know when the share price crashed, um, they’re pretÂty close togethÂer.
[00:06:30] Tony: Not sayÂing JenÂny did anyÂthing, but, you know, whether someÂone phoÂtoÂcopied, was out there phoÂtoÂcopyÂing board. AgenÂdas, or crunchÂing numÂbers for the board, or someÂone dropped a board paper at the airÂport, or whatÂevÂer. Um, it leaked, and only half the stoÂry leaked, because as Ord MinÂnett has, um, put in their sumÂmaÂry after the results went out, um, about Bank of QueensÂland, statuÂtoÂry NPAT was broadÂly in line with expecÂtaÂtions at 151 milÂlion, a sigÂnifÂiÂcant increase on H123.
[00:07:04] Tony: Cash NPAT came in above conÂsenÂsus. which was 164. 8 milÂlion and the profÂit came in at 172 milÂlion. Uh, net interÂest income of 725 milÂlion decreased by 13 perÂcent and was just below conÂsenÂsus by 5 milÂlion. But the, I think probÂaÂbly the biggest thing that I took out of, uh, the results was loan impairÂment expense of 15 milÂlion decreased 56 perÂcent on the first half, equatÂing to four basis points to gross loans and advances.
[00:07:34] Tony: The decrease was priÂmarÂiÂly due to lowÂer colÂlecÂtive proÂviÂsion expense. That’s a big one for me because I know bankÂing anaÂlysts focus on what’s called the jaws of income. So the difÂferÂence between the cost of borÂrowÂing and runÂning the bank and what they can charge for mortÂgages. Um, and Bank of QueensÂland’s costs have increased draÂmatÂiÂcalÂly this half, largeÂly because they’re tryÂing to remeÂdiÂate, um, issues that, uh, I think APRA, the regÂuÂlaÂtor, have raised about govÂerÂnance and anti monÂey launÂderÂing and that kind of thing.
[00:08:07] Tony: And, but also an investÂment in techÂnolÂoÂgy to get their costs down longer term. So the costs are up and the jaws are lowÂer than what they, what they, what the othÂer banks have, they, they, that they’re comÂpared to. But It’s, I think the key indiÂcaÂtor when lookÂing at banks is their loan impairÂment expense. And the fact that they’ve writÂten that down is actuÂalÂly a good thing.
[00:08:28] Tony: And for me, that’s always been a trigÂger, uh, in terms of when do I want to own banks? It’s when they’re reducÂing their impairÂments for bad debts on their mortÂgage books rather than increasÂing it. So I’m just going to call that out as someÂthing to watch. But, um, I think that’s why the share price jumped and it’s been sort of flucÂtuÂatÂing around a bit because On the one hand, Bank of QueensÂland beat the conÂsenÂsus foreÂcast.
[00:08:51] Tony: And on the othÂer hand, it was a bad results, um, comÂpared to last half. So that’s where it’s at. HavÂing said that, I thought the bad news was already baked into the price. So I realÂly think this gyraÂtion has been because of a leak. Those figÂures got out into the marÂket someÂhow.
[00:09:13] Cameron: If it was the, an alleged leak of the results that caused the marÂket to crash, But when the results came out, the marÂket thought it was actuÂalÂly not too bad and the price shot back up.
[00:09:25] Tony: CorÂrect. So the leak only got half the stoÂry.
[00:09:29] Cameron: yeah, right. By the way, I
[00:09:31] Tony: SorÂry, the alleged, you’re right. I should call it the alleged leak. I’ve got no eviÂdence at all to sugÂgest a leak othÂer than cirÂcumÂstanÂtial eviÂdence.
[00:09:38] Cameron: pretÂty big eviÂdence. Um, you remind me of Trump’s defense attorÂney in his openÂing speech this week. Was, let me, let me tell you the truth about influÂencÂing elecÂtions. It’s called democÂraÂcy.
[00:09:53] Tony: I thought the openÂing arguÂment was, Mr. Trump, wake up.
[00:09:57] Cameron: Ha ha ha, stop fartÂing. ApparÂentÂly he’s sleepÂing and fartÂing. Um, I sold it, I sold it, uh,
[00:10:05] Tony: blow his toupee off.
[00:10:07] Cameron: David Simon, the writer of The Wire, said, Well, when his mouth is, when his mouth is forced to be closed, the shit needs to come out of one end or the othÂer. SomeÂthing to that effect. I sold Bank of QueensÂland all three parcels as a three point trendÂline, uh, sell.
[00:10:22] Cameron: Not as a real one. 6. 08. Was the 3PTL sell figÂure. So, you know, it’s back way back above that now. It should have nevÂer gone down there. So it’s just realÂly disÂapÂpointÂing. And yeah, I, I, I want, I want heads to roll. Tony, not necÂesÂsarÂiÂly JenÂny’s, but, uh, make sure she’s on that for me. Tell her I want heads to roll.
[00:10:45] Tony: I will. I’ll tell her
[00:10:47] Cameron: Heads on spikes. Yeah. Like.
[00:10:49] Tony: I want to hitch the roll at the ASX. Who the frack is lookÂing after this stuff?
[00:10:53] Cameron: Yeah. I don’t know.
[00:10:55] Tony: There’s insane price, insane price moveÂment just before results are announced, come on.
[00:11:00] Cameron: Yeah. As far as you know, has any quesÂtions been asked?
[00:11:04] Tony: No.
[00:11:05] Cameron: Is there a Please explain comÂing out of, uh, them at all?
[00:11:09] Tony: Nope. So the ASX clearÂly has their work cut out for them on a whole range of issues. The um, chest replaceÂment sysÂtem being numÂber one, but also numÂber two I think is new listÂings, and numÂber three is they’re not doing their job when it comes to makÂing sure that the marÂket is well regÂuÂlatÂed. AllegedÂly. ActuÂalÂly if the ASX wants to come on and defend themÂselves, I’m hapÂpy to have that, but it’s getÂting, it’s almost getÂting farÂciÂcal now.
[00:11:36] Cameron: I don’t believe those figÂures. Please explain. There you go.
[00:11:41] Tony: Yeah, thank you. Oh, you’ve just remindÂed me of Pauline HanÂson.
[00:11:46] Cameron: DonÂald Trump. Pauline Hansen. Rolling out all the big guns. Well. Uh, in betÂter news, Tony, uh, well, the portÂfoÂlios, my super’s takÂen anothÂer hit this week, like, um, last couÂple of weeks. I got two stocks that I bought in FebÂruÂary that are both nearÂly rule ones for me and my super. GenÂerÂalÂly, though, I did a portÂfoÂlio analyÂsis yesÂterÂday and today for the light and the dumÂmy portÂfoÂlio.
[00:12:09] Cameron: They’re all doing pretÂty well, actuÂalÂly. SurÂprisÂingÂly, we’ve had a good couÂple of weeks, most of our portÂfoÂlios. But one of the things that I noticed this mornÂing, Well, I’m pretÂty sure you’ve said stuff to this effect over the past, but, um, KSC, I noticed someÂthing realÂly parÂticÂuÂlar with KSC, K& S CorÂpoÂraÂtion, added it to the dumÂmy portÂfoÂlio in August 2021, um, price was 1.
[00:12:40] Cameron: 60. Um, I bought about 1, 700 shares for the 700, the parÂcel at the time. The 1. 60, it’s now tradÂing at just shy of 3, 2. 98. So, um, share prices gone up conÂsidÂerÂably over that time, but the divÂiÂdends, we’ve got 1, 000 in divÂiÂdends over that time, 984 in divÂiÂdends.
[00:13:08] Tony: Wow.
[00:13:10] Cameron: Um, so it’s paid for nearÂly. Not quite half, but you know, 40 perÂcent of the
[00:13:16] Tony: Mm hmm. Mm
[00:13:17] Cameron: trade just in divÂiÂdends, let alone the nearÂly 100 perÂcent increase in the share price over that periÂod of time.
[00:13:26] Cameron: As well, and I just, you know, getÂting back to this idea of buyÂing and just holdÂing, not, uh, re balÂancÂing because a share’s done well or whatÂevÂer. You know, it’s, uh, just lookÂing at the amount of divÂiÂdends that it’s
[00:13:41] Tony: Mm hmm.
[00:13:41] Cameron: over that periÂod of time. I was like, wow, that’s, you know, if we hold it for anothÂer couÂple of years, it basiÂcalÂly pays for itself.
[00:13:49] Tony: Yeah.
[00:13:50] Cameron: from the divÂiÂdends, let alone from the capÂiÂtal appreÂciÂaÂtion. of the shares. Like that’s, um, I hadÂn’t realÂly seen that hapÂpen in the portÂfoÂlio before.
[00:13:59] Tony: No, I’ve defÂiÂniteÂly seen it hapÂpen over the years. It’s a good thing to have. And you’re right. The longer you hold the stock, the more the divÂiÂdends, you know, go up. MatÂter. But it is, it is unusuÂal to see a stock both have strong growth and high divÂiÂdends. It’s norÂmalÂly one or the othÂer in the share marÂket.
[00:14:16] Tony: So like my expeÂriÂence is I’ve held stocks that have gone up, you know, maybe 10 times and thereÂfore the divÂiÂdends become sigÂnifÂiÂcant because they’re still yieldÂing it, whatÂevÂer they were yieldÂing it when they first, when I first bought them, you know, 3 perÂcent or 4 perÂcent or whatÂevÂer. Yeah. But I, but it’s unusuÂal to see a stock that has that much capÂiÂtal growth and a great divÂiÂdend yield as well.
[00:14:35] Cameron: Well, the share price in, uh, a month ago was actuÂalÂly 3. 85. It’s dropped from that down to 3, uh, in the last couÂple of weeks. I don’t know why. I don’t know if it’s just the marÂket or peoÂple have been, uh, takÂing their profÂits and getÂting out when the marÂket’s been dicey or, or if it’s someÂthing to do with the busiÂness.
[00:14:56] Cameron: But anyÂway, yeah, it’s just realÂly always, always just. I’m just, um, going through some of the divÂiÂdends recentÂly in a portÂfoÂlio and that realÂly jumped out at me. I mean, we’ve got a lot of stocks that we’ve held for a long time now in the dumÂmy portÂfoÂlio and that have delivÂered a lot of divÂiÂdends, but nothÂing quite at that levÂel.
[00:15:12] Cameron: So, that was an eye openÂer for me. I want to talk about, uh, regresÂsion testÂing, Tony.
[00:15:19] Tony: ExcelÂlent.
[00:15:20] Cameron: Um, yeah, so, Matt WalkÂer, Matt WalkÂer’s, uh, sysÂtem, which, you know, he’s still workÂing on tightÂenÂing it up, but it is what it is. And I’ve been using the same basic sysÂtem just to test a whole bunch of points to see what they delivÂer.
[00:15:40] Cameron: And he’s actuÂalÂly going to come on the show next week and chat to us. Indeed, he’s going to be a guest on the show, which will be great. Which would be great. But here’s what I’ve done in the last, uh, couÂple of days. So, um, just isoÂlatÂing checkÂlist metÂrics for some of them. I isoÂlatÂed yield is greater than bank debt.
[00:16:00] Cameron: It returned about a 0. 045, uh, or 4. 5 perÂcent CAGR, right? Um, record low PE returned about 11 perÂcent CAGR, isoÂlatÂed, increasÂing equiÂty. That’s 6%. Now, you’ll like this one, QAV scores 0. 2,
[00:16:26] Tony: Mm hmm.
[00:16:28] Cameron: 9 perÂcent CAGR.
[00:16:30] Tony: Okay. That’s interÂestÂing.
[00:16:33] Cameron: Now again, this is comÂing off the, uh, I think the, the STW over this periÂod we said was about a 2 perÂcent
[00:16:39] Tony: Mm hmm.
[00:16:40] Cameron: over this time frame, which is 2006 to, to, uh, beginÂning of 2006 to the end of 2023.
[00:16:47] Cameron: So that actuÂalÂly is My secÂond best result, narÂrowÂly beatÂen by the 20 perÂcent rule 1, also at 14. 917, this is 14. 913.
[00:17:04] Tony: Right.
