Where to invest?

[hardt]

Left Field - as someone who's very near retirement, I guess your approach would work for someone in my position if you were able to have 3-5 years of cash held aside to cover living costs in the event of market crash. And that's a choice I do have but my concern would be something major happening where I'm forever looking for a return to previous heights that subsequently doesn't look like happening, as compared with the dividend strategy and comfort of knowing that I have still solid dividend paying stocks that maintain the lifestyle potentially forever, and I can let my kids worry about the share price in due course (hopefully a long time away).

To join a conversation I am not a part of: that is exactly the endpoint of why I am investing... to one day be able to retire young and live very well off an income based portfolio with some funds set aside for VC and charity...

[steveb]

well ok but it really comes down to how much risk you are prepared to take.
We have Percy with his sensible tips with the majority of his stocks paying a nice dividend and a nice percentage increase in the SP. Then we have Left Field with his more aggressive approach to investment.
I for one took the Percy approach for a number of years and eagerly awaited the nice dividends from AIR SPK AIA SKC etc
but I found the SP of most of my so called blue chip stocks were going nowhere.We had the Greek crisis,the chinese crisis for SKC etc.
So 6 months ago I took the Left Field approach.I had some ATM that I paid under $2.00 for but I have bought more at $3.30 and $6.90.I have continued to increase my holding in Pushpay even buying last week at $4.17.I even have a small investment in NTL.But my point is I monitor the market all day,I look for trends and I look for bargains.If you can't afford the time to monitor the markets and do your own research the Percy approach is for you,if you can afford the time take the Left Field approach it's a lot more fun!

[Leftfield]

Good discussion folks and thanks for the feedback on the Left Field strategy… I feared you all might think me a tab crazy!

FXT Trader, Criket Fan & Cgcc – Every year I’ve been investing there have been calls that the market is ‘overheated’ and that “a crash is imminent.’ One day the comments will be right, but until that time IMHO;

a.) You need to have skin in the game to get ahead.
b.) With skin in the game, you are motivated by fear of failure, to take care with your investments like no one else can.
c.) Should market conditions change, you can take precautions. Prune your portfolio, take your gains etc. A couple of years ago the USSR invaded the Ukraine, jet planes fell out of the sky, oil prices were crazy, and the share market looked bleak. Oh yes it was also October (a bad month some say) and Jewish religious types were quoting the end of the market or some 7 year shemitah ‘rest’ period, (look it up.) In times like this I reduced my share investments by about 50%, sat it out, and quickly re-invested once the scare was past. Several months passed, the market shot ahead and I was again ‘well positioned.’
d.) When a ‘crash’ eventually happens, it will only take me about 10 trades to entirely exit the market should I need to. As a small trader, it is much easier for me to flick in and out of shares. I consider this a great advantage for me compared to the large institutions, and margin traders etc who may be forced to sell millions in adverse times.

Hardt – you will do well starting early. The reason I adopted my strategy is that I am retired already and considered my retirement ‘marginal’ with a portfolio too small to provide enough in dividends. I needed to grow my capital before I could enjoy sufficient dividend income. I’ll slowly aquire more dividend stock as time goes on and am hoping ATM will become a major divi source.

Steveb – Well said and good on you. Hope it works out well. In the meantime, like you I enjoy the fun of daily involvement in what has become a thoroughly rewarding hobby!!

[troyvdh]

For what it's worth...There is a difference between money and wealth......2nd....never stand in front of a freight train....RYM.

[Lewylewylewy]

Sticking with the "where to invest" I'm having fun with my small gamble on asx wbt. I figure my tiny investment could grow to pay of my mortgage or more if things work out. I figure there's also some money to be made on trading in and out there if you're inclined. If the price drops I'll be buying more.

On the nzx i think fph is approaching top up price. Other then that, sum always has a low pe.

[Mickey]

Great chat folks and I've found the different perspectives very interesting reading. For me it highlights the various ways in which we are using the share market to meet our individual needs, whether it be trading on margins, investing for growth, investing for dividends or a combination of these. I'm about 5 years out from retirement and so my strategy is to mostly acquire dividend paying stocks such as GNE, SPK, HBL, HLG, MEL, STU, & GMT to build up a regular dividend income. I occasionally pick up growth stocks for a 1-3 year horizon but rarely do I do any short-term trading on margins. These days, I ignore the zig zag nature of market hype as the market tends to be a bit irrational at times but I do use periods of volatility as opportunities for top-ups on my key dividend investment shares, so I do keep a cash reserve in my HBL on-call account for that purpose. I guess the key thing here is to develop and implement an investment strategy that meets your own investment requirements. It should be reviewed occasionally to make sure it remains appropriate, as some of the members above have eluded to in their comments.

I've learnt a lot from ST contributors and value the views and opinions expressed. All the best for 2018.

[Putty]

I'd start off with the preface that I'm just in my twenties, so I think my goals/priorities in regards to my investments are probably different to most I've read thus far.

Long term (5-10 years):
Kiwisaver: 50%

Short term (1 year):
PPH: 12.5%
SKO: 12.5%
SUM: 12.5%
THL: 12.5%

This structure allows me to:
- Have half my share investments in a long term focus (and out of my own reach )
- Keep me entertained by taking punts on a select few companies (thanks to the help of various sources of information, including here)

2017: AIR, FPH, PPH, SUM

I add to it on a yearly basis - to match my Kiwisaver to keep it 50/50

What is everyone's thoughts on Kiwisaver as in investment option? It's beneficial to me as I'm yet to purchase my first home (so can pull it for that), and the benefits of my employer matching my contributions make it worthwhile in my eyes.

[Beagle]

I think you're on a good path Putty and what you suggest is a very good strategy for you. Likewise Mickey is working a very sensible strategy for his investment objectives at his age.
What I think the two above posts beautifully illustrate is there's no one right answer for one's investment strategy. It needs to be tailored to fit your age and requirements.
In my mid 50's I probably have 10-15 years to go to retirement so I like to think approx. a 60 / 40 mix of growth and income shares is right for me.
I am presently looking at international diversification, probably through an ETF or managed fund. I bought some TEM (Templeton Emerging Markets) the other day as a first step in this. Easy peasy as its listed on the NZX and its trading at a ~ 11% discount to NTA and is a well respected fund manager with a multi decade history. Some talk is the emerging markets are at an earlier stage of the bull cycle...time will tell.
Apart from that I am investing for growth in OCA, SUM, THL, PPH, ATM, Synlait, sorry forgot the code) small positions in ERD, Serko and RBD all added this year and income / growth in HLG and income in GNE, GMT, ARG and one or two others.

[Onion]

What is everyone's thoughts on Kiwisaver as in investment option? It's beneficial to me as I'm yet to purchase my first home (so can pull it for that), and the benefits of my employer matching my contributions make it worthwhile in my eyes.

You should contribute the minimum to Kiwisaver that qualifies to get any government subsidy and the full employer contribution. Investments beyond that level should be directed somewhere that offers flexibility - i.e. the ability to invest in a house or a business or whatever investments come along in future.

My main point is that additional investments should NOT go to Kiwisaver as there are too many restrictions.

[G on]

Another consideration with Kiwisaver is funds in it are hard to get out before 65. eg, sick and not able to work, expenses bleeding you dry and then you have to prostrate yourself in front of kiwisaver plebs to prove hardship that they may deign to hand over YOUR money.