Join our investing community

First share purchase WHAT A DISATER

Discussion in 'Introductions' started by noelc, 5th Jan, 2008.

  1. noelc

    noelc New Member

    Joined:
    29th Nov, 2006
    Posts:
    4
    Location:
    Home
    Hi All.

    Been around here for a while now but never posted (I think). Anyway thought I,d introduce my self while seeking some advice. I am a novice when it comes investing in shares and have been burnt but hey that was my fault so I,m trying again. Some may recall a company called "Pasminco" I bought 5k worth of shares about two months before they went into the black hole!!!!! Why did I buy them "I dont know"

    Live and learn you would think? Recetly I bought 3K in a new float which came with options to purchase more at fixed price with an expiry date. Within two days of being listed these share are now valued at less than 50% of what I paid.!!!! Geez Anyway wont be selling and intend to keep for the long term. Not sure what to do with options? I,m assuming that if the share price does not exceed the option price I should just let them expire????

    Given I am hopeless at research and am limited in time I figure give it up and let some one else invest for me??

    I was told many years ago of a product where you can contribute each moth from your monthly salary (after tax) into an investment fund??
    has anyone heard of this type of produce?

    Aprreciate the expert comments on this forum
     
  2. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Why did I buy them "I dont know"

    noelc

    hahahahahahaaaa....Good one !!!!:D:D:D:D

    PS – Please correct me if I am wrong but my guess is that you bought it because Pasminco was cheap at that time!

    Thank you my friend for your post.....You just made my day!!!:p:p
     
  3. noelc

    noelc New Member

    Joined:
    29th Nov, 2006
    Posts:
    4
    Location:
    Home
    No not really. A friend at the time suggested resources would be a good investment. Looking back I guess she was right. I just didnt do any due diligence/research on which resources. lolol
     
  4. Rick

    Rick Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    103
    Location:
    QLD
    PS – Please correct me if I am wrong but my guess is that you bought it because Pasminco was cheap at that time!

    Thank you my friend for your post.....You just made my day!!!:p:p[/QUOTE]



    I don't know why a "disaster" for someone else would make your day Tropo!
    Maybe you have gone Tropo??

    Noel, being hopeless at doing research sounds like a defeatest attitude. If you can't make the time or are not interested enough to do your own research just go to a financial adviser and let them setup some fund investments where you can contribute to on a regular basis.
     
  5. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW


    I don't know why a "disaster" for someone else would make your day Tropo!
    Maybe you have gone Tropo??

    Noel, being hopeless at doing research sounds like a defeatest attitude. If you can't make the time or are not interested enough to do your own research just go to a financial adviser and let them setup some fund investments where you can contribute to on a regular basis.[/QUOTE]


    hehehehehe...Not yet Amigo....
    You see.....not knowing what you are doing ends up in a disaster...
    On the other hand......$ 5 K is a quite expensive lesson....but if Noel can draw any conclusion from it – that’s what he needs.
    ;)
     
  6. FrankGrimes

    FrankGrimes Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    110
    Location:
    Sydney, NSW
    If you aren't confident in your research / or don't have time why on earth would you buy something you don't understand?

    If you don't know what you're doing and want to invest, look at something like streettracks - STW. It just tracks the index, is highly diversified and low fees.
     
  7. noelc

    noelc New Member

    Joined:
    29th Nov, 2006
    Posts:
    4
    Location:
    Home
    Geeez. OK I dont know what I,m doing thats why I posted here I guess!

    Yes I am fairly relaxed about money and can even be frivolous at times with it. No respect for money. This can make me rather agressive with it at times and even stupid:eek::eek:

    So as mentioned haveing surplus cash each month and forceing my self to save/invest I figure if I make automatic payments to a fund each month I can build up a bit of a nest egg and not notice. A SMSF is no good because I may want access to funds in the future and I dont want to mange this anyway?


    I,m not keen on seeing finacial advisers as most just try and sell there preferred products.

    Its not financial advice I want. My finances are in order includeing IPs.
     
  8. The Stig

    The Stig Well-Known Member

    Joined:
    3rd Dec, 2007
    Posts:
    190
    Location:
    Central Coast NSW
    Come on Troppo. A complete beginner shares their story, asks for help and all you can do is laugh at them.:mad:

    noelc, if you still like resources, stick to the blue chip ones. BHP, RIO etc etc. This country has no shortage of good mining companies making money.