[00:17:05] Cameron: QAV score 0. 05, reducÂing the QAV score cut off, was 13. 8 perÂcent CAGR. Eh,
[00:17:17] Tony: interÂestÂing. So it’s not payÂing a big difÂferÂence in the result then, is it?
[00:17:23] Cameron: not
[00:17:23] Tony: One, 1 perÂcent to 2%. CAGR.
[00:17:25] Cameron: Yeah. I mean, it’s 40, 000 or 35, 000 difÂferÂent capÂiÂtal return over that periÂod of time with a 20, 000 startÂing point. So, you know, it’s a lot of monÂey. But, um, in terms of the CAGR, not masÂsive. Then I did QAV score of 0. 2. With a 20 perÂcent Rule 1, thinkÂing well that’s gonna shoot the lights out, that comÂbo,
[00:17:50] Tony: Mm hmm.
[00:17:51] Cameron: 13.
[00:17:52] Cameron: 88%, 13. 9 perÂcent roughÂly.
[00:17:55] Tony: Wow.
[00:17:57] Cameron: Um, Growth over PE isoÂlatÂed, uh, 8%, Price less than book, 14. 48 perÂcent CAGR.
[00:18:08] Tony: So that’s the best returnÂing metÂric.
[00:18:10] Cameron: Um,
[00:18:12] Tony: IndiÂvidÂual. You’ve got the othÂer ones, like you got rule one at 20%. Up there as well. So out of all,
[00:18:19] Cameron: health trend, just finanÂcial health trend delivÂered, uh, 14. 6.
[00:18:25] Tony: oh, okay.
[00:18:27] Cameron: Yeah, so that and price less than book, doing betÂter than PropÂCaf, PropÂCaf was 11 and a half. Um, so,
[00:18:38] Tony: And you’ve only
[00:18:39] Cameron: I did,
[00:18:40] Tony: at sevÂen though, haven’t you?
[00:18:43] Cameron: yes, yeah, yeah, yeah, I can’t twidÂdle the PropÂCaf things yet, easÂiÂly in the code that MatÂt’s set up. But I thought, okay, QAV score 2
[00:18:54] Tony: Hmm.
[00:18:55] Cameron: good, what about 3?
[00:18:57] Tony: Yep. What about it?
[00:19:00] Cameron: 9. 2%.
[00:19:02] Tony: RealÂly?
[00:19:04] Cameron: Yeah, so,
[00:19:06] Tony: Do you have a limÂit on, are you takÂing every stock into account or do you have a minÂiÂmum ADT you’re lookÂing for?
[00:19:13] Cameron: no, no minÂiÂmum ADT, I don’t think,
[00:19:16] Tony: Okay. Cause I would think of the QAV score of 0. 3. You’re defÂiÂniteÂly at the top of the buy list, but you might have lots of small comÂpaÂnies in there as well.
[00:19:25] Cameron: which, you know, should be good, yeah,
[00:19:28] Tony: Yeah. But that may not be realÂisÂtic. Just the point I’m makÂing.
[00:19:32] Cameron: oh, I see what you’re, yeah, we’re right. The last one that I did was PE greater than yield, which returned, uh, 4%.
[00:19:39] Tony: Okay.
[00:19:40] Cameron: So, uh, let me do my LetÂterÂman top 10. Um, and numÂber 1 at 14. 9176939 is 20 perÂcent rule 1, folÂlowed by QAV score 0. 2 at 14. 9131, finanÂcial health trend 14.
[00:20:00] Cameron: 6, price less than book 14. 48, no rule 1, 14. 42. QAV 0. 2, 20 perÂcent rule 1, score 86, book plus 30, 13, price less than foreÂcast, 13, finanÂcial health, just its ratÂing, um, 12. 94. 10 perÂcent rule one, 12. 8. That’s just our stanÂdard, um, stanÂdard set of rules, right? StanÂdard conÂfig, 12. 8. 3PTL alone, 12%. I think that’s roughÂly 10.
[00:20:45] Cameron: So they’re my top 10, um, regresÂsion triÂals to date.
[00:20:51] Tony: So can I just underÂstand that and drill down a bit? So QAV, as we curÂrentÂly know it, returned 12. 8%. Is that right? Okay, so then, uh, there was like 6 or so of things above 12. 8. So 12. 8 has got to be the base case, right?
[00:21:12] Cameron: Yeah,
[00:21:13] Tony: So the improveÂments on that were, uh, what’d you say? That was, uh, 20% rule one. Uh, QAV score of 0.2. What else was there?
[00:21:27] Cameron: Health Trend, Price Less Than Book, No Rule 1, QAV. 2 plus a 20 perÂcent Rule 1, QAV Score 0. 05, Book Plus 30, Price Less Than ForeÂcast, and FinanÂcial Health RatÂing.
[00:21:49] Tony: So is it posÂsiÂble to do a regresÂsion test with all of those metÂrics you just read out, givÂen like a score of two or three and just see if, if that boosts the returns.
[00:22:00] Cameron: A score of 2 or 3 or just the regÂuÂlar scorÂing for each of those?
[00:22:04] Tony: No, I want to boost the scorÂing for those things you spoke about. QAV, or actuÂalÂly, so 20 perÂcent rule one, QAV of 0. 2, but book plus 30 getÂting an increase in the score and price less than foreÂcast getÂting an increase in score and finanÂcial health getÂting an increase in score.
[00:22:19] Cameron: Right, uh,
[00:22:20] Tony: Because we’re tryÂing to beat 12. 8, which is the curÂrent scorÂing setÂup.
[00:22:24] Cameron: Yeah,
[00:22:25] Tony: And then I guess also too, if some of the things that you said didÂn’t score well, just start elimÂiÂnatÂing them and see if we even need to track them going forÂward. See if we can simÂpliÂfy the checkÂlist.
[00:22:36] Cameron: so what you’re sugÂgestÂing with the increasÂing score ones is keep everyÂthing else in it, as we norÂmalÂly do, just increase the score for those things.
[00:22:46] Tony: Yeah. So, um, book plus 30, for examÂple, gets whatÂevÂer it is now. I think it’s a 1. Give it a 2. And it’s hard to know what the score should be from that. You know, you give it a 5 maybe. RealÂly boost the score on it and see if it makes a difÂferÂence.
[00:23:05] Cameron: You want me to do it while we do the rest of the show and then give you the results by the end of the show?
[00:23:08] Tony: Oh yeah, cool. Okay.
[00:23:10] Cameron: Ha ha ha! Hold on, let me do this. Um, do do do do do do, might as well.
[00:23:20] Tony: And only our club memÂbers will get the results because we cut the show off after 30 minÂutes for the free episode.
[00:23:26] Cameron: Yeah, and no one else cares,
[00:23:28] Tony: No, exactÂly.
[00:23:29] Cameron: it.
[00:23:30] Tony: Well, do you want me to talk about one of my news artiÂcles while you’re doing that?
[00:23:33] Cameron: Yes. Oh, uh, no, before you do that, I just wantÂed to, uh, peoÂple probÂaÂbly already know, but just in case peoÂple haven’t read the email or seen the FaceÂbook post or whatÂevÂer this week, major issues with Stock DocÂtor data this week. Um, I noticed on our buy list that the top three stocks, which all had. Crazy good QAV scores, R.
[00:23:54] Cameron: E. D., J. A. N., and F. L. T., and all of which I’d nevÂer seen before on the buy list. Uh, um, I thought, hmm, I was about to buy red, actuÂalÂly, for one of our portÂfoÂlios. I was like, maybe I should just, uh, you know, You know, maybe I should have learned from past expeÂriÂences that if someÂthing looks too good to be true, maybe it is.
[00:24:14] Cameron: And because some, uh, of our lisÂtenÂers have pointÂed out in recent times that, uh, Stock DocÂtor’s had a hisÂtoÂry with shares outÂstandÂing, which has, uh, uh, rap masÂsiveÂly inflatÂed the QAV score of some stocks. Like I think URW was one. Um. That was the first place I looked and they all had dodgy lookÂing numÂbers.
[00:24:36] Cameron: And then you noticed there were othÂer dodgy lookÂing numÂbers
[00:24:39] Tony: Mm hmm.
[00:24:39] Cameron: Stock DocÂtor came back to me and said, they’ve got NA for finanÂcial health for a lot of things for some reaÂson this week. So, uh, just be realÂly careÂful with your Stock DocÂtor checkÂlist this week. Um, a lot of data, um, integriÂty issues and, um, yeah, don’t, don’t trust anyÂthing essenÂtialÂly.
[00:24:58] Tony: Yeah, no, I found it. I was preparÂing to do a pulled pork, and I used the weekÂly downÂload, and I went, no, there’s a lot missÂing on this. And I ran anothÂer one this mornÂing, and at least for the comÂpaÂny I was lookÂing at, a lot of it had been fixed. So it might be worth it if peoÂple need to buy someÂthing this week to run a downÂload and just see if the data looks right.
[00:25:16] Tony: Yeah, but when I did my downÂload today, There was still Flight CenÂtre and RED and the othÂer one on top of the list, so there’s still an issue with those. And I wouldÂn’t expect to see Flight CenÂtre on our list, quite frankly. It’s always been a gross stock in peoÂple’s eyes.
[00:25:35] Cameron: Yeah.
[00:25:36] Tony: RightÂly or wrongÂly, but it always has.
[00:25:39] Cameron: I’m going to go run a, go run a regresÂsion test. You can talk for a bit.
[00:25:44] Tony: Is that going to like use up all the powÂer supÂply in North BrisÂbane?
[00:25:47] Cameron: Yeah. Yeah. Lights will flickÂer. Yeah. All over powÂer will be going out, all over town. Yeah,
[00:25:54] Tony: the genÂerÂaÂtor that you the
[00:25:56] Cameron: yeah, yeah.
[00:26:00] Tony: Okay. I got two stoÂries, um, for QAV stocks in the news this week. I have, uh, one which supÂports the curse of the pulled pork theÂoÂry. Which was on Karoon EnerÂgy, um, which I did a Pulled Pork on recentÂly. And what’s hapÂpened with Karoon is, this was pubÂlished by Stock DocÂtor with a realÂly neat headÂing called Who Dat, Who Did This?
[00:26:24] Tony: Because Karoon owns a couÂple of Fields called HUDAT. Um, this came out 19th of April, latÂest key update, BrazilÂian oil proÂducÂer Carun EnerÂgy released its third quarÂter 24 proÂducÂtion update. The results fell short of conÂsenÂsus expecÂtaÂtions and the comÂpaÂny has disÂapÂpointÂingÂly downÂgradÂed its FY24 guidÂance due to temÂpoÂrary operÂaÂtional chalÂlenges at BalÂluÂna and HUDAT fields.
[00:26:49] Tony: So the shares have gone down a litÂtle bit since we did the pulled pork. I did a quick look at the comÂpaÂny announceÂment itself, and I think the emphaÂsis is on the word temÂpoÂrary. They weren’t callÂing out any sort of, well I couldÂn’t see they were callÂing out any sort of long term probÂlems with both fields, but it looked like the probÂlem was with what’s known in the indusÂtry as an FPSO, so a FloatÂing ProÂducÂtion StorÂage and OffloadÂing FacilÂiÂty, which is Um, in the oil indusÂtry is like a, an ex oil tanker that acts as an interÂmeÂdiÂate loadÂing point near an off sea oil well and stores the oil and gas and I guess water that comes up in the well and tries to do an iniÂtial split of those.
[00:27:31] Tony: SomeÂtimes it doesÂn’t, it just stores things. But anyÂway, it means that the The oil drill doesÂn’t have to invest in havÂing a pipeline back to shore. So this kind of old oil tanker sits there, takes the oil that’s drilled and then loads it into tankers to send off to the refinerÂies. They had a probÂlem with their FPSO, which was shut down for a bit this quarÂter and it looks like it’ll be shut down again next quarÂter when they’re doing the foreÂcast mainÂteÂnance on it.
[00:28:00] Tony: So this may be a probÂlem again next quarÂter, but it looks like That’s the update on Karun.
[00:28:09] Cameron: I had to sell them. I had to sell Karoon, rule one sell, in a couÂple of our portÂfoÂlios, includÂing the dumÂmy portÂfoÂlio. I’ve had to sell, like, a couÂple of things out of the dumÂmy portÂfoÂlio recentÂly. HadÂn’t had to sell anyÂthing in the dumÂmy portÂfoÂlio for ages. ChoÂrus, uh, Karoon, and just this mornÂing CLX, CTI LogisÂtics.
