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  1. #21
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    Quote Originally Posted by Snow Leopard View Post
    Sorry ma'am, won't do it again.

    Apart from moving to Canada where things are so much easier then at the end of the day you are going to have to invest time into learning and analysing companies from the perspective of your investment or trading style, putting some real money* where you conclusions say good value is and then see how it works out for you.


    Some you will win and some you will lose, both ways you will learn by actually doing it and having money in the market.

    You see how it goes and adapt with experience.


    *If I remember correctly you can buy small $$ of shares with low brokerage
    I'm speaking for both sides of the fence which is relative to the topic in discussion. The novice NZ investor is simply at a disadvantage to investing shares when compared to those living abroad. Furthermore the investing approaches abroad differs to NZ and a lot of that is due to taxation. Another is NZ preference to dividend income on share investment vs overseas prefer capital gains. If you can't get past this distinction, then you'll find all the effort put into investing shares (from a NZ perspective) would of gone to a waste of time and I mean you can study up all the fundamentals on a NZ listed company or try to look smart by using technical analysis on NZ shares and at the end of the day, you're worse off than buying a 2nd house. Sure there are winners and losers in any game... but you simply can't have a 'fair' game if the playing / (investing environment) is not on a fair level playing field. Earlier in the year I applauded for the WTG in NZ to tell the NZ gov't that capital gains tax should be brought in to NZ. It was the single only chance to level the playing field. But oh no, you have politicians (especially in the NZ 1st and National Party camp) that have huge investments in real estate and frankly, they're not going to welcome a CGT on their investments.

    Quote Originally Posted by Tronald Dump
    SBQ, to be clear, there is NO capital gains tax on PIE funds, whereas there definitely is a tax on investment property gains if you sell within 5 years. You also (of course) pay income tax on the rental income from property, just like you pay income tax on dividends from shares or funds.
    You realise why the PIE funds came about? It was to address the tax inequality that managed funds faced when they were trying to roll out Kiwi Saver. We don't have to mention the absence of CGT because in the NZ share investment field, portfolios are subjected to something worse which is the FIF regime I keep describing. Look at the significance of share investing in NZ when you see companies like Xero leaving the NZX saying they want a wider market exposure ; while during this process, NZ investors holding Xero shares would be wacked with FIF. Is this the example we should be looking at for existing NZX companies - 'pick a winner where the long term result is they go off shore' ?

    I do not believe there is much data showing those that have sold houses in less than the 5 year brightline test. You know investment criteria for retirement planning is not 5 years and certainly no one has lost a lot of $ in real estate if they held longer than 5 or 10 years.

    The PIE funds do give investors in the top income tax bracket a 5% break ; pity it leaves nothing of a benefit to the small guy.

    @ justakiwi : Since you're dealing with small sums, I welcome you to keep looking at high quality stocks with long future potential, typically those on the S&P500. If you can return a decent sum on your investment, be sure to keep it under $50,000 NZD which is the threshold before FIF kicks in. Hopefully you cash out the gains and put them towards something better like into your 1st home mortgage. FYI, in 2019 my portfolio did over 30% which is inline with the returns that the S&P500 and DOW index did last year:

    https://dqydj.com/2019-sp-500-return/

    What is the the NZ gov't doing to boost the NZ share market? The only thing I see being boosted in NZ is prices in the NZ real estate.

