Shares you never sell

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by MTR, 5th Feb, 2020.

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  1. MTR

    MTR Well-Known Member

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    MTR, 5th Feb, 2020
    #1
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  2. timetoact

    timetoact Well-Known Member

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    CSL
    $1.2B R&D pipeline
    Lifesaving medical products, somewhat immune to economic contractions
    Exceptionally well managed business
    High barrier for entry (low competition)
    Only starting to scratch the surface of Chinese market (hopefully Coronavirus helps this)
    If you had invested $10k at float (1994) you'd be sitting on a tidy $4.1m plus divs

    It's one of those shares that always seems expensive, but you can't afford not to own.
    A bit like Sydney property...
     
    timetoact, 5th Feb, 2020
    #2
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  3. MTR

    MTR Well-Known Member

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    Nice
     
    MTR, 5th Feb, 2020
    #3
  4. oracle

    oracle Well-Known Member

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    Not sure about individual shares but as a group I don’t think I could justify ever selling VAS ( Top 300 Australian companies by market cap) and IVV ( Top 500 US companies by market cap).

    This virtually guarantees the stocks worth owning forever are owned.

    Historically, only 4% of stocks accounted for all the outperformance of stocks over bonds. 96% of stocks had returns similar to bonds. You want to make sure you own those 4% of stocks and by owing the index you ensure that.

    cheers
    Oracle
     
    Last edited: 5th Feb, 2020
    oracle, 5th Feb, 2020
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  5. Redwing

    Redwing Well-Known Member

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    @Nodrog @SatayKing

    upload_2020-2-5_11-52-6.png

    upload_2020-2-5_11-50-1.png
     
    Redwing, 5th Feb, 2020
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  6. Ross Forrester

    Ross Forrester Well-Known Member

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    Unless you need cash for retirement you would never sell passive index ETF's.

    Timing the market is difficult. And if stocks within the index go belly up the index will become re-weighted.

    Some investment advisor's can outperform the market and do well at active management. I cannot do that. So passive ETF that are never sold work well.
     
    Ross Forrester, 5th Feb, 2020
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  7. Nodrog

    Nodrog Well-Known Member

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    Warren Buffet who knows more about US stocks than just about anyone would suggest the S&P 500 (IVV ETF in Oz) for the vast majority of investors interested in US stocks. @oracle might be kind enough to post an excellent video or two in support of this.
     
    Nodrog, 5th Feb, 2020
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  8. SatayKing

    SatayKing Well-Known Member

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    Hmm, must think about this. What do I hold which of value - by my definition - which would be unwise to sell but are all encompassing?

    Oh yes, I know.

    DUI - holds CSL I understand and other interesting stuff like international ETFs
    AUI- Hmm, CSL I think plus other stuff I don't know much about
    ARG - same I guess
    AFI - probably likewise
    WHF - not sure about CSL but maybe
    VAS - Yeah baby
    STW - highly probable
    PMC - has a bit of Samsung I understand
    ALI - some bridges I assume.
    VGS - the rest of the mob I gather.
     
    SatayKing, 5th Feb, 2020
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  9. Nodrog

    Nodrog Well-Known Member

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    At a personal level these rate the highest for never sell (and never likely to shut up shop) although we hold others that I never intend to sell also.

    Australia: VAS / AFI / ARG
    Global: VGS
     
    Nodrog, 5th Feb, 2020
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  10. SatayKing

    SatayKing Well-Known Member

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    No I don't.

    Forgot MLT. Holds some vague amalgamation of shares but I don't know what they are.

    Bother.
     