[00:28:32] Cameron: SurÂprisÂing. UsuÂalÂly the dumÂmy portÂfoÂlio is immune from those sorts of things, but, uh, there you go, not to be.
[00:28:40] Tony: Yeah, so, um, I think for what my two cents are worth, I think it’s a temÂpoÂrary probÂlem with Karun, but it may last for six months. I guess it’s your defÂiÂnÂiÂtion of temÂpoÂrary is imporÂtant here. And then the othÂer stock, which is a good news stoÂry, um, is both for MacMaÂhon, MAH, and Decmil. Uh, I’m not sure if Decmil’s been on the buy list for a while.
[00:29:02] Tony: I know I did own it many, many years ago, perÂhaps even decades ago, so I’m not sure if it’s been on the buy list lateÂly. I owned Decmil back when it made its name buildÂing accomÂmoÂdaÂtion for fly in, fly out. minÂers in camps and then it kind of had a exisÂtenÂtial threat when all that iniÂtial develÂopÂment was finÂished and there weren’t that many new camps to build and it kind of moved into othÂer minÂing engiÂneerÂing supÂport serÂvices and it’s kind of limped along a bit from there.
[00:29:35] Tony: It has had some sucÂcess in buildÂing wind farms, I think. I haven’t realÂly folÂlowed it. AnyÂway, the stoÂry is that MacMaÂhon have, uh, Uh, lobbed a share, uh, takeover, and Decmil’s board has blessed the scheme bid by minÂing serÂvices group MacMaÂhon HoldÂings, which will swalÂlow the Perth based engiÂneerÂing group at 0.
[00:29:55] Tony: 30 a share. A rise in demand for wind farms has buoyed Decmil Group. The buyÂout announced on TuesÂday mornÂing will see 528 milÂlion dolÂlar MacMaÂhon acquire 100 perÂcent of Decmil’s share capÂiÂtal via a scheme of arrangeÂment. FundÂed from existÂing cash reserves. and an extenÂsion of its existÂing debt facilÂiÂties.
[00:30:14] Tony: Major shareÂholdÂers ThorÂney InvestÂment Group and HawÂley Pty Ltd, which togethÂer conÂtrol almost 27 perÂcent of the regÂisÂter, have givÂen their supÂport. With Decmil shares tradÂing, last tradÂing at 17 cents, the MacMaÂhon offer repÂreÂsents a 76. 5 perÂcent preÂmiÂum. The 26 milÂlion marÂket cap comÂpaÂny builds a broad range of infraÂstrucÂture projects, includÂing roads, rail netÂworks, and wind farms.
[00:30:38] Tony: So there you go. A big spike in its share price and MacMaÂhon I think is, may even still be on the buy list as takÂing it over. But it looks like they’re not going to do a capÂiÂtal raise to do it.
[00:30:51] Cameron: I just bought some MacMaÂhon today, but it’s the thing I replaced CLX with in the dumÂmy portÂfoÂlio. So, uh, it’s gone up 3 perÂcent since I bought it this mornÂing too. I just checked. I was like, oh no, cause I missed that news. I didÂn’t, must’ve checked the, um, whatÂevÂer’s, the announceÂments.
[00:31:09] Tony: Yeah, well it’s interÂestÂing because oftenÂtimes the acquirÂing comÂpaÂny goes down when they buy someÂthing until they can prove the synÂerÂgies all work and, and the transÂacÂtion goes through. But um, sounds like it’s not hapÂpenÂing that way for MacMaÂhon. So that’s good.
[00:31:21] Cameron: Yeah. AnyÂway. Oh, that’s good. That’s it?
[00:31:25] Tony: That’s it for my news, I’ve got a pool of pork to do, but did you have anyÂthing else to talk about beforeÂhand?
[00:31:30] Cameron: No, I did not. Um,
[00:31:34] Tony: NothÂing from Howard Marks this week?
[00:31:37] Cameron: Oh, I did. Thank you for remindÂing me. I skipped right over Howard Marks. Marksy, good old Marksy. Um, OakÂtree CapÂiÂtal founder had his, uh, one of his latÂest blurbs came out, memÂos from Howard Marks, April 17th, 2024, the indisÂpensÂabilÂiÂty of risk. I read this and I thought of you.
[00:32:01] Cameron: Because you’ve said to me in the past, well, no, you’ve said before, you know, you don’t mind risk. You don’t mind volatilÂiÂty. You know, that’s part of being an investor, right? Is you, you, you, you, you try and minÂiÂmize your risk, but you walk into the risk. You know, you, you, you know, you, you have to accept that
[00:32:18] Tony: You don’t walk away from risk. Yeah.
[00:32:20] Cameron: he used a chess analÂoÂgy, uh, today, which caught, now I know, That you, like myself and my sons, have been folÂlowÂing very closeÂly this week, the CanÂdiÂdates Chess TourÂnaÂment
[00:32:33] Tony: I must have blinked and missed
[00:32:34] Cameron: out this week. It was actuÂalÂly quite excitÂing. It’s like, TayÂlor was texÂting me yesÂterÂday, holy shit, are you watchÂing this?
[00:32:43] Cameron: I was like, I was tryÂing to conÂcenÂtrate and I was flickÂing, I had to keep mutÂing it because, you know, the comÂmenÂtary on chess games now is like, I don’t know, boxÂing comÂmenÂtary. They’re like,
[00:32:54] Tony: Oh, realÂly? Are you ready to rumÂble?
[00:33:00] Cameron: like that. So the canÂdiÂdates tourÂnaÂment, uh, for peoÂple who don’t folÂlow chess is, uh, sort of the, the world chamÂpiÂonship before the world chamÂpiÂonship. It’s the, it’s to see who’s going to play the world champ, who at the moment is Ding Loren from ChiÂna. Although everyÂone knows it’s realÂly MagÂnus retired.
[00:33:18] Cameron: So it’s Ding Loren and it was down to, there was two games playÂing, I guess the last two semiÂfiÂnals. And the way the points had been scored is, um, someÂbody needÂed a win in order to get enough points to end up playÂing, uh, playÂing Ding. And the first game that played was between this 17 year old IndiÂan kid called Gukesh, who was the secÂond youngest GrandÂmasÂter ever in hisÂtoÂry when he got his career.
[00:33:47] Cameron: title at 12 and a half.
[00:33:49] Tony: Oh, wow.
[00:33:51] Cameron: Um, there’s anothÂer kid who’s was like a month younger than him, anothÂer IndiÂan kid who got his grandÂmasÂter last year. Um, and he was playÂing, um, Hikaru NakaÂmuÂra. Who is probÂaÂbly the biggest chess YouTuÂber, Twitch streamÂer on the planÂet, JapanÂese AmerÂiÂcan. Um, very He’s the world chamÂpiÂon Blitz playÂer, so like, 3 minute games.
[00:34:14] Cameron: He’s an absolute boss at that. Don’t often see him playÂing at this levÂel in stanÂdard Time ConÂtrols, but it was between the two of them and that finÂished first and they drew and we were like, Oh, Gukesh isn’t going to win because the othÂer game that was being played by Nepo, RussÂian, Ian NepomÂniÂachtchi, who has played in the last two world chamÂpiÂonships, first against MagÂnus, which he lost, and then against Ding, which he lost last year.
[00:34:40] Cameron: And, um, Fabio CaruÂaÂna, AmerÂiÂcan, um, we were watchÂing that, but they drew, which meant. Gukesh, at 9 points, even though he got a draw, is the winÂner. So, the World ChamÂpiÂonship this year will be between a 17 year old IndiÂan kid And a 31 year old ChiÂnese guy, the two biggest popÂuÂlatÂed counÂtries in the world fightÂing it out, which has nevÂer hapÂpened before.
[00:35:08] Cameron: Um, it’s pretÂty excitÂing. India verÂsus ChiÂna. It’s like this new era of chess.
[00:35:13] Tony: Yeah. ModÂern Cold War.
[00:35:15] Cameron: yeah. Right. Um, I mean, ChiÂna’s had some great playÂers for years, and so has India, uh, includÂing a world chamÂpiÂon, I think, but, um, or a conÂtender for world chamÂpiÂon, at least at some point, um, but, yeah, this is realÂly excitÂing, you know, it’s, um, uh, uh, big thing.
[00:35:33] Cameron: So anyÂway, back to that one, Marks.
[00:35:35] Tony: I, I, I mean, our lisÂtenÂers would nevÂer forÂgive me if I didÂn’t menÂtion the, um, anal beads. Has that been a part of the World ChamÂpiÂonships this year? I
[00:35:44] Cameron: No, but, that guy, Hans NieÂmann,
[00:35:48] Tony: I wonÂder if Trump has anal beads in his, in his, uh, earÂring.
[00:35:53] Cameron: that guy, Hans NieÂmann, Um, TayÂlor’s been talkÂing to him, uh, TayÂlor conÂnectÂed with him on Snapchat or InstaÂgram or someÂthing and they’ve been havÂing a bit of a backÂwards and forÂwards chat over the last couÂple of months. TayÂlor’s deterÂmined to take him on as a client. TayÂlor wants to
[00:36:12] Tony: Right. Yeah.
[00:36:13] Cameron: Hans NieÂmann.
[00:36:14] Cameron: And if he does that, he’s going to totalÂly try and conÂvince him to sell his own range of
[00:36:18] Tony: Yeah.
[00:36:19] Cameron: He’s like, dude, yeah, like you’re missÂing out on this incredÂiÂble opporÂtuÂniÂty. Like you don’t fight it. You embrace it. You, you own it. Yeah, own it! Like, you can sell milÂlions of anal beads, vibratÂing anal beads.
[00:36:34] Cameron: Oh, TayÂlor’s like, dude, you won’t have to worÂry about chess. You’ll be so rich. Be like, we were talkÂing off air about Ryan Reynolds and his mobile phone comÂpaÂny and his gin comÂpaÂny and the socÂcer team and all that kind of stuff. AnyÂway, back
[00:36:48] Tony: told me a great stoÂry about Snapchat. I’m sure you won’t mind me telling it here. You may have heard it. He came, we caught up for, um, Brunch a couÂple of weeks ago when he was in SydÂney last and it was realÂly nice catchÂing up with him. Um, but he is telling a stoÂry about how he took his influÂencers, he’s got a staÂble of influÂencers he manÂages, and they went to one of the winerÂies in northÂern VicÂtoÂria, um, for a Snapchat.
[00:37:12] Tony: MarÂketÂing conÂferÂence. Yeah. And when it startÂed, the Snapchat manÂagÂer asked everyÂone in the room to sit down in a drum cirÂcle and go around the room and, and menÂtion two things. FirstÂly, what proÂnouns they like. And secÂondÂly, one thing they’re grateÂful for. And it got to TayÂlor’s influÂencer. And one of them said, well, the proÂnoun I like is me, and I’m grateÂful for women.
[00:37:38] Cameron: Yeah. He’s, he’s decades got, that’s Adam. He’s got 20 milÂlion folÂlowÂers on TikÂTok and most of them are him going up and chatÂting, chatÂting women up in front of the street when they’re with their boyfriend and hitÂting on women. He’s like the hitÂting on women guy. That’s his, uh, that’s his brand. Um, uh, I was going to tell you that TayÂlor just had his one year anniverÂsary with, um, his girlÂfriend, Amy, who lives in LA.
[00:38:05] Cameron: She’s an actress. And, um, for the last like six months, he’s been tryÂing to conÂvince her that when she does an audiÂtion, she should send the castÂing direcÂtor afterÂwards, a mariÂachi band with a thank you note, just to go to their office and do a song. And she’s like, you’re insane. That is the worst idea ever.
[00:38:27] Cameron: So for their anniverÂsary,
[00:38:29] Tony: No, I think,
[00:38:30] Cameron: one
[00:38:30] Tony: I think the Chess MasÂter’s Anal beads is the worst idea ever.