  2. #22
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    Here we go Justakiwi.
    Read the latest annual report.
    Should the chairman's outlook sound poor read no more.If you can not understand what the chairman is saying,read no more.
    Should it be positive read the balance sheet.
    Look to see current assets are twice current liabilities.
    Take out intangibles and goodwill from assets.
    Then see what the equity ratio looks like.That is shareholders equity divided by total assets [less intangibles and goodwill]
    Some business such as a retailer or manufacturer you want the equity ratio near 50%.
    Finance company,bank. or property company an equity ratio of 13% to 30%.Note each industry has different requirements,so compare apples with apples,ie companies in the same sector.
    Cash flow from operations should [must] be positive.
    At the very end of the annual report you will find a list of major shareholders.Check the directors have sizeable shareholdings.
    Make a record of why you are investing in the company.If the reasons change decide whether to hold or sell.
    Buffett says he gets 6 out of 10 right.So hang onto winners and sell losers.
    Jim Slater "The Zulu Principle" says sell at first bit of bad news......Google The Zulu Principal by Jim Slater and read about it.[investing]
    Always read company presentations and compare what they achieve against them.
    Invest only in companies that do as they say they will do.
    Take responsibility for all your investment decisions.Ignore Sharetrader noise.
    Buy to hold forever.
    I try to base my own decisions on facts ie announcements.February I will be watching announcements closely.And will decide my course of action accordingly.
    If I do not understand anything in a company's announcement, I ring and seek clarity.CEOs CFOs are happy to talk to you so long as you ask sensible questions.
    Last edited by percy; 13-01-2020 at 06:25 PM.

  3. #23
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    Quote Originally Posted by justakiwi View Post
    I suppose I did sound a bit like a (school) maíam

    Yes, Iím investing $40 a week via Sharesies currently, which is small bikkies for most people, but Iím feeling pretty good about what Iíve achieved so far in terms of building my little portfolio. At just under 19% returns for 2019 (calendar year) my money is working a heck of a lot better for me than it was sitting in the bank. I am an investor - not a trader, so happy to be patient and see how it all unfolds. Doing heaps of reading, listening to podcasts, learning from others in various forums and so on. I guess for me, the analysis and interpretation of annual reports/financial reports, is where I struggle. Some companies are better than others at putting those things together in a way that novices can understand. Itís a learning curve. I thought there might have been some online courses available, but so far, I havenít been able to find any.
    No worries .

    Investing regularly is a good bit of discipline and no amount is to small.
    So that $2080 per year is being invested in what? (sorry if you have already said somewhere) Index funds or individual shares?
    Is the 19% your calculation or sharesies?

    Not sure that you need to do a major in adding up to read the accounts.
    I doubt most people read the small print but you should learn the basics of P&L, Comprehensive Income, the Balance Sheet and the Cash Flow Statement.
    om mani peme hum

  4. #24
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    At the risk of embarrassing myself/looking like an idiot ... I currently hold:

    KFL - my largest holding as I purchased these in 2016.
    BRM
    MLN
    HGH
    USF
    BLT (yes, I know I shouldn’t have, but I did anyway - my only “take a chance” highly speculative holding, which I won’t be adding to for now)

    Total portfolio value is just under $5000. Not planning to buy anything new now. Focusing on building on what I have for now. And before the anti-Fisher/Carmel brigade get onboard - yep, I know their fees are high, but their dividend frequency and DRP have been awesome for me. I have not purchased any new shares in KFL since I bought them (although I did exercise warrants last year), but my holding has increased considerably simply because of DRP. It is a very good way for small investors to increase their holdings without spending any further capital.

    I use Sharesight to monitor everything in one place - the 19% is their return (most of that return is KFL for obvious reasons)

    Feel free to rip it to shreds
    Quote Originally Posted by Snow Leopard View Post
    No worries .

    Investing regularly is a good bit of discipline and no amount is to small.
    So that $2080 per year is being invested in what? (sorry if you have already said somewhere) Index funds or individual shares?
    Is the 19% your calculation or sharesies?

    Not sure that you need to do a major in adding up to read the accounts.
    I doubt most people read the small print but you should learn the basics of P&L, Comprehensive Income, the Balance Sheet and the Cash Flow Statement.
    Last edited by justakiwi; 13-01-2020 at 08:04 PM.

