Newbie Wanting Advice

[dagdaniel1]

Hey, I'm a complete newbie to this, only just found this site a week ago and it has been very helpful. I'm currently a student studying commerce at Victoria Uni and I've been thinking about purchasing shares into a retirement home company - MET, SUM or RYM. This was mainly due to the fact that "New Zealand has an ageing population" coming up in class, over the last few years, often. I did some research into those three companies and discovered that I liked Ryman the best. Got close to purchasing the shares in January but pussied out. I am now ready to but the shares, but the market over the past few days has scared me off a little.

Basically, I was wondering if investing into Ryman was still worth it? I'm looking at investing around $1000, as that's all I have, and mainly looking at around 5 of investment.

[Joshuatree]

Hi DD. RYM has been the star performer and has been priced for perfection so has overrun value wise imo.It has hit new highs and gone back two or three times now Some think if it holds re $8.22 that may be a good time to buy. I have sold down two thirds plus and intend to buy some MET and maybe some SUM on price dips/mkt corrections. My broker has a sell on RYM with a $7.73 valn. A hold on MET with a $4.59 valn a hold on SUM with a valn of $3.60. Read the threads theres lots of good posta and varying opinions. If you're set on RYM wait till it starts trending up again rather than trying to catch a falling knife(it may keep dropping after you've boughT). Good luck and DYOR JT

[percy]

I think Joshuatree has given you very good advice.
The retirement sector has been "the hot sector" to be in.
Shares overshoot and undershoot.At present prices this sector appears to have "overshot".
Just keep you money in the bank at present.Watch and read.Time is on your side.

[dagdaniel1]

Thanks guys, I'm not in a real rush so I probably will wait to see what happens - just know that its good to get experience, so hopefully it works out.

[vorno]

Something to remember DD, based on your $1,000 the lowest "general" brokerage fee will probably be $30 (the minimum charge of most places). So based on that in order to buy & then sell it will cost you $60 total. So, just remember that you'll need a "6% gain" if you want to break-even.

Just something to keep in mind :)

[dagdaniel1]

Yep, but also, to really break-even, I need to earn more than I could in my savings account which is about 3.5%

[boring]

Hi DagDaniel1,

I'm going to suggest something contrary to all the good advice on the thread. Since you are a newbie to investing and have $1,000 to invest, I'm going to suggest that you get some skin in the game now, and just buy.

If you are buying a retirement home company and are looking to play the demographic wave, you are going to be playing the long game. You'll have an investment horizon of probably more than 30 years. If you look far enough into the future, $1,000 is actually a very tiny amount compared to the wealth you will eventually amass if you play your cards right.

So I suggest that you best consider the $1,000 as education money ... the cost of learning about yourself as an investor. I have always said that at thee very core, investing is a game of personal psychology. The best, most successful investors know themselves and have chosen an investing or trading methodology that is consistent with their personality type. They are true to themselves.

Let's say you buy $1,000 worth of Ryman today, and it drops 40%, leaving a paper value of only $600. How will you react? Will you lose sleep? Will you immediately sell out to preserve whatever left you have? Or will you be comfortable knowing that the company is a sound 30 year investment ?

It's no good pretending to own it on paper. The only teacher is experience, having skin in the game.

The problem is, if you wait, you may end up waiting forever, because there is always something in the market to worry about. The old adage that Wall Street climbs a wall of worry is so true. If Ryman falls, you be worry about catching a falling knife. If it falls and then turns around, you'll worry that it's a dead cat bounce.

I'm not saying that waiting to buy a share when it represents good underlying value is not a worthy goal. What I am saying is that at this early stage, your best investment may be an investment into your investor psychology by getting into the game. Only then will you know if it's the right game for you.

[Vaygor1]

That is good advise from Boring.

You can sit in a classroom and learn how to drive a care for 10 years, but you won't really learn until you get behind the wheel and skid off the road a few times. Same with the sharemarket.

Given the amount involved, I would choose one of the 3 you have identified and get in there. You won't lose anything in the medium to long term whichever one you choose.

[dagdaniel1]

Yeh I was thinking along similar lines, now looking at completely different stocks, currently researching TTK (mainly due to nice dividends), but also need to start getting some books out of the library, so any recommendations?

[vorno]

Yeh I was thinking along similar lines, now looking at completely different stocks, currently researching TTK (mainly due to nice dividends), but also need to start getting some books out of the library, so any recommendations?

The only thing going for TTK apparently is their dividend to try and hold onto their investors.... take a look at the graph.

5880


...so, while you "may" receive an odd 15% dividend, odds are your stock will be worth a lot less.

[Harvey Specter]

Yeh I was thinking along similar lines, now looking at completely different stocks, currently researching TTK (mainly due to nice dividends), but also need to start getting some books out of the library, so any recommendations?On $1000, I wouldn't worry about dividends. Look to buy the best company with the best long term growth (in shareprice) prospects.

Once you've bought dont expect to get your money out. Leave it in the bottom draw till it has doubled or tripled. Only consider selling if you think the growth prospects have changed as transaction costs on a small holding mean trading is not viable.

But only do this if you plan to keep investing more money so that over time you have lots more in the bottom draw, maybe even having added to the holdings you have.