How best invest 100K in sharemarket?

G

GlennG

If you were in this situation:

PPOR paid off, one IP 500K Mortgage 400K LVR 30%
100K in offset account.
Still getting a salary and will get a good pension
Don't want to buy more IPs

Borrow 100K against PPOR for stockmarket investment
Intended as long term e.g 20 years

What would choose in that position?
ETF vs ASX200? Navra Investment? ETF vs emerging market? ETF against Global mining?

Any suggestions or thoughts very welcome, many thanks :)
 
Aaron Sice said:
i know nossing, mr fawlty.
Click to expand...

Great Show!.

I would invest in ASX500 (a few more volatile stocks, may increase/decrease your overall position from ASX200) or have a look at the Gartner Hype Curve and see what technologies you like and invest in those companies which will potentially bring this technology to the forefront.
 
GlennG said:
What would choose in that position?
ETF vs ASX200? Navra Investment? ETF vs emerging market? ETF against Global mining?

Any suggestions or thoughts very welcome, many thanks :)
Click to expand...

Of that list, global mining. But buying BHP, RIO, WPL, and a couple of others IS a diversified mining portfolio because the first two in particular are diversified within their own structure. Find a broker who will trade Nth America and Petrobras, Kinross and many others come into play and you can have mines in hundreds of countries mining many products.

In my humble opinion only. :)
 
Can i suggest that if you are asking here how you should invest your $100K then you shouldn't throw it into the market? You need to know exactly what you want.

Do you want to self manage it? Do you have the time/expertise to self manage it? Or do you use some sort of managed investment option - managed fund, ETF, LIC, Broker etc etc

What are you trying to achieve - is it to be growth focussed, income focussed, both, tax effective income focussed, do you need dividends, what is your risk tolerance?

Perhaps you need to ask a few more questions to help you decide your course of action? Ask those here who self manage how they do it, how much time it takes, returns they have achieved etc etc

Ask those that use a managed option how they determined which ones they used, how they assessed them, who they spoke to and received advice from etc?

Sure you can be lucky and throw money into the market, but is that going to help you in the end?

OSS
 
Buy 4-5 key stocks that you think can go up 4-5x over the next 4-5 years. This requires DD and a real understanding of what you're investing into, who you're investing into - so obviously this rules out most big candidates like ANZ because I'm sure you wouldn't be able to name the incremental change in net profit, what drives the business or who the CEO is.

For same reason, would not buy something BHP. If you want exposure to mining try and understand the particular mine you're buying into.
 
Roachy said:
I would invest in ASX500 (a few more volatile stocks, may increase/decrease your overall position from ASX200) or have a look at the Gartner Hype Curve and see what technologies you like and invest in those companies which will potentially bring this technology to the forefront.
Click to expand...

So IVV. Yes, it's quite different from STW from first glance. Will look at that more, thanks for excellent idea.

I don't know anything about the 'Gartner Hype Curve' - does anyone else have an opinion on that?

I guess that I'll probably stick with index funds or LICs or similar, being an inexperienced investor.

Thanks Roachy
 
GlennG said:
So IVV. Yes, it's quite different from STW from first glance. Will look at that more, thanks for excellent idea.

I don't know anything about the 'Gartner Hype Curve' - does anyone else have an opinion on that?

I guess that I'll probably stick with index funds or LICs or similar, being an inexperienced investor.

Thanks Roachy
Click to expand...

OK, not IVV, which is S&P 500 (before anyone else points out!) :D
 
GlennG said:
If you were in this situation:

PPOR paid off, one IP 500K Mortgage 400K LVR 30%
100K in offset account.
Still getting a salary and will get a good pension
Don't want to buy more IPs

Borrow 100K against PPOR for stockmarket investment
Intended as long term e.g 20 years

What would choose in that position?
ETF vs ASX200? Navra Investment? ETF vs emerging market? ETF against Global mining?

Any suggestions or thoughts very welcome, many thanks :)
Click to expand...

As others have said, having a reason/strategy for buying the shares is a good start. For example, are you wanting to buy the shares to provide growth or income, or a combination of both?

There are a number of share magazines which show you how to grow an income/growth portfolio. These include Huntleys, and The Intelligent Investor amongst others.

http://www.intelligentinvestor.com.au/

http://corporate.morningstar.com.au/

Regards Jason.
 
Sunfish said:
Of that list, global mining. But buying BHP, RIO, WPL, and a couple of others IS a diversified mining portfolio because the first two in particular are diversified within their own structure. Find a broker who will trade Nth America and Petrobras, Kinross and many others come into play and you can have mines in hundreds of countries mining many products.

In my humble opinion only. :)
Click to expand...

For global mining, how about a LIC such as GMI? I'd like to avoid buying into particular companies, at least until I've found out more about share investing
 
bene313 said:
Put it all on BLACK.

Or maybe just stick with an index. ASX200 or 500.
Click to expand...

I was trying to keep my question short as I thought I might get more answers that way. No, I wouldn't risk 100K on just a single stock.
By the way, what about 100K on an index for the whole market?

Do you mean ASX500? In which case, is there an ETF for that?
 
I meant BLACK at the casino.

And yes - you can just buy the index - seeing as majority of fund managers can't beat it themselves.
 
GlennG said:
Do you mean ASX500? In which case, is there an ETF for that?
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They are called index funds.

But why do the same people who talk about doing DD and buying individual properties carefully, talk about buying "averages" in the share market?

If I could bundle a thousand city properties into an ETF, would you buy it? Of course not. You are not that lazy. Why approach the share market with a lazy "average" approach? The "average" returns are pretty modest, the real money is made by the students. I deliberately did not say "professionals", because I believe that with the right attitude and with the required reading, Joe Sixpack can do quite well.
 
Hello Sunfish,

I am also looking at investing in the share market. It makes sense to apply the same DD as we would for property.

What reading would you recommend?

Thanks,
Jaypee
 
jaypee said:
What reading would you recommend?

Thanks,
Jaypee
Click to expand...

Depends on how you intend to tackle the task. I take a world, macro look and therefore like authors such as Jim Rogers and listen to King World News and Financial Sense Newshour. Listening to these people will turn you into a gold bug and a believer in the resource super-cycle so you will frequent sites like Kitco and 321Gold.

If you have a mathematical bent you may prefer technical analysis and while I see some merit in the approach I don't have enough discipline or trust to use it.

If you like to read balance sheets and take an accountant's view then start with Value Investing by Benjamin Graham who was Warren Buffett's mentor. I haven't read it suspect it to be outdated. Not the concepts but the examples of what is achievable. This is the approach IntrinsicValue takes and will steer you to the well known blue chip stocks and I don't like it. I'm too old to wait for the tortoise to win the race. :)

While you are feeling your way read The Australian or AFR every day. Best stay away from Hotcopper for a while unless you have a finely tuned BS filter.

Watch Your money, your call on cable and you will get an idea how professionals with the different approaches think. I never follow their tips (I no longer have total trust in ANY guru) but it is entertaining. :D
 
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