Question for Austing and Falcon

Yippy, @The Falcon.

Whew, just when I thought my poor home brew damaged brain cells couldn't take much more the best of help arrives.

Yes a great point about ASX stocks with foreign earnings. As one would expect The Falcon holds excellent local stocks with foreign earnings. But for those who aren't comfortable holding direct shares a number of the stock holdings of LICs and ETFs also have significant foreign earnings hence one could consider this indirect international exposure.

And as stated bubbles and economic disasters develop over time. Unless greed gets the better of you there will be plenty of time to take precautionary action.

I vaguely remember it being quoted that greed and speculation reached such a rediculous level in Japan at the time that a single street block in central Toyko was valued greater than the whole of California! Armed with a bit of common sense the lead up to these catastrophic events are not difficult to spot. But remember excessive greed has been the downfall of even the most intelligent of people!

Great stuff thanks TF.

 

Yes those are great stocks listed by Falcon and I'm pleased to know that I am holding them as well , although in much smaller amounts within the LICs.

Here is a white paper research quote by some famous economist

"Stock prices were exceptionally vigorous throughout the 1980s. The Nikkei Stock Price
Average, Japan's Dow Jones, started from a low of ¥7042 in August 1982 and continued to rise almost without interruption1 to a high of ¥38150 in December 1989, a more than fivefold
increase."

A fivefold increase in the Japanese market under 10 years!

 

Hi Falcon, thanks for divulging your portlolio weightings. It is very generous of you to share that info. It looks like your portfolio is quite aussie focused as well. Again I don’t expect Australia to experience what Greece or Japan went through but I wanted cover all my bases and put all the risks out there for discussion. Thanks for sharing your thoughts on this.

Chancellor’s book looks very interesting. Looks like another good book to be added to the stock resources reading list.

 

Yep, Australia focus is predominately due to dividend imputation combined with currency risk (lack thereof) and typically higher payout ratio (a product of dividend imputation) which assists an income focussed portfolio.

Books like Devil take the hindmost should be essential reading for investors. Human folly is timeless. Learn from history so you don't become it

 

Is the book a good one to read for someone who is still on her L-plates in terms of stock market investmenting?

Thanks.

 

All I know is that I'd buy an Austin way before I bought a Falcon

 

Even after paying the CGT you can still be ahead in terms of receiving more income because of:
1. franking credits
2. higher yields
3. elimination of most expenses (rates, repairs, land tax etc)

see my thread on this:
Strategy: Selling Property on Retirement to buy shares Strategy: Selling Property on Retirement to buy shares

 

Oh for sure. Worth reading for any type of investor really. Without historical reference points everything seems new.