Saturday, January 10, 2009

Long vs Short: The Warehouse Group

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=WHS&size=1&type=64&time=10yr&freq=1dy&comp=&compidx=NZ50G%7E1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937

In this third installment of the Long vs Short series I am once again going to take look at the chart comparisons for a stock from the Share Investor Portfolio and compare the 10 year return (above) to the turmoil of the last year with a 1 year return chart (bottom of post).

In this series I want to show the merits of investing, using charts, for the long-term vs short term gains or losses. I will use the longest available data to me for the long-term view and will compare against the NZX50.


My Portfolio

Symbol
Price
Value
Earned
$3.63
$29040
$-11760
You own 8000 [WHS.NZ] shares
purchased at $5.10 [$40800]



The third stock in the series will be The Warehouse Ltd [WHS.NZ] which I have held in this particular portfolio for 16 months, so the returns will clearly not be as good as the longer term companies in my portfolio and will mirror more closely the one year chart (see bottom of post) rather than the 10 year one, which shows a healthy 270% return.

After dividends and tax credits are taken into consideration, my 16 month return is minus 25% ( see small chart above)pretty much the same as the one year return indicated in the chart below and par for the course considering the current market depression.

The long-term hold proposition wins again with the 270% or annualised 27% return beating any other stock in my portfolio.

Shame I haven't held it for 10 years though.


http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=WHS&size=1&type=64&time=1yr&freq=1dy&comp=&compidx=NZ50G%7E1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937


Long vs Short series

Mainfreight Ltd
Sky City Entertainment


The Warehouse Group @ Share Investor

Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
MARKETWATCH: The Warehouse
The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

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Related Links

The Warehouse Financial Data

Related Amazon reading

The Standard & <span class=

The Standard & Poor's Guide to Long-term Investing: 7 Keys to Building Wealth by Joseph Tigue
Buy new: $11.96 / Used from: $1.84
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c Share Investor 2009