BULLETIN 12 JULY, 2012

Rotary Club of Brighton IncP.O. Box 206 Brighton VIC 3186District 9800 Club Number 18309Chartered: 24 September 1973www.rotarybrighton.com.auNo. A23508S ABN 29 236 561 983

President Peter Sherman H: 9593 1595 M: 0419 322 093President Elect Pat Kearns W: 9553 8038 H: 9553 8038 M: 0418 998 735Secretary Arthur Hubbard H: 9592 4465 M: 0412 104 240

www.rotarybrighton.com.ausecretary@rotarybrighton.com.auEditor, Designer: Max MartinPhone: 0409 822 378www.maxmartindesigns.com.aumax@maxmartindesigns.com.auPhotography: Cameron Ward

Rotary Club of BrightonVictoria AustraliaRotary Club of BrightonVictoria Australia

Last week’s meeting 5 July, 2012 .Pictured are President Peter Sherman, speaker Marcus Padley & Chairman Geoff Cunningham. Marcus has very kindly provided a summary of his talk on page 2.

This week’s Speaker:

MAREE McCABECEO ALZHEIMER’S ASSOCIATION AUSTRALIA VICTORIA

Maree’s career includes a strong background both in mental health and aged care in senior executive positions.

Previous roles include Director of Clinical Resources at The Melbourne Clinic, General Manager of Hospitals for St John of God Healthcare and Surveyor for the Australian Council on Healthcare Standards.

Maree has also provided consultancy to organisations in management systems and strategic direction and is an assessor with the Aged Care Accreditation Agency.

Her most recent role was Executive Operations for TLC Aged Care responsible for over 1000 beds across 9 homes all with special needs units caring for those residents living with dementia.

Maree is a registered nurse, has a Post Graduate Diploma in Psychiatric Nursing and a Master of Business Administration majoring in strategic planning. She is a member of the Australian Institute of Management and the Australian College of Health Service Managers.

THIS WEEK IS A LADIES NIGHT SO WE ARE LOOKING FORWARD TO A GOOD TURN UP

FOR THIS VERY INTERESTING SPEAKER!

NEXT WEEK’S SPEAKER: KEN LAYChief Commissioner of Victoria Police

The Rotary Club of Brighton

Speaker Marcus Padley had the room enthralled if not depressed with his talk on stockbroking and the share market!

HAVE YOU BEEN MISSING IN ACTION?

WE HOPE YOU ARE NOT MISSING OUT BY NOT ATTENDING. YOUR CLUB PRESENTS WONDERFUL

SPEAKERS EACH WEEK!SUPPORT YOUR CLUB!

?

Last meeting’s speaker - 5 July, 2012

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MARCUS PADLEY - “STOCKBROKING”

From 1941 to the low in 1974, the average annual compound return on the All Ordinaries Index for 33 years was 2.9 per cent per annum. Take off inflation of 4 per cent and you were going backwards. And that doesn’t include 1929 to 1941, which would have pulled it even lower. In the next 33 years from the 1974 low (yes we’ve picked the dates) to the 2007 high, the All Ordinaries Index delivered an average annual compound return of 11.7 per cent. Add in 4.3 per cent of dividends and you come up to 16 per cent, per annum, for 33 years.

No wonder everyone learned to set and forget, no wonder no one ever asked questions about fees, no wonder people didn’t notice the trails on equity products even though the recipient was driving a BMW and the end customer got nothing for it, no wonder customers tolerated 2 per cent wrap account fees from big investment banks even if the money was invested in term deposits, no wonder the lowest risk asset allocation option on your managed fund still held 40-65 per cent in equities, no wonder the financial industry is so huge. It has been an incredible three decades of asset speculation and price appreciation driven by people spending borrowed money, and the question now is whether it can continue. It’s a multitrillion-dollar question for equities globally, for all asset classes, and it is a question for the school-fees-burdened parent and the retirement-focused investor. We all need asset prices to go up because we have all been conditioned to expect it and our expectations, the root of all happiness, require it.