[00:38:35] Cameron: secÂond worst idea ever. So for the, for their anniverÂsary, he got one of her best friends. To take her out of the house down, she lives in an apartÂment comÂplex, to go out to like a restauÂrant. Um, and then he had a mariÂachi band turn up and play to her for 30 minÂutes as they’re walkÂing around the streets in this shopÂping mall, just this mariÂachi band.
[00:39:03] Cameron: Which I thought
[00:39:06] Tony: have, I would have offered them douÂble to stop folÂlowÂing me around for 30 minÂutes.
[00:39:10] Cameron: Yeah, yeah. He’s a funÂny dude. AnyÂway, Howard Marks, I’m gonna get to this if it kills me. The indisÂpensÂabilÂiÂty of risk. Often times, we’re best able to underÂstand someÂthing we’re interÂestÂed in through analoÂgies that clarÂiÂfy the matÂter by estabÂlishÂing conÂnecÂtions between it and othÂer parts of life.
[00:39:29] Cameron: Tony KynasÂton’s cofÂfee shop analÂoÂgy. all the difÂferÂence to me. That’s why I’ve writÂten a memo comÂparÂing investÂing to sports in each of the four decades I’ve been writÂing memÂos and one conÂnectÂing investÂing and card playÂing in 2020. The motiÂvaÂtion for this memo comes from an artiÂcle in the Wall Street JourÂnal of April 12th that my partÂner, Bruce Karsh sent me.
[00:39:51] Cameron: EntiÂtled Chess TeachÂes the PowÂer of SacÂriÂfice by MauÂrice AshÂley, a chess grandÂmasÂter who’s been inductÂed into the U. S. Chess Hall of Fame. Few peoÂple know that Bruce is a chess playÂer and I hadÂn’t thought about this fact for years, but the artiÂcle proÂvidÂed a good reminder and moved me to As is obviÂous from the artiÂcle’s title, the piece is mostÂly about the role of sacÂriÂfice.
[00:40:13] Cameron: AshÂley says, Many posiÂtions canÂnot be won or saved withÂout someÂthing of valÂue being givÂen away, from a lowÂly pawn all the way up to the mighty queen. IntenÂtionÂalÂly losÂing a piece as part of one’s game plan is the sacÂriÂfice that AshÂley is refÂerÂencÂing. He describes some sacÂriÂfices as shams, A term coined by chess masÂter Rudolf SpielÂmann in his book, The Art of SacÂriÂfice in Chess, where, quote, one can easÂiÂly see that the piece being givÂen up will return conÂcrete benÂeÂfits that can be clearÂly calÂcuÂlatÂed.
[00:40:48] Cameron: OthÂers are deemed real sacÂriÂfices, where, quote, givÂing away a piece offers gains that are neiÂther immeÂdiÂate nor tanÂgiÂble. The return on investÂment might be conÂtrolÂling more space, creÂatÂing an assailÂable weakÂness in the oppoÂnenÂt’s posiÂtion, or havÂing more pieces in the critÂiÂcal secÂtor of attack. The analÂoÂgy to investÂing begins to become clear.
[00:41:10] Cameron: BuyÂing a 10 year US TreaÂsury note is a modÂest or sham sacÂriÂfice. You give up the use of your monÂey for 10 years, but that’s only an opporÂtuÂniÂty cost, and acceptÂing it brings the cerÂtainÂty of interÂest income. Most othÂer investÂments involve real sacÂriÂfices, though, where the risk of loss is born in purÂsuit of gains that are neiÂther immeÂdiÂate nor tanÂgiÂble.
[00:41:32] Cameron: And it goes on. Um, it’s a long artiÂcle, I won’t read the whole thing, but, um, I’ll just read the end here. He quotes from this chess champ. TakÂing a chance doesÂn’t mean there will be a sucÂcessÂful outÂcome, nor does it require it. If the reaÂsons are sound, the risk should be takÂen almost reflexÂiveÂly. The more often we trust our judgÂment, the more conÂfiÂdence we gain in our deciÂsion makÂing capacÂiÂty.
[00:41:58] Cameron: The courage to take risks becomes a worthÂwhile end in itself. And then Howard finÂishÂes, The botÂtom line on the quest for supeÂriÂor investÂment returns is clear. You shouldÂn’t expect to make monÂey withÂout bearÂing risk, but you shouldÂn’t expect to make monÂey just for takÂing risk. You have to sacÂriÂfice cerÂtainÂty, but it has to be done skillÂfulÂly and intelÂliÂgentÂly and with emoÂtion under conÂtrol. I realÂly like that. I thought it was a realÂly good artiÂcle.
[00:42:27] Tony: Yeah, no, I agree. And yeah, and I think the othÂer quote, which I couldÂn’t find, and I just had a quick look, but it said someÂthing like that when we buy a share, we expect it to go up, but we also know that only about, um, 60 perÂcent of the shares we buy Go up. So it’s how do you recÂonÂcile that, which I think is, is the key to it.
[00:42:48] Tony: It’s like you need, you need to have a frameÂwork which tells you over the long term that works. You have, you’ve done your homeÂwork, you’ve done your research, and you can trust in the process.
[00:43:00] Cameron: By the way, I tried to write some code last time. Week to anaÂlyze all of the trades that I’ve done to see what our win loss ratio is. And I haven’t got it work, haven’t got it workÂing yet, but, um, it, it was someÂthing I was thinkÂing about over the last couÂple of weeks just to see if there was a way to see all of the trades that I’ve done in all the light portÂfoÂlios and the dumÂmy portÂfoÂlio over the last few years.
[00:43:24] Cameron: Um, what the win loss has been. Um, he does also quote. Oh, he menÂtions BufÂfett and Munger here. He says, um, Here’s how I describe the basis for the sucÂcess of BerkÂshire HathÂaway and few losers or more winÂners. I believe the ingreÂdiÂents of WarÂren and CharÂlie’s great perÂforÂmance are simÂple. A. A lot of investÂments in which they did decentÂly.
[00:43:48] Cameron: B. A relÂaÂtiveÂly small numÂber of big winÂners that they investÂed in heavÂiÂly and held for decades. And C. RelÂaÂtiveÂly few big losers. No one should expect to have, or expect their monÂey manÂagers to have, All big winÂners and no losers. Investors must accept that sucÂcess is likeÂly to stem from makÂing a large numÂber of investÂments, all of which you make because you expect them to sucÂceed, but some porÂtion of which you know won’t.
[00:44:15] Tony: That was the quote I was lookÂing for.
[00:44:17] Cameron: There you go.
[00:44:18] Tony: Yeah, which is that idea that, yeah, I’m going to buy a share, in the back of my mind I know it’s got a 60 40 chance of winÂning, so I’ve worked out the probÂaÂbilÂiÂties, but uh, when I buy it I expect it to, to improve. And that’s the risk, that’s the risk takÂing in it.
[00:44:35] Cameron: And for me though, too, it’s like the, the long terÂmism of the stratÂeÂgy. You have to, you know, underÂstand and accept and steel yourÂself for the fact that there are going to be periÂods when things won’t go your way. They will look bad, like my super portÂfoÂlio for the last couÂple of years. It’s been disÂmal perÂforÂmance, but I believe that the stratÂeÂgy works over the long term. My job is just to diliÂgentÂly folÂlow the sysÂtem and not quesÂtion it, you know,
[00:45:11] Tony: Yeah, and that’s anothÂer thing.
[00:45:12] Cameron: where we can, but you know.
[00:45:13] Tony: Yeah, that’s anothÂer thing about risk takÂing, it’s always the long term you’ve got to be focused on as well. You may have a lot of, you might have a lot of stutÂters when you first start, but it’s the long term you’re focused on. And we’ve proven that with the dumÂmy portÂfoÂlio for the last five years, it’s nearÂly, well it’s, I think it is douÂble marÂket.
[00:45:28] Tony: My expeÂriÂence over 25 to 30 years is douÂble marÂket. So yeah, I think it’s, but there have been periÂods along the way when you have a bad year. For sure.
[00:45:40] Cameron: And the dumÂmy portÂfoÂlio, I mean, apart from trustÂing, uh, your expeÂriÂence when we startÂed, the dumÂmy portÂfoÂlio has proven to be WithÂout a doubt, even though, okay, it’s only five years in. So, you know, it’s not 20 years, but, um, even with that five years, just folÂlowÂing the rules, it’s just one, like not just beatÂing the marÂket, but douÂble marÂket.
[00:46:01] Cameron: Like that’s crazy, realÂly.
[00:46:06] Tony: Yeah, I think that’s, it is crazy. It’s, but it’s interÂestÂing how it has been repeatÂed in our two casÂes. Um, yeah, and it’s, you know, the othÂer risk I think, which wasÂn’t menÂtioned in the artiÂcle, but it’s the risk of getÂting it wrong, um, because there’s nothÂing worse than startÂing off in your investÂing life, um, parÂticÂuÂlarÂly if you’re, you know, a late stage investor like both of us are, and 20 years down the track going, huh, I’ve actuÂalÂly done a realÂly bad thing here.
[00:46:35] Tony: I shouldÂn’t have. I shouldÂn’t have used that, um, shouldÂn’t have folÂlowed that advice, shouldÂn’t have used that fund manÂagÂer, shouldÂn’t have put it in that super fund or whatÂevÂer, because you can’t wind it back and, and fix it. But, um, I think that’s the powÂer of havÂing a sysÂtem like ours, is that, you know, we’ve, it’s been worked for me, it’s, we startÂed it five years ago, it’s worked for the dumÂmy portÂfoÂlio.
[00:46:56] Tony: Um, there’s nothÂing which I’ve seen which will say it won’t conÂtinÂue to work in the long term, you know, for peoÂple going forÂward too.
[00:47:04] Cameron: And the thing that guts me is just seeÂing peoÂple that get a couÂple of years into it and then just marÂket has a. Bad periÂod and they pull out and sell, sell low. Yeah, man, why? We’ve, they’ve been lisÂtenÂing to us talk for years about stickÂing in it for the long haul and letÂting the cycles play out and just for whatÂevÂer reaÂson, can’t stomÂach it.
[00:47:28] Cameron: It’s, um, heartÂbreakÂing, but anyÂway, that’s
[00:47:32] Tony: Which again is risk, which is how, which is manÂagÂing risk, isn’t it? And manÂagÂing your emoÂtions. I like the fact that Howard Marks said that part of the way of manÂagÂing risk was to manÂage your emoÂtions.
[00:47:42] Cameron: Yes, of course, with emoÂtion under conÂtrol.
[00:47:45] Tony: Yeah.
[00:47:46] Cameron: AnyÂway, I like that, not only for the chess aspect of it, but, you know, you’ve said to me over and over again over the years that risk and volatilÂiÂty are your friend. They’re not, they’re not, they’re not your friend. The eneÂmy, right?
[00:47:59] Tony: Yeah. If the marÂket was risk free, it wouldÂn’t return much because why would you give it the monÂey? Yeah.
[00:48:05] Cameron: Yeah. Yeah. That’s buyÂing a bond, right?
[00:48:08] Tony: But even then, like if you bought a bond a couÂple of years ago, bonds have gone down. The yieldÂ’s gone up, which means that the monÂey you’ve investÂed has gone down. So bonds aren’t risk free either. You’ve got to still stomÂach that. Yeah. But I mean, I guess the disÂtilÂlaÂtion of what Howard Marks is sayÂing is that there’s risk in the marÂket, but there’s risk in yourÂself.
[00:48:28] Tony: You’ve got to tame both risks. And I’ve always called them strateÂgic risk and exeÂcuÂtion risk, right? So a numÂber of times I’ve seen that. You know, like just going to the raceÂtrack when, you know, if you go to the raceÂtrack and back the wrong horse, that could be strateÂgic risk. But I’ve seen plenÂty of examÂples where peoÂple have gone to the raceÂtrack and on the way out there, they’re real excitÂed about backÂing a horse.
[00:48:51] Tony: And when they get there, they change their mind and they back the losÂing horse and the origÂiÂnal horse they picked wins. So there’s always strateÂgic risk and operÂatÂing risk. And, you know, I guess anothÂer word for operÂatÂing risk is, is behavÂioral risk. It’s the risk of you doing someÂthing silÂly. It’s just as imporÂtant as the risk of, of havÂing the right stratÂeÂgy when you invest.
