Investing in Shares..

J

Johnny12

Hey guys,

To those of you who invest in shares what's the easiest way of getting into the share market at the moment?

I want to start dipping my toe into the water (even though at the moment the markets seem overvalued) but as it's for the long term I'm not overly concerned as historical returns with a good managed fund seem to be about 8-10%.
I have had a look at what Vanguard offer - they seem to get good recommendations from people?
https://www.vanguardinvestments.com...nts/managed-funds-retail.jsp#funddocumentstab


Looking to start investing about 15k to begin with. Any ideas or suggestion from the more experienced investors would be great.

Thanks in advance.
 
Interesting first post Johnny welcome.
You have come to a property forum but asking about investing in shares.

I have always done well with Colonial first state fund managers which is
owned by CBA.

Imputation fund has always done well currently around 25% for the year
and their geared shared fund around 60% but this has been hit previous years.

Good luck.
 
Easiest way? I guess open a comsec account......


Johnny12, do you have any money in super? Where is that money at present? Why not start by trying to figure out the fund managers etc inside your super?

The Y-man
 
Johnny12 said:
Looking to start investing about 15k to begin with. Any ideas or suggestion from the more experienced investors would be great.

Thanks in advance.
Click to expand...
You gotta draw a line in the sand and work out what side of the fence you want to sit on,,become a trader or a longterm investor because loyalty to any company from the start is not the best way to start and having "stop losses"mean "sfa" when the market turns also do a search on G-Soros and study his style and the way he tells his entire board every year,"This Time Next Year Half Of You People Will Not Be Here" if there is a unfavourable outcome without prior testing the analysis outcome..imho..
 
Hey,

I 'dabbled' from 17-23, and the one recurring theme I found was, if you want to do well, you really need to understand the businesses, where they are and where they are going. Asking for tips or following trends, you may as well put your chips on black at the casino.

Checking it daily will simply lead to a rollercoaster ride of emotions and a depleting trading account.

The following books and a few months of paper trading were really helpful:

Value Investing
- The Intelligent Investor by Benjamin Graham
- Rule#1 by Phil Town
- Payback Time by Phil Town
- Competitive Strategy by Michael Porter

For VC
- Inside Secrets to Venture Capital by Hill Power

For Bonds
- Strategic Bond Investor by Anthony Crescenzi

I was personally a huge fan of CFD's and wanted to get into Options. Although I walked away with enough gains to pay for a few overseas trips, I realised pretty quickly it wasn't my niche. My mate was really into it and every dollar I gave him he would double it in a few months. Really gifted, my passion lay in property though so all my funds are there now.

Just like real estate, business or any other venture. I would highly recommend you learn the lingo and set out to find a (successful) mentor. Warren Buffet perhaps ;)
 
Johnny12 said:
Hey guys,

To those of you who invest in shares what's the easiest way of getting into the share market at the moment?

I want to start dipping my toe into the water (even though at the moment the markets seem overvalued) but as it's for the long term I'm not overly concerned as historical returns with a good managed fund seem to be about 8-10%.
I have had a look at what Vanguard offer - they seem to get good recommendations from people?
https://www.vanguardinvestments.com...nts/managed-funds-retail.jsp#funddocumentstab


Looking to start investing about 15k to begin with. Any ideas or suggestion from the more experienced investors would be great.

Thanks in advance.
Click to expand...

Why the retail funds and not the ETF's?
 
"Most investors, both institutional and individual, will find that the best way to own common stocks (shares) is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) of the great majority of investment professionals.

Warren Buffett, 1996. Annual Report, Berkshire Hathaway.

ASX 300 ETF

More expensive - High-Yield ETF
 
nww said:
I have always done well with Colonial first state fund managers which is
owned by CBA.

Imputation fund has always done well currently around 25% for the year
and their geared shared fund around 60% but this has been hit previous years.
Click to expand...

Over 10 years they are still 1% under benchmark.
 
I recently read Value.Able by Roger Montgomery. It made a lot of sense to me and has changed my attitude toward shares (for the better). Highly recommend it as a starting point.

It has a couple sections on Accounting 101 type topics (Company balance sheets etc) which are pretty dry, but well worth persisting through.
 
nww said:
Interesting first post Johnny welcome.
You have come to a property forum but asking about investing in shares.

I have always done well with Colonial first state fund managers which is
owned by CBA.

Imputation fund has always done well currently around 25% for the year
and their geared shared fund around 60% but this has been hit previous years.

Good luck.
Click to expand...

Hi nww

Didn't read through a PDS, what are their fees like?

At Colonial First State, the fees charged generally fall into one of three categories:
Fees charged when you move your money in or out of a fund, including contribution fees, withdrawal fees and termination fees.
Management costs are the fees for managing and administering your investments.
Service fees include adviser service fees, special request fees and switching fees.
And then there are Transaction costs, which apply whenever you contribute, withdraw or switch from one fund to another.
Click to expand...
 
dtraeger said:
I recently read Value.Able by Roger Montgomery. It made a lot of sense to me and has changed my attitude toward shares (for the better). Highly recommend it as a starting point.

It has a couple sections on Accounting 101 type topics (Company balance sheets etc) which are pretty dry, but well worth persisting through.
Click to expand...

Have been meaning to buy and read this for a while, could never bring myself to pay the $49 retail on his site and in store.
Digital version now on Amazon for $5.49!
 
Wandering said:
How do LIC's compare to ETF's?

Fee's charged by the managers of a LIC like AFI seem really low.
Click to expand...

Large Blue chip LICs like ARG/AFI/MLT have traditionally outperformed the index, they do so by index hugging while excluding stocks that are highly cyclical boom bust ,latest tech bio darlings or any stocks without ff dividends, so on a long term basis I prefer LICs to ETFs especially when at a nice discount to NTA.

However for me there is little value in the buying an LIC when the price is trading above the NTA like AFI currently for example, much better buying when it is trading at a discount so I would look at ARG or MLT and if there doesnt seem to be much discount to NTA I would weigh up some smaller blue chip LICs like AUI,DUI or BKI with similliar philosophy, performance and low fees but less liquidity or an ETF.

But then again I wouldnt be adding to my holdings at the moment as the market looks overcooked to me but who really knows...
 
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