NZSX50 - Good News!

[percy]

Well I have with the help of an usx.co.nz {Unlisted} stock....lol.

[Beagle]

I wonder which one that is lol

[Snoopy]

Yes the gross index can be misleading,however it is the only NZ index I can find.Being gross I take it takes the gross dividend.

If someone had told me at the start of the year that the total return my dull boring dividend yield investment portfolio would be up by 20% for the year I would have been rapt. So I am extremely happy with my result (touchwood given the year has not finished) , even though I am some ten percentage points down on the 'NZX50 index' return. I know that the strategy that I follow will underperform the market in high growth years but will outperform the market in poor years (even if 'outperformance' means I lose less money that the index).

I personally think it is amazing that despite my 'sins', my Sky City has returned a positive for the year in spite of the disastrous fire. Utility type shares like Contact Energy and Spark were never going to be king hit performers. But they were unlikely to crash by 20% either. This is the bit that most shareholders don't get when they are entering a competition like that run by our mate Sylvester, and then pat themselves on the back for outperforming the index 'on paper'. If there is no risk of losing real capital then you can pick all kinds of high risk shares and then pat yourself on the back when those high risk choices come off. Over the long term, such gains are unlikely to be repeated. In fact if you did following such a strategy in real life, because year on year returns are cumulative and not independent, you will almost certainly end up near bankrupt.

To me the risk (which is never reflected in index returns because historical risk is always zero - the event you are measuring has already happened) is just important as the return. So in this strong bull market I am happy to remain a perennial underperformer.

SNOOPY

[winner69]

Quite a few of us on here reaping the rewards of booming share markets are of the older generation ....even if I use the phrases like ‘silent generation’ (really old) and ‘baby boomers’

We have been fortunate to have been born when we were to reap these benefits

Even though we have have worked hard the phrase ‘accidental millionaires’ isn’t out of place in this discussion.

I suppose we have to be to be kind hearted to those who go around saying ‘OK boomer’ ,...the younger generations aren’t going to have it so easy investing wise as us oldies.

Merry Christmas and a Happy New Year to everybody, young and old

[pierre]

I suppose we have to be to be kind hearted to those who go around saying ‘OK boomer’ ,...the younger generations aren’t going to have it so easy investing wise as us oldies.

That's very true Winner, however many of them are or will be the ultimate beneficiaries of the success of the lucky generation. They will inherit the results without any of the work or the angst.

[peat]

This is the bit that most shareholders don't get when they are entering a competition like that run by our mate Sylvester, and then pat themselves on the back for outperforming the index 'on paper'. If there is no risk of losing real capital then you can pick all kinds of high risk shares and then pat yourself on the back when those high risk choices come off.
SNOOPY

it is like trading forex price n demo mode - meaningless!

[Bjauck]

That's very true Winner, however many of them are or will be the ultimate beneficiaries of the success of the lucky generation. They will inherit the results without any of the work or the angst.

An important issue for the future generations is in your post when you say “many of them will be the ultimate beneficiaries”.

I would say that many will indeed need to inherit a share of the (inflated) estates of their elders, just so that will be able to afford to get into home ownership, purchase shareholdings with inflated valuations, and to able to have the same standard of living as their elders. However of course wealth is not evenly distributed and of course it will be the rich minority getting richer. Many may actually inherit insufficient assets to enable them to maintain the standard of living of their parents.

[winner69]

An important issue for the future generations is in your post when you say “many of them will be the ultimate beneficiaries”.

I would say that many will indeed need to inherit a share of the (inflated) estates of their elders, just so that will be able to afford to get into home ownership, purchase shareholdings with inflated valuations, and to able to have the same standard of living as their elders. However of course wealth is not evenly distributed and of course it will be the rich minority getting richer. Many may actually inherit insufficient assets to enable them to maintain the standard of living of their parents.

Currently record low interest rates and shares with ‘inflated valuations’ implies long term (say 10 yea s) investment returns aren’t going to be much at all

We’ll probably be spending a lot of our ‘inflated’ estates before the young ones get their hands on it.

[percy]

Go to YouTube.."Roger Penske at 2008 Winter Commencement."

[SailorRob]

So...if one has easily beaten the NZX50 gross index of a gain of ~ 30% in 2019 they really have done well....not saying I have or haven't, just pointing out its not as easy to do this as it seems.

Really have done well is an understatement yes. It's really interesting to trend the NZ50G alongside the 50C. The relatively high div yield really gets the 50G going too.