Shares as part of your overall investment strategy...

[Sunfish]

I was shocked and saddened to just read that Matthew Simmons drowned accidentally today. He was one of the most informed men on the planet regarding energy and investment in such.

That's sad. We need thinkers like him.

Vale.

 

[oracle]

Unless YOU are intelligent enough to work out where that is, wait in cash, cash equivalents or precious metals. If you want some leverage (and risk) buy a parcel of miners of uranium, diamonds, gold, silver, rare earth elements, phosphate. If you believe in the China phenomenon add iron and coal.

What are your views on ERA (World's fourth largest Uranium producer)?

Cheers,
Oracle.

 

[Sunfish]

What are your views on ERA (World's fourth largest Uranium producer)?

Cheers,
Oracle.

I have owned them but I bought for technical reasons, not fundamentals.

There are always issues with environment regulators, they have long forward sales, limited reserves, they are in Aus so I don't follow them.

But I make no claims re my knowledge of individual companies. I love the macro outlook. Happy to discuss that.

 

[Sunfish]

Energy Resources of Australia Ltd (ASX:ERA) has posted an 82% drop in net profit to $22.7 million in the first half of 2010, compared with $127.6 million in same half last year.

The company, majority owned by Rio Tinto Ltd (ASX:RIO), says higher costs in maintenance and development affected the result, as well as a stronger Australian dollar.

ERA says due to delayed access to higher grade ore, this year's production of uranium oxide is expected between 4,300 and 4,700 tonnes, lower than earlier annual guidance of 5,240 tonnes.

A 36% drop in uranium oxide sales was also recorded for the first half of 2010, down to $209.6 million, from the $336.1 million posted for the same half-yearly period in 2009.

Energy Resources says in the short term the uranium market appears well supplied, but in the long term higher spot and term prices can be expected.

Energy Resources reported a profit of $272.57 for the year ending 30 December 2009.

We've got some pretty ordinary miners here in Oz.

 

[WinstonWolfe]

I was up into the wee hours of the morning for the US FOMC announcement.
The US recovery isn't clipping along as fast as some want, so the market was expecting Obama and Ben to print more money, which they agreed to do. It was a given to me, and a very profitable night.

 

[redwing]

Interesting to look back on some of the older threads with the benefit of hindsight

 

[Sean M]

I definitely think its a two pronged strategy given I am an adviser. I have seen it work very well and at the end of the day accumulation is the key part and capital preservation.

 

[MIW]

Risk management of your money is why you should never get a margin call IMHO. Bottom line if you are classed as a trader loses are tax deductions just like electricity & rent but you need to minimise your costs.


Cheers
Sheryn

YEs, stop losses should do the trick, right?

 

[MIW]

This was one of those "aha" moments so many years ago.
The key to the question for me is leverage not percentage growth. I don't doubt for a minute that a share can have a much greater percentage growth than an IP.
However, property allows me to be exposed with little risk and no margin calls to the tune of millions. Could I sleep at night with that exposure to the ASX or other more volatile markets? The answer is a resounding "No!"
Subsequently, a shares portfolio is something I dabble in (to the tune of tens of thousands and it varies all the time) until I can buy another IP.
When I understood that leverage is the key and not gambling for percentage growth, shares become an income exercise while IPs became my wealth creation exercise.

WOW, well said, I could never word it like you did but unknowingly, in my life I did apply what you implied above!
When investment in a share increased substantially, I sold out, paid heaps of tax, reinvested into cash and leveraged IPs.
Cash IPs since they were in SMSF and no borrowing was allowed then, since then able to increase the portfolio via leveraging and being supplemented with rental income serviceability from previous IPs.
Leveraged IPs, bought via other entities, thus allowing time to do its thing.

I think most forget that each asset class becomes undervalued, on par or overvalued in time. SO being able to switch or offload or rebalance the portfolio is a very hard thing to do (I certainly wouldn't do this with RE!).

BUT you are spot on, I had sleepless nights knowing that my exposure in ASX on an exploration small cap company was now in tune of millions, so we decided to sell. May I say it took a month to sell the shares not to affect the market volatility and knowing that it was channel trending helped.
YET in comparison my exposure in RE was and is so much greater even now, yet I can comfortably sleep at nights!

Thank you for sharing, as some will understand what you mean and some may not!
Other above comments always made me wonder should I be reinvesting into shares, knowing I am unwilling to dedicate the time there, so you certainly answered my curiosity there!