kiwi super oops, we only lost 200 million.....

[Wayne]

Damap - I am impressed with you (and others) who can come up with these so readily.
There is a secret there somewhere.
Hat off and cheers

[Wayne]

So why do I even bother looking into how they stuffed up?

Because you would find they still made over 16% return even after the loss.
The thing with investing like this is you win some and lose some.
The trick is to win more than you lose - and they are winning way more.

If they wanted the minimum risk they would try Govt bonds and get bugger all.
Broaden your mind!

[PTILoveYou]

The Super Fund, set up with public money to cover partly the retirement costs of baby boomers, has revealed it had been caught up in last year's collapse of Banco Espirito Santo (BES) and a US$150m (NZ$198m) investment made in July had been completely wiped out.

The investment was a contribution to a Goldman Sachs-organised loan to the Portuguese bank, but only weeks after the money was injected it imploded, with president and founder Ricardo Salgado arrested as part of a criminal investigation into tax evasion.
After disclosing billions of Euros in losses, and facing a run on funds by depositors, the bank collapsed in a heap and was broken up in August.

Goldman Sachs, described by Rolling Stone as "the great vampire squid" for their sharp business practices in the run-up to the global financial crisis, today said it would "pursue all appropriate legal remedies without delay" in an attempt to recover the loans to BES.
"

Source

Incompetence as always.

Anyways, why do we need the people running the superfund if we just give the money to some middlemen (aka Goldman) who ripped of half the world in the GFC?

[PTILoveYou]

Because you would find they still made over 16% return even after the loss.
The thing with investing like this is you win some and lose some.
The trick is to win more than you lose - and they are winning way more.

If they wanted the minimum risk they would try Govt bonds and get bugger all.
Broaden your mind!

They should invest like Warren Buffet and Carl Icahn, ie invest in quality long term business that deliver strong profit and shareholder returns year after year, even through GFCs.

[Wayne]

Incompetence as always.

Anyways, why do we need the people running the superfund if we just give the money to some middlemen (aka Goldman) who ripped of half the world in the GFC?

Are you saying Orr is incompetent with 16%+ return?

As for the 2nd comment - the Super fund manager use several middlemen to manage the investments - they don't sit there and pick all the stocks themselves.
One such company is Milford Asset Management who are being investigated by the capital markets regulator - have a comment on that one without reading anything.

Anyway - they spread the management around a number of companies, monitor what happens and review the arrangements periodically.
I believe the main committee set the direction the fund takes. They take a long term view.
Have a read

https://www.nzsuperfund.co.nz/nz-super-fund-explained/governance

[Wayne]

They should invest like Warren Buffet and Carl Icahn, ie invest in quality long term business that deliver strong profit and shareholder returns year after year, even through GFCs.

During the GFC they were buying when others were selling - they did very well.

They would probably buy more but the Govt stopped giving them money for a while until the books were balanced. see #6

[donna]

Sorry my bad, kiwi super I meant to say.....

I have sorted that for you Damap

cheers,

donna

[donna]

Damap - I am impressed with you (and others) who can come up with these so readily.
There is a secret there somewhere.
Hat off and cheers

Damap knows we don't allow a proliferation of non property images on PropertyTalk by any user. However that's because membership is free - maybe we need to offer a subscription service for those who want to add the non property related images? Let me know as I can arrange that if it improves engagement etc.

cheers,

Donna

[PTILoveYou]

Are you saying Orr is incompetent with 16%+ return?

As for the 2nd comment - the Super fund manager use several middlemen to manage the investments - they don't sit there and pick all the stocks themselves.
One such company is Milford Asset Management who are being investigated by the capital markets regulator - have a comment on that one without reading anything.

Anyway - they spread the management around a number of companies, monitor what happens and review the arrangements periodically.
I believe the main committee set the direction the fund takes. They take a long term view.
Have a read
https://www.nzsuperfund.co.nz/nz-sup...ned/governance

Well I'm pretty sure 100% of Ron Hoy Fong's students can achieve that kind of return within first 3 month.

But of course, the government can't invest in residential can they?

[Wayne]

Well I'm pretty sure 100% of Ron Hoy Fong's students can achieve that kind of return within first 3 month.

But of course, the government can't invest in residential can they?

If only the Govt had thought to engage Ron!
As at the end of Dec 2014 they had $27.54bn - what would that buy them in Auckland?

[Damap]

Thanks Donna re name change.
I think it is bizarre that you stop non real estate images on a forum. I am involved in several and I have never heard of it anywhere else. Most strange in a bad way.
Part of what makes places like PT durable and worth staying invested in is the humour. And for the record AGAIN it was not me who was doing it, it was somebody else and you apologised to me!!

[Davo36]

If only the Govt had thought to engage Ron!
As at the end of Dec 2014 they had $27.54bn - what would that buy them in Auckland?

Smack down! Laughing out loud at that one!

[Davo36]

Damap knows we don't allow a proliferation of non property images on PropertyTalk by any user. However that's because membership is free - maybe we need to offer a subscription service for those who want to add the non property related images? Let me know as I can arrange that if it improves engagement etc.

cheers,

Donna

I see no benefit in this.

[Davo36]

They should invest like Warren Buffet and Carl Icahn, ie invest in quality long term business that deliver strong profit and shareholder returns year after year, even through GFCs.

Gary, I agree with you. Countries like Singapore invest in companies. And they return them an ever increasing amount of money.

In NZ, we look at those companies (like electricity generators) and say "Gee I wonder how much they could be sold for?" And then proceed to sell them and fritter the money away.

We'll never be able to buy them back.

[Davo36]

But regarding the $200m loss, we should be suing Goldman Sachs, the vampire squid of the investment/banking world.