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  1. #31
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    Quote Originally Posted by RupertBear View Post
    I am noticing that most of you only hold a few stock. As in 5 or 6. Hmmm I hold quite a few, as in 18. I thought I was being defensive by doing this but maybe I am over diversified? How many stocks do people think is a good number to have?
    I have
    5x NZX,
    3x ASX and
    2x NASDAQ

    Two years ago I had about 14-16 NZX only but was spending too much time on reading useless material for the colourful stocks I owned. I just simplified things now. May add one or two of the ones I sold over the coming year.

  2. #32
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    Quote Originally Posted by RupertBear View Post
    I am noticing that most of you only hold a few stock. As in 5 or 6. Hmmm I hold quite a few, as in 18. I thought I was being defensive by doing this but maybe I am over diversified? How many stocks do people think is a good number to have?
    Ezeey Peezy RB.
    Poor or indifferent result sell.
    Better than you expected result buy more.
    Doing this you will have your portfolio under control.

  3. #33
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    Quote Originally Posted by Beagle View Post
    Thanks but that's straight out of the authorized financial advisor standard rulebook. What ynot needs is specific advice. For example if one were to have some of their funds in emerging markets which fund would you recommend ? How does he buy them e.t.c.
    I would go with TEM in that sector which is easy and cost effective to buy on the NZX but I would only recommend a maximum of 5% in that area. (Almost zero yield for one thing, same for international fixed interest) (Disclaimer - Not that I am an AFA or specifically recommending anything)
    Well sure , but I thought it might be informative to people who haven't read the textbook.
    I wouldnt underallocate too much to int'l f.i. but I agree it is easier to manage NZD FI and being the ultimate destination currency one could accept over exposure to it. EM percentages should of course be small as volatility is high. But some, not none!

    I wonder if there is single fund that does all this for you? Bound to be...
    For clarity, nothing I say is advice....

  4. #34
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    Quote Originally Posted by peat View Post
    Well sure , but I thought it might be informative to people who haven't read the textbook.
    I wouldnt underallocate too much to int'l f.i. but I agree it is easier to manage NZD FI and being the ultimate destination currency one could accept over exposure to it. EM percentages should of course be small as volatility is high. But some, not none!

    I wonder if there is single fund that does all this for you? Bound to be...
    As I sold down my NZX shares a year or so ago, I put the monies into Milford Diversified Income Fund. A nice holding and seems to deliver a conservative/balanced mix of growth and income.

    Last week, however, I made the call that things had bottomed out enough, and I bought back into the NZX with my USD - I will maintain my holding in Milford and let it compound up.

  5. #35
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    Quote Originally Posted by peat View Post
    Conservatively it should have these components as a basis set to appropriate percentages e.g. cash <5%; NZ Fixed Int 30% Int'l Fixed Interest 12% etc etc.
    Even with a 500K portfolio those divisions means mostly using funds so as to gain company diversification within each sector. It is usually accepted as practical to have a large element of fixed interest in NZ despite it not being quite correct.

    Cash
    NZ Fixed Interest
    International Fixed Interest
    Property
    NZ and Australian Equities
    International Equities - Core
    International Smaller Companies
    Emerging Markets
    Specialty
    This is a good blueprint to follow. lizard was in to this.She reviewed reset every three months stocks that had run well and gone over their weighting had the top taken off and the funds reallocated. This is the fun/rewarding part in a disciplined investment portfolio esp in the last 9 years or so of the Bull.

  6. #36
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    Quote Originally Posted by Joshuatree View Post
    This is a good blueprint to follow. lizard was in to this.She reviewed reset every three months stocks that had run well and gone over their weighting had the top taken off and the funds reallocated. This is the fun/rewarding part in a disciplined investment portfolio esp in the last 9 years or so of the Bull.
    What does this actually mean?
    Where and what do you put the 500k in? Simply saying Emerging Markets doesnt cut it.....


    Cash
    NZ Fixed Interest
    International Fixed Interest
    Property
    NZ and Australian Equities
    International Equities - Core
    International Smaller Companies
    Emerging Markets
    Specialty

  7. #37
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    Quote Originally Posted by LAC View Post
    What does this actually mean?
    Where and what do you put the 500k in? Simply saying Emerging Markets doesnt cut it.....


    Cash
    NZ Fixed Interest
    International Fixed Interest
    Property
    NZ and Australian Equities
    International Equities - Core
    International Smaller Companies
    Emerging Markets
    Specialty
    ETF or some sort of fund. choose based on quite long term results - at least 7 years.
    Consider Ishares or Vanguard and as Beagle says Templeton for EM, though Ishares do it too.
    I'm not going to make a full list of specific recommendations , too time consuming. The sort of work a paid financial adviser or even a full service broker would do for you.
    But I'll drop something in for FI AUD http://www.pmcapital.com.au/enhanced-yield-fund as an example
    and for local equities you could use AFI or Kingfish
    For clarity, nothing I say is advice....

  8. #38
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    I feel two people on the pension with a freehold house and $500,000 in the bank is a fantastic retirement plan based on todays values of our dollar. The pension for two is approximately $500 per week which is ample to live off (only live off). Any holidays would come from the supplemental income the $500,000 would provide, which is approximately 1-2 decent holidays per year. The other question is do you have other dependants like children or pets? They cost lots lol.

