$250k burning a hole in my pocket.

[The Falcon]

xactly, my thoughts ;

1. Buffett would not advise to buy BRK at any time for only 1-2 years, regardless of P/B. He has said in the past numerous times he has no idea what will happen to the share price over the short/medium term. As a self confessed Boglehead, you would know that John Bogle advises against timing the market based on P/E , Schiller or whatever and remaining fully invested for the very long term and that in ANY market conditions, there is no place for 1-2 year time frames. So I agree with you, for investors with short time horizon stocks arent for you.

2. I don't think BRK can be considered like a LIC. Only 20% of BRK is listed equity holdings, 80% is operated businesses. It must be considered as a conglomerate with a stock portfolio. Look at the underlying businesses first. Personally I think it will outperform S&P by a couple of % going forward. It is true the the business is so diversified it's somewhere between a stock and an index

 

[xactly]

xactly, my thoughts ;

2. I don't think BRK can be considered like a LIC. Only 20% of BRK is listed equity holdings, 80% is operated businesses. It must be considered as a conglomerate with a stock portfolio. Look at the underlying businesses first. Personally I think it will outperform S&P by a couple of % going forward. It is true the the business is so diversified it's somewhere between a stock and an index

Yes,
It isn't a LIC. my terminology was too loose.
It IS a brilliant buy and hold core stock just like some of the Aus LICs! (not all)

I learnt a lot from your mention of other US conglomerates in the high yield thread.
Am doing my own DD on them. Haven't Jumped as yet. Chickened out and bought more VOO

kudos to you Sir. I have found your insights valuable.
And i like the respectful helpful tone of your posts.

 

[The Falcon]

Cheers Xactly, appreciate that. sometimes I have to edit my posts as when I read them they convey some smart arsery which is not my intent hopefully some of the ideas are useful to some. I enjoy SS as although I don't own a stick of property outside my PPOR investment concepts are universal and I consider my portfolio as a long term property investor does. I've learned a lot here that I can and do apply to my investment thinking.

 

[cu@thetop]

Luce I know of 20 million US dollars- left over money from government contracts sitting uncollected in a bank account here at the Bank of Nigeria. As a civil servant I can't withdraw it but I propose that you give me your bank account details and I will have it put in your account for which you keep 15% and onforward the remainder to me. Please PM if interested.

On a serious note-keep funds ready available for cashflow for hubbies business.

 

[datto]

They way I see it, all the big knobs are trying to scare the little players out of buying shares. The mantra I hear now is sell sell sell, it's peaked, it's gonna crash.

Yeah, it's more like "sell your shares now so that I can pick them up cheaper myself".

Now I'm not suggesting Luce put her money into shares. That's her call. Me, personally, I've got 20% of my cash in shares (13 telstra shares in total). I can wear a loss.

I don't believe for one minute the media hype forecasting an imminent crash is true. Look, we just had a bumper reporting season. Share prices are really high, CBA could hit the ton soon. The All Ords index has been going great guns. There is a housing boom with record low interest rates (which could go lower), we got overseas investors there is QE in Europe.....money is everywhere....looking for a place to roost.

Nah, the crash ain't happening tomorrow IMO....maybe in five years time, who knows?.

I don't believe some mega rich knob (be it the media or the 4th richest on the planet) is going to give me advice that is in my best interests.

 

[oc1]

They way I see it, all the big knobs are trying to scare the little players out of buying shares. The mantra I hear now is sell sell sell, it's peaked, it's gonna crash.

Yeah, it's more like "sell your shares now so that I can pick them up cheaper myself".

Now I'm not suggesting Luce put her money into shares. That's her call. Me, personally, I've got 20% of my cash in shares (13 telstra shares in total). I can wear a loss.

I don't believe for one minute the media hype forecasting an imminent crash is true. Look, we just had a bumper reporting season. Share prices are really high, CBA could hit the ton soon. The All Ords index has been going great guns. There is a housing boom with record low interest rates (which could go lower), we got overseas investors there is QE in Europe.....money is everywhere....looking for a place to roost.

Nah, the crash ain't happening tomorrow IMO....maybe in five years time, who knows?.

I don't believe some mega rich knob (be it the media or the 4th richest on the planet) is going to give me advice that is in my best interests.

A crash is different to a retracement. Will we get a retracement? Of course, it's normal and healthy. Crash? Highly unlikely. Bank shares are breaking records, you have larger builders listed on th ASX breaking into new ground price wise, rates will be low for a while. On top of this do you really want to fight the FED? Last time that worked was, errrrr, never. Also, check out the U.S. yield curve, it's steeply sloped. Recessions do not start when this is the case.

 

[luce.rocks]

Thanks everyone.

Hubby won't need any of this money prop up his businesses. His expenses will be very small to start with and his family will guarantee any loans he needs further down the track. This money is all mine to play with

I don't mind having a longer investment timeframe if it's somewhere I can see it growing. I just don't want to put it into ASX or similar and then see it start to shrink if there's a retracement.

Now that I've thought a bit about it, I'm pretty keen to use 50k of it to find a good rental/reno here. Maybe I'll just sit on the rest of it for a while.

What do you think of buying gold (through forex, not the actual hard stuff) periodically throughout the year as good price opportunities come up? Everyone seems to think gold is going to keep going down this year. Maybe I could satiate my need to spend by buying an ounce or two here and there.

 

[dex]

Are you in Barcelona? If you're a stay at home mum not doing much except for looking after a baby then buy this place and set it up for Airbnb. Can you kick this tenant out?

http://www.apartmentbarcelona.com/en/apartments-for-sale/barceloneta-beach-meer-groundfloor-for-sale-xi/1986/details/eur

This one bedroom apartment is located in the popular area of Barceloneta, just steps from the beach. It is ideal for property investors in Barcelona. The apartment building is located on a pedestrian street, and is located close to some of the best restaurants and nightlife in the city. The apartment has one bedroom.

The apartments in this building are to be refurbished. The fa?ade and the stairwell of the building will be renovated shortly and an elevator will be fitted. The building itself has sea views from the side.

Metro station: Barceloneta (L4)

Please note: There is a tenant in this apartment with an indefinite contract. Please contact us for more information.

 

[luce.rocks]

Hey Dex, you probably can't kick the tenant out. There are a few rent controlled places around town with old folks that you can't kick out til they die. Looks like it might have a damp problem too? Plus, the city is trying really hard to crack down on airbnb. I mean, they won't be able to stop it, really, but they're trying. But yes, I'll be looking into cheap rentals, definitely

 

[Sean M]

Hi Luce,

My suggestions are

- Keep the majority in "safe investments"
- use a portion to educate yourself in ways to make money -> try something you like doing
- As you grow invest in yourself and grow with it.

In this world you have two choices either pay someone to make you money or invest in yourself to make money. You can have both or you can have either. I would choose investing in yourself.

* none of the above is advice merely options*