A newbie's journey into Value Investing in the stock market.

Discussion in 'Share Investing Strategies, Theories & Education' started by Sackie, 4th Feb, 2018.

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  1. Nodrog

    Nodrog Well-Known Member

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    Leo vs the Market:):

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  2. Intrigued_again

    Intrigued_again Well-Known Member

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    Thanks, Befuddled

    That explains it the DCA was only over a very short period 12months, but over the longer period the outcome becomes much wider.

    And no statistics involved I thought my old "Texas Instruments BA II plus" needed a service.
     
  3. Sackie

    Sackie Well-Known Member

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    Last edited: 7th Feb, 2018
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  4. Nodrog

    Nodrog Well-Known Member

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    Patience young Leo-son:

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  5. Kangabanga

    Kangabanga Well-Known Member

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    Was a big sell-off, some short covering will be expected. Dow futures are negative now, expect a further sell-off tonight which might hit us only tomorrow. The new "trump nominated" FED chair Powell hasn't said anything to guide the market yet(maybe he is busy golfing with Trump), so expectations are for more rate rises. US 10yr dropped to 2.7% but is now back around 2.76% again which is pretty high. Lots of $$ will be flowing back from emerging markets and AUS to USA as we speak.
     
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  6. Sackie

    Sackie Well-Known Member

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  7. Sackie

    Sackie Well-Known Member

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    Finally some books have arrived. Took them long enough.

    I have some idea of the direction I want to go but its still early to be sure so I will post my thoughts once I gather some plan based on everyone's advice and some readings. Very grateful to all really.
     
  8. Befuddled

    Befuddled Well-Known Member

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  9. Sackie

    Sackie Well-Known Member

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    That's all just interesting to me. Like the thread title suggests, when I go in, I am for the long haul and the small fluctuations wont worry me ( I hope). :)
     
  10. Sackie

    Sackie Well-Known Member

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    This is where my mind (still formulating) is at the moment:

    Capital allocation:
    70% LICs.
    20% ETF
    10% individual stocks with trying to buy under value and hold. Maybe 2 companies with 30k in each so wont take much time. The rest allocated accordingly in LICs/ETF.
     
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  11. Gockie

    Gockie Life is good ☺️ Premium Member

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    Sounds reasonable to me
     
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  12. Blueskies

    Blueskies Well-Known Member

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    I think you should go for a couple of stocks in the mix too actually, will help give you more of an appreciation of the underlying assets the LICs and ETFs are holding, and the forces that push their sharprice around. Just don't go for speculative microcap stocks with no earnings like mining explorers, biotechs, medical marijuana etc. Start with the medium/large caps with a decent track record of earnings, you can always get into more speculative stuff down the track once your knowledge/confidence grows.
     
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  13. gman65

    gman65 Well-Known Member

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    I would consider two separate portfolios/accounts.. one that is quite conservative, that is not touched, or follows the investment strategy you develop.

    The other funds will be the "learning money" where you dabble in some speculative stuff, try a few things. This one you'll likely lose money, but you can consider it an unofficial training course which will pay off in future years.

    Keep a diary as you go of what you did, why you made that decision at the time, and also some links/text to the commentary you read out there. In future years you can look back on that and it may give you a bit more clarity when you see the same things occur again. Often these things become fuzzy long after the fact "just why did I do that again?!" but you should be able to look back and apply that learning to what is happening/you see now.
     
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  14. oracle

    oracle Well-Known Member

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    Based on the above two comments and the other comments I would recommend you do something where you have an edge and interest.

    Something like this would probably be more suitable to your liking and moving into the big boys league

    - Private investor buys Coles mall for $35m
    - 10 malls in 18 months. Building Amazon proof portfolio

    Read more: Toorak's David Feldman buys Torquay Village on 5.9pc yield
    Follow us: @FinancialReview on Twitter | financialreview on Facebook

    Have you thought about investing in Commercial property?

    Cheers,
    Oracle.
     
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  15. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Does that make a 15-20% fall a slash? :confused:
     
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  16. Zenith Chaos

    Zenith Chaos Well-Known Member

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    WAX on (when it dropped 6%)
    WAX off (when it climbed 6%)
     
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  17. Zenith Chaos

    Zenith Chaos Well-Known Member

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    I think this is a good start as it shows you are thinking about your decisions.

    However, just to add a spanner in the works, your allocation between international and Australia should probably be your first decision as it is more important than LICs vs ETFs. There are only a few decent international LICs imo (including for example PMC, FGG, PIC, MFG, PGF) that all generally charge significant fees so you may want to consider an ETF such as VGS for most of your international allocation, as the international market is not heavily bias like the ASX is to banks for example. The reason we buy LICs and ETFs in the first place is diversification so if you bought 100% Australian LICs/ETFs you'd be overexposed to banks and telcos etc. Minimum international allocation imo is around 20% but we've had that discussion here which you can read about.

    Food for thought but not advice.
     
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  18. Sackie

    Sackie Well-Known Member

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    I want to, that's why I'm allocating 10% to individual stocks. Large caps yes. 2 companies, 5% capital allocation in each. gonna try and identity good value for 'cheap' price . Just what exact method i use im still deciding mate . But 2 companies won't take much time to research and manage . The rest in lics/etf.
     
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  19. Sackie

    Sackie Well-Known Member

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    I'm trying something similar . The etfs/lics i won't touch. The more 'risky' ones will be the two stocks I manage.
     
  20. Sackie

    Sackie Well-Known Member

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    Haha ...i wish .

    I have some commercial properties in Asia which are great for CF but none in Australia . I would rather stick to residential here . I feel for me the risk is more inline with my risk profile .
     

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