Articles by Cam Watson

26 July 2010

Taupo report important for investors

A recent study on the Taupo volcanic area by the Institute of Geological and Nuclear Sciences published in the NZ Journal of Geology and Geophysics has more relevance for investors than may appear at first glance. 

Taupo is one of my favourite towns - busy, beautiful and saturated in good cafes. One of the best experiences of all is to wander five minutes around the lake edge from the main carpark on the edge of town and scrape out a makeshift pool in the gravel on the beach. Within seconds you and the kids can enjoy your own hot pool with a majestic view of Ruapehu, and with the convenience of a reasonably sizable cold pool only a few steps away.

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21 June 2010

1990 was scary too

With significant risks continuing to swirl around financial markets, many people are understandably reluctant to invest at present. But we should remember that markets always face uncertainty - risk is a fact of life when you are investing. If we go back 20 years, things were much worse in 1990 than they are now, and markets have done fine since.

2010 might seem rough, but 1990 wasn’t that flash either. I started work in the financial sector in 1990 and I thought I would celebrate my 20th anniversary by looking at how markets have performed since I first put on a tie.

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31 May 2010

The importance of equities and dividend growth

Nothing stands still in this world, especially the cost of living. Your portfolio can’t stand still either. It must generate an income stream that, over time, grows at a rate that at least matches inflation.

When you’re working, inflation-protection comes from those hard-earned wage raises. But once you have retired from the workforce you’re on your own; there is no boss to turn too.

You become completely reliant on your portfolio, not only for your current income, but also for your future income.

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17 May 2010

A panic caused by a ‘fat finger’

The madness the beset the US market on Thursday the 6th just underlined how ‘flighty’ sharemarkets can be. After a ho-hum day, things suddenly took a dramatic turn for the worse after lunch. The market plunged more than 900 points in under half an hour, but then later in the day found its feet and recovered to end the day down 340 points.

What caused this fall is still being investigated but a typing error could be partly to blame. Urban legend has it that a dealer mistakenly hit the ‘b’ for billions key rather than the ‘m’ for millions sending a far larger sell order into the market than they intended.

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26 April 2010

Ryman Healthcare – a rare ‘10-bagger’

Since listing in June 1999, Ryman Healthcare has delivered its shareholders a total return, which includes share price appreciate and dividends, of 1,043%, or 24.3%pa. By cracking the 1000% mark (i.e. returning 10 times the original investment) brokers will, with a good deal of admiration, refer to Ryman as a’10-bagger’.

Ryman develops and operates retirement villages. It currently has 21 villages around the country and 3,700 residents. Its villages are somewhat unique in that they offer an integrated service, from independent apartments through to serviced units, resthome and hospital beds, allowing the company to cater for the changing needs of occupants as they age.

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