A long term perspective is the best cure for anchoring.
Above is the AUD to USD chart since the Australian dollar floated in December 1983. These glory days are numbered. The historically strong Aussie may stay above a US dollar for a brief period, but long term it will revert to the mean, no doubt overshooting on the way there. Same goes for the kiwi dollar.
Note: I’m considering an employment offer from a US company, so this view is biased.

Our Australian fund has maintained its strong performance since my Q1 report. The returns below are annualised, except year to date (YTD). Frankly I’m a little surprised the Australian market hasn’t done better. Are you guys letting me win on purpose? While Australian investors have on average had poor returns the unhedged returns to international investors have been significantly better, at least on paper.

CuDeco trading was halted pending an announcement regarding a Rocklands Group Project Copper Update.

Successful management team bringing large deposits to market. Perhaps to market early? Other speculations are bulk test results, JORC upgrade or an update on EIS.

Excellent post here at Data Diary on the importance of capital, especially point 4, “Always assume the worst”.
As I’ve said many times, focus on the downside and let the upside take care of itself. Bruce Berkowitz always tries to figure out what could break his investments, from memory he even hires outsiders to try and disprove his investment ideas. Of course with St Joe’s Berkowitz had David Einhorn to do that for free! Another of my favourite saying that fits with this meme  is, capital is scare while opportunities are plentiful.
While Data Diary’s number one tip, …

As requested by an encouraging commenter, BB, here is an update for the Australian All Ordinaries (^AORD) Long Term P/E Chart. I’ve included the long term average this time. As always click to enlarge.

Hat tip to Colin Nicholson for his wonderful data.

Those interested in managerial ownership and firm value may be interested in a study by Morck, Shleifer, Vishny. The abstract is below, but in summary, firm value increases as management ownership, and therefore alignment, increases from 0% to 5%. As ownership increases form 5% to 25% management entrenchment reduces firm value. Finally above 25% the alignment effect reasserts and firm value increases. It would be interesting to see any difference in how ownership was achieved, i.e. founders vs option thieves.

The convergence-of-interest hypothesis suggests that a firm’s market valuation should rise …

Posts are going to be few and far between over the next eight weeks as I juggle the business end of my Masters, our US and Australian portfolios and my kids. Sorry darling, you’re going to have to fend yourself  and if you thought I lacked empathy before, well I’ve just dug a trench to set the bar lower.
I’m analyzing ANZ Bank Group Ltd (ANZ.AX) for a risk management assignment and thought I’d post a couple of the graphs I’ve put together. As always click the graphs to enlarge.
This first graph highlights what a slam dunk no-brainer …

The first quarter of 2011 brought good returns for both our concentrated Australian fund and our less concentrated less focused upon American fund.
This month I decided to implement a NAV spreadsheet for our Australian fund. Until now I’ve been more focused on the field of play rather than the scorecard (shameless Munger plagiarism) and have been content with knowing year end returns.
While we are index agnostic and target an absolute long run return it is none the less pleasing to show the market a clean set of heals so early …

Keep your friends close, and your enemies closer. Sun-tzu Art of War. (~400 BC)
You learn nothing by assuming someone with a different opinion to you is wrong. If you invert your thinking and assume you are wrong then you may gain worthwhile insights. D Morel 2011 and no doubt thousands before me.
Frank Curzio on S&A Investor Radio is my current favourite pod caster. On my bike ride today it felt good to hear him express a similar idea that link those quotes. You learn little from talking to like minded people whereas …

I found Warren Buffett’s letter on the resignation of his lieutenant David Sokol interesting in what it didn’t say. Buffett didn’t ascribe to Sokol any of the qualities that he and his partner Charlie Munger value so much. There was no mention of integrity, honesty or morals. The letter addressed the letter of law, “Neither Dave nor I feel his Lubrizol purchases were in any way unlawful.”
I find whether Sokol acted lawfully or not of little interest and if Buffett and Munger are men of their word, which they most surely are, then I …