We anticipate growth because for the past 33 years the property market and the equity market have always gone up. It’s what we’re used to. And now, for the first time in almost 40 years we are seriously questioning it, whether this is our “Japan moment”, our peak for the next 22 years, the pre-cursor to a period of massive volatility in which we have to duck and weave to make money because the average price goes down? The truthful answer to that question is that while the financial industry has to gloss over it with predictable optimism, nobody actually knows. And the good news? It really doesn’t matter. You don’t need to know. This is like any other period of bearishness in equity market history, to survive it you just have to wake up to a few things that happen in a momentarily (let’s hope) uncertain market. Things like this: Risk aversion rises and with it volatility. The risk-reward ratio shifts and you have to ask whether your risk-tolerance quotient, and we are all different, has been violated. If so step out. Not losing money is good now. Priority one, survival. Priority 100, stock market glory. Making money is going to take more effort. When it’s more risky it requires more discipline and skill. Trading skills and in particular risk management are an available commodity. You will have to learn some of them or you’ll be wandering around on the battlefield wearing orange, and we’ll get you. There is more focus on stocks than ‘’the market’’. It becomes a “traders’ market”. Stocks become “good” or “bad” and sentiment more polarised on a stock-by-stock basis. There is less tolerance of disappointment and more focus on stocks that do well. News that defines a stock as good or bad starts a trend that will last longer. Perfect for traders. Terrible for those who still think that investment is about having ‘’faith’’ in anything other than today’s price. There is no long-term investment for the moment. You have to be more flexible. Having strong convictions about stocks or the market beyond tomorrow is misplaced arrogance. This is a time of flux. When the market is priced on risk and risk can change exponentially in a moment, Greece going bankrupt for instance, you can’t realistically set investment horizons in advance. Without a reliable long-term ‘’uptrend’’ you have to make money out of any opportunity over any time frame. Change your expectations. If the root of all happiness is expectations met, then set realistic ones. Not very cheerful I know, but those who are forced to lift their skills and education now will come out of this as much better investors and that is perhaps the best long-term investment you can make.

Marcus Padley is a stockbroker and the author of the daily stockmarket newsletter Marcus Today.

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Chairman: Geoff BentleySpeaker: Maree McCabeLocation: Milanos Bayview Room

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3

This week: Sergeant: Bill Jeans Hosts: Mac Chapman, Brendan KierceProperty: Sven-Eric Bredenberg, Trel Adam Front Desk: Graeme Wallace, Dale HoyRaffle: Arthur Hubbard, Brett Parkin Week of 19 July 2012: Chairman: Dale HoySpeaker: Ken LayLocation: Milanos - Terminus RoomSergeant: Geoff Bentley Hosts: David Efron, Peter JohnsProperty: Julian Goglia, David Eden Front Desk: Geoff Shaw, Jim HillRaffle: Arthur Hubbard, Bill Howley

CAN’T COME? YOU MUST FIND A REPLACEMENT! ROSTERED ON PROPERTY OR FRONT DESK? PLEASE BE ON DECK BY 5.30PM.

ROSTERS:THIS WEEK’S MEETING 12 JULY 2012

IT’S EVERYTHING YOUTHOUGHT WE WEREN’TThe Pursuit of Excellence

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S E R G E A N T ’SS E S S I O N

Sgt Trevor Martyn

“What’s the difference between a stockbroker and a seagull? At least a seagull can still leave

a deposit on a BMW!”- said speaker Marcus Padley starting off his talk.

“Divorce - only way to get a guaranteed 50% return on your investment.”

- said speaker Marcus Padley.“Get rid of ‘Supercoach’ and improve

productivity in the workplace”- remarked speaker Marcus Padley.

“I’ll get back to you on that!”- replied speaker Marcus to Andrew Bird when he asked him if he could point out some good things stockbrokers had actually done.

“Could the speaker please shout the bar as everyone is feeling depressed after your talk.”

- asked Ron Stark during question time.

Quotes of the week!

As heard during the meeting 5 July:

Front Desk Report from last meeting 5 July:Attendance: Members: 53 Percentage: 51.38% Make-ups: 0Member’s Partners: NilMember’s Guests: Dorothy Wall-Smith (Andrew Bird), Ian Price (Stuart McIntyre), Philip Archer (Norm Thomas),

Christine Robertson (Norman Thomas)Club Guests: Marcus Padley Visiting Rotarians: Nil

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WHAT’S THAT I HEAR YOU SAY? THERE WAS NO SERGEANTS’ SESSION LAST WEEK? YES BUT THAT’S NO EXCUSE TO LET RON STARK OFF A FINE WHICH TREVOR WOULD HAVE DELIVERED IF ALLOWED TO!