  5. #25
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    Quote Originally Posted by percy View Post
    Here we go Justakiwi.
    Read the latest annual report.
    Should the chairman's outlook sound poor read no more.If you can not understand what the chairman is saying,read no more.
    Should it be positive read the balance sheet.
    Look to see current assets are twice current liabilities.
    Take out intangibles and goodwill from assets.
    Then see what the equity ratio looks like.That is shareholders equity divided by total assets [less intangibles and goodwill]
    Some business such as a retailer or manufacturer you want the equity ratio near 50%.
    Finance company,bank. or property company an equity ratio of 13% to 30%.Note each industry has different requirements,so compare apples with apples,ie companies in the same sector.
    Cash flow from operations should [must] be positive.
    At the very end of the annual report you will find a list of major shareholders.Check the directors have sizeable shareholdings.
    Make a record of why you are investing in the company.If the reasons change decide whether to hold or sell.
    Buffett says he gets 6 out of 10 right.So hang onto winners and sell losers.
    Jim Slater "The Zulu Principle" says sell at first bit of bad news......Google The Zulu Principal by Jim Slater and read about it.[investing]
    Always read company presentations and compare what they achieve against them.
    Invest only in companies that do as they say they will do.
    Take responsibility for all your investment decisions.Ignore Sharetrader noise.
    Buy to hold forever.
    I try to base my own decisions on facts ie announcements.February I will be watching announcements closely.And will decide my course of action accordingly.
    If I do not understand anything in a company's announcement, I ring and seek clarity.CEOs CFOs are happy to talk to you so long as you ask sensible questions.
    Thats a fab condensed nugget in a nutshell percy, i shall endeavour to repost it every now and then like i do KW's basic charting posts about when to buy and sell.
    Last edited by Joshuatree; 13-01-2020 at 08:44 PM.

  6. #26
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    Quote Originally Posted by Joshuatree View Post
    Thats a fab condensed nugget in a nutshell percy, i shall endeavour to repost it every now and then like i do KW's basic charting posts about when to buy and sell.
    Wasn't bad considering the wife kept reminding me to come out and do the dishes.!!..lol.

  7. #27
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    Quote Originally Posted by justakiwi View Post
    At the risk of embarrassing myself/looking like an idiot ... I currently hold:

    KFL - my largest holding as I purchased these in 2016.
    BRM
    MLN
    HGH
    USF
    BLT (yes, I know I shouldn’t have, but I did anyway - my only “take a chance” highly speculative holding, which I won’t be adding to for now)
    ...
    NZ diversified -- check
    OZ diversified -- check
    US diversified -- check
    diversified diversified -- check

    As for HGH & BLT -- well I hold both.
    Doubt you went wrong with HGH.
    Question is why did you buy BLT? Because everybody else was or do you believe it has legs?
    om mani peme hum

  8. #28
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    Quote Originally Posted by SBQ View Post
    Why not list all the individuals' IRD tax brackets? We have 10.5%, 17,5%, 30%, & 33%. IMO at $70K+ the 33% kicks in is a very very low threshold compared to today's cost of living. FYI, in Canada the 33% tax bracket doesn't kick in until about $215K. (The NZ gov't doesn't understand what 'indexing to inflation' means and that's why we have fixed threshold figures set like they were over 10 years ago). Anyways 33% marginal tax rate is a fair figure making an effective FIF tax rate of 1.65%.
    If you are taxed at 33% in NZ, that rate applies only top the incremental amount of your income over $70k. So it isn't really accurate to say that anyone earning over $70k is paying tax at 33%. You would need to earn around $700k per year to really be paying income tax at a rate close to 33%. You say that your FIF income is taxed at 33%. But you could equally say your income from other sources was taxed at 33% and your FIF income is taxed at a lesser rate.

    Now let's question what the managed Kiwi Saver funds pay under FIF? PIE Fund? Then you will understand it's not as simple as saying the effective FIF tax rate is 0.3 x 5% =1.5%