    SatayKing, 5th Feb, 2020
    #10
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  11. MTR

    MTR Well-Known Member

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    How do you buy US stocks, individual stocks?

    after watching State of Union Speech I want in:)
     
    MTR, 5th Feb, 2020
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  12. Fargo

    Fargo Well-Known Member

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    Easily takes minutes to set up account (Macquarie), free trading, can be trading same day as money transfer with POLI. Only pay FX fee if converting from $US to $ AUS or vis versa currently 50% FX fee rebate. minimum transfer $50, Can use Charles Schwabb but minimum is $ US 35,000 Pricing — Stake
     
    Last edited: 5th Feb, 2020
    Fargo, 5th Feb, 2020
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  13. MWI

    MWI Well-Known Member

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    Is there a better benefit say than a Commsec International Account with Macquarie?
    CommSec - International Shares - Trade on over 25 leading global share markets
    Say if trade was in 6 digits would the fees or exchanges be more beneficial one over the other?
     
    MWI, 5th Feb, 2020
    #13
  14. geoffw

    geoffw Moderator Staff Member

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    CommSec charges for each trade. Six figures, $100,000, would cost $310. Plus an FX transaction fee of.6%.

    Stake has changed their pricing. .7% FX, two free trades perminth, $5 per trade after that. With restrictions (market orders only). Or else with a small monthly subscription, more options.

    Or you can use US based brokers. It canbe a pain setting up (I gave up) but they are possibly the cheapest option.
     
    geoffw, 5th Feb, 2020
    #14
  15. MWI

    MWI Well-Known Member

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    Thank you @geoffw.
    In my situation it will more likely be to sell direct US shares (becoming accidental direct US share holders from OZ private IPO - fingers crossed soon?), and it would be probably in seven 'nice' figures so I was just wondering?
    Could only occasionally trade so rather few transactions?
    In that case I think lower FX pricing would be more appropriate to me, am I interpreting this correctly?:confused:
    So let's assume selling $1M US what roughly would be the overall cost each?
    CommSec then $3,100 plus FX fee of .6% (assume $60K is this correct - is this fee based on US or converted OZ amount?)?
    Stake then free for trade (assuming one) plus FX of .7% (assume $70K is this correct?)
    So CommSec would be a better deal, is this correct understanding? Sorry have not sold US stocks before....:(:eek:
     
    MWI, 5th Feb, 2020
    #15
  16. geoffw

    geoffw Moderator Staff Member

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    I think .6% of 1M is 6K not 60k. So CommSec total $9,100 and Stake $7,000.

    Perhaps it's worthwhile looking at other options.

    A US based broker. Here's a starting point:
    Best Brokers for International Trading

    Transferring the money another way. Investigate to see if it can be done using an online service such as TransferWise or OFX (it may not be).
     
    geoffw, 5th Feb, 2020
    #16
  17. MWI

    MWI Well-Known Member

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    Thank you and ....Oops yes sorry, thanks for the calculation fix.
    I also read this under CommSec point 1 to .31%
    1 For all limit and market orders which are not fully executed in the same trading day, normal brokerage will be charged for the total portion executed per day. Brokerage charges may be converted and applied in the local currency. This may result in variances in the US dollar equivalent brokerage applied.
    So Stake is more favourable. Do you know if the settlement period is the same between these two platforms?
    I suppose I will stick with OZ rather than go directly for International since it is SMSF entity too but will investigate International Trading brokers, actually may be worthwhile.
     
    MWI, 5th Feb, 2020
    #17
  18. oracle

    oracle Well-Known Member

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    Below are some short videos of Buffett showing his liking for American enterprises in particular the S&P500 and his only advise for the average investor. Same message given at different times.









    Cheers,
    Oracle.
     
    oracle, 5th Feb, 2020
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  19. geoffw

    geoffw Moderator Staff Member

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    I don't know about settlement period, sorry. I have only a little knowledge of all this, and you exhausted that knowledge a few posts back.

    Whatever way you do it, there is a form to be filled in which can be a pain (only once for a person, not per trade).

    SMSF - is the investment in the US already in the name of the SMSF? Otherwise there may be other issues.
     
    geoffw, 5th Feb, 2020
    #19
  20. MTR

    MTR Well-Known Member

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    Amazon again

     
    MTR, 5th Feb, 2020
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