ONCE upon a time, not so long ago and in a place very much like our own, you could put your money in the sharemarket and watch it go up, up, up. Sigh. Simpler times indeed.
The world is different now: everything is topsy-turvy.
Exhibit A: Pottsy is riding high on the crest of a speculative wave. Venturex Resources is up another 12 per cent. Somehow, his picks of Sipa Resources and Quickstep Holdings also surged and David added to his growing pile.
In another flat week, our other racers couldn't catch a break. AFR sharemarket analyst Peter Jones and reader Leanne Vaz lost only a little money.
That kept Jonesy in second but it gave Ms Vaz a big bump up the rankings to fourth and within spitting distance of Doreen Daze's flowing black robes (with star motif).
Daze now finds herself in medal contention. Leanne has the most sensible of portfolios and it almost paid off after Bluescope Steel, Air New Zealand and ANZ all added more than 2 per cent. But she was let down by Woolies and Coca-Cola Amatil. Nobody made a million by investing sensibly, Leanne. Lessons are being learnt here in the shares race.
Economics student Will Arnott drops out of the top half of the ladder. His only really speccy stock, Tiger Resources, had a shocker, dropping 13 per cent. Foster's was his best pick for the week, showing that investing with your heart, not your head, is the best way to make money (ooh, more learning!).
Dartboard is off the pace and out of the running. Only one of reader Rhys Kneepkens's wild broncos he calls stocks went the right way this week; which just goes to show that the only way to wealth is through a diversified portfolio of quality companies. There endeth the lesson and another oh-so-exciting chapter of shares race. Next week: next week!
Frequently Asked Questions about this Article…
What happened in this week’s shares race and which investor came out on top?
This week’s shares race was fairly flat overall, but Pottsy rode a speculative wave and came out on top thanks to several big winners in his portfolio.
Which speculative stocks powered Pottsy’s performance?
Pottsy benefited from a speculative surge in stocks including Venturex Resources (up about 12%), plus strong moves in Sipa Resources and Quickstep Holdings, with David adding to his growing pile of these picks.
How did more conservative or ‘sensible’ portfolios perform this week?
Sensible portfolios had mixed results: Leanne Vaz’s portfolio looked steady — with Bluescope Steel, Air New Zealand and ANZ all adding more than 2% — but it was held back by weaker performances from Woolies and Coca‑Cola Amatil.
Did anyone make big gains by investing sensibly this week?
No — the article notes that nobody made a million by investing sensibly this week, illustrating that conservative approaches can limit upside compared with speculative winners.
What lesson does the article highlight about diversification and quality companies?
The article stresses that the most reliable path to wealth is a diversified portfolio of quality companies, pointing out that readers who picked wildly speculative stocks often underperformed.
What happened to Will Arnott and his speculative pick Tiger Resources?
Economics student Will Arnott slipped down the rankings after Tiger Resources, his main speculative holding, fell sharply — down about 13% — while his best pick for the week was Foster’s.
How did other regular racers like Peter Jones and Rhys Kneepkens fare this week?
AFR analyst Peter Jones and reader Leanne Vaz lost only a little money, keeping Jones in second place, while reader Rhys Kneepkens’ more adventurous picks mostly went the wrong way, leaving him off the pace.
What should everyday investors take away from this week’s market action?
Everyday investors should note that speculative stocks can produce sudden winners but carry big risks, sensible portfolios can be steadier but may miss big gains, and diversification across quality companies remains a key long‑term strategy.