[00:49:12] Cameron: that’s, that’s Howard Marks. You want to do your pulled pork?
[00:49:17] Tony: Yeah, yeah, I do. So thanks to PC for a request for this one today. Um, I’m doing it on a comÂpaÂny called Joyce, which has a code called JYC. And I’m not familÂiar with this comÂpaÂny or their retail offerÂings. So it was, it was a bit of fun to go through and explore a new comÂpaÂny. And I guess the reaÂson why I haven’t come across them before is that they are a Perth based comÂpaÂny.
[00:49:41] Tony: Um, they are expandÂing onto the East Coast in QueensÂland and New South Wales, uh, and they operÂate three busiÂnessÂes. They’re a retail group, uh, it’s broÂken down basiÂcalÂly into what’s called the KWB group and BedÂshed. So, KWB operÂates Kitchen ConÂnecÂtions and Wallspan, which, um, I guess they’re, what they do is in the name, Kitchen ConÂnecÂtions, makes and sells kitchen renÂoÂvaÂtions and Walspan, uh, manÂuÂfacÂtures and sells wardrobe instalÂlaÂtions.
[00:50:14] Tony: So that’s a large part of their busiÂness. And then BedÂshed, which I think may have been the oldÂest part of the, this comÂpaÂny’s hisÂtoÂry, is a bedÂding store. Um, Again, based in WA, but they have expandÂed to the east coast as well. They do have a third busiÂness, which is, um, just in its infanÂcy. It’s called Crave, and it operÂates, um, furÂniÂture rentals and stagÂing, um, in the Perth area.
[00:50:43] Tony: It’s a small, it’s a very small part of their busiÂness, but I guess there’s synÂerÂgy. If you’re sellÂing furÂniÂture, you might have some spare stock you can rent out, but it’s, in my mind, the quesÂtion is whether that will ever be a large part of their busiÂness, givÂen it’s, I think it turned over about half a milÂlion dolÂlars in its first year of operÂaÂtion.
[00:51:01] Tony: Um, InterÂestÂing split between those busiÂnessÂes. So the bedÂshed franÂchise, sorÂry, the bedÂshed busiÂness is both franÂchised and comÂpaÂny operÂatÂed and the kitchen and wardrobe showÂrooms, uh, is again split between those two. But on the bedÂshed side, uh, the franÂchise operÂaÂtions made a profÂit of 2. 7 milÂlion and the comÂpaÂny operÂatÂed operÂaÂtions, which was the largÂer part of the busiÂness made a profÂit ProfÂit of 2.
[00:51:27] Tony: 3 milÂlion dolÂlars. So that says to me there’s a bit of um, upside in the, in growÂing the franÂchise busiÂness because uh, it’s makÂing the same as the comÂpaÂny operÂatÂed busiÂness. Um, and I’m, I’m not sure how bedÂshed franÂchisÂing works. whether they own the store and put an operÂaÂtor in it or not, but usuÂalÂly franÂchisÂing has a capÂiÂtal is less capÂiÂtal intenÂsive than ownÂing and operÂatÂing yourÂself.
[00:51:52] Tony: But again, I’m not familÂiar with the operÂaÂtions here. Uh, the kitchen and wardrobe showÂrooms though, which I thought was interÂestÂing. This is the newÂer part of the busiÂness, but that’s makÂing 25 milÂlion in the last 12 months. So that’s where the profÂit is. So the traÂdiÂtionÂal betÂting busiÂness is makÂing about 5 milÂlion, but the kitchen and wardrobe showÂrooms are makÂing 25 milÂlion.
[00:52:13] Tony: So. You know, I think, um, uh, this comÂpaÂny is doing a pretÂty good job of movÂing away from, or I shouldÂn’t say movÂing away from bedÂshed, but getÂting into, uh, a new busiÂness which, um, has, uh, betÂter marÂgins for it, um, and betÂter return than what traÂdiÂtionÂalÂly it’s operÂatÂed. Uh, the wardrobe busiÂness Walspan only has three stores and they operÂate in South AusÂtralia.
[00:52:36] Tony: So I’m not sure what their plans are there to roll out that busiÂness or not. Um, but the, the big. Big busiÂnessÂes, Kitchen ConÂnecÂtion has 22 sites in QueensÂland and New South Wales, and uh, BedÂshed has 6 comÂpaÂny operÂaÂtive stores and a furÂther 37 franÂchise sites. And as I said, Kitchen and Wardrobe has 25 sites bringÂing in 25 milÂlion in profÂit.
[00:53:03] Tony: BedÂshed has 28 sites conÂtributÂing 5 milÂlion in profÂit. And it is the Joyce do see the expanÂsion comÂing in KWB. They expect to douÂble their kitchen and wardrobe stores in the longer term. But they still see growth in bedÂshed increasÂing by 20 stores in the foreÂseeÂable future. InterÂestÂing. I just find that kind of thing interÂestÂing from a manÂageÂment point of view.
[00:53:31] Tony: You know, they’re playÂing around with difÂferÂent types of modÂels and difÂferÂent types of areas and will, I guess, be able to manÂage the growth based on their profÂit returns and capÂiÂtal requireÂments in those. Uh, but the latÂest figÂures have been good. So, um, revÂenue is up 6 perÂcent half on half and EBIT is up 23 perÂcent half on half.
[00:53:52] Tony: So that’s good. And the shares are doing well. Um, lateÂly, so, good on PC for highÂlightÂing this comÂpaÂny, and I hope he’s bought it, um, earÂliÂer on in the year, because they’ve jumped quite draÂmatÂiÂcalÂly in the last month or so. I would say on the back of their profÂit results, um, That’s, that’s, I did a quick search on the news on the comÂpaÂny and I couldÂn’t find much else but that, which would probÂaÂbly, um, lead to it growÂing.
[00:54:16] Tony: It’s posÂsiÂble that there’s not much broÂkerÂage covÂerÂage on this stock, so it’s also posÂsiÂble the stockÂbroÂker upgradÂed their recÂomÂmenÂdaÂtions, um, and their clients have been buyÂing, because it’s only a small comÂpaÂny. In terms of QAV numÂbers, uh, I’m doing the analyÂsis at a price of 4. 13. This is a small comÂpaÂny, marÂket cap’s 117 milÂlion.
[00:54:35] Tony: ADT is 26, 000, uh, so won’t suit everyÂbody lisÂtenÂing, um, may suit some. No conÂsenÂsus tarÂget, uh, on price for this one, so we can’t comÂpare the curÂrent price to conÂsenÂsus tarÂget. Uh, IV1 is 1. 61. There’s no IV2 because we don’t have any earnÂings foreÂcast comÂing from broÂkers, which is, you know, I think is probÂaÂbly a good thing.
[00:55:00] Tony: If peoÂple like this stock, they can get in before many of the broÂkers. I only found one EUROS who was covÂerÂing this, which is a Perth based stock broÂker. So yeah, opporÂtuÂniÂty to get ahead of the pack on this one. Yield from this comÂpaÂny is curÂrentÂly tradÂing at 7, over 7%, 7. 07%, which scores well for us. Stock DocÂtor finanÂcial health is strong and steady.
[00:55:23] Tony: Um, and the, sorÂry, the finanÂcial health is strong and the trend is steady. So that’s good. ROE, if anyÂone’s interÂestÂed is nearÂly 26 perÂcent for this comÂpaÂny, which is also good. PE is 12. 8 times, which is not the highÂest or the lowÂest over the last three years. So we can’t score it for that. PropÂCaf is, uh, only is less than five on this one, 4.
[00:55:43] Tony: 97 times. So that’s a good thing. So this comÂpaÂny on the metÂrics is well manÂaged. So ROE of 26 perÂcent and PropÂCaf of less than five. It’s realÂly throwÂing out some, some cash flowÂing there, which is great. Net equiÂty per share is 1. 29 and book plus 67, and the share price I’m doing analyÂsis at was 4. 13, so you can’t buy this anyÂwhere near book price, so we can’t score it for that.
[00:56:05] Tony: It does seem to have an ownÂer founder by the name of Dan Smetana, who looks like he was the forÂmer BedÂshed chairÂperÂson and posÂsiÂbly set it up, um, but cerÂtainÂly when it emerged into, or merged, or took over Joyce, um, he still curÂrentÂly holds 39%. Uh, or actuÂalÂly I think a litÂtle bit less than that. There’s a couÂple of othÂer direcÂtors who hold a litÂtle bit.
[00:56:27] Tony: I think he has 37%, but we score it for OwnÂer Founder, which is good. Can’t score it for ConÂsisÂtentÂly IncreasÂing EquiÂty, even though it came close, but it’s a zero for that. Uh, all in all, then on the qualÂiÂty side, we give it 9 out of 11, or 82%, and 16 for the QAV score. I like the, I think the, in my mind, the um, pros and cons are the interÂestÂing part of this stock, and I, I, StrugÂgled to put some things into both camps.
[00:56:56] Tony: So I think the pros for this comÂpaÂny are to grow the franÂchisÂing opporÂtuÂniÂty. If it is a capÂiÂtal lightÂweight way of growÂing the store netÂwork, it is returnÂing, uh, as well, um, as well in terms of profÂit sense as the small numÂber of comÂpaÂny operÂatÂed stores are. Uh, I could have that wrong. Maybe if they had more comÂpaÂny operÂatÂed stores, they’d be makÂing more profÂit, but, um, franÂchise seems to be workÂing well for them, uh, defÂiÂniteÂly rolling out more KWB stores.
[00:57:22] Tony: The kitchen and wardrobe stores looks like a. I think East Coast ExpanÂsion has got to be a posÂiÂtive for them. Bed Shed seems to have a hisÂtoÂry in WA, but you know, I’ve got to, I couldÂn’t, I can put it in the pro colÂumn, but also the cons colÂumn, because If they’re based in Perth and they’re seeÂing growth on the eastÂern seaboard, there’s going to be a lot of manÂageÂment overÂhead lying back and forÂwards, or at least, at least setÂting up some kind of manÂageÂment hub on the east coast to serÂvice those, those stores.
[00:57:53] Tony: So that may well have a cost impact at some stage. They may have all takÂen care of it, but, um, I know when I was workÂing, uh, in my execÂuÂtive career, like, flyÂing to Perth was actuÂalÂly furÂther than flyÂing to AuckÂland, so, when you’re based on, in SydÂney or MelÂbourne, so, um, it does come with a cost. Uh, I think, um, on the con side, this busiÂness grave, the, the furÂniÂture rental busiÂness, it’s, it’s tiny, it may have some upside and it may have some synÂerÂgies by cycling furÂniÂture, which they can’t sell.
[00:58:26] Tony: Um, but, uh, you know, havÂing just been through the whole issue of rentÂing furÂniÂture for a sale, it’s, it’s not a big busiÂness, it’s, um, you know, we went out to the place that we rentÂed from, there was one facÂtoÂry, um, you know, it’s, it’s done 500, 000 for this busiÂness. There’s only so a cerÂtain numÂber of comÂpaÂnies in the marÂket that are up, sorÂry, busiÂnessÂes in the housÂes in the marÂket that are up for sale that need furÂniÂture rental and it tends to be short term.
[00:58:56] Tony: So you’ve got the cost of putting furÂniÂture around and takÂing it back all the time. Um, and it tends to have estabÂlished playÂers. We knew who to go to in SydÂney. It was only a couÂple of playÂers in SydÂney. So anyÂway, look, it might have some synÂerÂgies at the back end, but I don’t see it as being a growth potenÂtial for them.
[00:59:11] Tony: Um, in the kitchen. RenÂoÂvaÂtion busiÂness. It’s, I would think there’s plenÂty of comÂpeÂtiÂtion doing that now and IKEA springs to mind where you can go and order a modÂuÂlar kitchen and they come in and replace it for you. But there are a lot of, a lot of small operÂaÂtions who do well in that space now on a local basis.
[00:59:30] Tony: Um, perÂhaps the potenÂtial is to take some of those out and become a roll up with this busiÂness, but, um. I would think that they would face comÂpeÂtiÂtion on the kitchen side and likeÂwise on the wardrobe side. I know it’s only three sites for them, but I can’t see that being a huge busiÂness because again, if you’re in the marÂket for a new wardrobe, you’re probÂaÂbly getÂting a builder in to do some kind of renÂoÂvaÂtion and they’ll have their own supÂplies for that, but I could be wrong.
