Investing in share ... help !!!

Hi everyone, thank you for all the advices. It’s a lot to think about.

@Nodrog : what is the difference between VDHG and VAS?

For me, maybe i’ll try to do the automatic thing, buying every 2 or 4 weeks. I am not good with timing the market and lost money before.

Also, do you invest in your own name or under a trust ?

Thanks.

 

Important to know what you’re investing in.

VAS:
https://api.vanguard.com/rs/gre/gls/1.3.0/documents/7639/au

VDHG:
https://api.vanguard.com/rs/gre/gls/1.3.0/documents/11894/au

Have a read of these short fact sheets. The difference should become self evident.

 

In that case perhaps Vanguard unlisted diversified fund might be better suited. After initial investment can set up auto BPay to add then forget about it. Only issue is you need $100k to get started but can then add small amounts after that as suggested above.

 

Thanks. Do you buy in your own name or a trust ?

 

Hi @Kelly88 , I know this question was directed @Nodrog but I’ll chime in. I personally use a trust for all my investments but it doesn’t necessarily mean that’s the best option for you. It’s a loaded question and the answer will depend on many factors dependant on you and your families personal situation.

I personally think trusts are suitable for families who have large investment portfolios with members you can distribute all that income to. Also how far you are from retirement plays a factor with which vehicle you direct your investments towards. Super is a great vehicle to hold long term investments as well.

Many many variables to consider.

 

Timing is perfect...

I have no idea what happened but apparently, I have bought 1 share at almost 100 times more

 

Strange. I'd be ring the broker and try and get a refund or some brokerage credit.

 

I’m in the process of gradually winding down our trust reverting back to personal names outside Super.

You really need to see a professional in relation to this. Simplicity is my motto nowadays. However it depends on many factors. Minimising tax can speed up wealth creation but some investors have gotten themselves into complex structures they later regretted. Not something I would rush into. Seek advice.

Note Disc Trusts are also on Labor’s hit list with proposed major changes. Perhaps taking a wait and see approach is prudent until more is known.

Also where does Super fit into your plan?

 

Again maybe worth waiting to see what happens after the election. If Labor succeed in legislating a minimum 30% tax on all Trust beneficiaries this could reduce opportunity for tax minimisation.

 

Thank you everyone. I don’t have 100K to invest now, unfortunately, so I will go with VDHG. It will take me months to save for 100K as I don’t want to borrow for now. Would you buy now or wait until after the election ? Tx

 

@Kelly88

 

I'll bite. I have found this list from 1968 (with thanks to a historical pack from Perpetual). It seems BHP and Rio gobbled up most of them....

COMPANY MARKET CAP ($M)
BHP 3,049
North Broken Hill 1,583 (Takeover by Rio Tinto in 2000)
Conzinc Rio Tinto 1,490 (Now known as Rio Tinto)
Hamersley 1,250 (Takeover by Rio Tinto via Pilbara Iron Pty Ltd)
Mt Isa Mines 749 (Takeover by Xstrata, merged into Glencore)
Western Mining Corp 660 (Takeover by BHP in 2005)
CSR 363 (Rinker spun off (2003) and sold to Cemex)
Myer Emporium 295 (Market cap hovering around $600m today!)
New Broken Hill Corp 235 (Reconstructed as NBCH, then takeover by Aust Mining & Smelting, then takeover by Rio Tinto)
Ampol 196 (Takeover by Pioneer International in 1989)

Regarding the top 50 from 1989, I'm having difficulty sourcing a list, however, as a reverse look at history, we can examine the current top 50 and see when they were added to the ASX (bolded companies denote additions to the ASX since 1989). Information sourced from Wikipedia and delisted.com.au


