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Discussion in 'Introductions' started by Luke83, 27th Apr, 2018.

  1. Luke83

    Luke83 Member

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    Hello everyone, thought I should introduce myself before I start asking dumb question on here. Long story Short, I should have my house paid off in next 3 to 5 years and once its completed I want to direct a minimum of 15k each year into shares.My ultimate goal would be to build enough income to allow me to retire at 55 ( in 21 years time).


    I have recently setup a trading account through Self wealth and blindly purchased $ 660 in shares in AFI just to see what to expect when buying stock and how I would emotionally react to market drops.

    Hoping to find someone on here to give me the guidance i need to reach my goals.
     
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  2. Hodor

    Hodor Well-Known Member

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    Welcome.

    I don't know anything about self wealth.

    AFI is a great place to start investing for those with the long term in mind.

    Index ETFs are another area you should research.

    Not geting caught up in hype and avoiding high fees along with mindset are the basics.

    Others have a more active approach to myself, however I see too many pitfalls down that road.
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    Luke83 ,

    if no-one asks 'dumb questions ' how will the rest of us be provoked into deeper thinking ???

    sounds like the basis of a solid plan

    given that you have bought AFI ( i don't hold this one )

    i suggest you READ the quarterly shareholder reports ( and AFI's interpretation on the portfolio )

    and see is AFI can help your education along

    i bought SOL when a raw novice and their shareholder reports have pointed me in some great directions

    and consider if the DRP scheme is suitable for you

    The Perks Of Dividend Reinvestment Plans
    Compounding

    these concepts do not suit everyone , but may be useful for you ( you are not compelled to 100% participate in most DRP plans i sometimes only go 50% depending on the share )

    there are plenty of hints and tips on this forum

    look for posts by member 'austing' for a good place to start

    PS i am an amateur at this and still a relative novice but veterans and industry professionals do visit

    traditionally the share market moves lower in May and June ( maybe a little and possibly a jaw-dropper )

    a drop of the top 200 ( XJO ) to around 5500 should NOT be taken as a sign to panic ( but please be cautious , just the same ) in the coming months ..

    good luck and DO YOUR OWN RESEARCH ( some experts have conflicted agendas .. like those folk at AMP )
     
  4. Hosko

    Hosko Well-Known Member

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    You are in front of 90% of the population because you have done something. Well done. Now to continue the learning and doing.
    I'm in no position to tell you what works but can let you know about plenty of mistakes.
     
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  5. MoneyNotorious

    MoneyNotorious Member

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    Great work Luke. I'm a finance newbie, just got enough courage to pursue my investing passion. Been studying investing principles for over a month now and although the load on my mind is incredible and its all so overwhelming, it will pay off in the long run. Know your style, are you a growth investor? Value investor? conservative? aggressive? Know yourself and then look for books. I've chosen the value investing route because it best suits my personality, and the info you get from printed books is insane.

    I love the idea of what you did in buying random shares to test your personality and patience. I want to do the same with an ETF but not sure which one. So many to choose from, but finding the best valued one is part of the treasure hunt.
     
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  6. Luke83

    Luke83 Member

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    Location:
    Hunter Valley NSW
    If you have not purchased anything yet, Sign up for a free SELFWEALTH account, it lets you look up other users based upon various filters and lets you see there stock holdings (just not the $$$ value), it may give you a few more ideas as to what ETFs are around and which ones are popular ( as most of the guys i looked at where holding a few). Selfwealth also has a Virtual option so you can play along with no risk for 90days with there premium package active. I only went with them because they have a flat rate of $9.50 for trades :) You can also score free trades if someone signs up for selfwealth with your link, if you want the link let me know, as we will both will get free trades if you signup via it.

    I am also thinking Value investing is the way forward for me, currently working through some books on it.
     
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  7. Hosko

    Hosko Well-Known Member

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    Nice work Luke83.
    To you and MoneyNotorious - Allow yourself to define what you wish to do now and what sort of investor you are but I would urge you to keep an open mind longer term as your needs, wants, thoughts may change 10 years down the track. I'm not talking about changing each month/year just with different life stages. I certainly changed my habits due to lifestyle requirements
     
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  8. Luke83

    Luke83 Member

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    What is a good website to search for stocks by industry? If they have some options to filter by div, p\e, etc that would be great, this will help narrow the search so can read the annual reports.
     