[00:59:55] Tony: Um, I, I think the biggest risk that I see is that this is a small comÂpaÂny. Its revÂenues were only about 140 milÂlion. The last 12 months, um, I know they’re growÂing, so that’s a good thing, but my expeÂriÂence in investÂing in comÂpaÂnies with sort of cirÂca a hunÂdred milÂlion dolÂlars or less is that, uh, when times are good, they, they’re fine, but they don’t have the sort of size to be able to conÂtinÂue operÂatÂing for very long if there’s a downÂturn in their marÂkets.
[01:00:25] Tony: You know, if you’re a, if you’re a large comÂpaÂny doing a bilÂlion dolÂlars in sales and there’s a, there’s a downÂturn, A couÂple of years of a downÂturn in the retail marÂket, in the resÂiÂdenÂtial marÂket, then you probÂaÂbly got some reserves to be able to ride that out. But a comÂpaÂny with a hunÂdred milÂlion dolÂlars or 140 milÂlion in revÂenue is going to do it tough.
[01:00:41] Tony: There’s not as much, um, capacÂiÂty to ride through a downÂturn. So I’ll highÂlight that as a risk. It’s always been my rule of thumb to be careÂful of these small comÂpaÂnies because of that. But on the flip side, it seems to be well manÂaged, so perÂhaps that they, they, they will grow in time to, to get out of that, that sort of, um, trap of being a small revÂenue comÂpaÂny when the, when the resÂiÂdenÂtial marÂket turns down.
[01:01:05] Tony: Um, the othÂer quesÂtion I had, and I hadÂn’t, hadÂn’t, didÂn’t have time to do a deep dive into this, but the ownÂerÂship strucÂture of this comÂpaÂny is a bit opaque. What I mean by that is it seems like. Either through acquiÂsiÂtion or through necesÂsiÂty, these difÂferÂent types of busiÂnessÂes like BedÂshed and the Kitchen One are in sepÂaÂrateÂly owned comÂpaÂnies and I wasÂn’t sure whether Joyce owned 100 perÂcent of each of each of those or owned enough to be able to conÂsolÂiÂdate the finanÂcials.
[01:01:34] Tony: So I’m not sure about the ownÂerÂship strucÂture here and whether there may be some ongoÂing partÂnerÂship issues with the othÂer ownÂers in these busiÂnessÂes or whether there’s an opporÂtuÂniÂty there to buy them out at some stage, but that was someÂthing which, uh, I guess did need a bit more research on that.
[01:01:49] Tony: But yeah, that’s Joyce. It’s, it’s had a good half and it’s growÂing well now. And it seems on our QAV metÂrics to be, um, to be worÂthy of conÂsidÂerÂaÂtion.
[01:01:58] Cameron: We own it in two portÂfoÂlios. One of my, my StockÂoÂpeÂdia portÂfoÂlio bought it back in NovemÂber at 2. 99. It’s up 35%. And then the end of FebÂruÂary in one of the live portÂfoÂlios, it’s up about 15 perÂcent since then bought it at 3. 51. So showed up in both of those checkÂlists quite a while ago, late last year, earÂly this year.
[01:02:26] Cameron: It’s done well.
[01:02:27] Tony: Yeah, good. Well, hopeÂfulÂly the curse of the pool pool doesÂn’t work with this one.
[01:02:31] Cameron: Well, I’ll tell you who has been cursed today. It just popped up in my alerts. Atlas Pearls ATP,
[01:02:39] Tony: realÂly?
[01:02:39] Cameron: which I have in a light portÂfoÂlio, down 32 perÂcent today.
[01:02:45] Tony: Wow.
[01:02:46] Cameron: And I just looked up what’s going on. They had, uh, an aucÂtion in Kobe, Japan. Which, um, accordÂing to their result, they said they had 104, 000 pearls on offer. But then, in the process of reviewÂing bids, the comÂpaÂny formed the view that the prices subÂmitÂted did not reflect the true worth of the goods being offered.
[01:03:14] Cameron: The comÂpaÂny thereÂfore chose to accept bids for only 68, 786 pearls, at an averÂage price of 68. 60 per piece. For total revÂenue of 4. 66 milÂlion, while this is below the unpreceÂdentÂed high of 112 apiece achieved at the NovemÂber 2023 aucÂtion, and it is above the pricÂing of aucÂtions priÂor to FY23. So they go on to say that all aucÂtions, you know, the, the price they’re getÂting is betÂter than any price they got up until FY23, but it was below what they had expectÂed and below the record.
[01:03:52] Cameron: So, um, yeah, their share price dropped 32 perÂcent this afterÂnoon after that came out,
[01:04:01] Tony: Yeah, and when I did my research on Atlas, I don’t think I ever did it as a pulled pork. I may have, but I was thinkÂing about doing it as a pulled pork. Um, I couldÂn’t find any sort of comÂmodÂiÂty graph of pearls. I guess that’s a very small marÂket. Um, but yeah, it does seem to be driÂven by these aucÂtions which get held from time to time.
[01:04:20] Cameron: You haven’t done it as a whole pork, I just looked it up.
[01:04:24] Tony: yeah, okay. I rememÂber doing some research on it to think about doing it as a pull pork and I had a very small ADT, but it was also, seemed to be driÂven by, as you say, the sale of the pearls at these aucÂtions. And I couldÂn’t find a comÂmodÂiÂty graph which I thought was a bit danÂgerÂous buyÂing someÂthing that’s going to be influÂenced by a comÂmodÂiÂty that we can’t track.
[01:04:42] Cameron: Well, turns out you were right. Um,
[01:04:45] Tony: But it has done well over the last year or two. It was top on the buy list a couÂple of years ago and it was very small. It was like a thouÂsand dolÂlars ADT back then or someÂthing like that.
[01:04:55] Cameron: right. Yeah, I think it’s still up like 300 perÂcent over the last year, but, um, just not since I bought it. SGI Stealth is also, uh, Stealth Group HoldÂings is also down 10 perÂcent today, makÂing it also a rule one sell for me. So there’s nothÂing in the announceÂments for them since the end of FebÂruÂary when they came out with their H1 results.
[01:05:18] Cameron: So I don’t know what’s going on with them. But with the ATP thing, it’s one of those sitÂuÂaÂtions now where I’m like, do I sell it or do I just hold on to it now and wait for it to come back? Because it does this on a regÂuÂlar basis. It falls, then it rebounds, then it falls by 30%. Like if you, um, if you, uh, pull up its news in Yahoo Finance, there’s an artiÂcle from two weeks ago from SimÂply Wall Street sayÂing why we’re not conÂcerned about Atlas Pearls LimÂitÂed 32 perÂcent price plunge. They must have been preÂdictÂing today. And then four weeks before that Why we’re not conÂcerned yet about Atlas Pearl’s 33 perÂcent price plunge. Nine weeks ago, there’s no escapÂing Atlas Pearl’s mutÂed earnÂings despite a 29 perÂcent share price rise. Uh, so, you know, I don’t know, man, like, it’s very, very volatile share price.
[01:06:24] Tony: Yeah. Well, it is, and it’s got a sell price curÂrentÂly of 4 cents, and the share price is 12 cents,
[01:06:30] Cameron: yeah,
[01:06:31] Tony: so it could go down furÂther before we’re forced to sell it. But yeah. But I’ve always used the three point trend line as a way of resolvÂing these kinds of probÂlems in the absence of news.
[01:06:43] Cameron: but, you know, this is well and truÂly fallÂen through my rule one.
[01:06:47] Tony: Oh, okay, we’ve got to sell it then.
[01:06:49] Cameron: Do I though, because, drumÂroll. I just finÂished runÂning the regresÂsion test with all of the new metÂrics that you said before.
[01:06:57] Tony: Yeah,
[01:06:59] Cameron: Uh, the TK SpeÂcial, I’m callÂing it. Um,
[01:07:03] Tony: one with the lot.
[01:07:05] Cameron: yeah. Uh, 14. 9252 CAGR.
[01:07:12] Tony: Okay.
[01:07:14] Cameron: So not a huge improveÂment over just 20 perÂcent rule 1 and QAV score 0.
[01:07:17] Cameron: 2. Um, but uh, you know, slightÂly betÂter.
[01:07:24] Tony: And just on that, so I should also menÂtion on that QAV score of 0. 2, I’ve been runÂning a dumÂmy portÂfoÂlio, which is beatÂing the marÂket as well. Um, but it’s hard to find stocks to buy with the QAV score of 0. 2, above 0. 2. Much hardÂer than 0. 1. So, um, And I, I mean I think from memÂoÂry I put like a 500, 000 ADT on that, so there must be lots of, because I know there are lots of small stocks at the top end of the buy list, but um,
[01:07:54] Cameron: yeah,
[01:07:55] Tony: I was getÂting conÂcenÂtratÂed I think into Fleet PartÂners and ASG were a couÂple of the stocks that come to me from memÂoÂry
[01:08:02] Cameron: right.
[01:08:03] Tony: in runÂning that portÂfoÂlio.
[01:08:05] Tony: Not a bad thing if you conÂcenÂtrate into stocks, which are doing realÂly well though, by the way.
[01:08:10] Cameron: Yeah, sure. Cool. I’m just tryÂing to bring up the, um, results, of these tests. I’m lookÂing for the 20 perÂcent rule 1 test.
[01:08:21] Tony: So for, I, I haven’t gone through and updatÂed this from, for this month. I do it at the end of every month, but, um, my test of QAV scores at 0.2 since 26 of a, oh, and that’s actuÂalÂly a year ago when I startÂed, has returned 23% as of today.
[01:08:42] Cameron: Hmm.
[01:08:43] Tony: I, I do hasÂten to add, I haven’t gone through. in April and look for any buys or sells for the month, um, which is how I’ve been runÂning it, uh, and that comÂpared to STW for the same time, I’ve got 4.
[01:08:59] Tony: 56 perÂcent which sounds a bit light, but anyÂway, um, cerÂtainÂly doing well at 23%, but as I’ve said before that the In tradÂing the portÂfoÂlio, two or betÂter stocks, and the ADT cutÂoff I’ve used is 50, 000, not 500, 000, so it’s not too bad. Um, I’ve got, I’ve got, uh, a posiÂtion in Fleet PartÂners, which is more than half of the portÂfoÂlio.
[01:09:29] Tony: So I’ve just been douÂble buyÂing and douÂble buyÂing and douÂble buyÂing Fleet PartÂners. MetÂals X has a posiÂtion and WhiteÂhaven Coal has two posiÂtions, a douÂble posiÂtion.
[01:09:41] Cameron: Right.
[01:09:41] Tony: And that doesÂn’t include divÂiÂdend payÂments, that’s just the capÂiÂtal improveÂment, so I know WhiteÂhaven has got a good yield, I think. I know Fleet PartÂners doesÂn’t, but WhiteÂhaven does.
[01:09:51] Tony: Oh,
[01:09:52] Cameron: Well, I’m lookÂing at the 0. 2 trades for the regresÂsion test that I ran a few days ago. Um, it’s seems to be tradÂing reaÂsonÂably regÂuÂlarÂly, but it’s, uh, you know, obviÂousÂly got a much lowÂer ADT. Um, but it’s buyÂing the most recent buys that it did at the end of 2023 were GRR and PRU. Um, PGH shows up before that.
[01:10:21] Cameron: A‑S-G-M-A‑H speak of the devÂil. URW, uh, KAR. Speak of the othÂer devÂil. MLX you just menÂtioned. K‑S-L-P-R-N-Y-A-L-M-Y-R-Q-A-N-W-H‑C.
[01:10:39] Tony: that reminds me, the, we should menÂtion the regresÂsion testÂing you’re doing doesÂn’t include a comÂmodÂiÂty price graph check.
[01:10:46] Cameron: It doesÂn’t, that’s right. Yeah. AnyÂway. Um, so what do you make of that, uh, TK speÂcial result tk.
[01:10:55] Tony: Well, it hasÂn’t realÂly improved things, has it?
[01:10:58] Cameron: Oh, hmm.
