Re:IMG for Gezmondo. Thanks for the link to the article and at this stage I'm happy to believe that IMG is a very good business. However, can any business justify a P/E of over 80? Great businesses is only half the equation, and at some point IMG will come up against competition (as your link suggests) and their interim profits for the first 6 months are down on last year. People tend to over-react when a company like this doesn't quite deliver spectacular results even if it does end up becoming a giant. For instance, Vodafone peaked at about £4 in 2000, even as the undoubted giant it is now I wouldn't value it that highly and clearly no-one else would either because its never regained that price. Should something similar happen to IMG even reducing it to a more reasonable 'growth' P/E of 20 to 30 it would still destroy a lot of Andrew's profits, possibly for a very long time. Yes it could grow more, but of course the return from topping up one of his stalwarts or adding a couple of new small value stocks could also give him a great return, and I would suggest there is a higher probability of that.
Linked to this, re:Dukindiva, is it really worth adding assets such as bonds or gold which are operating at historically high valuations compared to equities just to be 'less aggressive'? Wouldn't it be better for someone young like Andrew (and me) to view the asset classes in the same way you'd view an individual equity, ie buy something good at a low price? So in the future when equities are higher and bonds and gold have dropped back you could diversify then.
I must admit, I do quite like the look of ALPH though.
