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If you had 200k cash to invest what would you do with it?

Discussion in 'Other Asset Classes' started by Abooking, 10th Sep, 2015.

  1. Abooking

    Abooking Well-Known Member

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    If you had a spare 200k that you didn't need access to and looking at a 5 - 10 year outlook what asset class would you invest in?

    I would not want to invest in another property due to land tax issues.

    Term deposits and online saver accounts are out of the question.

    If a further large correction occurred in the oz share market then that would be an opportunity to jump on. International share markets are out of the question at the moment due to the low aussie dollar- too much currency risk.

    What are your thoughts?
     
  2. Hodor

    Hodor Well-Known Member

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    So you want no risk, good returns and have ruled out most asset classes?

    I would have recommended some of the Etfs otherwise
     
  3. FireDragon

    FireDragon Well-Known Member

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    What about buying property in another state to avoid land tax issue?
     
  4. leon brown

    leon brown Active Member

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    oil stocks
    dyor
     
  5. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    I think you've come to the wrong forum :D
     
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  6. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Well somebody in another thread said black, so I'll be contrarian and say red.
    Seriously though, I got some money to invest too, but nothing outstanding appeals right now, so offsets will have to look after the funds for now.
     
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  7. The Falcon

    The Falcon Well-Known Member

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    The real question is what is your expectation of returns?
     
  8. sanj

    sanj Well-Known Member

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    200k can go a long way invested in a fast growing business, be it a privately owned SME or a public unlisted one so that woulf be where id put it personally
     
  9. Esh

    Esh Well-Known Member

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    Maybe you can use that to add on what you already have. Example Reno (not the whole 200k), building up if single storey, adding granny flat, or subdivide if able to
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'd pay it into my PPOR loan , then debt recycle it back out and use it as 10% deposit and costs on 4 properties.
     
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  11. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Can you give any example please?
     
  12. sanj

    sanj Well-Known Member

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    Sure. Last year and again earlier this year invested in a company called vgw (virtual gaming world), they are looking to ipo on asx in a few months. Last month alone revenue was nesrly 900k which is pretty good considering the product only launched about a year ago. First investment in it was at too high a price 10c, 2nd one 4c, 3rd one 5c with free 5c oppie at a 48m valuation. Im hoping for a 150m val within 6 months which, once free oppie taken into account should see 7x gain on last lot and overall about 4x gain averaged across the 3. Certainly not without risks, in hindsigjt shouldnt have participated in the first raising but 2nd and 3rd made sense.

    There is another tech startup im investing in atm which looks promising. It's an all or nothing one imo, i could lose 100% or could make 20x my money, im hopeful of a good result but wont see any liquiditu for at leaat 2 years i suspect

    Last year invested in a friend's distribution business. This one im most confident on as i have direct involvement and it's growing very quickly
     
    Last edited: 11th Sep, 2015
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  13. D.T.

    D.T. Adelaide Property Manager Business Member

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    Are you an angel, Sanj? :p
     
  14. sanj

    sanj Well-Known Member

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    My mum thinks so :D
     
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  15. D.T.

    D.T. Adelaide Property Manager Business Member

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    Hehe must be the gold shirt :D

    I meant as in Angel Investor
     
  16. sanj

    sanj Well-Known Member

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    I dont know, possibly but not in any formal capacity.
     
  17. The Falcon

    The Falcon Well-Known Member

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    At the end of the day the greatest opportunity lays in private companies that you can take a decent stake in and be involved in. This is where real money is made, and where I'd put the 200k.

    Expecting to find a magical asset on the open market offering fantastic risk adjusted returns is naive. The market is pretty efficient and there is lots of lazy money looking for a place to park and make a fortune .... So the opportunity is arbitraged away to a large extent in public markets.

    As per Sanj's example he has specific knowledge in these areas and has done well. But, the country is littered with people who thought they had specific knowledge until they blew themselves up and their investments went to zero or worse. (Making a point Sanj :) ) If you need to ask as to what the opportunities are and get tips then you are on the outside and are dumb money.

    So in order to achieve outsize risk adjusted returns you need ;

    - specific knowledge / capability and or
    - off market opportunities were the value hasn't been arbitraged away

    Failing this, we introduce significantly more risk and buy;

    - unloved cyclical stocks, perhaps energy right now.
    - take punts on other individual stocks, turnarounds, story stocks etc.
    - use a trading system. (Results may vary ;))

    In conjunction with applying leverage to magnify gains...or losses.

    This is how to achieve market beating returns. Or, you could accept market returns (for a given asset class) and focus on cash inflows, reducing expenses and thinking long term. Historically this has worked well.

    So it comes back to what is OPs expectation ?
     
    Last edited: 11th Sep, 2015
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  18. Abooking

    Abooking Well-Known Member

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    Thanks for all the replies. If the aud was not so low I would invest in Fbook and / or google, Amazon, Apple. The return on the FANG stocks on NASDAQ will be considerable in the next few years I predict.
     
  19. chylld

    chylld Well-Known Member

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    I wanted to do this so i checked out some startups founded by uni friends but nothing really stood out. Parked my cash in managed funds for now, will be on the lookout for more SME opportunities
     
  20. larrylarry

    larrylarry Well-Known Member

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    Hi @The Falcon this may be a stupid question but where do you find private companies that need injection of funds?