[01:10:59] Tony: It’s interÂestÂing, isn’t it? I like the idea of a QAV. 2, it’s workÂing, like it’s workÂing for me. And I like the idea of a Rule 1 20%, which has also been workÂing for me in my sort of, um, benchÂmark testÂing or my, uh, you know, kind of, Non regresÂsion testÂing, I’m triÂalÂing them, I guess.
[01:11:16] Tony: Uh, so yeah, I don’t know where to go from here. I’d like to get a hold of the data and just play around with it and see what I can come up with.
[01:11:25] Cameron: What data? The buys and sells?
[01:11:27] Tony: No, no, no, the regresÂsion tester and, you know, the codÂing for it and, um, because it’s going to take a lot of time to try and get the, optiÂmize the checkÂlist numÂbers, I think. I think that’s where Things like, and maybe the way to go is to, you said the curÂrent QAV was 12. 8 perÂcent I think was the benchÂmark, is to start deductÂing things and see if that helps to improve it, or what impact that is.
[01:11:54] Tony: Because we, at least we can simÂpliÂfy the checkÂlist if we can’t improve returns out of all this.
[01:11:59] Cameron: Hmm. Um, well, let’s talk about all that with Matt, I guess, when we get him on next week.
[01:12:06] Tony: But I like have, have you run a QAV of 0.2 plus rule one of 20%.
[01:12:12] Cameron: well, that’s what I just did, but with all the othÂer speÂcial scorÂing in there as
[01:12:16] Tony: Okay.
[01:12:17] Cameron: So yeah, it had all the rest of the metÂrics with increased scores for the things that have done well. Um, but I, before that, no, sorÂry, even before that, the othÂer day I did norÂmal scorÂing for everyÂthing, but then a 0. 2 score for QAV, QAV score on a 20%, it returned 13.
[01:12:37] Cameron: 88%. So, A point less CAGA than the one that I just did and them indiÂvidÂuÂalÂly.
[01:12:46] Tony: and a but a point more than Qav is that curÂrentÂly exists.
[01:12:50] Cameron: Yes.
[01:12:51] Tony: Yeah. InterÂestÂing.
[01:12:54] Cameron: So back to ATP, it’s broÂken through my 10 perÂcent rule one, but not my 20 perÂcent yet.
[01:13:00] Tony: Mm-Hmm
[01:13:01] Cameron: And I’m gonna, you know what, I’m callÂing it. I’m gonna make a speÂcial excepÂtion for ATP. Because it’s just got this hisÂtoÂry of dropÂping 30 perÂcent and then comÂing back by 30%. Like withÂin weeks. Like I’m not talkÂing about 6 months either.
[01:13:15] Cameron: Like, you look at the chart, over 3 months, this is the third time in the last 3 months that it’s dropped subÂstanÂtialÂly and then reboundÂed. And we’re, you know, it’s, it’s, it’s only a few cents here or there, right, because it’s only tradÂing at 12 cents now,
[01:13:36] Tony: Yeah. Yeah.
[01:13:38] Cameron: by 5 cents, then it goes up by 5 cents, and then,
[01:13:42] Tony: Well maybe make it a 20% rule one test. See if
[01:13:45] Cameron: it is a bit of, a bit of a falling knife, though, now, to be honÂest, mid FebÂruÂary, it was tradÂing at 21 cents, now it’s down to 12, so it’s recovÂered, but every time it’s recovÂered, it’s, hasÂn’t recovÂered back to where it was, but at least I could maybe get out of it at least. 10 perÂcent loss rather than 32%.
[01:14:05] Cameron: Well, it’s only a 10 perÂcent loss anyÂway. Yeah. Oh, I don’t know. What should I do, Tony? FolÂlow the rules. Stop tryÂing to
[01:14:12] Tony: a, if it’s a rule, if it’s a rule one, sell it.
[01:14:16] Cameron: Okay. God damn it.
[01:14:18] Tony: well, so the thing is, it’s always, if it’s still on the buy list and it turns up, you can always buy it again if it comes up as your best buy.
[01:14:26] Cameron: And then sell it again.
[01:14:28] Tony: Yeah,
[01:14:28] Cameron: Then it goes up by 30 perÂcent and they’re like, woohoo. And then it drops. I’m like, ah, damn it. AnyÂway, I think that’s the, uh, that’s the guts of the show, Tony. Um, quick, quick, uh, quick, quick after hours. Cause I’ve got anothÂer, anothÂer show to do.
[01:14:45] Tony: Okay,
[01:14:47] Cameron: have you been up to? What have you
[01:14:49] Tony: well I’ve already, already told you that Dune Part 2 was, didÂn’t do it for me, so I wasÂn’t,
[01:14:54] Cameron: me that before we went to
[01:14:56] Tony: before we startÂed recordÂing. So I watched Dune Part, I’ve actuÂalÂly paid for 2 Rentals, June Part 2, and Argyle. Don’t worÂry about Argyle, it’s crap. It’s realÂly bad. Which was terÂriÂble, because it’s got a great cast. It’s a spy draÂma comÂeÂdy thing, but had a great cast with Samuel L.
[01:15:18] Tony: JackÂson, and um, Uh, oh, what’s her name? Richie, uh, Howard, DalÂlas Bryce, Bryce DalÂlas Howard. Uh, and uh,
[01:15:29] Cameron: John Cena, Richard E. Grant.
[01:15:32] Tony: Yep. Great cast. TerÂriÂble movie. Awful. Yeah.
[01:15:36] Cameron: Bryan Cranston,
[01:15:38] Tony: Yep.
[01:15:38] Cameron: Rob Delaney.
[01:15:40] Tony: Yep. And, uh, who’s the lady from CanaÂda who was in Home Alone? Um, CatherÂine
[01:15:46] Cameron: Oh, CatherÂine O’Hara. Yeah, the mothÂer from SchitÂt’s Creek. Did you watch SchitÂt’s Creek?
[01:15:52] Tony: No.
[01:15:53] Cameron: Oh, dude, SchitÂt’s Creek, one of the best
[01:15:56] Tony: RealÂly?
[01:15:57] Cameron: sitÂcoms made, yeah. It’s, the setÂup is, um, her and, um,
[01:16:07] Tony: Eugene Levy?
[01:16:08] Cameron: Eugene Levy and Dan Levy. And who’s the crea here, the two Levis, father and son of the creÂators of the show, and um, uh, who plays the daughÂter, she’s realÂly great too, um, she’s been, we’ve seen her in othÂer things, Annie MurÂphy, uh, Chris ElliotÂt’s in it, so the famÂiÂly, They’re like rich New YorkÂers who sudÂdenÂly go broke.
[01:16:32] Cameron: SomeÂthing hapÂpens, huge disÂasÂter, and they apparÂentÂly own, one of his investÂments was this litÂtle town in the midÂdle of nowhere that he owns, someÂhow it’s the only thing that the credÂiÂtors haven’t takÂen, so they go to this litÂtle counÂtry town in the midÂdle of nowhere, you know, some counÂtry bumpÂkin town where they’re tryÂing to fit in, but they’re just like comÂpleteÂly spoiled, horÂriÂble human beings tryÂing to live in this LitÂtle Ten, and then it’s all about actuÂalÂly the counÂtry folk with their counÂtry folk attiÂtudes and their counÂtry folk morals, sort of shapÂing these rich, spoilt New YorkÂers and actuÂalÂly turnÂing them into decent peoÂple.
[01:17:09] Cameron: But it’s realÂly funÂny. Yeah. ChrisÂsy put me on it. She watched it all when I was workÂing and I caught up with a bit of it. Yeah. AnyÂway, Argyle, no good. And it’s a Matthew VaughÂan film I just saw, directÂed by Matthew VaughÂan.
[01:17:22] Tony: Mm.
[01:17:23] Cameron: Who’s, you know, got a reaÂsonÂably good track record, comÂing out of his, uh, Guy Ritchie ears.
[01:17:31] Tony: Yeah, right. Yeah. I, I didÂn’t like it. And Dune Part 2, I, I wouldÂn’t say I didÂn’t like it, but it doesÂn’t live up to the hype, unforÂtuÂnateÂly. And maybe it’s because I realÂly enjoyed Dune Part 1, but, um, Part 2 just ends. in the midÂdle of an action sequence, um, for no apparÂent reaÂson. DoesÂn’t have a couÂple of key things I liked about the book and the David Lynch verÂsion, like the I Will Bend Like a Reed in the Wind scene in one of the knife fights and the knife fights were, I found, pretÂty ordiÂnary.
[01:18:01] Tony: In, you know, HolÂlyÂwood knife fights folÂlow a, you know, The same script, always. The good guy gets woundÂed by the bad guy, fights aggresÂsiveÂly, and then someÂhow regathÂers and wins the day. But these were probÂaÂbly more realÂisÂtic, but they just didÂn’t have any oomph to them I didÂn’t find.
[01:18:20] Cameron: And these are like iconÂic knife fights. I mean the Steel Knife fight is iconÂic for sci fi lovers. I mean it’s highÂly origÂiÂnal, the way that you use the knife with the shield, you have to move slowÂly through the shield and all that kind of stuff. That’s like one of the set pieces in a Doom film that you’re, you know, doing.
[01:18:39] Cameron: HangÂing out for is the StilÂlknife batÂtle.
[01:18:41] Tony: Yeah. It didÂn’t do it for me, unforÂtuÂnateÂly, which was a shame. Austin ButÂler was good. He played the, he played the part of that. Uh, nephew of HarkonÂnen who fights Mawad Dib at the end, um, he, he was probÂaÂbly the highÂlight of the show I thought, he was good, um, Chris Walken’s in it, playÂing the EmperÂor, he’s great, and he has a small part though, but yeah, and it, it, the endÂing difÂfered from my memÂoÂry of the book too, like in the, in the, Book Chani and Paul Muad’Dib, you know, I don’t think they’re marÂried.
[01:19:13] Tony: I think he marÂries the emperÂor’s daughÂter for politÂiÂcal reaÂsons, but he sticks with Chani. And, you know, they help the FreÂmen recapÂture June and conÂtrol the spice and all that kind of stuff. But the movie didÂn’t. She, she, Chani goes off into the desert, pissed off that Muad’Dib’s asked for the emperÂor’s daughÂter’s hand in marÂriage.
[01:19:31] Tony: And, uh, that’s it. Um, in the book I’m pretÂty sure it ends with not only the defeat of the EmperÂor, but also of the othÂer housÂes. Um, but it doesÂn’t end that way this time. Paul Muir Dibb sort of turns to his band of warÂriors and said, Now it’s on to the fight against the othÂer housÂes who are cirÂcling the barÂriÂcades.
[01:19:50] Tony: I planned it and off they go, but I didÂn’t even start them going, it’s just the end. I did, yeah. And also too, I think ChaÂlaÂmet is a bit cocky in this. He’s, he’s become a bigÂger star, and um, in the first, in the first I thought he was good playÂing the sort of unsure nerÂvous type who was kind of fitÂting into his role as the mesÂsiÂah and learnÂing his, um, his powÂers and all that kind of stuff, but like, now it’s all fulÂly realised, he’s just super cocky in this one, which I didÂn’t like.
[01:20:19] Cameron: I thought, I mean, to me that sounds like Paul’s arc too, like he does, I mean he becomes a powÂer man, I mean he, it’s not a, it’s not a stoÂry of a sane guy, I mean, Paul becomes the God EmperÂor of Dune, like he does become comÂpleteÂly crazy, right?
[01:20:42] Tony: yeah, it becomes that, but not in the first book. And in the first, my, my endurÂing sort of love of the charÂacÂter in the first book was he’s getÂting glimpses of the future, tryÂing to conÂtrol that as a powÂer, tryÂing to learn to live with the fact that everyÂthing that hapÂpens to him, he’s already foreÂseen, includÂing every time he sleeps with his wife.
[01:21:01] Tony: And, you know, everyÂthing that hapÂpens around the court every day, he knows exactÂly what’s going to hapÂpen beforeÂhand. And I mean, that’s enough to driÂve anyÂone crazy, realÂly. It’s like, it’s like GroundÂhog Day every day for this guy, but. You know, he’s kind of learnÂing to live with it and grow with it and use it.
