Issue 21 – Running the distance
Those who follow me on Twitter may have noticed my short bio on this platform, describing myself inter alia as “ultra-marathon runner, Leonard Cohen fan, cricket lover & Arsenal member (proving that investing is not the only painful activity I enjoy)”.
My commitment to all of these painful activities dates back some thirty years or more. I ran my first Two Oceans 56km ultra-marathon as a fresh-faced (and, more importantly, freshlegged) 21 year old student in 1986; if all goes well, I will be lining up for my 27th such “voyage” come Easter Saturday 2016. Over this same period, I’ve done an average of about three marathons and ultras per annum (including the Comrades a couple of times).
Pirates21 and Investing
The above is not what you want to see when you open the elevation profile of a road race! Unfortunately it does look a lot like the first half of the Pirates21 race (www.pirates21.co.za) with the two circles being perhaps the dreaded K1 & K2 (the nicknames given to the two most demanding climbs in the first half of the race). Fortunately this is not a real elevation profile of the Pirates21 race, but the price return of Autozone (indexed to 100) since Credo first purchased the stock in October 2013 for our clients invested in the Credo Best Ideas Portfolio. AutoZone is the leading “DIY” retailer and commercial distributor of automotive parts and accessories in the United States. This is a classic example of the type of investment one would want in your portfolio.
Is this a Road Race or the Stock Market?
By the time you read this we will have experienced an interesting, albeit volatile, year in international investment markets. As you can see from the graph above the market gave back all the gains made earlier in the year… no, wait the above is not the stock market, it is actually a road race! The full graph of this race can be found below and it is none other than the toughest half marathon Gauteng has to offer: the Pirates 21.1km race.