QAV Light Weekly Update #117

Hap­py Mon­day!

Well, my friends are gone and my
hair is grey
I ache in the places where I used
to play
And I’m crazy for love, but l’m not
comin’ on
I’m just payin’ my rent every day,
in the tow­er of song

“Tow­er Of Song” by Leonard Cohen. I thought of this song this morn­ing while watch­ing War­ren Buf­fett helm­ing the Berk­shire Hath­away annu­al meet­ing with­out his old friend and part­ner Char­lie Munger. Dur­ing the Q&A sec­tion, a young man asked him what he would do if he had one more day with Char­lie, and he said they would prob­a­bly do what they always did — just have fun togeth­er.

Well the mar­ket had an aver­age week, col­laps­ing and then res­ur­rect­ing, but “is set to edge high­er after a soft­er than expect­ed US jobs report bol­stered the case for inter­est rate cuts in the world’s largest econ­o­my this year.” It’s a pub­lic hol­i­day in Bris­bane but pod­cast­ers nev­er sleep, espe­cial­ly when the mar­ket is open.

PORTFOLIO UPDATES

As a group, our four Light port­fo­lios are cur­rent­ly track­ing at about 56% of the STW bench­mark since incep­tion (Feb 2022), which means they have slipped a lit­tle since last month, when they were at 60%.

QAV, of course, is a long-term strat­e­gy, and that entails some years where we out­per­form, and some where we under­per­form. We were sit­ting on lots of cash dur­ing 2022 — 2023, wait­ing for the mar­ket to sta­bilise, and con­se­quent­ly lagged the index for long peri­ods. Our five-year old QAV port­fo­lio is still doing dou­ble the STW and we expect these to as well over the long term.

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

PORTFOLIO 221

This port­fo­lio closed 18/04/2022, just as the mar­ket crashed due to the Ukraine war. It’s now in the green, but still has some catch­ing up to do.

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

PORTFOLIO 222

This port­fo­lio closed 08/08/2022 and is +13% pa (vs SPDR 200 +6%), so is per­form­ing at dou­ble mar­ket, which is our goal. 

How­ev­er, for the FY it has actu­aly under­per­formed the bench­mark. It took some bit hits recent­ly with ERD and LAU.

PORTFOLIO 223

This port­fo­lio closed 07/11/2022 and has recov­ered back to a pos­i­tive posi­tion, up 3% pa (vs STW +11%). Our result was helped great­ly this morn­ing by SXE’s 20% bump. 

The FY per­for­mance has been about 70% of the bench­mark.

PORTFOLIO 231

This one closed 20/06/2023 and is up about 1% after a bad month (vs SPDR 200 +10%). It took a big hit this month with the bad pearl auc­tion results from ATP but got that sweet SXE bump today. 

For the FY, it’s about neu­tral and is still under­per­form­ing the bench­mark by quite a lot. 

SELLS

BUYS

CURRENT HOLDINGS

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

DISCLOSURE 

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

ADH ALD ANZ ASB FHE FPR GNC MMS PRU QBE RMS RSG SSM SUL WAM WGX GEM

Please note that our per­son­al hold­ings might not include the stocks we rec­om­mend in QAV Light. This is because we already have full port­fo­lios (15–20 stocks) and can only add new stocks if we have to sell some­thing. 
If you’re inter­est­ed in learn­ing more, please review our trad­ing and dis­clo­sure pol­i­cy.

FOR NEW MEMBERS

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

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

That’s it for today! 

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

Got a ques­tion? 
[email protected]