Starting out!

[Beef]

Hi all,

I've been browsing around for a bit and decided to make an account to ask for some advice. I inherited around $80k recently and I'm looking at putting a reasonable portion of this into shares via ASB securities. Ideally, I would like to earn more than the 4.58% p.a. term deposit offered to me by ASB, and would be looking at investing for around 5-6 years (at which point the money will probably be needed for paying off med school loans/putting a deposit down on a house).

Current portfolio ideas are; a retirement company, Air NZ, Heartland, PGG, Genesis, Spark

I would really appreciate some advice on my planned share portfolio, and the likelihood of doing better than if I were to put the money into a term deposit account considering my time frame and my absolute lack of experience in the share market.

Thanks heaps for any advice, and all the information already on the forums!

[Minerbarejet]

Gidday Beef,
First thing to do is go and buy a large bag of salt and sprinkle it over every utterance on ST, ( including my own)
There is a huge amount of pertinent dialogue on pretty well every company accompanied by a fair swag of dribble, ( including my own).
Once you think you have enough information from here then its time to do your own research which will involve poring through annual reports, news writeups and whatever you can find with keywords in google.
Its a long journey you have undertaken, you will have successes and failures, cut your losses and run with the uptrends.
There is so much to learn
Good luck and welcome to ST
Miner

[Harvey Specter]

Current portfolio ideas are; a retirement company, Air NZ, Heartland, PGG, Genesis, SparkNOt bad but remwmber you shouldn't necessarily be holding the same companies in 6 years.

Take the retirement villages (or the power co's) - which is the best company and has that already be factored into the price. A good company can be undervalued or overvalued. Best to buy when undervalued and sell when over valued - hard to do. The point is it doesn't end once you have picked the your first companies. You need to keep following them to ensure you should keep holding them.

Re dividends, those companies should pay you a good yield. Remember though that shares should also give you capital gain so even if the yield is under 4%, doesn't necessarily mean it is worse than a term deposit.

[noodles]

Hi all,

I've been browsing around for a bit and decided to make an account to ask for some advice. I inherited around $80k recently and I'm looking at putting a reasonable portion of this into shares via ASB securities. Ideally, I would like to earn more than the 4.58% p.a. term deposit offered to me by ASB, and would be looking at investing for around 5-6 years (at which point the money will probably be needed for paying off med school loans/putting a deposit down on a house).

Current portfolio ideas are; a retirement company, Air NZ, Heartland, PGG, Genesis, Spark

I would really appreciate some advice on my planned share portfolio, and the likelihood of doing better than if I were to put the money into a term deposit account considering my time frame and my absolute lack of experience in the share market.

Thanks heaps for any advice, and all the information already on the forums!
I think your stock selection is quite strong. I have no idea why you have picked Spark. Most brokers value them much lower than the current price.
http://www.4-traders.com/SPARK-NEW-ZEALAND-LTD-6492600/consensus/

You should be aware that all these stocks have run hard of late. The NZX is at all time highs.

Having said that, I think you should keep 75% of the funds in safe deposits until you learn the ropes. It will take at least 5-6 years to learn the ropes. You really need to experience a correction to complete your training.

But maybe you are smarter than the average guy(being a doctor). But will you have time to study the markets and medicine. I doubt it. And let's say 5-6 years is up. If you are any good, you won't want to buy a house because it would mean you could not be in the markets.

So summing it all up, do you really have the time to do this on your own. Would you be better letting someone else manage your money or just leave it in a term deposit?

Can you tell me how you selected these stocks? If you can't then perhaps you should not invest by yourself.

[Buffett Jr]

Hi all,

I've been browsing around for a bit and decided to make an account to ask for some advice. I inherited around $80k recently and I'm looking at putting a reasonable portion of this into shares via ASB securities. Ideally, I would like to earn more than the 4.58% p.a. term deposit offered to me by ASB, and would be looking at investing for around 5-6 years (at which point the money will probably be needed for paying off med school loans/putting a deposit down on a house).

Current portfolio ideas are; a retirement company, Air NZ, Heartland, PGG, Genesis, Spark

I would really appreciate some advice on my planned share portfolio, and the likelihood of doing better than if I were to put the money into a term deposit account considering my time frame and my absolute lack of experience in the share market.

Thanks heaps for any advice, and all the information already on the forums!

I asked a similar question on this forum over five years ago when I bought my first shares.

I was given all sorts of advice. Buy Pike River Coal, buy silver bars and hide them under the mattress. Buy a gun and canned food to get you through a financial crisis, etc. It was pretty useless advice.

Best thing I ever did was firstly find out what kind of investor I wanted to be (trader, dividend, value) then learnt everything through books, articles, reading annual reports, etc. I also took a greater interest in the financial news and company updates.

I only ever found these forums useful for passing the time at work when I had nothing to do as a form of entertainment, not for financial advice.

[gv1]

I only ever found these forums useful for passing the time at work when I had nothing to do as a form of entertainment, not for financial advice.[/QUOTE]

Hey, thats not nice. I think you should be banned for blaspheming the ST.

