Newbie portfolio

Hey guys,
I'm going traveling for several months. I was initially looking to buy an investment property before I left but that plan is on the back burner now after giving it much thought, I think I will be more relaxed overseas without worrying about a property, plus my job is doing my head in I definitely need a break :laugh:

I've put my house deposit aside in fixed terms and I have a comfortable travel budget. It leaves me with about 10k to play with which I was going to put into shares. This will keep me interested in the market and give me something to read about on any quiet/rainy days. I was thinking of starting with four NZ shares or is this too many considering the relatively small amounts in each? I have no intention of selling and will be adding to portfolio when I'm back working. Some shares that appeal to me are SKC, RYM, AIA, FPH boring eh?

The idea of drip feeding it into smartFONZ also appealed to me but I'm not completely sold on the idea.

Any tips for starting a portfolio? c'mon guys hit me with your ideas/opinions!

thanks

I would imagine that will be a lot of commssion/fees to pay splitting 10k by 4. My personal view is that it is to many, but you need to work out the cost of 1 versus 4 trades and factor that into the likely returns.

That will come back to your timeframe and goals. Which of those (or any others)do you thin k will do best over your investment timeframe.

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Originally Posted by Kaspar

Hey guys,
I'm going traveling for several months. I was initially looking to buy an investment property before I left but that plan is on the back burner now after giving it much thought, I think I will be more relaxed overseas without worrying about a property, plus my job is doing my head in I definitely need a break :laugh:

I've put my house deposit aside in fixed terms and I have a comfortable travel budget. It leaves me with about 10k to play with which I was going to put into shares. This will keep me interested in the market and give me something to read about on any quiet/rainy days. I was thinking of starting with four NZ shares or is this too many considering the relatively small amounts in each? I have no intention of selling and will be adding to portfolio when I'm back working. Some shares that appeal to me are SKC, RYM, AIA, FPH boring eh?

The idea of drip feeding it into smartFONZ also appealed to me but I'm not completely sold on the idea.

Any tips for starting a portfolio? c'mon guys hit me with your ideas/opinions!

thanks

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Boring excites me.!!!! Good picks.

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Originally Posted by jmsnz

I would imagine that will be a lot of commssion/fees to pay splitting 10k by 4. My personal view is that it is to many, but you need to work out the cost of 1 versus 4 trades and factor that into the likely returns.

That will come back to your timeframe and goals. Which of those (or any others)do you thin k will do best over your investment timeframe.

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The time frame is long term with a goal to have a portfolio of companies paying dividends to supplement/replace my income by retirement age, hopefully earlier.

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Originally Posted by percy

Boring excites me.!!!! Good picks.

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Problem is the companies I like don't seem to follow the general consensus that the younger you are the more aggressive growth shares you should have. I'm in my late 20's.

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Originally Posted by Kaspar

The time frame is long term with a goal to have a portfolio of companies paying dividends to supplement/replace my income by retirement age, hopefully earlier.




Problem is the companies I like don't seem to follow the general consensus that the younger you are the more aggressive growth shares you should have. I'm in my late 20's.

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Remember the halfwits you were at school with,most probably struggling through life.
Remember those clever guys who were always top of the class,most probably doing very well for themselves today.
Shares, you own part of a company.Like those people you went to school with,some companies are halfwits while others are high achievers.High achievers usually keep on high achieving. Your share selection of SKC,RYM,AIA,and FPH have a history of high achieving,and should continue to do so.Leave the aggressive growth shares[halfwits and dimwits]to others.

That's very good percy.
Make some rules Kaspar.
1. Never follow the herd..............buying so called growth ala higher risk shares because you are young....... and when you are old what will the general consensus be..............because you didn't achieve the desired cashflow in retirement...............due to substantial losses ala higher risk shares ................The consensus will be...........well you shoudn't have purchased those high risk shares when you were younger.

Higher risk means higher losses.

Learn about compounding, and make the break from the herd.

cheers

IMHO...the best investment you can make at your age is to invest your dosh in improving your earning potential. You will know where that would be best applied depending on your individual position/education/skill levels. This upskilling not only will Have immediate visible benefits (if applied judiciously) but will compound your lifelong earning capacity. Sticking 10,000 in the stock market will get you much smaller returns at the moment. You can always go back to the shares after you are earning 100,000 a year and will be smarter and wiser for it.

Thanks for the replies fellas, you all make good points. I've decided to hold off for now until I start working again, in the meantime I'm going to 'invest' the dough in beer and broads while I'm away :t_up:

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Originally Posted by Kaspar

Thanks for the replies fellas, you all make good points. I've decided to hold off for now until I start working again, in the meantime I'm going to 'invest' the dough in beer and broads while I'm away :t_up:

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Thats called the "B" investment portfolio...brothels and breweries. The Chow Brows know what they are doing!!!

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Originally Posted by Kaspar

Thanks for the replies fellas, you all make good points. I've decided to hold off for now until I start working again, in the meantime I'm going to 'invest' the dough in beer and broads while I'm away :t_up:

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Well the "A" portfolio can wait, give me youth any day.:)