Looking to start an ETF/LIC Portfolio.

Discussion in 'Share Investing Strategies, Theories & Education' started by Chris1992, 15th Sep, 2018.

Join Australia's most dynamic and respected property investment community
  1. Pier1

    Pier1 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    487
    Location:
    Traveling In Time
    The only laughing around here bud is when the quarterly divies roll into their bank accounts, oh and when Nodrog has a cracker batch of home brew, then they are all giggling like school kids.

    What is the interest rate on Dollarmite accounts these days anyway
     
    KayTea, Snowball and Nodrog like this.
  2. Shazz@

    Shazz@ Well-Known Member

    Joined:
    24th Jun, 2018
    Posts:
    1,310
    Location:
    NSW
    I looked at the managed fund option as well- fees were high compared to doing it yourself.
    In terms of record keeping, Vanguard send you an annual tax statement in August.
     
  3. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    11,379
    Location:
    Buderim
    Not for vanguard wholesale but you need starting capital of $100K to get the deal.
     
    Shazz@ likes this.
  4. Danieljk101

    Danieljk101 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    168
    Location:
    Sydney
    Things are certainly quite eurohoric around here, this bull run MUST be different to the others, these gains will go on forever!

    (In case the sarcasm isn’t detected - research Wall St cheat sheet)
     
  5. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    "A great deal of the S&P 500 inflated share prices is the result of the massive amounts of money in share buybacks – 1 trillion dollars worth this year 40% of which is accounted for by tech companies – thus we see the first trillion dollar companies like Apple appearing in the market."

    I think this person needs a lesson in maths, market cap and/or buy backs.
     
    Snowball likes this.
  6. Islay

    Islay Well-Known Member

    Joined:
    28th Jul, 2018
    Posts:
    845
    Location:
    somewhere
    Agree, this is a good read. I was around but not a share market participant for the 1987 crash circa 41-2%. It was very different to the GFC but we learnt a lot. We were a young family with a mortgage. If you had a mortgage in 1987 there was no room for any more leverage! Variable interest rate was 15% from memory. We learnt that quality companies/shares survived. Many penny dreadfuls and over leveraged companies failed. We started to accumulate quality shares with the float of CBA in 1991. For many years we dividend reinvested. Bought more shares as we could. Never sold no matter how scary the market. We semi retired at almost 50 in May 2008 the GFC hit in November the same year - talk about timing! We could have continued to work but we had amassed enough quality dividend paying shares that even with the reduced dividends we were able to ride out the market correction. Anyway, that is the long way to say that a conservative portfolio of quality shares over the long term (decades) has worked for us
     
    KittyCat, wylie, KayTea and 14 others like this.
  7. Pier1

    Pier1 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    487
    Location:
    Traveling In Time
    Don’t confuse common sense with euphoria.

    I don’t believe I have seen too many of the “this time it’s different” this bull market’s going to the moon in a Lambo.
    Well maybe I did notice a couple of those ones over in the Bitcoin Billionaire Ballroom early in the year, but I believe the Illuminati soughted them out quick smart.

    No, the general mantra around here from what I have noticed is one of slow and steady investing in quality when you can, reinvest the divies for compounding and you will likely be ahead of the Dollarmites.

    Sorry I am Dutch your going to have to crank that sarcasm up a notch or three for it to register, that attempt would embarress most Grade 3 dutchies...... - research Trade the Tape.
     
  8. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    I'm only interested in when the market is going to crash, how much it will crash and when I have accumulated enough to buy my next tranche, in that order.
     
  9. Danieljk101

    Danieljk101 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    168
    Location:
    Sydney
    This is a very reasonable approach.

    Taking money from an inflated stock market and putting it into gold/silver/bitcoin(high risk) is also a good move in my opinion. *tin foil hat still firmly attached....

    If the asset is sound, investing via market cycles is where the real money is made.
     
    Daniel007 likes this.
  10. Maestro23

    Maestro23 Member

    Joined:
    31st Dec, 2016
    Posts:
    5
    Location:
    VIC

    What do you think will happen to cryptocurrency during the next big crash?
     
  11. Zenith Chaos

    Zenith Chaos Well-Known Member

    Joined:
    10th Jul, 2015
    Posts:
    1,673
    Location:
    Sydney
    What's the intrinsic value of crypto? There's your answer.
     