    The most compelling problem with NZ's retirement planning? It's the fact that regardless of the person's age, IRD's taxes on investment hit people the same as they're young or old. For eg. a person's income in their 30s to 50s is a lot higher than a retired person living in their 60s or 70s. It's a known fact seniors earn little or no salary or wage income. However, the investments they make in a managed fund or owning shares are taxed indiscriminately year after year regardless of the individual's earning status. All because the focus for NZ tax is to get the tax 1st and not worry about taxing at the end where the person can simply cash out their pension fund without paying taxes. This is VERY VERY different to retirement planning in Canada and in the US where investing is all about minimising the amount of tax to pay by deferring the income at retirement age.
    Yes you are right about this. It is not uncommon for overseas countries to have a different tax regime for superannuation schemes that are locked in until retirement. The NZ system taxes superannuation earnings as you go. Since I don't have the option of going to live in the USA or Canada I haven't researched the numbers myself. I suspect you have SBQ. So it would be informative if you were to tell us what happens to 'your' North American pension fund, in tax terms, once you hit retirement.

    One thing certain, the cards are stacked in favour for investing in NZ real estate because of the tax savings (or absence of capital gains tax).
    You are assuming that the ability of NZ property to grow in capital value is the same as the ability of the likes of the NYSE to grow. Even if the tax on NZ property will be lower after 5 years than owning NYSE shares, that doesn't necessarily mean you will be better off investing in NZ property!

    SNOOPY
    Last edited by Snoopy; 13-01-2020 at 10:41 PM.
    Industry shorthand sees BNZ employees still called 'bankers' but ANZ employees now called 'anchors'. Westpac has opted out of banking industry shorthand...

  9. #29
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    To be honest, I hadn’t even heard of them until recently when there was discussion about them on the Sharesies Share Club and the NZX stock Market Investors, Facebook groups. I then saw the discussion here. I had no clue what they were about so spent some time looking over their website, read all the info I could find there, and pretty much typed BLT into Google and read everything that came up. I also emailed them to ask if I there was somewhere I could access/read their published research. They sent me back a long bibliography list of everything that has been published. From there I had to manually search online to locate the full articles - bloody huge job I can tell you! So far I have only had time to find and read about three of them. I would have thought they might be much more easily accessed via the investor centre section of their website, but they told me they can’t provide them there for general (or even investor) access due to rules about promoting their products as “medicines” etc. Still not entirely sure I believe their explanation but have given them the benefit of the doubt.

    Having done that research I feel they may be “onto something” with their products. I’m not necessarily someone who would be their customer, but I do know people are becoming much more interested in seeking out alternative products/probiotics, so I think there will definitely be a market for them, if they can be competitive price-wise. Funnily enough, I went to give one of our rest home residents a cuppa just the other day, and as I sat it on the tray of his walking frame for him, I noticed a sheet of tablets on the tray. I had a look to see what they were (we need to be aware if residents are taking any medications that we don’t know about) - and the first thing I saw was the word “BLIS” - such a coincidence but I thought it was really interesting as it shows that the general public is aware of the products. This fellow is 92, and his family obviously brought them for him. So the market is there and may well be wider than we might think, in terms of the age spread of users.

    Anyway, I tried to talk myself out of it because speculative stock is not really a wise investment for someone like me, but hey .... you only live once and I think it’s worth a punt. Only 5000 shares so never going to make me a fortune, but if it makes me something long term I’ll be happy enough

    Quote Originally Posted by Snow Leopard View Post
    NZ diversified -- check
    OZ diversified -- check
    US diversified -- check
    diversified diversified -- check

    As for HGH & BLT -- well I hold both.
    Doubt you went wrong with HGH.
    Question is why did you buy BLT? Because everybody else was or do you believe it has legs?
    Last edited by justakiwi; 13-01-2020 at 10:17 PM.

  10. #30
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    Quote Originally Posted by justakiwi View Post
    To be honest, I hadnít even heard of them until recently...

    ...Anyway, I tried to talk myself out of it because speculative stock is not really a wise investment for someone like me, but hey .... you only live once and I think itís worth a punt. Only 5000 shares so never going to make me a fortune, but if it makes me something long term Iíll be happy enough
    Wow .

    I am very impressed with the effort and thought you have put into this investment decision.

