Peter Thornhill's latest rant and rave is out
Thanks for the link! I was a little shaken up by the recent ~3% drop but a timely read to keep me on track and keep accumulating!
Would you recommend his book?
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Peter Thornhill's latest rant and rave is out
Shaken up by a 3% drop? Come on son! Don't be a weak hand
Thornhill has a classic newsletter from the depths of the GFC. I remember the closing line "buy with your ears pinned back" ha.
Yes Thornhills book is one of about twenty that I think worthwhile for those interested in stock investing. The more you can read the better.
Here's a couple of shares that enjoyed some nice growth over the last decade
Fortescue Metals Group Limited
13,735%
Aurora Oil & Gas Ltd.
7,024%
REA Group Limited
6,332%
CTI Logistics Limited
3,052%
Tox Free Solutions Ltd.
2,718%
Steamships Trading Company Limited
2,225%
Monadelphous Group Limited
2,106%
Cromwell Property Group
2,017%
Sandfire Resources NL
1,970%
McMillan Shakespeare Ltd
1,767%
Webjet Ltd.
1,754%
I have a close eye on Monadelphous for a long term hold - my second ever.
MND is currently undervalued and providing good dividend (>10%).
outlook is negative though, so as soon as some news break about their future prospects, i'll get in for the hold.
hence why i'm watching it.
Any existing NAB shareholders looking to take up their entitlement offer at $28.50 per share? Its limited to 2 new shares for every 25 held as it will probably be oversubscribed. Looks like an easy gain depending on where you think bank shares are going.
Any existing NAB shareholders looking to take up their entitlement offer at $28.50 per share? Its limited to 2 new shares for every 25 held as it will probably be oversubscribed. Looks like an easy gain depending on where you think bank shares are going.
The rights (NABR) are currently trading for $6.25 so if you take up the offer you're essentially paying $28.50+$6.25 = $34.75. And NAB is trading at that price this morning.
I'm bearish on the banks so I just offloaded the rights.
Hi Redwing,
It is a very important question. I myself have thought about it on several occasions and have yet to come to some conclusion.
So far the bare minimum I think I need before I even consider pulling the plug from day time job is to make sure income from index/ETF funds are atleast 25% higher than my target retirement income goal. So for eg. if my target is $100K I would aim to have atleast $125K coming from dividends. Each year the additional $25K keeps getting re-invested unless ofcourse dividends are cut.
Secondly, as a more solid buffer I would have atleast 2 years worth of living expenses in cash in a bank offset account.
Based on the above you could handle a 50% reduction in dividends for 5 years without affecting your $100K income you need ( I haven't factored in CPI but would be worthwhile to do so). See calculations below
Initial income: $125K
Cash buffers: $200K (2 years @ $100K / year)
Stock market crash happens and dividends are reduced by 50%.
New dividend: $62.5K
Shortfall: $37.5K
$200K cash buffer can fund the shortfall for approx 5 years before you are forced to sell any assets/shares.
The only issue I see that you need to be worried about is as soon as dividends recover you need to re-build that cash buffer for future stockmarket crashes.
Again, I stress this strategy is still not final and I may change as I see fit. Most likely will make it even more conservative. The bottom line is if and when I pull the plug from full time work going back to work is not an option. So things have to be rock solid.
Hope that helps.
Cheers,
Oracle.
Is the market going to tank anytime soon, any thoughts?
Mtr
Is the market going to tank anytime soon, any thoughts?
Mtr
Is the market going to tank anytime soon, any thoughts?
Mtr