    I would invest half in Infratil for great dividends and growth and reasonable safety. Plus in $100,000 in the retirement sector. If I did not worry about the capital and focused on dividend, $100,000 in kingfisher(KFL) which gives a great dividend while hovering around $1.20-1.40 per share based over 5 years with 8.5% dividend. Leaving $50,000 in 6 month term deposits, or high on call accounts for access to money.

  9. #39
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    How actively do you want to be managing this $500k retirement nest egg?

    Assume capital losses are tolerable provided the yield is retained? What about complete loss of one of the shares?

    Hard to give any tips at this stage without an answer to those. Obviously a low appetite for managing the fund and worrying about financial performance of an individual company would lead one towards ETFs or managed funds. I'd never recommend the latter. But a dividend style ETF like the Smartshare DIV fund would give around 5.9% yield less 0.5% fees for 5.4% overall return (as an example only based on current factsheet)

    I'm not sure even Buffett would back himself to put all his entire retirement eggs in a single basket (e.g. OCA)*

    * I'm assuming Berkshire is a look-through investment

  10. #40
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    Quote Originally Posted by Zeitgeist View Post
    I'm not sure even Buffett would back himself to put all his entire retirement eggs in a single basket (e.g. OCA)
    What would Buffett do? I don't think he is going to retire but when he dies all his Berkshire shares are heading for charity. What he leaves to his wife will be as follows:

    My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit. (I have to use cash for individual bequests, because all of my Berkshire shares will be fully distributed to certain philanthropic organizations over the ten years following the closing of my estate.) My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.
    Given that Buffett is already 250 years old, I assume his wife is getting on too. She probably doesn't need to be looked after for 30+ years.

  11. #41
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    Ive pondered this for a few days and come to the conclusion that it's best to spend the whole lot on a bunker and guns.

  12. #42
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    Quote Originally Posted by Zeitgeist View Post
    How actively do you want to be managing this $500k retirement nest egg?

    Assume capital losses are tolerable provided the yield is retained? What about complete loss of one of the shares?

    Hard to give any tips at this stage without an answer to those. Obviously a low appetite for managing the fund and worrying about financial performance of an individual company would lead one towards ETFs or managed funds. I'd never recommend the latter. But a dividend style ETF like the Smartshare DIV fund would give around 5.9% yield less 0.5% fees for 5.4% overall return (as an example only based on current factsheet)

    I'm not sure even Buffett would back himself to put all his entire retirement eggs in a single basket (e.g. OCA)*

    * I'm assuming Berkshire is a look-through investment
    I don't mind actively managing it but I do have doubts about my ability to get it right.
    Maintaining yield would be a priority.

  13. #43
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    Quote Originally Posted by Zeitgeist View Post
    How actively do you want to be managing this $500k retirement nest egg?

    Assume capital losses are tolerable provided the yield is retained? What about complete loss of one of the shares?

    Hard to give any tips at this stage without an answer to those. Obviously a low appetite for managing the fund and worrying about financial performance of an individual company would lead one towards ETFs or managed funds. I'd never recommend the latter. But a dividend style ETF like the Smartshare DIV fund would give around 5.9% yield less 0.5% fees for 5.4% overall return (as an example only based on current factsheet)

    I'm not sure even Buffett would back himself to put all his entire retirement eggs in a single basket (e.g. OCA)*

    * I'm assuming Berkshire is a look-through investment
    I could live with 5.4 % . Could I expect any growth in the value of the ETF ?
    Last edited by ynot; 11-01-2019 at 05:30 PM. Reason: Edit

  14. #44
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    Quote Originally Posted by ynot View Post
    I could live with 5.4 % . Could I expect any growth in the value of the ETF ?
    Yes - all ETFs rise/decline in line with their underlying instruments.

    Disclaimer: I personally do not have any money invested in these ETFs but I believe they were initially Superlife products. Superlife are my Kiwisaver providers, since gobbled up by NZX.

    I'd advise DYOR into the ETFs before proceeding - look into things like liquidity, confirm how they're priced, dividends available as cash etc. Provided that all checks out, and I'm sure it would, you could have these ETFs forming the bulk of your allocation. You can obviously split a proportion out to higher dividend payers if you back yourself to pick/manage a few.

    If you haven't already, I'd recommend setting your strategy, write it down or store it somewhere safe, and refer back to it every time you hover over the buy/sell button on any investment in future. Only in exceptional circumstances should your future self over-ride this strategy.

  15. #45
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    Some good posts in this thread.

    My left field comment is that the reliance on ‘safe’ dividend yielding stocks and/or bonds is overrated. Let me explain.

    I retired 4 yrs ago with my own mortgage-free home and some savings. I started investing in shares 5 years ago gradually investing $150k that was ‘risk free’ and surplus to my retirement needs as determined by a 5 year budget.

    My strategy was/is to invest primarily in small cap ‘growth’ potential companies using principles espoused by Jim Slater in his book The Zulu Principle. My aim was to ‘grow’ my capital and I was not greatly interested in dividends as I considered dividend yield stocks were often ‘overpriced.’ My objectives were to; stay within the NZX, beat the banks term deposit rates and beat the NZX50 average return with tax free capital gains.

    I’m not a short term ‘trader,’ as the longer term tax free aspect of capital gains is very important IMHO.

    How did I get on??? Well post #37 on the 2019 Stock Picking Comp Thread provides a hint.

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