Newbie looking to learn

[kiwidollabill]

I've been a long time 'watcher' of this thread and think it's now time I walk the talk and contribute to the community. Please feel free to pull me up on saying anything 'stupid'....

I'm 29yr M professional and today I just got a job offer to move me from my current role (technical sales) into the banking/financial sector. So I should learn something along the way here too.

I spent 7yrs at the University of Otago and finished up with a science PhD, through this and my previous job I have had a fair bit of exposure to PEB and BLT so may add my 2c in on those threads.

Investing has always been interesting to me - I'm big on 'passive investing' so my current portfolio is exposed to global stocks, institutional bonds and smartFNZ via Superlife/NZX. Plan is to keep 80% of funds locked into this (60:10:1) and have 20% on individual stocks with a focus on picking companies with good management experience and value for growth, speculative bets don't really interest me.

I have a bit of experience with biotech/science/startups but am pretty bearish around the current NZ offerings, most of the smart/profitable money in these is kept unlisted, nuff said.

Current lack of understanding is around tax and accounting so am hoping to pick up my knowledge a bit in this area.

[Arthur]

Looking forward to your comments on Blis. Before the AGM would be good thanks

[BlackPeter]

Welcome to the forum ... and it looks like you got your first keelhauling already on the PEB thread. Just nice people in this forum, however some are a bit sensitive if you tell them things they don't like and / or believe in ;). Anyway - great to have a new contributor - looking forward to a good discussion.

[percy]

Best results come from doing all the "extra" research.
Buy with the view "never to sell."
Sell straight away if reason for buying changes, on the downside.
Back yourself.Never rely on anyone .
Welcome.

[kiwidollabill]

Thanks all, my entrance has been a 'baptism of fire' but hope to have good discussions.

[Buffett Jr]

You are 29 years old. Why do you feel the need to own bonds?

Your lack of understanding of tax/accounting can be corrected by spending 60-120 minutes with an accountant.

Why do you think you can beat the market index when so many can't?

[kiwidollabill]

You are 29 years old. Why do you feel the need to own bonds?

Your lack of understanding of tax/accounting can be corrected by spending 60-120 minutes with an accountant.

Why do you think you can beat the market index when so many can't?

1. Small amount of diversification, especially considering some parts of the portfollio may struggle in the near term. May change my view in 12 months.

2. Correct

3. I don't know if I can or cant, but there is going to be a bit of fun in trying.

[Hoop]

.......... Why do you think you can beat the market index when so many can't?..

Most is a better word than many...
The reason why most investors fail to beat the market index is they overthink then apply pre-emptive behaviour. Investors forget Mr Market is a product of collective intelligences and they try to compete on Mr Markets strengths (intelligence& knowledge) rather than on Mr Markets weaknesses (irrationality and panic)

Investing in index funds is boring and no fun but one has to stay focused for a brief time only to beat the market index...exit during a capitulation phase of a bear market cycle then at some later stage after the drop has ended and everyone thinks your nuts buying back in do exactly that...It may not be the bottom so ride it out....Timing is an advantage but no one can exit at the top or enter at the bottom...so don't try ...Remember, any brief time out of a dropping market (Bear Market Cycle) guarantees an out-performance of that market.......so don't be greedy..

Very loose rule of thumb:.. On average we are in the market index fund for 5 years, out for 6 months, back in for 5 years, out for 6 months, and so on..
I'm not a great fan of Elliot waves but the basic wave pattern is all you need to visualise...its either 3 wave or 3 multiplied.. The last NZX50 bear cycle was 6 wave (3x2)..but we are now overthinking....Keep it simple.. don't sell out on a possibility... wait for that C (3)wave you will know for sure when a "C Wave" happens as it is a major irrational crisis event, with the feeling of extreme pain and nowhere to hide including that pessimistic doubtful feeling about your banks which are holding your cashed up money.
https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTrLfDXxNLF_0Wor0Q17aoms3bUvOBGe TgD2SlUEBbFVvt3QQLVFQ

http://i458.photobucket.com/albums/qq306/Hoop_1/NZX50%2017072015.png (http://s458.photobucket.com/user/Hoop_1/media/NZX50%2017072015.png.html)

[BIRMANBOY]

Hoop, surely MOST applies to all the other guys...I'm sure it doesn't apply to me does it?:eek2:
..

Most is a better word than many...
The reason why most investors fail to beat the market index is they overthink then apply pre-emptive behaviour. Investors forget Mr Market is a product of collective intelligences and they try to compete on Mr Markets strengths (intelligence& knowledge) rather than on Mr Markets weaknesses (irrationality and panic)

Investing in index funds is boring and no fun but one has to stay focused for a brief time only to beat the market index...exit during a capitulation phase of a bear market cycle then at some later stage after the drop has ended and everyone thinks your nuts buying back in do exactly that...It may not be the bottom so ride it out....Timing is an advantage but no one can exit at the top or enter at the bottom...so don't try ...Remember, any brief time out of a dropping market (Bear Market Cycle) guarantees an out-performance of that market.......so don't be greedy..

Very loose rule of thumb:.. On average we are in the market index fund for 5 years, out for 6 months, back in for 5 years, out for 6 months, and so on..
I'm not a great fan of Elliot waves but the basic wave pattern is all you need to visualise...its either 3 wave or 3 multiplied.. The last NZX50 bear cycle was 6 wave (3x2)..but we are now overthinking....Keep it simple.. don't sell out on a possibility... wait for that C (3)wave you will know for sure when a "C Wave" happens as it is a major irrational crisis event, with the feeling of extreme pain and nowhere to hide including that pessimistic doubtful feeling about your banks which are holding your cashed up money.
https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTrLfDXxNLF_0Wor0Q17aoms3bUvOBGe TgD2SlUEBbFVvt3QQLVFQ

http://i458.photobucket.com/albums/qq306/Hoop_1/NZX50%2017072015.png (http://s458.photobucket.com/user/Hoop_1/media/NZX50%2017072015.png.html)

[kiwidollabill]

I've read close to 10 articles looking at index invest c.f. stock picking so no need to inform me further.

80% of my portfolio is in index ETFs. If I stuff up the other 20% across the next cycle (and admit defeat) I'll dump the lot in ETFs and focus on another hobby (I've got plenty).

[Hoop]

Hoop, surely MOST applies to all the other guys...I'm sure it doesn't apply to me does it?:eek2:
Of course not..that doesn't happen to us minorities ;);). What ever made you think that:D



I've read close to 10 articles looking at index invest c.f. stock picking so no need to inform me further.

80% of my portfolio is in index ETFs. If I stuff up the other 20% across the next cycle (and admit defeat) I'll dump the lot in ETFs and focus on another hobby (I've got plenty).

All the best...