  12. Danieljk101

    Danieljk101 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    168
    Location:
    Sydney
    All you need to look at are the countries in crisis at the moment. Bitcoin is booming in Turkey, Iran, Venezuela, Argentina for example.

    If people loose faith in their government, currency or local stock market they generally go running for a global store of value - historically gold and silver. With the increasing digital age and youth preferring crypto currency it’s something to think about.

    With the NYSE and NASDAQ providing easy on ramps in the next 6 month bitcoin might be a winner..
     
  13. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    Good on you for sticking to your guns when others have doubt and critise. Including me poking a bit of fun, no insult intended.

    Still, I'm not sold on the next crash making the GFC look like child's play or crypto been the answer. I actually find it ironic that people promote the most volatile "asset" because of a worry of a stock crash.

    Spend less than you earn and invest the difference in quality investments is the best hedge against the unknown I can come up with
     
    miximitosis and RS Gumby like this.
  14. Danieljk101

    Danieljk101 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    168
    Location:
    Sydney
    I was actually the biggest critic of crypto before I did a lot of research. It’s not for everyone though, the volatility swings are not for the faint of heart.

    My parting crypto tip : XRP (ripple) set to take over / intergrate with SWIFT banking system, buy now :)
     
  15. PandS

    PandS Well-Known Member

    Joined:
    14th Feb, 2017
    Posts:
    1,165
    Location:
    NSW
    best way to worry about the crash is shorting it when it reaching level you think sustainable

    as of last week I hold short Nasdaq and last night I went short the Dow
    i only need it to pull back a few % and if it crashed mama mia what would I do with the cash ?

    I also hold very large stock holding not intending to sell but buy more when crashed come but shorting it also act as a hedge
     
    Pier1 likes this.
  16. Anthony Brew

    Anthony Brew Well-Known Member

    Joined:
    18th Feb, 2017
    Posts:
    1,176
    Location:
    Australia
    Someone wrote a thread over at boggle heads in 2015 about cashing out everything because a big crash is coming. They are still waiting and in all cash. If the market drops 30% in this supposed crash, he still would have been ahead if he left his money in. My question would be, what makes now different to 2015? There is no reason this couldn't replicate and continue upwards for another 3 years. I has certainly happened before.
     
    Snowball, Redwing and Hodor like this.
  17. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,238
    Location:
    Homeless
    There's always someone, about the same time I was reading someone saying they were waiting for VAS to go below 60 before they enter the market again and start buying. Eventually one of these people is right and they can rub it in my face.

    Anyway I have less important things to be doing, I'm all about the less important and irrelevant these days. Like heirloom watermelons and pumpkins
     
    sharon likes this.
  18. PandS

    PandS Well-Known Member

    Joined:
    14th Feb, 2017
    Posts:
    1,165
    Location:
    NSW
    Sure nothing stopping it from going higher or know when exactly the correction will come, no one can predict the future with any certainty that why I usually don't worry about crashes.

    you can only make educated guess with what you know and put risk management in play to manage your position.

    Buy and hold you be at the mercy of the market, you can only buy low sell high, but add a few more instruments to it you are in a little more control
    and make money in bear and bull market.

    I make more money in bear market as I specialise in shorting, profit from fear is better than greed as there is no logic to it everyone is heading for the exit, add in margin call, add in force sale, add in Billion of dollar wipe headline, one cool combo for profit from fear.
     
  19. Pier1

    Pier1 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    487
    Location:
    Traveling In Time
    Agree.
    For the life of me I don’t understand why investing in shares is always treated as a binary decision, invested or not invested.

    You have on going obligations? Easy - take out income protection
    You have a family you would like to look after? Easy - take out life insurance
    You have a house you have sold your soul for? Easy - take out home and contents insurance
    You have ...........
    You have a share portfolio you want to protect? Easy - “insure” it

    Plenty of easy ways to do this, many mentioned in these boards previously, BBUS, BBOZ, short the various indices. Whatever your poison there are options available.

    Not that I don’t agree with those concerned about a perceived “euphoria” being a bellwether for a top in the market, it’s just that like other insurable events no one knows if or when it will happen, but you can certainly insure for it if you so desire.
     
    KittyCat, Nodrog and Redwing like this.
  20. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    I love following the posts of the 'more serious' investors in here - I learn so much, and get a bucket-load of entertainment at the same time. It's a double-win, no-brainer to keep following your 'discussions'.
     
    Nodrog, sharon and monk like this.