Rudi's View | 5:08 PM
Listed investors such as WH Soul Pattinson and Wesfarmers have proven strong wealth creators over long periods of time
By Rudi Filapek-Vandyck, Editor
Boasting a total return in excess of 1300% over the past twenty years (CAGR of 14.31% annually) or 430% over the past ten (CAGR 18.15% p.a.), I don't think there is much debate among local investors whether owning shares in WA-based conglomerate Wesfarmers ((WES)) has been a smart move or not.
My personal memory involves discussing the company with investors prior to one of my presentations. I told them I had just purchased shares on behalf of the All-Weather Model Portfolio at around $31.
Some of those investors shared with me they were still holding out, but would purchase shares as soon as they'd hit the $30 mark.
The latter never happened and the anecdote always remained with me. With the share price yet again surging above $80 after management's latest briefing with local investment professionals this week, I hope those investors still bought shares, but I don't think they did.
Sometimes the trick to making successful investment decisions is to not get hoodwinked by the here and now. Or how not to miss out on an extremely profitable investment when another dollar off the purchase price doesn't matter in the long run.
That's exactly what I told those investors at the time, by the way. I had to look up the timing of all this happening. The price chart on the ASX website tells me it was either in 2020, when covid spooked the market, or in late 2018-early 2019.
I think it was the latter.
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