Shares

[raskolnikov]

So far all my investment has been in property but I would like to diversify but have FA idea about the stock market. Can people please give me ideas/advice about how to go about this. Cheers.

 

[superfraser]

So far all my investment has been in property but I would like to diversify but have FA idea about the stock market. Can people please give me ideas/advice about how to go about this. Cheers.

Sign up to the Barefoot Bluprint newsletter. $400 P.A. (although, generally a discount on the first year).

You get twice monthly newsletters, some of which include stock picks, others include ways to better use insurance, super and the like, and some are reports on how previous recommendations are tracking. + access to a VERY active facebook group who often discuss and share finance related content -- which is a lot better than the cat videos my feed used to be full of.

I started buying shares in January of last year based on the recommendations in the newsletter. It's been very good to me.

 

[dmc333]

So far all my investment has been in property but I would like to diversify but have FA idea about the stock market. Can people please give me ideas/advice about how to go about this. Cheers.

https://www.vanguardinvestments.com.au/retail/ret/about-us/investment-principles.jsp

https://www.vanguardinvestments.com.au/retail/ret/investments/product.html#/productType=etf

If you don't know anything, that is the best way to go.

 

[Tassieboy]

I concur with the above. Your best option would be Vanguard Index funds.

 

[kickazz]

Hold for at least a year i think to get CGT discount.

Don't look at the price every day if you want to stay sane.

Have a stop point defined (low and high) and make sure you clearly understand your risk profile.

 

[dees 4 life]

I concur with the above. Your best option would be Vanguard Index funds.

Im very much a beginner in this and was looking at property investing but this maybe a better option? Can you explain whats involved in this type of investing, how hard/easy is it to get involved?

 

[Weiterbot23]

Im very much a beginner in this and was looking at property investing but this maybe a better option? Can you explain whats involved in this type of investing, how hard/easy is it to get involved?

My investment strategy involves going on hotcopper (bigfooty for shares), finding a poster that looks like they know what they are doing, then buy what they buy.

I then read the all of the positive articles and comments re that company and dream about being rich.

 

[kwikfix]

ASX HPI 24/09/14 Buy 3,387 @ $2.320 brokerage 19.80 = 7,877.64
I just placed an order for more @ $2.78

 

[Affidavit]

My investment strategy involves going on hotcopper (bigfooty for shares), finding a poster that looks like they know what they are doing, then buy what they buy.

I then read the all of the positive articles and comments re that company and dream about being rich.

A solid strategy that will bestow you with endless riches.

 

[Stocks_go_Up]

The ASX is a s**t exchange full of insider trading and low liquidity. Majority of companies exist to pay themselves a salary with shareholder money while selling a dream of riches to naive mum and dad + uni student 'investors'. Do yourselves a favour and trade in the US - I suggest the futures markets for maximum gains.

 

[Jimmy_the_Gent]

Yes, trade in a foreign currency on a margin. It's not risky at all.

 

[Stocks_go_Up]

Yes, trade in a foreign currency on a margin. It's not risky at all.

FX is s**t IMO. Have to laugh at all the youtube 'experts' selling their secret trading strategy for a monthly fee of just $15 !! You need to decide your risk profile first, then chose an asset class and trade the s**t out of it until you know what you are doing (you are likely to blow your $$ at the beginning - if you can't accept losses you should not be in the market). If that sounds scary go buy an index fund with your extra $ and enjoy your 3%-5% returns - after a few decades you might have earned enough to renovate your kitchen if the market performed well - if it didn't you might have enough to upgrade just the fridge.

 

[Weiterbot23]

FX is s**t IMO. Have to laugh at all the youtube 'experts' selling their secret trading strategy for a monthly fee of just $15 !! You need to decide your risk profile first, then chose an asset class and trade the s**t out of it until you know what you are doing (you are likely to blow your $$ at the beginning - if you can't accept losses you should not be in the market). If that sounds scary go buy an index fund with your extra $ and enjoy your 3%-5% returns - after a few decades you might have earned enough to renovate your kitchen if the market performed well - if it didn't you might have enough to upgrade just the fridge.

Don't index funds beat 90% of investors over time?

 

[Stocks_go_Up]

Don't index funds beat 90% of investors over time?

Yes - majority of 'traders' lose money. If you are intelligent you will realise pretty soon if trading is going to work or not - see how you well you do on the backfoot when the chips are down. If you have no interest in actively managing/trading then buy an index fund and keep adding to it when possible. Although I would suggest staying in cash until this cycle experiences the next downturn - I do not consider stocks 'cheap' at the moment. There is a group of people that would tell me its pointless trying to time the market or wait until the next downturn so if you are comfortable with todays prices and have time on your side then jump right in. Vanguard US indices are a good choice for low fees.

