My portfolio. Does this look ok?

ASX 300 proxy

 

Back in town

 

The dollar amounts don’t matter. Extremely deceiving. It’s the percentage loss that’s not important. I’m sure some time in the future there will be many hundreds of billions ‘lost’ in a week from the same percentage movement simply because the total market value will be much higher.

Well it depends. For an income investor it means very little.

You’re a cashflow investor right? If you’re house goes down by 5% in a week and then back up again the week after, what do you care? You simply collect the cashflow end of story. The market movements should only really be a cause of concern if your income is going to be affected. I know emotions come into it but this is how we should at least try and approach it.

I think it’s actually helpful if someone new buys a parcel and experiences a small downturn, because they’ll learn that the sharemarket doesn’t always go up and not to bother trying to time it.

They can then buy more at the lower price because the income is unchanged, similar to what you might do with a cashflow property.

All this news about nothing. The market is down a couple of percent after going up 30% last year.

Nerves of steel? Hardly. Just a long term focus on the steadily rising income paid from a large basket of prospering companies.

I sure hope no one is ‘playing’ out there. It’s sure to end badly. They should go and ‘play’ at the casino.

The markets are for long term income generation and wealth building.

 

But anyone buying shares using cost averaging strategy is playing?

Timing is importantant regardless and capital is just as important as cashflow just my opinion we all have one like belly buttons

Imagine losing 50% capital ie Telstra shares... ?? No worries I got my dividend but lost 50k capital

MTR

 

Looking back at ASX200 accumulation index (to 2000 anyhow)

30 June.. Index Value.. Yield
2017 ......55,759 14.09%
2016 ......48,872 0.56%
2015 ......48,602 5.68%
2014 ......45,991 17.44%
2013 ......39,163 22.75%
2012 ......31,905 -6.71%
2011 ......34,201 11.73%
2010 ......30,610 13.14%
2009 ......27,054 -20.14%
2008 ......33,875 -13.41%
2007 ......39,119 28.66%
2006 ......30,405 23.93%
2005 ......24,534 26.35%
2004 ......19,417 21.61%
2003 ......15,967 -1.71%
2002 ......16,245 -4.69%
2001 ......17,045 9.07%
2000 ......15,628 15.51%

 

Thanks for sharing
GFC hurt bigly.....2008/9

 

Did you look at the previous 4 years?

2007 ......39,119 28.66%
2006 ......30,405 23.93%
2005 ......24,534 26.35%
2004 ......19,417 21.61%

$100 invested in 2004 would be $245 in 2007 excluding dividend income.

Cheers,
Oracle.

 

Yes i did amazing, what I mean about timing

 

I know your view on market timing for properties and the success you have had with it. However, I really think that you are missing the mark if you're trying to equate the same strategy to the share market. No offence, but simply looking at stock markets with hindsight to justify a timing strategy not only shows a lack of understanding but is also really dangerous.

I think it's pretty obvious that if you can buy at the bottom and sell at the top you'll do very well, think that goes without saying. Trying to execute that strategy, however, is incredibly difficult and is how most average investors lose their shirt in the market.

 

No offence taken

 

It's the accumulation index.

If you bought at the worst possible time six years to break even ain't too bad.

 

Hi @pippen ,

No new developments yet. I'm sitting tight for the moment..


-Frank

 

Yeah I haven't invested in anything new yet. Other than the original ARG, MLT and PMC stocks I purchased late last year. $75k worth.

I keep hearing news of a corection this year. I realise nobody can predict but I'm being a little cautious at the moment and sitting tight. My money is invested at 2.5% anyway right now just sitting in the bank so it's not too bad. I realise this will get me nowhere fast if I leave it like this too long but for the moment I'm ok with that for a few more months..


-Frank

 

Its true the weekly price doesn't matter and that the dividends is what counts, but still Id like to try to get into the market at a better time if I can.


-Frank

 

Given you’re a property investor I can understand why you focus on capital gain as the NET income is crap. It’s the opposite with shares. Why do you think a number of us retirees here sold most / all our IPs to invest in shares leading up to retirement?

Many of us buy the entire market (index / index proxies). Hence stock specific risk as in TLS is removed. Single stocks can go bust, while entire markets don’t!

Unlike property small amounts of capital can be invested regularly with minimal transaction and no ongoing costs.

Picking market tops and bottoms is crystal ball stuff in most cases. So averaging in over time using cash savings and reinvesting dividends ain’t a bad strategy. Then when the **** hits the fan that’s when leverage can be applied. No predicting, just grab the opportunity when it arises. Always make sure dry powder in the form of LOC etc is on standby.

Here’s what’s possible if one favours dividend paying shares (Industrials). A bit out of date so it’s understating the result:



And if you’re a Retiree consuming the dividend income this chart is applicable. Please note that this doesn’t Include franking credits which substantially increases income for many retirees given their tax curcumstances:



It ain’t fiction, a number of us here are beneficiaries of that amazing thing known as dividends.

 

Fair enough Frank. The money you’re intending to invest is a rare windfall. I don’t blame you for being cautious. Cash returns are low but sleep at night factor is everything. Investing strategy needs to match your psychological makeup.

 

Nothing wrong with 2-5% sitting safe Frank..-- one bank offered me that a few weeks ago because the way money transfer works and ASX settlement times and on the time for the div,s i had to purchase that day to obtain the div they don't like you when your order above 100k in cash and walk out,and from what i read about equities investors-- personality is not as big a factor as one thinks..The big one is how we cope with low range stressors that in normal terms predicts how we,ll do once the big stuff hits..

 

Hello again everyone,

I have been lurking for a while and not posting.. I've been spending my days quietly reading and studying both the share and Sydney property market to find how to best invest my money.

For those who have been following this thread I thought I would pop back in again and let you know how I finished up and how this chapter ends and a new chapter starts..

Well, after going through 3 different financial advisors here in Sydney and reading books and researching and asking questions to you all, I have finally decided to go with the advice of @Alex Straker whom I'm sure you all know from the forum here.

I have been chatting to him on the phone casually on and off for a while and have feel very comfortable with him and with his advice.

Alex thank you mate I really appreciate all your help, you've made the whole idea of investing for me easy , you've explained it all well and have made me comfortable with it You are a master in your field and a great guy as well

Although I continue to hold LIC's in my own Commsec account as I am a big fan of the Peter Thornhill style of investing, Alex and myself have not gone down this road for the majority of my funds. I'm sure Alex can elaborate on this for anyone wanting to know the nitty gritty.

So everyone I just want to thank you all for your help over the months. Especially those who have been having private conversations with me offering advice as well.



-Frank

 

Do you want to share any high level details i.e asset class, general strategy?

 

Hi Ouga,

I'll be away until 3rd Sept and can elaborate a bit when I get back.. I'm in the middle of packing and doing short replies to emails and posts in the meantime

But possibly @Alex Straker can comment in the meantime?


-Frank