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  9. twisted strategies

    twisted strategies Well-Known Member

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    i am dividend focused so i have a bias there , ALWAYS double check ( or triple check ) yield data , some are hard to keep current guesstimates ... this is where your calculator earns your respect

    try this place
    S&P/ASX 50 High Yield Dividend Stocks

    look all over the site not just on this page .... not perfect , but a place to start ( that isn't the Motley Fool group )

    happy hunting
     
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  10. Luke83

    Luke83 Member

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    Location:
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  11. Luke83

    Luke83 Member

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    [QUOTE="twisted strategies, post: 61966, memberaditionally the share market moves lower in May and June ( maybe a little and possibly a jaw-dropper )

    You stated that the market moves lower this time of year, what is the underlying cause of this? WOndering if I should aim to do the bulk of my buying to this time of year to pickup a little more bang for my buck.

    Also, after doing much reading, I think I should make the core of by investing plan to be LICs and ETFs, my question is do others keep these as there core also and if so what percentages of these do people try to stick too.
     
  12. twisted strategies

    twisted strategies Well-Known Member

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    one factor is tax obligations often by professional investors and traders

    a second factor , since this is ( almost ) reporting season ( 'confession season' for others ) it tends to be nearing a 6 month peak for the general market ( obviously there will be some company exceptions )

    i tried using percentages to balance things out , but it always looked pear-shaped to me ( especially when investing in interest-bearing securities as well )

    now i look for opportunities ... ( dull, boring and discounted when the market is rallying and dangerous and aggressive when the market is fearful and nervous )

    i use ETFs as 'insurance' ( in case my selections are bad .. say MVB and QFN instead of every major bank , or SYI for high growth in the not so usual places .

    LICs i hold more of than ETFs but i also hold a wider variation of LICs ranging from 'opportunistic' in WAX and BHD to staid and sturdy in BKI and URB , but not forgetting income focused in CAM , PL8 and CDM ( buying these in dips is a big help ) and IBC for it's exposure to interest-bearing securities , and 'growth focused ' CIE , WIC and BST .. although BST has been a slower starter than anticipated

    since the market seems to be rallying short-term i will probably add extra BKI via the entitlement offer

    and don't forget REITs they can be useful as well ( i hold a selection of them as well )

    CDM and CAM are my largest LIC holdings CLW ( as a bond proxy ) my largest REIT and HVST , BEAR , and VAS my largest ETF holdings ( and YES i expect the market to tumble , eventually )

    but feel encouraged to select your own , you might have the cash at the right moments to set yourself up very nicely

    cheers
     
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  13. Hodor

    Hodor Well-Known Member

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    For your core;

    Decide what kind of markets you want exposure to, at what levels and how to get it.
    Australian (VAS, AFI ...)
    International
    Emerging Markets
    Australian Mid/Small
    Fixed income
    REIT (included in other indexes)

    Keep in mind complexity doesn't = better results (often the opposite).
    By adding mid/small to your Aussie allocation over something like VAS alone you are over weighting that market segment and under weighting others

    Decide how you plan to re-balance your portfolio to maintain allocation ranges.
    - using new capital and dividends
    - Fixed time frame (yearly for example)

    Starting with 50% Australian and 50% International cap weighted is a nice place to start thinking (for an Australian resident). You can adjust accordingly depending on your views on risk tolerance, how much volatility you can handle, market efficiently ....
     
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  14. twisted strategies

    twisted strategies Well-Known Member

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    i have difficulty getting decent international exposure ( not just international exposure for the sake of it )

    have ( individual ) company shares in NZ , China , Indonesia , Asia ( general ) plus JHG , INM , and PDL with some LIC exposure via PIA ( bought as HHV )

    international company research is rather tough ( relying on a LIC or ETF fund manger for choices is not my preference )
     
  15. Luke83

    Luke83 Member

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    Any recommendations on a good Lics or Etfs for emerging markets? Some of the life I have seen have very high fees (well compared to Aussie etfs).

    Won't be investing overseas for a long time yet but I do want to add a few to my watch list.
     
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  16. twisted strategies

    twisted strategies Well-Known Member

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    of the international ETFs only IKO ( South Korea focus ) interests me very slightly currently

    LICs that focus international shares TGG looks mildly attractive ( but am waiting for a big dip )

    i hold PIA ( formally HHV ) which might turn out to be OK ( but time will tell )

    in theory my largest international exposure is MQG ( bought in 2011 ) and has much of it's income generated overseas and PDL ( formerly BTT ) is in a similar space ( both ASX listed but earn income internationally )

    and a true global share is BHP ( and S32 has foreign assets as well )
    if you can tolerate the risks S32 is more focused on emerging nations

    ( my S32 is solely from the BHP divestment )