RON APPEARED IN THE HERALD SUN (above) LAST WEEK WHEN ASKED TO MODEL IN FRONT OF HIS NEW COMMODORE.WHEN ASKED BY THE EDITOR HAD HE DONE ANY MODELLING BEFORE RON REMARKED “NOT WITH MY CLOTHES ON!” THIS FINE SHOULD TRANSFER TO THIS WEEK - SO SERGEANT BILL - ISSUE THE SUMMONS!

OUR BULLETIN WINS DISTRICT AWARD...Not the big one but an Award nonetheless!At the DGs Changeover Lunch 1 Julyour Bulletin won the Award for Clubs Over 55 Members. The Editor will obviously have to work harder this year to strive for the No 1 Overall Award.The Editor would like to recogniseprevious Bulletin Editors especially the Very Rev Harlin Butterley who strived so hard to get an award for his wonderful Bulletins. Many thanks go to photographers Cameron Ward & Ivan Vojlay for their contributions every week with great photography, the wonderful Sergeant’s and of course you the Members who keep misbehaving. Thanks everyone. I couldn’t have done it without you.

BRIGHTON TOWN HALL, WILSON STREET, BRIGHTON, 2 - 5 AUGUST, 2012

42nd Bayside Art Show proudly presented by The Rotary Club of Brighton in conjunction with

The Brighton Recreational Centre

BOOK YOUR OPENING NIGHT TICKETS @ $30 ONLINE AT:

www.thebaysideartshow.com.au

Secretary Arthur introduced his segment:

• Rob Foster spoke about the Bayside Art Show (see advert opposite page) and that you can now book on the website for opening night tickets. Leaflets were on the tables for Members to take and mail out with their statements, invoices etc as well as hand out to local traders to help advertise the Show. We currently need advertisers for the Show Catalogue so contact Rob if you know of anyone interested.

• Christine Robertson from the Rotary Vision Team who are strategic planners spoke about the opportunity members will have to look into the future of our Club. This Team has been invited by the Club to work on a strategy for the Club’s future. They have been asked to look 5 years ahead and will be seeking the inputs of a cross-section of Members. Norm Thomas will be the Club contact. The Club will drive the process and Members will have a chance to voice how they feel the Club is performing particularly in the Avenues of Service. You will be able to take yourself out of the present and look to the future. They are looking for about 30 Members to take part. Norm Thomas will organise a venue and materials. This is a chance for Members to have a rare opportunity to say what they want for the Club to someone outside the Club. The Board will announce a revised date.

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PRESIDENT’S REPORT

SECRETARY’S ANNOUNCEMENTS

Secretary Arthur Hubbard

President Peter Sherman welcomed all to the meeting. He delivered the following report:

• I would like to firstly welcome our first guest speaker for the year Marcus Padley who is a stockbroker and a prominent stockmarket commentator in the media and author of a newsletter Marcus Today. This is important reading to those who are interested in successful investing in the Stockmarket. Marcus will be introduced more fully later on.

• I welcome the following guests and visitors - Christine Richardson from District 9800 who will be speaking to us briefly on the Vision Forum which will enable us to complete our Strategic Planning Program. Also Philip Archer who is the Director Marketing of District 9800.

• I would like to give our sympathies to Darren Donnellan on the death of his father Bruce who died peacefully after a long illness. (The funeral was held at St Joan Of Arc 6 July).

• We held our First Board Meeting during the week and approved our Fund Raising Budget of approximately $200k for the year. It will be a big ask in these difficult times but hopefully with our strenuous efforts I am sure we will continue to attract sponsors and attendees to all our many functions. We have numerous Fellowship events planned which I am sure will be enjoyable to members. We have already allocated over $50k to our worthy causes both locally and internationally. In addition we will be sponsoring some of our members who will be travelling and working in Timor Leste and perhaps even Cambodia.

• We will also be sponsoring a Rotary Exchange Student this year from Germany together with Rotary Club of Brighton Beach of which their President is personally hosting the student during the year.

• Membership was a big issue and although we might be still the largest metropolitan Rotary Club in Australia we will be contacting members to ensure they keep up their attendance and hopefully introduce more members into our Club.

• Having speakers of the calibre of Marcus Padley during the year will ensure this happens together with the important work for the Community that we will be carrying out.

• Remember the Ihlan Lunch is now been deferred from August 30 to November.

Thank you and enjoy the rest of the Evening.

Raffle - 5 JULY

THE NEW RAFFLE CONTINUED LAST WEEK! Brett Parkin & Arthur Hubbard drew 5 names and after a further draw the winner was Paddy Michaelson who had the chance to draw out the joker card to win $100. He chose the 9 of diamonds and missed out. There will be another draw this week with the jackpot now $150.

