BRM - New Warrant Issue for Barramundi

[Mos]

Yes BRM NAV declined from 86 cents to 71 cents over that period too. So a similar story albeit with the 8% dividends.

[Basil]

Yes BRM NAV declined from 86 cents to 71 cents over that period too. So a similar story albeit with the 8% dividends.

So BRM approximately held its value inclusive of those dividends but the vast majority of the stocks I mentioned fell a very long way including dividends e.g. ARV, OCA and WHS ~ halved.  I think a considerably worse story.

BRM gives you a broad exposure to the ASX in a fund that's outperformed the index over the last 5 years by about 3% per annum after fees and tax and it currently trades at just over an 8% discount to NTA.  Almost as importantly, there's no work and analysis required from this old dog so that's more time to enjoy my hobbies in my semi-retirement. That'll do me just fine for a fair chunk of my capital going forward.  The huge divvies put plenty of food in my dog's mouth and diesel in my boat and that's a heck of a lot more than you can say about some of the mutt stocks on the NZX.  My spreadsheet has the NTA at 73.15 cps as at close Friday 15th.

[snapiti]

So BRM approximately held its value inclusive of those dividends but the vast majority of the stocks I mentioned fell a very long way including dividends e.g. ARV, OCA and WHS ~ halved.  I think a considerably worse story.

BRM gives you a broad exposure to the ASX in a fund that's outperformed the index over the last 5 years by about 3% per annum after fees and tax and it currently trades at just over an 8% discount to NTA.  Almost as importantly, there's no work and analysis required from this old dog so that's more time to enjoy my hobbies in my semi-retirement. That'll do me just fine for a fair chunk of my capital going forward.  The huge divvies put plenty of food in my dog's mouth and diesel in my boat and that's a heck of a lot more than you can say about some of the mutt stocks on the NZX.  My spreadsheet has the NTA at 73.15 cps as at close Friday 15th.

good point you raise and I totally agree.....I can't believe how much time I spend researching to avoid buying into value traps(those stocks that appear good value but have underlying issues well beyond the value on offer).....certainly happy to pay 1.25% for the pro's to do if they perform.

[Mos]

One thing we can be sure of, Fisher Funds will make out like bandits. The actual average cost of fees/costs is more like over 2%+ of FUM.

[Mos]

Starting to come across as envy.  I repeat, they have beaten the benchmark by an average of 3% per annum AFTER fees for the last 5 years. You can't expect better than that.

Certainly not envy. Listed at $1 in October 2006 and currently trading at $0.66 cents 17 years later. Even with the dividends, not too bothered about missing out on this one. Good luck to holders.

[Basil]

Sorry about that Mos. That comment wasn't appropriate. I value your contributions on here so I deleted it.
Horses for courses..in recent years they've done well and I think they earn their fees.

[Mos]

Sorry about that Mos. That comment wasn't appropriate. I value your contributions on here so I deleted it.
Horses for courses..in recent years they've done well and I think they earn their fees.

No problem. I enjoy you contributions too. I always learn something when there are different perspectives.

Merry Christmas

[Basil]

All good Mos. 

Yeah, they got smashed in the early years from the GFC, (share price was only 35 cents in February 2009), see chart here https://barramundi.co.nz/investor-centre/portfolio-performance/ so when looking at their performance over the years a lot depends upon your starting point.  I wasn't an investor in the early years, thank goodness.
Some of the staff have been better than others over the years.  I like the current lead investment manager Robbie Urquart, formerly from South Africa but I have challenged him before on why he keeps the faith with XRO and will challenge him again at the next Annual meeting.

Possibly worth noting they are on their 8th warrant issue over the years and some of those issues have been lucrative for shareholders and they include the value of that in their total shareholder return.

For me in my early 60's and semi-retired and looking to generate strong dividend income to fund expensive luxury boating and a very hungry large dog, as well as not forgetting of course to keep Mrs Beagle in the comfort she's become accustomed to, its ideal, especially as I look to dial back a bit on the time I spend on share analysis in the years ahead.  I know their fees aren't cheap but they are the only fund manager I know that has a sliding scale so that when they underperform their base fee can slide down to 0.75%.  For me, I like to have someone else making investment decisions for me in Australia and Overseas, (Marlin)...gives me more diversification and more importantly more time to spend doing things I really enjoy like walking my dog and going boating.  I still like the challenge of investment analysis but I'm at my happiest doing those other things.

[Mos]

I hear you Basil on balancing time spent on investment analysis and other activities and I like the sound of prioritising time on boating and walking the dog. I get your approach of achieving international investment exposure through fund managers (especially outside Australasia given the FDR tax regime and associated admin for direct investment). I am off the topic of BRM, so perhaps we can discuss fund managers more on the investing thread in the new year.

[Basil]

Happy to Mos and very open to other idea's regarding fund managers outside Australasia.

Just as an aside and off topic, 2023 has been a bit of a watershed year for me in terms of health.  Posting this as a cautionary tale for others.  I either get VERY regular exercise, (which I absolutely love doing with my dog) and eat healthy or take a bunch of drugs my doctor prescribed, (the side effects on me were very nasty).  One or the other.  It's not a hard choice     With exercise you have to find something you really enjoy doing on a regular basis or it won't happen.

The other thing, if you haven't got your health...your shares and investments aren't much good to you no matter what companies or funds you're invested in.  Lifestyle, health and wellbeing with less stress are vitally important focus area's as you get older in my opinion.  Love boating too...not quite so relaxing with a whole bunch of grandkids on board that need constant entertaining and supervision though lol 

[Mos]

Hi Basil,
Very true. Glad you are proactively prioritising health and wellbeing and definitely something we all should be doing.
Mos

[Basil]

Posted a few thoughts on Barramundi here, post 59  https://stocktalk.co.nz/index.php?topic=105.59

I'm expecting NAV of ~ 74 cents to be announced tomorrow.  A share price equal to NAV is fair value in my opinion.

[Basil]

NTA 74.33 cps. Very nice

[Ricky Bobby]

Coming along nicely, $0.70 hit today!

[winner (n)]

Bored yesterday so pulled out the numbers on BRM and did the old Z-score analysis ......a measure of whether investment trusts are a buy or sell

BRM is still a BUY