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What got you into investing in shares?

Discussion in 'Shares' started by Jerry_O, 22nd Sep, 2016.

  1. Jerry_O

    Jerry_O New Member

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    Hey guys!

    I am just curious to know what got you into shares? I know most of the answer would be for diversification. But would still love to hear your unique story on what got you into this?

    As for myself, I have been investing in the property market and it just came to a point where I can no longer by for the time being due to serviceability but would definitely buy again if I have the means. So, for the mean time, I am reading some books and articles about it and starting to get my head around this investment vehicle. I have been contacting @austing who has been very helpful with the resources and his opinion on a few things.

    Main goal for me would be to come up with a larger cash funds later on for a deposit by investing small amounts each month (less than $500). Instead of saving pure cash, I am thinking of investing it in Vanguard Funds as this allow me to BPAY monthly even in small denominations.

    How about you? Thanking you in advance for sharing!

    Cheers,
    Jerry
     
  2. trinity168

    trinity168 Active Member

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    Hi Jerry,

    I had no interest in shares whatsoever previously. Dabbled in it back just shortly before GFC, lost about 7K in some small stock which dissolved. I can't even remember the name of the stock.

    Around April/May this year, we had hit our serviceability wall terms of buying investment properties. I wanted to start exploring getting into business but somehow, by fate, I heard this podcast on Planet Money NPR regarding Warren Buffet ( Briliant vs Boring ).

    I got back from holidays in May, and spent most nigths reading up on ETFs/LICs on PropertyChat. I've now started to make purchases on LICs.

    Am enjoying the learning process. Am thankful for this community for providing many mentors.

    Cheers.
     
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  3. austing

    austing Well-Known Member

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    One word "INCOME" and lots of it.

    image.jpeg
     
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  4. branson

    branson Member

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    Started by buying a second-hand book by WD-Gann around about 1990,this man from what i read devoted his life to working in-between numbers-how to time short -long cycles mixed with astrological predictions..
    Gann books are very hard to understand,but if you bypass the astrologers part most of what he talked about when his Coffee Charts from march 7th 1882
    came out makes very interesting reading..
    Gann suggests that when trading even in 1882,that your stops never be no more the 3% either way,and make sure that your trading account account is no more then 10% of your net cash worth,no sure that would work these day the day trading amount that is..

    [​IMG]
     
    Last edited: 22nd Sep, 2016
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  5. austing

    austing Well-Known Member

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    Yes went through a phase in my life where it was all about trading. Silly silly boy:rolleyes:.

    I received training from an excellent futures trader using strategies that were based on Gann's techniques. But it took it to another level with the use of multiple timeframes.

    This will give you an idea and it's the software I used also:

    Fibonacci Trader What is Multiple Time Frames

    But that was then. Nowadays it's all about buying and holding for dividends.
     
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  6. austing

    austing Well-Known Member

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    I wonder if he invented the vibrator:D?
     
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  7. branson

    branson Member

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    Not sure i'm still trying to work out how to keep the stout home brew from blowing up..
     
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  8. austing

    austing Well-Known Member

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    Well don't leave it sitting on top of the vibrator:eek:.

    Oh home brew, the second love of my life. My first love is my wife, she makes the home brew:D.
     
  9. Jerry_O

    Jerry_O New Member

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    i know! very helpful community indeed! so thankful to everyone who cares to contribute. hoping to one day share my accumulated knowledge to others. in the mean time. lets be the student and keep learning.
     
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  10. Jerry_O

    Jerry_O New Member

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    Investing for income.. does this mean you are more focus on stocks with good dividend returns more than capital appreciation? or it has to have a balance of the two?
     
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  11. Jerry_O

    Jerry_O New Member

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    i didn't quite get it. but bare with me. i will get there one day and will get back to you with a more valid and interesting response. haha. thanks for sharing!
     
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  12. austing

    austing Well-Known Member

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    The best dividend returns will often come from stocks with good capital appreciation. That is, lower yield now but strong dividend growth overtime. These are referred to as dividend growers. Then there are those stocks with a high yield now (eg banks) but the dividend growth may be potentially less in comparison. These are referred to as dividend payers.

