Fantasy world,Woodstock for capitalists,and the end of an era.

[Pastcaring]

AGM season,Woodstock for capitalists of course is the Wesfarmers annual party,not to be confused with the lesser known Berkshire Hathaway annual party. Around 1200 turned up for WES ( ASX),you do tend to get a few goody bags and gifts at the stalls of the companies they own.
After 39 years this is the last period that the chairman will be there,3 years and then retire at the age of 77.Going back to his trade ( geologist) for a year or two at a small gold mining company if the body lasts,and chairing his charities.

Reflection of his career at WES starting as company secretary and other board positions before easing out as chairman ,chairman for a long time now.When he retires that will be WES being a ~ 30 year compounding machine for me.

The important numbers as rough calculations ( tell lies and make up rubbish amongst yourselves on fantasy world ).
The accumulation index was at 1500 in 1984 ( conspiracy theories anyone ,it is fantasy world) ,AXJOA is now around 88,000,the 100 year average is around 11% CAGR or just over. Luckily we have to pay the salesman for excellent advice,rebalance,top slice,the usual rubbish.I take it S and P financial services have calculated the after fees return correctly .After fees you are left with around $61K,so compounding @ 10%,seems perfectly reasonable to me.Those yachts and private planes to fly to the yachts don't pay for themselves.Can we rebalance and top slice a bit more often,pay the salesman a bit more to show us how to avoid wealth? The cost of living crisis etc.

$1500 put into WES was now worth just over $1 million with all dividends reinvested.On fantasy world is $1 million more than $61K,I would never be surprised by how many people would say it isn't.So WES has been compounding @ ~ 18.25% for the period. Who'd be silly enough to let the money do the work,after all time is money.

Part 2 to follow,it seems to time out

[Pastcaring]

Part deux.

Across the same period of time Buffett has also been compounding.A price of around US$ 1250 was given as a BRK price in 1984.Buffett has been compounding @ just under 17% for the same period of time,taking BRK @ $530K ish today. Possibly the end of an era for both companies as Warren and Charlie get older.Who knew wonderful management produces wonderful results,who could believe it Would this be a good time to dribble rubbish/ insanity.
Didn't rebalance
Didn't top slice
No diversification ( free lunch my arts,free for the salesman on the yacht).
Concentration risk etc,etc,etc.
Just buy any rubbish the salesman sells.Never think. Got to be part of the crowd,on and on.

I did my own calculation for gold,I'll try to make it look good.Falling from the $850 peak in 1980 gold at ~ $300 by 1984.Leaving aside Forex $1500 got you 5 ounces of gold.Worth say $10K now.Buy gold,the gold salesman said so,so it must be true.
I wonder if gold salesman have gold plated yachts,nah,they fool other people .They don't fool themselves.

All of this of course needs checking with clueless in italics.He has read a study apparently ,so being a world renowned investing specialist we are lucky to have him. He knows it's all just confirmation bias,survivorship bias,all down to luck etc . Any idiotic self delusional rubbish will do,after all keep as far away from reality as possible

Fantasy world is the place to be.Popular delusions and the madness of crowds rule.

[Pastcaring]

Part drei.

The next AGM is next Tuesday ,Fortescue Metals ( FMG : ASX ).These are strange affairs,I like the guy,he is very affable and friendly to shareholders.Walks around shaking hands and thanking people for having faith in him.Sees quite a few people that have been with him long term and spends a bit more time with them .His 20 year compounding,work it out amongst yourselves.A 1 cent penny dreadful 20 years ago is now a $25 share.

He is fanatical on climate change which I don't mind.Green steel,ammonia powered ships,solar/wind power.Check out sun cable,Australia powers the world through solar energy and an undersea cable to Singapore ( my second favourite place to be).Sun cable does have problems,raising $38 billion to kick it off being one of them .A 4 or 5000klm undersea cable being another.

His infinity train that charges up on the way to Port Hedland carrying around 35,000 tonnes of iron ore,then uses that energy to get back to mines. He is building an Ammonia powered ship in a Chinese shipyard,evidently an ammonia cell to produce electricity is more efficient than a hydrogen cell.The stink and corrosion ability of ammonia is a bit of a problem.Perhaps 200 series stainless to line tanks for the ammonia,I don't know.Long time retired.

Strange AGMs,but very educational with various videos and the ESG annual report.You can't get anywhere near the "green"directors for information,always a long line to ask questions there.