Code Company
CBA Commonwealth Bank (Listed 1991, Government sale)
BHP BHP Group Limited
WBC Westpac Banking Corp
CSL CSL Limited (Listed 1994, Government sale)
ANZ ANZ Banking Group Limited
NAB National Aust. Bank
MQG Macquarie Group Limited (Listed 1996)
WOW Woolworths Group Limited (Listed 1993 - spun from Adsteam)
TLS Telstra Corporation (Listed 1997, Government sale)
WES Wesfarmers Limited (Listed 1984)
RIO RIO Tinto Limited
TCL Transurban Group (Listed 1996)
WPL Woodside Petroleum
GMG Goodman Group (Listed 2005 as Macquarie Goodman Group)
FMG Fortescue Metals Group (Listed 1987 as Lake Raeside NL)
SCG Scentre Group (Spun from Westfield Group)
NCM Newcrest Mining (Listed 1987)
S32 SOUTH32 Limited (Spun from BHP - mostly from Billiton assets acquired in 2000)
BXB Brambles Limited (formerly Brambles industries listed 1962)
SUN Suncorp Group Limited (Listed 1988 as Metway Bank)
AMC Amcor Limited (Listed in 1969)
IAG Insurance Australia (demutualised in 2000 as NRMA Insurance)
SYD SYD Airport (Listed 2002 as Macquarie Airports Group)
QBE QBE Insurance Group (Listed 1973)
COL Coles Group (First Listed 1929 as GJ Coles and Company. Merged with Myer 1986, sold Myer in 2006, takeover by Wesfarmers in 2007, relisted in 2018)
ALL Aristocrat Leisure (Listed 1996)
AGL AGL Energy Limited (Listed 1986(?), spun out Australian Pipeline Trust in 2000, Corporate shenanigans with Alinta and Babcock & Brown in 2007).
STO Santos Limited (Listed 1954)
ASX ASX Limited (Listed 1998, acquired Sydney Futures Exchange in 2006)
RHC Ramsay Health Care (Listed 1997)
DXS Dexus (Listed in 2004 as DBREEF Trust, acquired Commonwealth Property Office Fund in 2014, which was first listed in 1999)
ORG Origin Energy (Listed 1961 as Bitumen and Oil Refineries Australia Limited (BORAL))
OSH Oil Search Limited (Listed 1974)
APA APA Group FP Units Stapled Securities (Spun from AGL 2000)
SHL Sonic Healthcare (Listed 1987 as Gunnerson Nosworthy Limited)
GPT GPT Group (Listed 1971)
TWE Treasury Wine Estate (Spun from Fosters in 2011, can be traced back to Beringer Blass Wines and Southcorp, Lindemans and Penfolds companies)
MGR Mirvac Group (formed in 1972, Listed in 1999)
COH Cochlear Limited (Listed 1995)
VCX Vicinity Centres (Former Centro Properties (1991) and Former Gandel / CFS Gandel / CFS Retail Property Trusts (1994) - various restructures)
CPU Computershare Limited (Listed 1994)
SGP Stockland (Listed 1987)
QAN Qantas Airways (Listed 1995, Government sale)
AZJ Aurizon Holdings Limited (Listed 2012 as QR National, Qld Government sale)
JHX James Hardie Industries (CDI) (First Listed in 1951, re-domiciled as a Netherlands company in 2001, re-domiciled again in 2010 to Ireland)
MPL Medibank Private Limited (Listed 2014, Government sale)
LLC Lendlease Group (Listed 1962)
CTX Caltex Australia (Listed 1980)
ORI Orica Limited (Listed 1961 as the Imperial Chemical Industries of Australia and New Zealand Limited, spun out Dulux Group in 2010)
AMP AMP Limited (demutualised in 1998)

 

@Redwing : thanks ... do you have similar graph for VAS, ...? Thanks.

Kelly

 

It would look something like the below

 

No wonder PT doesn’t like resources companies. Most of them end up being gobbled up which creates such a huge disruption with ongoing dividend payments from those companies

Finally, it all makes sense when he says dividend payments from resources companies are unreliable

Cheers
Oracle

 

@oracle PT is a basic intro to buy and holding investing, with some nasty adjuncts that muddy the waters unfortunately. A bit like a lot of liquor actually.

 

I have another question for all the share investors, what is the best way to record all the share prices and dividends, if you buy so regularly? Thanks.

Also, assume that you buy 100 shares from one company, and you top it up with another 100 shares. Will the company record that you now have 200 shares? Can you just sell 120 shares in one go ?

Finally, is it better to buy e.g. 5K shares twice a month or 10K once a month, given the broker fee is $20. I don’t really know how to set the buying price though oh oh...

Thanks

 

Yes, brokerage is fixed, $20 up to 10K, for Commsec. However, with $5K twice a month, I can enter the market at different time and maybe buy different shares. Accounting must be difficult for dividend re-investment ?

Tx