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This is your weekly QAV Club Newsletter.

Happy Friday, <<First Name>>.

Apologies for running a bit late again with the email this week. It's been a little crazy.

Happy investing!
Cameron

QAV Portfolio Report

For the FY, we're up about 45% versus the XAOA sitting around 23%. So right on our long-term target of twice the performance of the All Ords.

QAV S04E19 – The Beauty Pageant

We talk about the bank results; tech wreck; Buffett breaking the NASDAQ; Increasing Net Equity v NEPS; re-naming the “buy list”; LICS and NTA; Price to Operating Cashflow for ETFs; Tony’s performance today vs when he had a smaller portfolio; CCV’s buy line; where the Top 200 ASX stocks came from; graphic positive sentiment for see-saw stocks; the gold cycle; and ATL’s debt levels.

Club Member Reports

Listener Jamie (aka Pea Head), who became a club member on 11 January 2020, recently celebrated his one year anniversary of QAV investing and reported his excellent results in our Facebook group. Congrats, Jamie! Incidentally, the QAV portfolio one year return is only 60.95%, so he did better than us, which is really fantastic to see.

We'd love to get reports from anyone else who has been around for a year or more, too.

TK JOURNAL

Hi everyone,

There is a new Top Scorer List and Watch List on the Google Sheet.

There is also an updated Master Spreadsheet (TK QAV Master Spreadsheet-May2021.xlsm) in our Checklist dropbox folder, as there have been a few changes, including to the naming of the Top Scorer list.

I have had to make a change to the master spreadsheet because more companies were added to the Manually Entered Data sheet and the Vlookup functions weren’t picking them up. I have altered the Vlookup functions in the QAV Download Data tab to now have an array up to at least 800 rows long.

Changes to the vlookup function was made in columns CA, CP, BX, BW, BP, BQ, and BN.

The following changes were made to the Top Scorer lists:

Additions to the Top Scorer List: AU1, AVA, BOL, CETF, EP1, FWD, GLE, GMA, HRL, JYC, MFD, MVOL, NAB, PE1, PIXX, SDG, WAF, WBC, and WDMF.

Removals from the Top Scorer’s List are: APL, AX1, AXI, BOQ, C6C, CIA, COL, ECL, ESTX, FBU, HJPN, INIF, KMD, KPG, NCK, PAXX, TNK, WPP, and REX.

New companies added to the Manually Entered Data tab are: GLE, PIXX, MVOL, LFG, ZYAU, GMA, CYQ, CETF, SDG, AUST, QHL, RGS, WRLD, KAT, AVA, RF1, CGS, VMIN, IHHY, WDMF, VCF, QAF, and SLA.

Companies with new results: MQG, NAB, WBC, ANZ

Companies with Qualified Audits: FRM, TTI

Regards, Tony

BRAIN FOOD

The following paragraphs are from the book "Value Investing - From Graham to Buffett and Beyond" and they come from Warren Buffett.

In addition, we think the very term "value investing" is redundant. What is "investing" if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value - in the hope that it can soon be sold for a still-higher price-should be labeled speculation (which is neither illegal, immoral, nor - in our view - financially fattening).

Whether appropriate or not, the term "value investing" is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics - a high ratio of price to book value, a high price-earnings ratio, and a low dividend yield - are in no way inconsistent with a "value" purchase.

Similarly, business growth, per se, tells us little about value. It's true that growth often has a positive impact on value, sometimes one of spectacular proportions. But such an effect is far from certain.

Growth benefits investors only when the business in point can invest at incremental returns that are enticing - in other words, only when each dollar used to finance the growth creates over a dollar of long-term market value. In the case of a low-return business requiring incremental funds, growth hurts the investor.

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