    Whether you make money on this one or not is a different matter, but I reckon you have the right approach on which you can build your skills and confidence.
    om mani peme hum

  11. #31
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    Quote Originally Posted by justakiwi View Post
    To be honest, I hadn’t even heard of them until recently when there was discussion about them on the Sharesies Share Club and the NZX stock Market Investors, Facebook groups. I then saw the discussion here. I had no clue what they were about so spent some time looking over their website, read all the info I could find there, and pretty much typed BLT into Google and read everything that came up. I also emailed them to ask if I there was somewhere I could access/read their published research. They sent me back a long bibliography list of everything that has been published. From there I had to manually search online to locate the full articles - bloody huge job I can tell you! So far I have only had time to find and read about three of them. I would have thought they might be much more easily accessed via the investor centre section of their website, but they told me they can’t provide them there for general (or even investor) access due to rules about promoting their products as “medicines” etc. Still not entirely sure I believe their explanation but have given them the benefit of the doubt.

    Having done that research I feel they may be “onto something” with their products. I’m not necessarily someone who would be their customer, but I do know people are becoming much more interested in seeking out alternative products/probiotics, so I think there will definitely be a market for them, if they can be competitive price-wise. Funnily enough, I went to give one of our rest home residents a cuppa just the other day, and as I sat it on the tray of his walking frame for him, I noticed a sheet of tablets on the tray. I had a look to see what they were (we need to be aware if residents are taking any medications that we don’t know about) - and the first thing I saw was the word “BLIS” - such a coincidence but I thought it was really interesting as it shows that the general public is aware of the products. This fellow is 92, and his family obviously brought them for him. So the market is there and may well be wider than we might think, in terms of the age spread of users.

    Anyway, I tried to talk myself out of it because speculative stock is not really a wise investment for someone like me, but hey .... you only live once and I think it’s worth a punt. Only 5000 shares so never going to make me a fortune, but if it makes me something long term I’ll be happy enough
    One other thing to add. Its nice to see you do good homework and research. But market theory (taught at universities) states that there are millions of other investors doing exactly what you are doing (including some smarter ones than you) and that consensus of views is what forms the market price at any one time. So the best thing you can do is buy an index and save yourself all the hassle and time. The academic view is that you the individual investor cannot outperform the market index over a long period of time. Whether you subscribe to that theory or not is up to you, but if you look at fund managers world wide who are active investors you will find that half outperform the market, half underperform and once fees are taken out, most underperform.

  12. #32
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    I made reference to "The Annual report".
    Most probably the easiest simple one to start with is PAZ Pharmazen on NZ Unlisted market.
    Go to www.usx.co.nz
    enter PAZ.
    announcements.
    4th April Annual report.
    Note the chairman's report,in particular the outlook statement.
    Also note directors' shareholdings,balance sheet and cashflow statements,and equity ratio.
    I think once you have sorted this annual report out, you can venture onto more complex reports.
    Perhaps it is best to print it off.
    Last edited by percy; 14-01-2020 at 08:25 AM.

  13. #33
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    I absolutely know this, and agree with you. My first purchase was KFL back in 2016. I knew nothing back then and bought for the wrong reason - a friend had them. But, I have been very happy with their performance since then, and as I have said before, their quarterly dividends, DRP with discounted SP, has been a huge plus for me. I pretty much just sit back and watch my holding grow, without having to spend any additional capital on them. I recently added BRM and MLN to complete the trio. At this moment in time, they are providing me with decent diversification and good returns. As long as they continue to do that I’m not concerned that can’t beat the index. I’m not investing to build wealth. I have started way too late and have insufficient capital to realistically achieve that. My focus (hope) is simply to build my overall portfolio value, over the next 6 years and into retirement, to give me a little more financial security down the track. It will sit alongside my KS (which will also never be huge as again, I was a late starter to KS). My reality is I will be dependent on government super when I retire, but I live a minimalistic and reasonably frugal life. When I retire my KS and my portfolio investment will just sit there doing their thing. I have no intention of cashing either of them up when I retire. I will access them if and as needed, to supplement my super.