    And importantly I'm referring to Industrial shares here.

    As for me I mostly buy LICs nowadays and leave this to them to fret over.
     
  13. Hodor

    Hodor Well-Known Member

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    I first heard about shares when I was around 12 on the radio and it made sense. Anyway called up a broker on the phone and after some faffing around getting a TFN I made my first purchase with money from a paper round I had. After plenty of negative feedback I never got past one purchase.

    Over a decade later I dabbled every couple of years with small amounts, never had the motivation or found a philosophy that really made sense and got into property.

    A couple of years ago now we looked at our property portfolio and decided that was enough property exposure and leverage for where we are in life. I decided to look at shares again, started reading and now it is full steam ahead with LICs and some ETF support.
     
  14. Il Falco

    Il Falco Active Member

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    I like business. One house is enough for me.
     
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  15. branson

    branson Member

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    Even when you do have a understanding of it all,the crowd sentiment will always reflect only what people have done yesterday..
    Then you have the opinion makers who own zero stocks and sit between short and are always bearish,only to end up thinking it's all over then go bush with a few soup cans and a gun..
     
    Last edited: 23rd Sep, 2016
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  16. orangestreet

    orangestreet Member

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    As with @Hodor, I was dead keen on investing in IPs as well. Not because I loved houses as an investment but instinctively knew that doing nothing wasn't going to give us a single day of freedom in our lives.

    Went hard and accumulated a few IPs. Always had that feeling in the back of my mind that the rents from the cash-guzzling IPs was never going to enable us quit the rat race. Buying those IPs and holding it for a few years crystallised those thoughts. Even with a high savings rate, the outgoings from the IPs continually put a pressure on the family budget.

    I always wanted to diversify into shares at some stage in my investing 'career'. However, after a recommendation on Somersoft or PC, I decided to purchase and read Motivated Money from Peter Thornhill. That graph (@austing shares it often) comparing term deposits and industrial shares made a big impact on me. Fortuitously, the LIC and ETF thread took off on PC at the same time and put my learning curve on steroids.

    After a helpful chat to @austing, we decided not to invest in IPs any more and focus on purchasing dividend income producing LICs that is spoken about so often in these forums. Thankfully, at that stage, I still had a substantial amount of cash left over from our IP purchases to make a healthy start with shares.
     
  17. wombat777

    wombat777 New Member

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    I started actively investing in shares about 2 years ago ( before I started investing in property ). Prior to that I have and still hold an investment in an employee share scheme. A relative of mine did well for many years and I decided to follow his lead.

    I initially started relatively small in November 2014 based on stock-picking recommendations from Motley Fool. I started with 4 smallish trades based on some of their earlier recommendations. Slightly down the track, the logic for the recommendations still looked good and they were at a better price.

    Fast-forward 2 years and I've progressively grown the portfolio through new trades, capital growth and dividend returns ( now hold a combination of 19 stocks and ETFs ).

    With increased knowledge / confidence from this initial investment and discussions on PC I decided to direct-invest a sizeable portion of my super in ETFs ( disappointed with the fees and returns in my super ). Yet to see how this goes as it has only been a few months and there have been no dividend payments yet.
     
  18. OscarBravo

    OscarBravo Member

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    Fell into as a job as a youngster. Ironically, this meant that most of my personal investing was based on property due to compliance! With compliance being (somewhat) less strict at my new place of employment, I'm back investing in equities. Started with a growth focus, moved to a deep value focus and have ended up focusing on dividends.
     
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  19. austing

    austing Well-Known Member

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    That's a bugger of a situation, similar thing happened to us for a period of time. Would never have invested in direct property otherwise.
     
    Last edited: 23rd Sep, 2016
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  20. CatCafe

    CatCafe Member

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    I was looking into a way to convert capital into income, with the hopes of passive income replacing earned income, and to minimise the headaches of maintaining a property portfolio.