    If you want to diversify, look at the different sectors/industries and chose the strongest companies in the strongest sectors/industries. [Or you can buy the ETFs (to eliminate some risks), there are so many ways to make money]

    If you want software suggestion to do your own homework, I can suggest Profit Source and Value Gain. I use them both. (Not saying they are the best or anything, because I haven't evaluated the whole software market.)

    Cheers
    The Stig
     
  9. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    The Stig,
    Come on Stig....I treated his post as a joke....
    I can only imagine what could happen to me saying to my wife that I lost because I did not know what I was doing...
    I still believe that he was joking.
     
  10. jms

    jms Member

    Joined:
    3rd Jan, 2008
    Posts:
    24
    Location:
    Seven Hills NSW
    I learned from Graham's book that IPOs should stand for:

    "Its Probably Overpriced"
    "Imaginary Profits Only"
     
  11. TROM

    TROM Active Member

    Joined:
    17th Jul, 2006
    Posts:
    35
    Location:
    WA
    Hey Noel you should be your own Master of Money not Money the Master of you. Otherwise you will never control it doing what it should for you and that is going out to work for you.

    I to have learned lessons in the past about being way to free with money until someone takes it off you and then takes care of it they will have more in the end than you.

    My advice would be to take the time to learn about investing in all areas of education and then make sure you put it into place. Hope you do better research next time and don't listen to friends unless they earning alot more than you and have already set up there investments to make them money otherwise they aint qualified to give you advice.

    :eek:
     
  12. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi NoelC,

    Most advisers will try to add value to your situation. This may use products or services which are owned by the parent company/group.

    I wouldn't be too worried if they recommend using an inhouse platform, eg, St George use Asgard, Westpac use BT, NAB use MLC, CBA use Colonial and ANZ use ING. Then invest in a fund manager, eg, AXA Global Equity Value fund is available in most platforms.

    If they want to use inhouse fund managers, you should always ask them why.

    As for Pasminco, everybody that owned equity in it lost 100% and the debt holders got shares in a new company called Zinifex! The banks who were the debtholders then spun off the assets into Zinifex and listed it to raise money.
     
  13. coopranos

    coopranos Well-Known Member

    Joined:
    11th Oct, 2006
    Posts:
    498
    Location:
    Perth
    Surely you would get more mileage out of a casino?
    You dont need to research at all (unless you have a particular interest in the origins of the colours red & black), and lets be honest, what you are doing is not investing by any stretch of the imagination - it is gambling pure & simple.
    If that is how you get your kicks (and lets be honest there are plenty of people around who are in the sharemarket for the emotional thrill and it is socially more acceptable than the casino) that is fine, just make sure you can afford to lose.

    Otherwise, if you are interested in investing (as opposed to gambling) - keep it simple. If you dont trust yourself with your money, go to a planner you trust and nut out a plan with them.
    Otherwise, get some books and do some research.
    My own research suggests that the ultimate no-brainer investment plan is indexing - grab some Vanguard or DFS funds, set up reinvestment and monthly automatic debits to the investment, and check it again in 10-15 years.
     
  14. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi Noel

    Thanks for sharing your experience with us. I guess you can take an "expensive" lesson from the experience.

    Why don't you outsource your share investing to a couple of experts until you feel you have the skill and experience to do so yourself? You may even decide that a low maintenance approach like regularly investing (and maybe regularly gearing) into a couple of managed funds, listed investment companies with a long track record or exchange traded index fund will give you satisfactory returns.

    You mention you've got IP/s. That's great. Perhaps focus on that asset class and just use an automatic investment plan for shares?

    Good luck with it and keep learning!

    Cheers
    N.
     
  15. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Symapthy from me :)

    Good on ya for sharing your story Noel C. It takes a big man to admit mistakes. I've been where you are, got really excited about the fortune that could be made from the sharemarket, did some ASX courses (when they existed up here) read some books, sought advice from experienced investors etc. Regardless, I got badly burned investing directly in a company that was Top 200, share price looked like a bargain, but I didn't appreciate what would happen to the company with exchange rate fluctuations. Long story short, sinece then my 'set-and-almost-forget' use of Managed Funds like Navra and some dough in Colonial and Platinum has been a much more pleasant experience. Nothing beats the excitement of looking at the share price in the paper every day, except it finally occurred to me I have no real interest in all the fundamentals and factors that can affect those prices, and absolutely no intention of watching the market and company announcements etc daily to know when to buy and sell. I can see why some people love it, but its like chinese water torture for me ... I agree with the guys here - investing on that basis is purely a gamble. Create wealth in the areas you are comfortable with, and find something managed that gives you some diversity if you feel you need it, do the gambling at the Casino with an amount you're prepared to never see again ... :p