Friday, March 20, 2009

Long VS Short: Freightways Ltd

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=fre&size=1&type=64&time=10yr&freq=1dy&comp=&compidx=NZ50G~1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937


In this sixth 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 chart) to the turmoil of the last year with a 1 year return chart (large chart at 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 (10 years )and will make a comparison against the NZX50.

In this segment of Long vs Short I will take a look at Freightways Ltd [FRE.NZ]

I currently hold 8200 Freightway's shares after buying them in July 2006 (see small chart below for detail)

The company has been a good performer over its history and has lifted profit slightly over the last year.

Symbol
Price
Value
Earned
$2.85
$23370
$164
You own 8200 [FRE.NZ] shares
purchased at $2.83 [$23206]
In my 3 years of owning this share my return has been a meagre NZ$164. (see small chart on left)This includes dividends and tax credits. Still I have to say this isn't bad considering the market rorting we have been having.

If I had bought this share just a year ago (see large chart at bottom) my return would have been minus 30%, proving once again short term investing can be very volatile.

Now for the real point of this comparison lets look at the

return for Freightway's shareholders who have held the stock for 10 years. (see large chart above)

From a high of a 570% return in 2007 a 10 year return is still around 220%.

I am looking for a long term loser after six installments of long VS short but Freightways ain't one of them.

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.3338466193181723&style=2242&symb=fre&size=1&type=64&time=1yr&freq=1dy&comp=&compidx=NZ50G~1392984&ma=&maval=&lf=&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162937


Freightways @ Share Investor

Freightway's keeps delivering

Why did you but that stock: Freightways Ltd
Freightway's delivers
Freightway's packages up a good result

Long vs Short Series

Pumpkin Patch Ltd
Fisher & Paykel Healthcare
Mainfreight Ltd
The Warehouse Group
Sky City Entertainment

Related Reading

Freightways Financial Data
Related Amazon Reading

The Warren <span class=
The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert G. Hagstrom
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c Share Investor 2009