I know my entry price for shares in the Share Investor Portfolio but what price do I sell that share for if I was made an offer today?I have been thinking about this over the last week or so, so in the first of a series of 17 installments - the number of companies in the portfolio - I am going to discuss what my sell price might be and why.
Please keep in mind that most of the portfolio I don't intend to sell anytime soon, if at all, but if I was offered a predetermined price right now I would sell if that price met my future expectations of financial performance for the company. The offer would have to take into account the prospects for the company in the long term and the possibility I may not be able to do better return wise were I to use the proceeds of a sale to purchase another investment. My investment outlook is 10 years plus.
Many of you are going to be completely blown away by the price I put on my investments but this is only my opinion so don't shoot me without thinking your response through first.
The first stock I wish to cover off is Auckland International Airport Ltd [AIA.NZX]. This stock has performed well for me and has returned around 50% thus far when dividends, capital increase and tax credits are factored in. 1000 AIA shares were first purchased in 2006 and then 4000 in 2009. 304 shares were bought in 2009 at $1.65 as part of a capital raising.
A great little earner so far!
The main reason I bought this company is its status as a near monopoly in a fast growing sector that is protected by the capital outlay and political problems that another port competitor would face, so it has a great little competitive moat around it.
Just to show my readers what value I put on it, I did not sell the stock when the Canadian Pension Plan came calling a few years back and offered around $4.64 for a stake in the company.
My long term view of this particular company puts a far higher value on it.
Profit has been stagnant for the last few years but if historical growth continues long term investors in AIA will be rewarded.
For these reasons $10 plus per share would get me to part with my beloved AIA shares today.
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