Performance

Grail's Investment Philosophy

The consistency created by sustainable competitive advantage generates greater investment certainty.


Risk and Return

When it comes to investing in stock markets there are many misconceptions about risk and return, some of which are described in the GEMS section. Of course, safety is particularly needed when knowledge and experience is in short supply. In fact, Warren Buffet correctly called it when he defined risk as not knowing what you are doing. The counter-argument of this is surely that knowledge not only reduces risk but is able to generate very high returns, such as those of Warren Buffet himself, Peter Lynch, John Neff, Martin Zweig, Benjamin Graham and other Wall Street legends.

The Master Portfolio holds 156 stocks and so far this year the portfolio has reached a 14.8% return. The second graph shows that the portfolio is weighted in terms of 28 out of 31 sectors of the Morning Star classifications.


The Grail Master Portfolio PER 12 Feb 19


Grail Master's Diversification


The latest feature: Buy? and Sell? Signals

A key feature of the Grail Risk Assessment Sub-System (GRASS) is the setting of BUY? and SELL? points. The question mark signifies that these signals are initally informative, because the breakout needs to be identified and the new trend confirmed. The breakout prices on the up side is set at a 4% from a pre-determined date and similarly the downside is set at -8%. Once a BUY? signal appears, the SELL? signal, if present, conversely declines much like a seesaw movement, and vice versa. The question mark is a reminder that the underlying change needs to be investigated to determine the reason for the trend change.



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