Anyone tried value investing with shares?

[mattinvestor]

Thank you everyone for all your posts and sharing your experiences with me. Your information is very useful!I might try value investing strategies with shares after all:-)

[Bob Kane]

We live - and prosper in a capitalist economy. If business over 300 years did not provide a greater return than simple property ownership then nobody would even try to establish a business.

If property ownership alone was the best investment then communist economies, where the state owns all of the land, would have lead to the downfall of capitalism. It didn't happen.

It's taken a while but I think I've finally grasped what you're saying.
In terms of return on your money the logical order would be:
- in first place would be running a business
- next would be property investing
- lastly would be investing in shares

[speights boy]

So
The Fonterra shares (42% of which were allocated to offshore investors) have opened onto the market.
Up 21%.
That will please all the NZers who did not receive any initial allocation.

[DazRaz]

That is fairly normal for shares when they first hit the market. There will be alot of people who got them just to flick on after a month or two.

My first experience with shares was an IPO at 50c. Sold 6 months later at $1.55. Had I waited another week, it hit $2. One year later the company was gone.

I've actually done quite well everytime I've invested in shares. Got out of shares before the '87 crash. Bought into a share fund on the day the Gulf War started. Put EQC money into a share fund and seen the money grow by nearly a quarter. Thing is, most of my success in shares has been good luck rather than clever investing. I now pick funds rather than companies and look for funds which outperform the average over longer terms. I borrow to invest in property. When I have cash to invest, it goes to a share fund. My share investments are small as I don't often has cash land in my lap.

[speights boy]

That is fairly normal for shares when they first hit the market. There will be alot of people who got them just to flick on after a month or two.

Agreed.
The question being asked, which hasn't to my mind been adequately answered was why 42% offshore.

NZ Fund managers, Kiwisaver Fund managers, NZ retail got between 0 and 25% what they bid for, asked for.
This was a small placement of $525m.....it could have been filled many times over right here.
What was the big desire to enrich Australian Super Funds at the expense of NZ Kiwisaver Funds.

After all, this was Fonterra IPO not MOA IPO.

[artemis]

I expect Fonterra want to be seen as a global company in more respects than just a global supplier. I got the inv statement but didn't bother applying for IPO shares as I thought it unlikely I would get any. But Fonterra is a big player in a protein hungry world so I reckon the shares will do OK over time. I'll be watching for a buying opportunity.

What about Xero though. Seems risky at current price, as there are other / much bigger players in the market but shares scooting up daily at the mo. I'm staying on the sidelines. Diligent looks a better 'cloud' bet, big player in a niche but critical global market.

[speights boy]

I expect Fonterra want to be seen as a global company in more respects than just a global supplier.

Sure; but $79m worth of shares traded in 5 hours....$79m !
Anyone can buy them, no problem there.
Why not at least let NZ Funds and retail investors get a foot in the door with 85-90% of them at IPO.

[Wayne]

So
The Fonterra shares (42% of which were allocated to offshore investors) have opened onto the market.
Up 21%.
That will please all the NZers who did not receive any initial allocation.

worked for me, got what I asked for :-)

[speights boy]

The question being asked, which hasn't to my mind been adequately answered was why 42% offshore.

NZ Fund managers, Kiwisaver Fund managers, NZ retail got between 0 and 25% what they bid for, asked for.
This was a small placement of $525m.....it could have been filled many times over right here.
What was the big desire to enrich Australian Super Funds at the expense of NZ Kiwisaver Funds.

After all, this was Fonterra IPO not MOA IPO.

Another good article from Fran.

Chinese eager to milk brand NZ

By Fran O'Sullivan

.........
The move is also expected to stimulate local demand in China for imported infant milk powder which is currently three times the price of local products.

It's not hard to see why Chinese companies are so keen to leverage New Zealand's "pure" branding after spending a couple of days in Beijing this week.
The city has been bathed in an unusually acrid smog.

Images of New Zealand with its clear blue skies (used to attract Chinese tourists) certainly resonate here.

New Zealand-sourced infant formula - packed in cans complete with pictures of pure snowy-clad mountains or green rolling plains under clear blue skies - are already sold in Shanghai supermarkets courtesy of the Shanghai Bright Dairy joint-venture with Canterbury's Synlait.

The NZ brand imagery is set to be rolled out across China as more Chinese dairy companies reveal plans to build processing facilities in New Zealand.
Surely Fonterra should have pride of place rather than the Chinese brands?