Chch Investor Meetup, 12 March 2016

The theme this week is Peter Lynch’s Beating The Street. Worth taking a look is Peter’s 25 Golden Rules.

With so much information on strategies and golden rules available for investment, it can still be quite a learning curve in mastering and practicing on the insights of other investors isn’t it? Jay brought up for discussion which is something that many people face, keeping discipline of techniques to practicing the best practices. That perhaps, is what leads towards the highly recommended index funds, which when applied well, would at least offer a market return, without the fuss of whether or not you’re able to follow the recipe.

What are some market returns for major indices like? For S&P, Dow and Nasdaq, it’s been generally positive over the past few years since 2008. What strategy would you deploy to have that level of return? What if you could get that by spending less than 2 hours a month?

We discussed a mix of local companies this week:

Wynyard’s price decline since its capital raising announcement:

SLI System’s price rise as its revenue rises to a reduced loss.

BurgerFuel’s expansion overseas as international brands continue entering the local market:

Trilogy, the beauty product maker that has been rallying upwards in recent months.

Across the channel, we’re looking at Slater & Gordon, which is still unravelling.

In previous sessions, we’ve shared NYU Professor Damadoran’s valuation class video. Another professor from NYU, Professor Scott Galloway is another must watch. Here’s a recent video looking at the four companies that are potential candidates towards becoming the first public listed trillion dollar company.

NYU has definitely realised the powerhouse lecturers that they have and have a combined session with both the professors, in a programme called “Select Valuations”

http://www.stern.nyu.edu/experience-stern/faculty-research/select-valuations

Lastly, Kirk broke news to the group on General Motor’s billion dollar acquisition of a YCombinator startup, Cruise. This is a strong follow-up from GM after its $500m investment in Lyft. The automotive space has been heating up in multiple angles, we’ve previously reviewed the potential impact of self driving cars on insurance companies and observed from that exercise the expansion into the automotive space by Berkshire Hathaway. The automotive industry continues to be disrupted from the electric vehicle path that is lead by Tesla which now has formed up a strong momentum of companies vying for the new market opportunity. Tesla’s over the air update of providing self driving functionalities to its car brings about the longer term path for services such as Uber/Lyft. What would eventually reach the consumer? This technology path is reminiscent of the origins of the internet, which also started from DARPA.

Happy trading!

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