 

[Weiterbot23]

Yes - majority of 'traders' lose money. If you are intelligent you will realise pretty soon if trading is going to work or not - see how you well you do on the backfoot when the chips are down. If you have no interest in actively managing/trading then buy an index fund and keep adding to it when possible. Although I would suggest staying in cash until this cycle experiences the next downturn - I do not consider stocks 'cheap' at the moment. There is a group of people that would tell me its pointless trying to time the market or wait until the next downturn so if you are comfortable with todays prices and have time on your side then jump right in. Vanguard US indices are a good choice for low fees.

Yeah I am definitely interested in actively managing and trading but not being intelligent is a bit of a handicap.

I've heard that there has been an extended "bull" run of 8 or 9 years so maybe going to cash, then waiting for a downturn then trying to get in close to the bottom would be a better 2-3 year play...?

 

[Jimmy_the_Gent]

Yeah I am definitely interested in actively managing and trading but not being intelligent is a bit of a handicap.

I've heard that there has been an extended "bull" run of 8 or 9 years so maybe going to cash, then waiting for a downturn then trying to get in close to the bottom would be a better 2-3 year play...?

Business Insider Australia did a podcast yesterday with Shane Oliver and they spoke a bit about the length of the bull market.

http://www.businessinsider.com.au/podcast-property-rates-retail-stocks-and-pop-2017-2

You can listen to it there. The podcast is at the bottom of the page and the pertinent part (although all of it is interesting) is at about the 30 minute mark.

 

[superfraser]

Yeah I am definitely interested in actively managing and trading but not being intelligent is a bit of a handicap.

I've heard that there has been an extended "bull" run of 8 or 9 years so maybe going to cash, then waiting for a downturn then trying to get in close to the bottom would be a better 2-3 year play...?

How will you know when it's the bottom?

Once you realise you've missed the bottom, will you be willing to begin investing? Or will you worry that the bottom is still deeper?

I'd suggest just getting in. I started in Jan last year. Was fortunate to get RIO near the bottom (pure luck), sitting on > 70% gains now. News at the time all said 2016 it would be a horrible year for mining.

 

[Weiterbot23]

How will you know when it's the bottom?

Once you realise you've missed the bottom, will you be willing to begin investing? Or will you worry that the bottom is still deeper?

I'd suggest just getting in. I started in Jan last year. Was fortunate to get RIO near the bottom (pure luck), sitting on > 70% gains now. News at the time all said 2016 it would be a horrible year for mining.

I'm only in PLS and AVL currently.

Got the green dream but really am not at a point where I can "DYOR" and really know what I'm talking about.

I'm 31 so still got 30-35 years of work to go, thinking about just playing it safe and pumping 20% of the income into an index like AFI, but EMU makes a good point about just accumulating cash and buying in the dips, I'm not going to pick the bottom but might be able to jump back on on the way up.

A lot of index funds halved after 2008, but fully recovered 3-4 years later. Having some spare cash to ride the wave back up would be handy.

 

[Keystone agony]

Wheres the best place to learn for a novice?

Any books or websites that explain it best in lamen terms for beginners

 

[BILC]

Wheres the best place to learn for a novice?

Any books or websites that explain it best in lamen terms for beginners

Suggest starting with The Millionaire Next Door by Thomas Stanley.

 

[Astro_]

Diversify, diversify, diversify around the drivers of returns.

Use a group called Dimensional (If you can get access)

 

[Keystone agony]

Diversify, diversify, diversify around the drivers of returns.

Use a group called Dimensional (If you can get access)

Not sure if in response to me or not? But how does one gain access to Dimensional then?

 

[Astro_]

Not sure if in response to me or not? But how does one gain access to Dimensional then?

Don't concern yourself yet about gaining access to Dimensional, you are best to get your knowledge up and do your own research.

Check out the Dimensional website and YouTube channel as a starting point, read their investment philosophy, then if you believe what they believe about markets and where returns come from then you can look to invest. I have a few books I can provide as well.

 

[Taylor]

Are shares a reasonable alternative to cash if you were planning to put the finances in and leave for decades, like deciding to put 20% of your company profit into privately owned shares that pay a fully franked dividend. Aiming to have those dividends paying approximately $40,000 by retirement?

 

[Jimmy_the_Gent]

Are shares a reasonable alternative to cash if you were planning to put the finances in and leave for decades, like deciding to put 20% of your company profit into privately owned shares that pay a fully franked dividend. Aiming to have those dividends paying approximately $40,000 by retirement?

The short answer is very reasonable.

There's a lot of theory on this (which is backed up in practice), that I wont bore you with. Suffice to say, shares, as a whole, outperform cash in the long term and "decades" qualifies as long term.

In return for this out performance, your shares will experience more volatility. Over decades you can expect some years with a negative return which won't happen on a nominal basis with cash.

Have a look at this PDF for annual returns of various asset classes.

https://static.vgcontent.info/crp/i...dingPage&utm_campaign=Ret2016&utm_content=Ret