President Peter Sherman

IT’S EVERYTHING YOUTHOUGHT WE WEREN’TThe Pursuit of Excellence

Some Highlights of Meeting 5 July

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I DON’T THINKMY SHARES ARE GOING

TOO WELL GUYS.

PHEW NOW IT DOES!

THAT NICE LITTLEWAITRESS OVER THERE

BARRY!

ABOUT AS WELL AS MY FOOTY TEAM ALAN!

NOT HAPPY JAN.WHAT’S HAPPENED TO

THE GOLF REPORT?

SAY CHEESE GERHARD!

WHAT WAS THAT ABOUT THE ALL ORDS

GOING BACKWARDS JIM?

DON’T LOOK NOW GUYS, WE ARE ABOUT

TO BE SNAPPED!WHO, WHAT,WHERE???

HEY DAD WHO ARE YOU WAVING AT?

HEY PHILIP I THINK WEJUST MADE IT INTO

THE AWARD WINNING BULLETIN!

THIS JUST DOESN’TBALANCE!

NOT REALLY GEOFF. KING BY NAME BUT NO

CROWN JEWELS!

FUNNY I THOUGHTIT WAS CHICKEN ERIK!

GEE I GUESS ELAINE MARRIED INTO ROYALTY

WITH YOU JOHN!

WHAT’S THEQUESTION HERMAN?

SOUNDED PRETTY ORDINARY TO ME

PAUL!

BayviewTravel

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Birthdays Tom Atkin 07 July Bruce Crossley 10 July Alan Pinkus 13 July Ian Mence 18 July Max Martin 20 July Anniversaries Clyde & Alison White 05 July Trevor & Judy Martyn 17 July

Birthdays & Anniversaries

The Club meets Thursdays at 6pm for 6.30pm at Milanos Hotel, The Esplanade, Brighton Beach.

Rotary Toast “To Australia, Rotary International and the Rotary Club of Brighton.”

Rotary Grace “For good food, good fellowship and the privilege

of service, we give you thanks O Lord.”

Welcome to all visiting Rotarians & Guests

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Rotary International District 9800 Incorporated (Reg. No: A0046132N ABN 30 764 979 582) District Website: www.rotarydistrict9800.org

ROTARY INTERNATIONALDISTRICT 9800

The members and friends of District 9800 Rotary Clubs, are invited to attend a Seminar to Share the Knowledge and the Joy of International Service

DATE: Sunday 15th July 2012 REGISTRATION 9.00 am – 9.30 am CONLUDING: 1:00 pm

VENUE: International House, 241 Royal Parade PARKVILLE.

COST: $5.00

Clubs will be invoiced for the cost of participation at $5.00 per head

Please complete and return this Registration form to Colin Burns, by email to

cjburns1@bigpond.com, Fax to 5441 5059 or

mail to 11 Hollywood Court, Bendigo, Vic, 3550

THIS SEMINAR WILL ASSIST PARTICIPANTS IN THE FURTHER

DEVELOPMENT OF EXISTING INTERNATIONAL SERVICE

PROJECTS OR SET THEIR CLUBS ON THE PATH TO EFFECTIVE

INTERNATIONAL SERVICE

Environmental Print congratulates the Rotary Club of Brighton on their sustainable approach to printed material. t 9555 1244 | f 9873 8845 | steve@enviroprint.net.au | www.printeasy.com.au