[01:21:16] Tony: But ChaÂlaÂmet just comes off with this conky sort of savÂiour of the planÂet. But anyÂway, that’s just, I guess that’s my critÂiÂcism. Some great sandÂworm scenes where they’re ridÂing through the desert on the back of sandÂworms, kind of treatÂing them like these boats in the desert, which is kind of cool. yeah, but, uh, you know, left me, left me fairÂly.
[01:21:36] Tony: Yeah, left me wantÂiÂng my 25 bucks back from AmaÂzon or whatÂevÂer it was to wait until it became a free episode.
[01:21:44] Cameron: Yeah. Well, I’m going to wait. Cause
[01:21:47] Tony: yeah, you should.
[01:21:48] Cameron: bucks, but, uh, yeah.
[01:21:51] Tony: I did like, howÂevÂer, um, I watched the first episode of Shogun, which I like. You put me onto that one, which was good.
[01:21:56] Cameron: I didÂn’t like it.
[01:21:57] Tony: that. No, I thought
[01:21:58] Cameron: gave up after the, well, no, I watched the first, I’m a big fan of the books. Um, again, you’re like, I read them the same age when I read Dune. It was, you know, my 15, 14, 15 sort of thing. I didÂn’t like the first episode, but TayÂlor watched the whole thing and he’s been ravÂing about it. So he said, nah, you need to, you need to watch the whole thing.
[01:22:17] Cameron: It’s realÂly good.
[01:22:18] Tony: I like the first one. I’ll probÂaÂbly keep watchÂing it. I did like FallÂout. Have you seen that?
[01:22:23] Cameron: No, but a couÂple of guys at Kung Fu were ravÂing about it and the, and the twins were up here ravÂing about it on SunÂday. I mean, I love WalÂton GogÂgins, always. WalÂton
[01:22:32] Tony: He’s good.
[01:22:33] Cameron: just, yeah, everyÂthing he’s ever done, from The Shield through to Vice PrinÂciÂpals and the RightÂeous GemÂstones and the TaranÂtiÂno films.
[01:22:42] Cameron: ActuÂalÂly, he had a TV show a while back there that wasÂn’t that good, but, um, Where he was like a sinÂgle dad rebuildÂing himÂself. I got one episode into that and, you know, turned it off, but he’s, he’s, you know, realÂly great talÂent. Yeah. Shane, he’s always Shane from the shield for me. He’ll always be Shane.
[01:23:00] Tony: Yeah. So he’s good in it. Kyle McLaughÂlin has a part in it. SpeakÂing of, Paul Moir did. Yeah. Yeah. And so it looks like, um, I didÂn’t read the credÂits, but it looked like Nakel Nakels has a, LieuÂtenant UhuÂru from Star Trek has a small part in it too. Yeah. Yeah. But yeah, I realÂly enjoyed it. I watched the first three episodes of that and I’m enjoyÂing it.
[01:23:23] Tony: It’s worth watchÂing.
[01:23:23] Cameron: of thing I would expect. Like, it’s based on a game, right? Not the sort of thing I’d expect you to get into.
[01:23:28] Tony: Well, it’s sci fi, so I often enjoy good sci fi. Yeah. But that’s me. And then lastÂly, uh, we got a horse runÂning on Anzac Day at FlemÂingÂton called PoiÂfect. So, um, lookÂing forÂward to her first start again. Best prep.
[01:23:42] Cameron: Good luck with that.
[01:23:43] Tony: Yeah. Thank you.
[01:23:45] Cameron: Well, I watched, well, we watched a bit more of, uh, 3 Body ProbÂlem and, you know, I’m enjoyÂing how they’re depictÂing aspects of it. I loved the scene with the ship. That was kinÂda cool. BruÂtal to see, but kind of cool.
[01:24:01] Tony: It’s a good scene. It is a great scene, isn’t it?
[01:24:04] Cameron: Yeah, yeah, yeah. Like it realÂly, you realÂly sort of feel the, you know, what’s going on.
[01:24:11] Cameron: Um, I watched a bit more of The GenÂtleÂman. Like we just haven’t watched, my mum’s been here, she just left. So we haven’t realÂly watched a lot of TV, um, for the last couÂple of weeks. But, and I’ve had a lot of, a lot of insomÂnia. RecentÂly, like I had like two or three nights with, with like no sleep and didÂn’t get much sleep last night, but that was more of a Fox thing, but woke me up a couÂple of times.
[01:24:33] Cameron: But yeah, it just said it every now and again, I have this realÂly bad run of insomÂnia where I just, my brain just, it’s not that I’m thinkÂing about anyÂthing. It’s just, it’s just awake. You know, I’m like, they’re going, just go to sleep. Why won’t you just go to sleep? And then evenÂtuÂalÂly, you know, on the secÂond night, I just got like at 2am, I was like, ah, screw it and just startÂed codÂing.
[01:24:54] Cameron: And that’s when I solved them. I solved a lot of codÂing probÂlems between 2 and 5am, you know, it was actuÂalÂly realÂly good. Um, but, uh, I’ve been readÂing, still readÂing the, oh, I’ve been readÂing the Don XiaopÂing book, but then I startÂed readÂing, um, MediÂum Raw, um, one of BourÂdain’s books.
[01:25:20] Tony: Oh, right. Yep.
[01:25:21] Cameron: And, uh, god damn that guy could write.
[01:25:25] Tony: Mm
[01:25:26] Cameron: such a good writer. So visÂcerÂal, and funÂny, and sarÂcasÂtic. Um, so I realÂly enjoyed, uh, I got halfway through that and then realÂized I hadÂn’t read Kitchen ConÂfiÂdenÂtial. So I’ve gone back
[01:25:41] Tony: Oh, okay.
[01:25:41] Cameron: startÂed Kitchen ConÂfiÂdenÂtial and then I’ll finÂish this one latÂer. But the Don XiaopÂing book is great. I’m just up to the point where I mean, Mao’s dead, and Hua Guofeng is still runÂning things, but Dong is realÂly reshapÂing, he’s in charge of the econÂoÂmy, and the milÂiÂtary, and stuff like that, and it’s just going hell for them, they’ve just sent, uh, a group of, um, econÂoÂmists, and busiÂness leadÂers, or whatÂevÂer, mostÂly econÂoÂmists I think, And minÂisÂters, ecoÂnomÂic minÂisÂters and whatÂevÂer, to Japan and Europe in the mid 70s, um, to late 70s, 60s, 76, 77, and they’re just shocked at not only how far ahead of ChiÂna are.
[01:26:25] Cameron: All these, uh, capÂiÂtalÂist, uh, economies are, but also the fact that the capÂiÂtalÂists are just showÂing them everyÂthing and, and, and offerÂing to loan them bilÂlions of dolÂlars to, you know, rebuild their infraÂstrucÂture. They’re like, hold on, they’re still in this cold, the ChiÂnese are still in this cold war menÂtalÂiÂty and the capÂiÂtalÂists, they expectÂed all of the capÂiÂtalÂist economies to be.
[01:26:49] Cameron: You know, defunct and oppressÂing the peoÂple and strugÂgling and they go around and they’re just like, holy shit, we are so far behind, this is ridicuÂlous. And they’re just takÂing us into their facÂtoÂries and showÂing us all their secrets and telling us everyÂthing and offerÂing to help us build our own, uh, econÂoÂmy.
[01:27:07] Cameron: Because they realÂized they were overÂproÂducÂing. They needÂed tradÂing partÂners. They wantÂed ChiÂna to be, you know, ecoÂnomÂiÂcalÂly able to become a major tradÂing partÂner of Europe and then evenÂtuÂalÂly the UnitÂed States. They haven’t norÂmalÂized relaÂtions with the U. S. realÂly at this stage. They’re still workÂing on that, but they’ve norÂmalÂized relaÂtionÂship with Europe and with Japan.
[01:27:28] Cameron: Yeah, it’s fasÂciÂnatÂing to just learn more about that periÂod in the
[01:27:32] Tony: Mm hmm.
[01:27:34] Cameron: Um, I’m not realÂly that aware of, and just Dong’s stoÂry, like how many times he was punÂished and se you know, sent out to the sticks durÂing Mao’s days and just, just stuck to his knitÂting, just had a vision for what he was gonna do if ever he got the hands on the wheel, and when he got his hands on the wheel, he just went hell for leather to build ChiÂna up, and um, he’s not a young man at this point, like he’s in his, he’s EarÂly sevÂenÂties, I think, and he’s just going full speed ahead.
[01:28:08] Cameron: They, they come back from this thing of Europe and says they’re willÂing to loan us 18 bilÂlion and a lot of the, a lot of the ChiÂnese minÂisÂters are worÂried about getÂting into, you know, some sort of debt slavÂery and Dong’s response is 18, let’s go for 80.
[01:28:24] Tony: Yeah.
[01:28:25] Cameron: let’s try and get 80. Like we have no time to lose.
[01:28:29] Cameron: We need to invest in infraÂstrucÂture and facÂtoÂries and we need to build up our manÂuÂfacÂturÂing capaÂbilÂiÂty and all that kind of stuff. So yeah, he’s a realÂly interÂestÂing, realÂly interÂestÂing charÂacÂter.
[01:28:42] Tony: It’s realÂly great to read about those charÂacÂters, curÂrentÂly I guess, but also in hisÂtoÂry, who just have that abilÂiÂty to know what they need to do and just put the pedÂal down to do it. Because like these days, you know, it’s like, All the bloody news is full of is one side or the othÂer. You know, my vision for AmerÂiÂca is to elimÂiÂnate all the woke libÂerÂals or, you know, whatÂevÂer.
[01:29:02] Tony: It’s not, it’s not, no, no, we have to do this and, and we need to do it hard and fast. Yeah.
[01:29:10] Cameron: And I, and I think he felt a lot of responÂsiÂbilÂiÂty for his role in the Great Leap ForÂward, which had been a huge disÂasÂter. And, uh, you know, Mao knew that he was critÂiÂcal of that and that he hadÂn’t supÂportÂed the CulÂturÂal RevÂoÂluÂtion. And I think Dong felt that he had to. In fact, he said pubÂlicly at this juncÂture, um, we have failed, he’s talkÂing about the ChiÂnese leadÂerÂship, we have failed the peoÂple and we need to address the failÂures and, you know, we need to do it quickÂly.
[01:29:45] Cameron: So, you know, it takes a, it takes a big man to admit that levÂel of culÂpaÂbilÂiÂty and failÂure, Mao wasÂn’t able to do it for all of his genius. And Mao, I think, was a genius. It’s interÂestÂing, you know, when I got to the point of the book where he died, I went to the New York Times archives and looked at what they were sayÂing about him when he died.
[01:30:07] Cameron: And GerÂald Ford was the presÂiÂdent, RepubÂliÂcan at the time, was talkÂing about Mao as a genius and a visionÂary and one of the greatÂest men who ever lived. Kissinger was singing his praisÂes as a great man and all that sort of stuff. It was very difÂferÂent. era of AmerÂiÂcan ChiÂnese relaÂtions. But he was very flawed and, and, um, screwed up a lot of things in that last, you know, 20 odd years.
[01:30:35] Cameron: But, uh, before that, like, what he manÂaged to do with the revÂoÂluÂtion and, uh, you know, buildÂing. You know, pulling ChiÂna out of impeÂriÂalÂism and, um, the, the, the cenÂtuÂry of humilÂiÂaÂtion and getÂting them onto some staÂble footÂing of a popÂuÂlaÂtion of 500 milÂlion peoÂple and all that kind of stuff. Um, turnÂing it around, he, he did an amazÂing job, but he couldÂn’t, couldÂn’t ex, couldÂn’t exeÂcute the last part.
[01:31:07] Cameron: Required dong. AnyÂway. Oh, I just got a CharÂlie horse. Just got a cramp in my Oh, Oh, Oh, I need a banana and some magÂneÂsium. I think I betÂter go.
[01:31:21] Tony: All right.
[01:31:22] Cameron: got 10 minÂutes before my next show too.
[01:31:25] Tony: Okay.
[01:31:26] Cameron: Thank you, TK.
[01:31:27] Tony: that. I’ll talk to you next week.
[01:31:29] Cameron: Uh, you can talk to me FriÂday, but we’ll talk about that off air. All right. Cheers.
[01:31:34] Tony: Cheers. Bye.


