Happy Friday, <<First Name>>.
I'm a little late getting last week's email out due to a school trip to Wet N Wild last Friday.
Last week saw a buoyant ASX, despite the US tracking over 1,000,000 new RONA cases in a single week and the rest of the world not doing much better.
While our QAV portfolio gained a couple of points, it was outpaced by the All Ords for a change.
Our holding in HAW took a 30% hit which seemed to map closely to the gold price. They also came out with a cashflow update earlier in November, so I'll talk to Tony on this week's show about what he thinks is going on.
Coming up this week: we've got interviews scheduled with Andrew Page, the CEO of Strawman; Doug Morris, the CEO of Sharesight; and QAV club member Damien Parker. I hope Tony wasn't planning on getting much golf in this week!
As always, a reminder for new subscribers:
If you're looking for more content where Tony talks about the basics of his thinking about investing, don't forget to check out our archives. Scroll through our 2019 episodes and you'll find that's all we did in our first ~50 shows. We covered a ton of stuff. If you get through that 50 hours and still need more clarification, shoot us an email! Tony is always happy to revisit stuff to help clarify anything that's confusing, but our current episodes assume you already understand the basics.
Have a good week!
Cameron
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Tony does a deep dive explanation on the Kelly Criterion and we discuss the challenges in applying it to share investing. We also discuss stocks that briefly stick their head above the ground and then retract them again (aka a groundhog), review Tony’s thoughts on average daily trade volume, answer a question about whether SFR is a Schrodinger, talk about how the Reserve Bank’s decision to go max QE and the US election might affect the market, review the CAA consolidation and aluminium prices, and Tony’s stock pick of the week is KMD.
Here are some charts!
 
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QUICK NOTE: When I posted this on Friday (from Wet N Wild) I screwed up the links to the audio files, so you probably got episode 52 in your podcast app. Sorry about that! I've fixed it now and it should now show up in your app as the "Fixed" version.
Richard Ivers is Portfolio Manager at Prime Value Asset Management, looking after their small cap portfolio, which was ranked no 1 small cap fund in Australia by Mercer for performance over the 12 months to 30 June 2020. We chatted with him this week about his approach to finding value stocks.
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A couple of journal entries from Tony last week.
His post on 12/11 talked about MQG, QAN, ANZ, WBC, and some changes to the buy list.
HIs post on 9/11 talked about changes to the interest rates in the checklist, as well as a long series of changes to the buy and watch lists.
As always, please remember - these shouldn't be considered as stock tips, they are more like good places to start your own research for the week if you're in a buying mood. And we mostly publish them to provide transparency around what Tony is doing with his own portfolio and what we do with the QAV portfolio.
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FACEBOOK GROUP HIGHLIGHTS
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On our FB group last week, there was some discussion lead by Angela about problems some people are having listening to our show (and other shows apparently) in Apple's Podcasts app. I also had some trouble adding to the Overcast app over the weekend and the developer of Overcast told me the feed is "slow" which is causing his app to timeout, so I've asked my IT guy to resolve that ASAP. If you have any issues with the feed, please email me so I can look into it further.
Also on FB last week, Chris questioned whether DKM should be on the buy list (which we'll talk about on this week's show), and I posted a link to the interview with Tony that Phil Muscatello recently posted where they talk about LICs.
Catch up on our Facebook page discussions here.
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Another quote out of Montier's "Little Book Of Behavioral Investing":
Of all the dangers that investors face, perhaps none is more seductive than the siren song of stories. Stories essentially govern the way we think. We will abandon evidence in favour of a good story. Taleb calls this tendency to be suckered by stories the narrative fallacy. As he writes in The Black Swan, "The fallacy is associated with our vulnerability to over-interpretation and our predilection for compact stories over raw truths. It severely distorts our mental representation of the world. "
Or as Tony says: "If you want to hear a story, buy a book."
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