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Discussion in 'Introductions' started by Natxo, 4th Jul, 2017.

  1. Natxo

    Natxo Member

    Joined:
    2nd Jul, 2017
    Posts:
    6
    Location:
    QLD (actually living in Phnom Penh)
    Hi everyone:

    I just found your investments community and I am glad you accepted me to be part of it.

    I am a private investor dealing with financial markets for more than 10 years (maybe 15? I can't remember when I started :)). At this point of my "personal financial career" I am looking forward to learn more about another private investor experiences, more related to portfolio management, less related to investments selection. My root knowledge comes basically from The Intelligent Investor by Benjamin Graham and his disciple Warren Buffet. Lately I am turning my investments style and decisions to the John Bogle investments strategy approach (he is an index funds lover :D), reducing the significance of individual shares and bonds of my portfolio.

    Well, that's my very summarized profile. Hope we can learn together.

    Natxo.
     
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    1,096
    Location:
    QLD
    welcome ,

    since you have a GFC under your belt ( and i haven't ) ,

    i would advise moderation when exploring Index Funds ( and please research carefully )

    you are essentially buying a part of the herd , since your aim is to reduce exposure to certain shares 'equal weight ' ( say 1% of each share in the ASX 100 ) might be to your taste .

    i do hold an array of ETFs , LICs , REITs and shares , but favour individual shares and reduce my cash risk in those shares by taking SOME profit at sensible moments ..

    PS i used to be more exposed to interest bearing securities but fate ( maturity/conversion ) has reduced my exposure here to a very small exposure , and i find nothing attractive in that area to increase my investment .

    there is plenty to learn , to be sure ,
    good luck
     
  3. Natxo

    Natxo Member

    Joined:
    2nd Jul, 2017
    Posts:
    6
    Location:
    QLD (actually living in Phnom Penh)
    Thanks Mr./Ms. Twisted:

    Sorry, wht means GFC? I didn´t understand that :)

    Yes,moderation or I would better will call common sense. I am not after magic formulas, neither to become rich, so it should not be complicated... I like a lot Bogle approach. I think is the best for most of the private investors. I only had a few shares of which I have enough information and understanding to invest in, but my goal as I said is reduce their wight in my portfolio in the long term. I also value simplicity in my portfolio, I think is the way to be more profitable and avoid mistakes.

    Natxo.
     
  4. twisted strategies

    twisted strategies Well-Known Member

    Joined:
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    QLD
    Global Financial Crisis ( aka a real crash ) i started just in time to take advantage of the 2011 'correction ' ..

    i was in a hurry started in 2011 and targeted creating a retirement income fund to be in use in 2020 ( and for the rest of my life ) rather than retiring with a fistful of cash hoping to invest it wisely to produce a livable income ..

    i made other choices to you , and unexpectedly they have worked out best for me ( before 2020 ) , but i knew i had to take extra risks ( so have had mistakes and successes )

    the most important thing i have learned in investing ..is to make decisions that won't ruin your sleep ,

    cheers


    Global Financial Crisis – What caused it and how the world responded

    Posted by Justine Davies March 23, 2014


    The credit crunch
    The global financial crisis (GFC) or global economic crisis is commonly believed to have begun in July 2007 with the credit crunch, when a loss of confidence by US investors in the value of sub-prime mortgages caused a liquidity crisis. This, in turn, resulted in the US Federal Bank injecting a large amount of capital into financial markets. By September 2008, the crisis had worsened as stock markets around the globe crashed and became highly volatile. Consumer confidence hit rock bottom as everyone tightened their belts in fear of what could lie ahead.

    The sub-prime crisis and housing bubble
    The housing market in the United States suffered greatly as many home owners who had taken out sub-prime loans found they were unable to meet their mortgage repayments. As the value of homes plummeted, the borrowers found themselves with negative equity. With a large number of borrowers defaulting on loans, banks were faced with a situation where the repossessed house and land was worth less on today’s market than the bank had loaned out originally. The banks had a liquidity crisis on their hands, and giving and obtaining home loans became increasingly difficult as the fallout from the sub-prime lending bubble burst. This is commonly referred to as the credit crunch.

    Although the housing collapse in the United States is commonly referred to as the trigger for the global financial crisis, some experts who have examined the events over the past few years, and indeed even politicians in the United States, may believe that the financial system was needed better regulation to discourage unscrupulous lending.

    courtesy of Canstar

    Global Financial Crisis - What caused it and how the world responded
     
  5. Natxo

    Natxo Member

    Joined:
    2nd Jul, 2017
    Posts:
    6
    Location:
    QLD (actually living in Phnom Penh)
    Oooh, I see... thanks for the clarification.

    So your sleep could be ruined because the risks that you are in? Or you maybe you mean that you are not sure of having make the best selections?

    Natxo
     
  6. twisted strategies

    twisted strategies Well-Known Member

    Joined:
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    it can be both , even top 200 stocks can go bad .( ARI , SGH, DSH ,TEN )

    another thing i have seen is folks parking cash in the market ( short/mid term ) that is needed for an obligation .. say a property settlement )

    highly leveraged ( i don't leverage ... yet ) on a holding that loses value quickly ..

    and then there is 'the best share ' question , Warren Buffet has the perfect quote for that

    ' buy a company so robust even an idiot could run it ... because one day they will put an idiot in charge ' ( WOW anyone ??? . some others might come to mind for other share-holders ).

    take BHP now i don't think BHP is that badly run ... but two big investment managers ( i wonder how many BHP they actually personally hold ) , can see a way to break up BHP for a short term gain , and are busy exciting the wolf-pack , distracting BHP from more sensible time and cash deployment .

    BKW and SOL are having similar issues intermittently ( i hold both BECAUSE they run their businesses like they do )

    an extra bout of sleeplessness can come via take-over offers , see a good company over-expand , or cashed up scruffy companies take-over smaller well run companies .

    this ( long term ) investing game is not as easy as it seems , but it can be rewarding

    cheers
     
    Hosko likes this.
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,780
    Location:
    Sydney, Australia
    Hi @Natxo - great to have you here!