    Having said all that, who knows if I’m doing this the right way? Everything is a gamble but at least now, I feel I’m being proactive and even if it all turns to custard, I am really enjoying this. I have always been a “learner” and have always liked to challenge myself. In the past, it was mostly related to computers - I had to always be learning new things and figuring out how things worked “under the hood.” I was never a geek but used to do dumb things like install Linux from command line, just for fun. Learning just for the sake of it I guess. So now I’m learning about investing, and trying to prove to myself that I can do it - even if only on a very minuscule scale!

    Quote Originally Posted by blackcap View Post
    One other thing to add. Its nice to see you do good homework and research. But market theory (taught at universities) states that there are millions of other investors doing exactly what you are doing (including some smarter ones than you) and that consensus of views is what forms the market price at any one time. So the best thing you can do is buy an index and save yourself all the hassle and time. The academic view is that you the individual investor cannot outperform the market index over a long period of time. Whether you subscribe to that theory or not is up to you, but if you look at fund managers world wide who are active investors you will find that half outperform the market, half underperform and once fees are taken out, most underperform.

  14. #34
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    Quote Originally Posted by justakiwi View Post
    I absolutely know this, and agree with you. My first purchase was KFL back in 2016. I knew nothing back then and bought for the wrong reason - a friend had them. But, I have been very happy with their performance since then, and as I have said before, their quarterly dividends, DRP with discounted SP, has been a huge plus for me. I pretty much just sit back and watch my holding grow, without having to spend any additional capital on them. I recently added BRM and MLN to complete the trio. At this moment in time, they are providing me with decent diversification and good returns. As long as they continue to do that I’m not concerned that can’t beat the index. I’m not investing to build wealth. I have started way too late and have insufficient capital to realistically achieve that. My focus (hope) is simply to build my overall portfolio value, over the next 6 years and into retirement, to give me a little more financial security down the track. It will sit alongside my KS (which will also never be huge as again, I was a late starter to KS). My reality is I will be dependent on government super when I retire, but I live a minimalistic and reasonably frugal life. When I retire my KS and my portfolio investment will just sit there doing their thing. I have no intention of cashing either of them up when I retire. I will access them if and as needed, to supplement my super.

    Having said all that, who knows if I’m doing this the right way? Everything is a gamble but at least now, I feel I’m being proactive and even if it all turns to custard, I am really enjoying this. I have always been a “learner” and have always liked to challenge myself. In the past, it was mostly related to computers - I had to always be learning new things and figuring out how things worked “under the hood.” I was never a geek but used to do dumb things like install Linux from command line, just for fun. Learning just for the sake of it I guess. So now I’m learning about investing, and trying to prove to myself that I can do it - even if only on a very minuscule scale!
    To be fair, I did not add in my post that I took have an "active" part of my portfolio which I manage myself. Like you say its all about learning and becoming a more informed investor. Whether I outperform, I do not know, but if I do it is not by much. One small addition, they do say that NZ fund managers in NZ can outperform the NZ 50 index because they have better information than the overseas funds that play in our market and are more able to exit and enter when required. Not 100% sure on the data on this but I did hear it from a reputable source. That would also apply then to us retail investors as we know the market here in NZ better than our overseas counterparts.

    Percy speaks a lot of sense with his suggestions and ratio's. But for me to fully get through an annual report, some form of accountancy training will be your best help.

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    justkiwi, nice to know about your struggle learning and hope that this struggle of yours is the only "tuition fee" you'll be paying to the Sharemarket Goddess on your lifetime endeavour to know her. But worry not, you're on the right track

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    Quote Originally Posted by blackcap View Post
    One other thing to add. Its nice to see you do good homework and research. But market theory (taught at universities) states that there are millions of other investors doing exactly what you are doing (including some smarter ones than you) and that consensus of views is what forms the market price at any one time. So the best thing you can do is buy an index and save yourself all the hassle and time. The academic view is that you the individual investor cannot outperform the market index over a long period of time. Whether you subscribe to that theory or not is up to you, but if you look at fund managers world wide who are active investors you will find that half outperform the market, half underperform and once fees are taken out, most underperform.
    Perhaps the best advice a new investor should accept because at the end of the day, the so called experts may claim they beat the market returns but the poor investor pays a cost for that service... a BIG cost in the form of management fees. Furthermore the taxation in NZ is not at level playing under FIF. That is the individual that invests directly abroad can choose the 'Comparative Method' on years that their portfolio gets a negative return and pay no tax for the year. However for managed funds in NZ, they can't use this method and have to pay FDR.