There are good posters, good advise provided you do your own to match them.

[noodles]

Hey, thats not nice. I think you should be banned for blaspheming the ST.

There are good posters, good advise provided you do your own to match them.
I tend to agree with Buffett Jnr. I would say do your own research and back it up with broker research.

[gv1]

I tend to agree with Buffett Jnr. I would say do your own research and back it up with broker research.
Then what you doing here?

[noodles]

Then what you doing here?

Good question. Just like the banter I guess.

[PSE]

6 years is probably not long enough for investing you run the risk of needing the money when the market is down.
Picking stocks requires a lot of work for most people the best advice is buy index ETF funds during the next crisis when everyone is screaming sell and be selling at times like now when most companies (like those in your list) are selling at stupid prices.

[PSE]

Look up dollar cost averaging. The worst thing you could do is pay too much for companies you don't understand and haven't the time or inclination to learn.
If you want to learn to invest start by reading the intelligent investor by Ben Graham and start testing your judgement with small amounts.
There are value investors and everyone else is gambling or speculating with varying degrees of success.
Good luck

[iceman]

If you are looking at 5-6 years horizon and then needing the money to pay off a student loan or a deposit on a house, it may be worth doing some research on Corporate Bonds as part of your portfolio.

[Lego_Man]

If you are looking at 5-6 years horizon and then needing the money to pay off a student loan or a deposit on a house, it may be worth doing some research on Corporate Bonds as part of your portfolio.

Nah, corporate bond yields are abysmal at the moment for anything with a decent credit rating. On a risk/reward basis you're better off just putting your bond allocation into a Term PIE to take advantage of the decent rates and tax benefits.

Edit: Just had a look at current prices. Only bonds that are yielding above 5% at present are junk/unrated. Even to get over 4% you have to drop below A Grade.

Meanwhile,

http://www.interest.co.nz/saving/term-pie

[huxley]

http://jlcollinsnh.com/2012/04/25/stocks-part-iii-most-people-lose-money-in-the-market/

[iceman]

Not a recommendations but higher rates are available http://www.interest.co.nz/bonds/74386/anz-nz-borrows-nz500-mln-capital-notes-issue


Nah, corporate bond yields are abysmal at the moment for anything with a decent credit rating. On a risk/reward basis you're better off just putting your bond allocation into a Term PIE to take advantage of the decent rates and tax benefits.

Edit: Just had a look at current prices. Only bonds that are yielding above 5% at present are junk/unrated. Even to get over 4% you have to drop below A Grade.

Meanwhile,

http://www.interest.co.nz/saving/term-pie

[Schrodinger]

[QUOTE=noodles;562764]

Having said that, I think you should keep 75% of the funds in safe deposits until you learn the ropes. It will take at least 5-6 years to learn the ropes. You really need to experience a correction to complete your training.
QUOTE]

Sounds a bit like Jedi training advice:t_up:

[barleeni]

I inherited around $80k recently and I'm looking at putting a reasonable portion of this into shares via ASB securities.

All I can say is thank god I didn't have $80k to play with when I started! I would be highly depressed probably. I have been playing/learning the ropes for 18 months now and still have far less than this invested.

I agree with what most are saying on this thread, in that I have found it a long learning curve getting to grips with investing in shares.

My only advice (and im probably not qualified enough to be giving any) is 1) don't get sucked in by hype and the lure of making a quick buck thinking that all techy companies are going to do a XRO (I can cite from personal experience the likes of PEB, ATM). 2) Don't ever think a company is a safe and guaranteed place to invest (I can again cite from personal experience CNU mere days before the announcement) 3) if you cant afford to loose it, don't invest it in shares!

[AppleCrumble]

I asked a similar question on this forum over five years ago when I bought my first shares.

I was given all sorts of advice. Buy Pike River Coal, buy silver bars and hide them under the mattress. Buy a gun and canned food to get you through a financial crisis, etc. It was pretty useless advice.

Best thing I ever did was firstly find out what kind of investor I wanted to be (trader, dividend, value) then learnt everything through books, articles, reading annual reports, etc. I also took a greater interest in the financial news and company updates.

I only ever found these forums useful for passing the time at work when I had nothing to do as a form of entertainment, not for financial advice.

So what sort of investor are you then? trader, dividend, value?
I would have thought everyone is into value. I know I am. I would like to hear more from you as to would the op, i'm sure. As you would have learnt a lot in your 5/6 years.

I'm into the long term but I would like dividends as income as well not sure you can have both or maybe you pay the premium. Have you any examples of these?

I'm also into etfs., mainly for the low fees, and so far in my research smartshares seems a good option although I hear there might even cheaper options. Hey are a so passive and not too time consuming. I also like the way you can drip feed into these and with the odd lump sum.

[PSE]

Only buy what you know and don't pay too much.
Read the intelligent investor then decide to dollar cost average into an index fund.
Enthusiasm and a little bit of knowledge is a dangerous combination.