Stan Rankin - A life of ups & downs & lucky breaks! Born during the short period of Poland’s independence between the two world wars, I was fortunate to have had a very happy childhood. My father was a district Vet and I, the youngest of four children, grew up enjoying the benefits of living in a town with a river to swim in, pine forests to explore and mountains to ski. It all ended with the outbreak of the war when I was twelve. During the following five years we were forced to witness public executions, murders and brutal extermination of the Jewish population in our building several Jewish people survived the war in hiding. We were lucky and, apart from my older brother spending two years in a saltpeter mine in Germany, my immediate family came through unscathed. After the ‘liberation’, Stalin imposed on Poland a communist government with a new set of problems. But at least we were able to go back to school. After the matric, as it was then called, I with three friends in patched up kayaks, paddled 900 kilometers from where we lived, to the Vistula and then on to Gdansk on the sea. Unable to do what I would’ve liked, I enrolled in a course on the coast anyway. In my first year there, I joined the student sailing club and during a summer sail training camp met another student who was keen to escape. Together we planned what we believed was the perfect escape - one that would seem like we’d drowned in a small boat, and so our disappearance wouldn’t result in repercussions on our families. We built a five meter sailing kayak and one evening in the summer of 1948, paddled past the border police sentry tower into the bay. After an overnight sail to our old sailing camp, we set sail again. During the night we rounded the tip of the peninsula unnoticed by another border police post at its tip. Relieved to have slipped through the net, we then headed into the worsening weather and for Sweden. Almost two days later and two thirds of the way to the Swedish coast we mistook a German trawler for Swedish and, trying to get away from it, capsized - the boat was damaged. Surprisingly, the skipper who turned out to be an ex u-boat captain, and his crew chose not to throw us in the drink and offered to drop us off in Sweden. Having been accepted as political refugees, we were sent to work in a steel factory up north. After serving our mandatory time there, we went to Gothenburg to try to get into the merchant navy. Our plan was to get a better job, save enough money to buy a decent size boat and fulfil our dream of sailing to the all those wonderful islands in the South Pacific I’ve read and dreamt so much about. Despite the lack of experience as a seaman I managed to get through the medical and to bribe my way into the Seamen’s Union. My first ship was a rusty, old steamship taking whatever cargo it could get between European and English ports. During the following five years I sailed on different ships to Finland, England, France Spain, Portugal, Italy, Yugoslavia and other places on both sides of the Mediterranean. One of the most interesting times I had was on a ship calling at all ports along the west coast of Africa, from Casablanca down to Cape Town -

we even went 100 kilometers up a river in Nigeria to collect a cargo of ebony logs. My last ship, M/S Nimbus took us on a round- the- world trip across the Atlantic, through the Panama Canal, to American ports on the west coast and then across the Pacific to all the major ports in New Zealand and Australia - before returning home via the Suez Canal and the Med. I ended up in Australia literally by accident. Following a minor accident onboard, I had to be hospitalised in Melbourne during my second trip on the Nimbus - and the ship sailed without me. I was supposed to go back on the next company ship but fell in love with the girl I’d met during the previous trip and decided to stay. Barbara and I married blissfully unaware of the difficulties before us. We stayed together for almost thirty years and raised four children. The 1950’s were still tough times. My first few years in Australia were vastly different to the easy, carefree life I’d enjoyed in the merchant navy. There were no jobs for ex-students and seamen. I worked as a storeman, then as a painter until a serious fall from a collapsed scaffold landed me at the Alfred hospital with a broken back and ankle. When I recovered, I knew I had to try to do something to be able to better provide for my new family. For two years I attended evening classes of a Real Estate course at RMIT while by day working in the basement at Dean’s in the city. I was lucky to get a job with the old real estate firm of J.R.Buxton and stayed with the company for the next 37 years - first as a rookie sales rep at the Elsternwick office, later starting and managing a new office in Brighton and finally as partner with Tom Buxton’s father, Frank. I think Real Estate in those years was more honest and ethical than now. I’d enjoyed the work and the opportunity to meet people from all walks of life. I retired in 1994 to fulfil some of my early dreams of long distance cruising. I built a good and seaworthy boat on which I sailed several times up north, to different Bass Strait and Tasmanian islands, to New Caledonia and to Fiji, often with my wife, Suzanne who, as well as sharing a lot my other intersts, is a very brave sailor - she had to be to sail with me). Ted Wall-Smith had sailed back from New Caledonia and Bob Chapman to Fiji with me - both had been very good friends and mentors to me. Bob had a few years earlier introduced us to cruising the French canals which led to me also buying a share in the canal boat. During our winters we’d spend a few weeks on the canals anx, while in Europe we’d catch up with my Franch family and go to Poland to visit what’s left of my family there. Since I first dared to go back in 1967, I have been doing it every second year or so. My other interests had been squash, running and windsurfing - I enjoyed them all but was never very good at any.Now with tired legs and dodgy knees I had to give that all up. Off-shore cruising is probably no more on the agenda either but I still enjoy Club racing on Wednesday afternoons. Joining the Brighton Rotary Club in 1977 has had a great influence on my life. It enriched it, broadened my outlook and my circle of friends - it even led to me meeting Suzanne! In my life I’ve had many ups and downs, but I’d been very fortunate and have had more than a fair share of lucky breaks!

Stan Rankin