    On a side note @ Snoopy's reply: Does it make a difference if a person earning over $70K annual income from wages / salary pay any different level in tax when he/she invests in a fund under FIF? Even more discriminant, PIE funds give the top income earners a tax advantage than the low income earners in the lower tax brackets.

    The view that NZ fund managers have an advantage to investing on the NZX is a fallacy. That would be to say the same view as US fund managers having the inside edge (hence, inside information) when they invest on the NYSE or Nasdaq. Stats show this is not the case. The more relevant problem with the NZX is the diminishing level of liquidity; a trend that more and more investors are not investing in the NZX. Since the FMA came into force, international funds have shunned this FMA regulation forcing overseas firms to comply with NZ regulation. I've read US brokers have simply blacklisted the NZX. The end result is over time, those who a large position of shares on the NZX will have a tough time selling without drastically affecting the share price.

    Again, Fundamental Analysis only goes so far and paints a rough picture. For eg. in NZ I have a tough time finding the EPS figure in NZ listed companies in their glossy annual reports. When they make bold claims of meeting some dividend target %, I wonder what impact does that have on the balance sheet. In many cases, some borrow funds to meet a dividend payment while in previous years, they had the profits that should of been held in retained earnings, but instead, were pushed to pay dividends. It only tells me that in NZ, investors expect some annual payment on their investment without considering the capital gains on the share price is tax free.

    Those using Technical Analysis, again I see no point of that on NZX listed companies. The liquidity is the problem.

  17. #37
    Legend peat's Avatar
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    Quote Originally Posted by SBQ View Post
    The more relevant problem with the NZX is the diminishing level of liquidity;

    The end result is over time, those who a large position of shares on the NZX will have a tough time selling without drastically affecting the share price.

    The liquidity is the problem.
    True for fund managers but actually a potential source of reward for smaller investors who may be able to accept less liquidity.
    For clarity, nothing I say is advice....

  18. #38
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    In the real world away from academic hypotheses and monotonous uniformed posts there are those who long term outperform the market and those who underperform it and all those in between.

    To discover if you can be a star then you have to give it go and put some effort in.
    To give up before you start is not how you succeed.

    As Peter Lynch once said. "You do not outperform the index by buying the index".

    And for the benefit of SBQ the EPS figure is always at the end of the statement of P&L/Comprehensive Income which is usually the first item in the Financial Statements which is often in refered to in an index near the front of the report.
    om mani peme hum

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    Quote Originally Posted by Snow Leopard View Post
    In the real world away from academic hypotheses and monotonous uniformed posts there are those who long term outperform the market and those who underperform it and all those in between.

    To discover if you can be a star then you have to give it go and put some effort in.
    To give up before you start is not how you succeed.

    As Peter Lynch once said. "You do not outperform the index by buying the index".

    And for the benefit of SBQ the EPS figure is always at the end of the statement of P&L/Comprehensive Income which is usually the first item in the Financial Statements which is often in refered to in an index near the front of the report.
    Wise words.The simpler the better for investors starting out otherwise they will be overwhelmed.There is no right or wrong way and no need to follow the herd.An investor can not out perform the market by doing what every other investor is doing.But that is not the human psyche.
    Others might reason I am doing something wrong but I rarely read or analyse the full financial report.Usually just the end numbers & CEO report.My view is for those starting out, KISS
    Last edited by kiora; 15-01-2020 at 01:26 PM.

  20. #40
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    I really read or analyse the full financial report
    I assume you meant "rarely read...…", kiora?

    Personally, I reckon percy's annual report checklist is about right. There's a few key numbers and ratios to be found in the balance sheet!

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