Direct shares

[Monkey]

If you were looking to directly invest $1,000 (each) in 5-7 shares for longer-term, relatively low risk growth (7-10 years) and some dividends, which would you go for?

3 x the banks (CBA, ANZ, Westpac), 2 x resources (BHP, RIO), 1 x telco (Telstra) and 1 x retail (Woolworths)?

cheers!

Monkey

 

[Mr. Fabulous]

Monkey, I suggest you do your own research and make your own picks. There are several reasons for this:

• No one here knows your long term goals and objectives
• No one here knows your risk appetite
• The people that buy shares for long term have done their research and spent time looking into their purchases. Your post is effectively asking people to give you free tips for nothing.
• I wouldn't want to be the one that gave you tips, only to watch the value of the shares drop.

If you do not feel comfortable with making the picks on your own, then either put the money into a managed fund or go and speak to a stockbroker or financial adviser.

 

[matto_]

Also - this is a property forum - whilst some here invest in shares - presumably the majority of focus is on IP's.

 

[womble66]

3 x the banks (CBA, ANZ, Westpac), 2 x resources (BHP, RIO), 1 x telco (Telstra) and 1 x retail (Woolworths)?

I was like that pre GFC and had some spare cash and with much not thought and for no scientific reason other than that are ASX20 chose the same 7 above plus 3 more (TOL, BXB & DJS). Some have been good but the last 3 have been hopeless.

Not any advice, just a comment.

 

[Monkey]

Some slightly unfair comments. I did post this in the Coffee Lounge, which I thought allowed for banter of this type.

People can of course choose to reply or not.

Lectures on the villainy of profiting (or losing) from "free advice" probably unnecessary!

(but monkeys have thick skin - and hair)

cheers!

 

[willair]

If you were looking to directly invest $1,000 (each) in 5-7 shares for longer-term, relatively low risk growth (7-10 years) and some dividends, which would you go for?

3 x the banks (CBA, ANZ, Westpac), 2 x resources (BHP, RIO), 1 x telco (Telstra) and 1 x retail (Woolworths)?

cheers!

Monkey

Only from experience,CBA-TLS,both pay above 9% fully franked,CBA have div reinvest,TLS is not,all the others listed and from what i read are not in my investment line-up,CBA has been 17-18 years,TLS above 11,both have paided very very well regardless of what anyone tells you.."imho"

 

[redwing]

If you were looking to directly invest $1,000 (each) in 5-7 shares for longer-term, relatively low risk growth (7-10 years) and some dividends, which would you go for?

3 x the banks (CBA, ANZ, Westpac), 2 x resources (BHP, RIO), 1 x telco (Telstra) and 1 x retail (Woolworths)?

cheers!

Monkey

The banks have had a good run of late

Miners, as we know, are going through some turbulence

 

[redwing]

Just remember, these charts are only short term snapshots as at today

Disclosure....I own all of the above shares

 

[Sunfish]

And while I have an interest in shares, I wouldn't touch this. To start with, your entry/exit costs would be high, your diversification is low and a little time down the track, watching the daily fluctuations you will become tired of the whole affair and walk away.

 

[redwing]

(but monkeys have thick skin - and hair)

cheers!

And Big Glasses

There's some discussions on the forum re LIC's and Index Funds as well as Direct Holdings and even Aarons CFD thread, sadly, no one has a crystal ball.

If you hold (or plan to hold) any of the above, is there a strategy also?

 

[Monkey]

And Big Glasses

If you hold (or plan to hold) any of the above, is there a strategy also?

Cheers RW

No specific strategy

The money is a small fraction of a larger IP, cash and banana portfolio.

Its borrowed money left over from a IP purchase.

Thought I would put it to work as I am paying interest on it.

Basically I might take a punt for investment returns that (over the long term) will beat the interest I pay, while retaining tax deductibility.

Buy some shares that will still be around, and hopefully worth quite a bit more, in 10 years time.

Then maybe take a nice holiday with Mrs Monkey!

 

[redwing]

Here's a 2011 Chart I posted in that year of WBC

Interesting to look at the highs and lows vs holding over the period

 

[Aaron Sice]

why does everyone always forget AMP....?

with QE4eva on the cards, banks look set to run.

 

[china]

I hold ANZ and WOW - they have performed well for me over the past two years- good capital gain and dividend payments. TLS also has come to the party of late.

The duds I hold are ASX, BOQ and WPL. Five figure paper losses.

If there is a market dip, I would personally buy some CBA and BHP. I like CBA because I am a customer and feel that they provide very good service. Seems like a good, well managed business to me. BHP because I believe that China still has some way to go.

 

[HiEquity]

Check out low fee index funds. VAS and VHY would be a start... depending on the type of investing you want to do. Easy way to get international exposure too (through other index funds).

VHY currently pays around 7.6%pa grossed up for franking credits (VAS around 6%), so with residential equity interest rates it's cashflow positive. Margin loan IRs are still punitive though - haven't moved down with hardly any of the rate reductions - what's up with that? Amazing what the banks will get away with when they think no-one's watching!

 

[Williamyuan]

Since this is a property forum, how about a property development company? UOS is selling at half price to book value, and at very good P/E ratios. Not much in the way of a dividend though. I'm not a trader, but have been buying and selling to provide liquidity, which I see as providing a service, all below actual value which gives a good margin of safety.

 

[Sunfish]

Since this is a property forum, how about a property development company? UOS is selling at half price to book value, and at very good P/E ratios. Not much in the way of a dividend though. I'm not a trader, but have been buying and selling to provide liquidity, which I see as providing a service, all below actual value which gives a good margin of safety.

I hope they do better for you than Stockland.

If you are in property, why would you buy MORE property on the ASX? Diversify!

 

[Williamyuan]

I like them because they seem to be undervalued, and I don't have time to do due diligence on stocks with growth potential. Of course by don't have time I mean I'm not efficient enough with my time. Also see gle as worth a look-in, but not that's also what Buffett thought about Berkshire Hathaway, and it was among his worst purchases...

 

[topcropper]

If you were looking to directly invest $1,000 (each) in 5-7 shares for longer-term,

As sunfish said, $1,000 in 7 different companies is hardly enough to bother stuffing around with, allthough having said that, if it provides a learning experience, then I take it back, perhaps it is worth doing?



I'd have a punt and put 7k into Sirtex, SRX. Currently about $10. If they end up as a first line of attack liver cancer treatment, instead of currently just as a last resort for those with no hope left, they could increase by factors of 5 or 10 times. Plenty of growth potential.

Disclosure, I hold a heap of SRX, average buy price $2.99 and have done well from them.


See ya's.


Disclosure 2...Anyone dumb enough to take free share advice from a farmer on a property forum deserves to lose all their money.

 

[Sunfish]

William [can I call you Bill?] you miss my point. If you don't have the time/inclination to take shares seriously, don't go there. You are better off sticking to what you know.

If you feel a need for diversification, you get NONE going into a property company. Buying GOLD [on the ASX] would give maximum non-correlation with the property cycle, BHP a fair degree.