Investing in company shares

Hi,

The company I work for has recently gone onto the ASX. I would like to pick up some shares for long term holding, but have never dealt with a broker before, can anyone recommend one to start with? Likely to have very low volume from me, not really interested in buying or selling other shares at this stage and only putting in about $5K to start with.

Also, I have a limited company that I used to use for my own business but now is doing nothing. Is best strategy to use this as my trading entity rather than in my own name? It has some losses from previous years to carry over which might be good for tax purposes.

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Originally Posted by airbus

Hi,

The company I work for has recently gone onto the ASX. I would like to pick up some shares for long term holding, but have never dealt with a broker before, can anyone recommend one to start with? Likely to have very low volume from me, not really interested in buying or selling other shares at this stage and only putting in about $5K to start with.

Also, I have a limited company that I used to use for my own business but now is doing nothing. Is best strategy to use this as my trading entity rather than in my own name? It has some losses from previous years to carry over which might be good for tax purposes.

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Hi Airbus,
If you know what you are doing and do not require company specific advice, I would recommend one of the two discount brokers in NZ, namely ANZ securities, or otherwise ASB securities. Their ASX brokerage fees are not too cumbersome, in the range of about $30 a pop.
If this stock you are investing in is generating earnings and paying dividends then you could pump those through your limited company and use up the tax losses that way (ie offset against income). I am no expert so for more help or info seek professional advice.

If you're NZ based, ASB or ANZ are likely to be the best options. More generally though, consider whether it's wise to choose the company you work for as the only(?) company you invest in. Not only are you setting up a poorly diversified portfolio, but you're combining your investment risk with your employment risk. If your company performs poorly, you're both more likely to lose your job and to lose money on your investment. I've heard stories of Enron employees who had everything invested with the company and lost everything. If you're extremely confident then you might be able to justify some investment, but don't put all your eggs in one basket.

Thanks Folks, really appreciate the responses. Very good advice not to put eggs in one basket, but the low investment involved i'm not too worried if it all vanished, I have property as a diverse investment. To be honest its a pride thing, I feel very proudt to work where I do and want to put some of my own money behind the work we do..if that makes sense.

Looking at ANZ now.

Thanks again