My portfolio. Does this look ok?

Just have to ask the question ""Frank""?,now that you have had time in the market is it paying off ?..

 

>>Frank Manno said: ↑

>>Actually we held off on investing because @Alex Straker suggested a few months back that we >>hold off for a bit and leave it until the market drops towards end of year.. Good prediction

>>We started to invest a bit now..


>>-Frank

Haha love the pic

Well as per the quote above, I did invest towards the end of last year. 2018

I invested a total of 35% of my cash in assorted funds but not LIC's.. But a few months ago I decided to pull most of it out, I feel the market has been too expensive and at an all time high lately and I'm waiting for the next major drop and then I will buy in again.

When I originally bought in, in Nov 2018 while the market was down and pulled out when it was up, so I made a nice profit from this already.

Originally as you know, my intention was to leave money in the market long term but the market is at an all time high right now while I'm still at the beginning of my investment life, so I decided to pull out and buy back in again when the market drops.

Also in the meantime, I invested around 50% of remaining cash in a conservative fund which is mostly not exposed to the share market, this is as another option to leaving it in the bank. I will sell this down when it's time to buy into the market again, hopefully some time this year.

I know what some of you are probably thinking, that had I just invested the whole lot and collected dividend payments I'd be in a similar situation.. Well possibly but I'm happy I've done this this way. I'm looking for a faster way to raise just a little bit more capital before I leave it all alone and let the dividends do their thing.

-Frank

 

This is being very penny wise and pound foolish . It is the net return that is important. If the fund fees are based on out performance the more fees you pay the better. Frank If you had put your money in the Lakehouse Global Growth Fund as I suggested $1,000,000 would now be worth $ 1,340,000 net. (in 18 months) It is silly to give up the 200k outperformance (in just 18months) trying to save a pittance. If you ask me if you are only paying 1%, you will only have monkeys and wont be having outperformance and you portfolio could be much more the 20% smaller even in the short term and even much more smaller when compounded over the long term. You would probably been have actually been 20% worse off in the short term opting for low fees with this actual example.

 

What is the 5, 10, 15 year return for that fund? Or do you plan on selling out of it whenever the wind changes direction and having a big tax bill wipe out any of your "outperformance".

I had a quick look at the fund site, worst graphs I've ever seen (give me x-axis units for god's sake, and what do the line thicknesess mean?), no obvious fee disclosure without digging for it, only been around for 18 months. It's also hard to rate the quality of the management other than to look at the parent company Motley Fool reviews:

The Motley Fool Reviews

It may well achieve its goals of outperforming the benchmark, but of you look at SPIVA its odds of doing that are miniscule. Personally I have no idea what will happen with the markets and don't believe that anyone else does either.

 

Doesn't matter what others think @Frank Manno. As long as you are comfortable with your approach is the only thing which is important. As well as being able to accept responsibility for any outcome be it positive or negative and it does seem to me that is the case.

 

That's good to see Frank--and i'm just about at the same level I was about 4 years ago in value money terms and as long as the tax credit's comes with the dividends then purchasing equities early or late make very little difference to the end result..

 

Frank: just curious what do you invest now that doesn't include shares ? Bond only ?

@willair: what do you mean about being in the same level 4 years ago ? Tx

 

The simple way to explain is on the main portfolio which I have had set up and added too over time for 25 years and as there were 5 banks in that set-up combine that with a periodic collapse of the market ..

A few days ago that portfolio was just above what it was 4 years ago--not taking into account the steady stream of dividends --the other benefits --and this years capital growth..

 

@willair: do you reinvest the dividends as well ? Do you mean that after all the gain, up and down, it's the same as 4 years ago ?

I'm just starting to buy shares recently, so I don't have that much experience. It doesn't sound very promising, does it?

 

Kelly it becomes just a number on a page after a while and with all the growing optimism in different ASX top 20 listed over the past few weeks it may well keep the upward trend no matter what happens around the world ..

I was investing all the div's compounding on compounding up too about 4 years ago but after reading about risk management teams and what those people who still sit on the boards let happen I just took the div's ,and only just recently started the drp's off again..

 

Great thread by all involved. I think when comparing properties to shares, one of the major differences is leverage and the ability to borrow based on the asset. Probably doesn't apply in this scenario as it's purely a cash investment for Frank.

 

@Frank Manno

Just touching base to see how things are going?

 

Hey Redwing.

Things are going a little slow.

For those who remember, I have around $1.2m to invest.. I invested $500k last December 2018 when the market was at its low point.

I invested in a bit of a mix of things. 300k in Managed Funds and Managed Portfolios and around $250k in the LIC's much talked about in this forum.

But come April this year I started to worry about a market downturn.. So I sold down most of it, with the intention to invest again at the market low point. I currently have around $170k still invested but in a very conservative fund, next best thing to keeping it in the bank basically.

I know my actions go against what most on here would agree on and that is trying to time the market but I figured why not, my intention is to invest long term but why not at least put the money in at a low dip and make a capital gain to start off with.

Had I invested a few years ago, I would not have pulled out but as I say since this is my first time I thought I'd try to make a quick buck out of it

In hindsight I suppose I missed out on some dividends in the meantime and will have to pay some capital gains tax because I did make a profit. I reckon I made around $20 - $30k profit all up.

Had I left the investment alone I would have made more by now but thats how it goes I suppose.

I'm just waiting for the next dip I guess and then I'll invest again and do so throughout 2020 with the intention to leave it work for me this time.

The problem now I see though is that the market is at it's most expensive and what if there is a correction looming.. ? I'm scared to invest now as the market has hit an all time high.. at least buy when it's cheaper I'm thinking.

Yes I know, this is not the right attitude and I should just lock the money away and enjoy dividends.. But as I say above, I want to make a bit more of a capital gain first



-Frank

 

VAS

High Price on 24/12/2018

$70.64

7,000 units = $494,480

Distributions = $2.85 (about)

Total in Distributions = $19,950 excluding franking

Closing Price 2/12/2019 = $87.50

Value = $612,500

CG = $118,000

 

Quote..
Had I left the investment alone I would have made more by now but thats how it goes I suppose.

Looking back it may have never become reality there would be several peaks and semi lows within that time=frame---At least you have set your own speed limit and until the next Financial Crisis and going by the volumes on certain ASX Listed most are low offer in the ''QUE' that are stymied in hope of moving in on a lower price...

 

Frank,

To be honest if I was your advisor a swift kick up the rear end would be in order.

That said I can understand your reaction to it all. However you really need to decide if equities are the right match for your investing personality!

 

Frank..


Just work out which side of the barbed wire fence you want to stand behind..

 

Unequivocally no...
PC members on average have 500k in gold stashed in the attic, 100k in cash under mattress and a private jet.

 

You forgot the shotguns and spam

You don't want to waste time if you get those fast zombies

 

Yeas, Frank may need to sit down, ask himself if equities is his thing and answer the question to his satisfaction. Not the best to be stressed over investing. The share market will not do what you want it to do. Never has.

Assuming the gentleman is OK with the outcome and accept it is a result of the decisions made, all's good.

I keep in mind with the manner how I invest, I'm putting my funds into a broad range of businesses and I don't expect Wollies, BHP, Coles or Samsung, Roche, etc to go broke and will continue to fling some of the profit they make in my direction. Overall, prices will go up, down, sideways and I accept I've got zero control over that.