Hello World

[bmrm]

Hello all, I thought I would come and introduce myself. I've been trading (investing?) for a while but am looking to get a bit more serious about it and take a few more risks. I work in finance though nothing to do with stocks.

Most recently I've bought into WYN at (my first) IPO. Otherwise pretty standard (I'm guessing) institutional stocks, I'm also invested in a PIE fund dealing mainly in debt-securities and otherwise cash.

I also enjoy and have had a bot of success punting with alternative investments, iPredict, Bitcoin etc, but essentially just for fun and at the 'play-money' level.

[CJ]

Welcome.

WYN had an interesting start but it is now heading in the right direction. Hopefully they follow the success of DIL and XRO before them.

I assume you are young (bit coin investment) so wonder why you have debt securities? Is that a big part of your portfolio and do you expect that to change as you grow in confidence with equities? Or are you expecting a correction in the market?

[bmrm]

wonder why you have debt securities? Is that a big part of your portfolio and do you expect that to change as you grow in confidence with equities? Or are you expecting a correction in the market?

Hi, they're not a big part of my portfolio, I've held them for some time, and yes that probably will change. At the moment I guess my approach is towards higher risk in terms of stocks, and balancing that with low risk in other investments.

[CJ]

Hi, they're not a big part of my portfolio, I've held them for some time, and yes that probably will change. At the moment I guess my approach is towards higher risk in terms of stocks, and balancing that with low risk in other investments.

Makes sense. I started with managed funds, decided Index funds were a better buy and started supplementing with the odd pick. I am now out of the index funds and now just have stocks I picked myself.

It can be a bit scary making decisions just based on your own research, so this forum does provide a good source of info to ensure you arent missing anything, especially when there are conflicting views.

Just remember some to do have vested interests.

[born2invest]

At the moment I guess my approach is towards higher risk in terms of stocks, and balancing that with low risk in other investments.

Investing in shares of a company is only high risk if you don't know enough about your research on the company or you pay a too higher price for buying the company.

I don't understand your concept of "high risk" stocks.

[CJ]

Investing in shares of a company is only high risk if you don't know enough about your research on the company or you pay a too higher price for buying the company.

I don't understand your concept of "high risk" stocks.

You make it sound so simple.

High risk stocks are those you expect a higher reward. You can do research to reduce those risks but there is still risk there. If there was no risk, then others would have driven up the price (efficient markets theory).

Example - will PEB or BLT be successful (both were being talked up at the start of the year as the next big growth stock). If your research says yes, and you are right, then you will earn more money than someone investing in a 'safe play' like telecom. IF you are wrong, you will probably lose all your money.

[born2invest]

You make it sound so simple.

Because investing is simple. People complicate it unecessarily.

High risk stocks are those you expect a higher reward

The definition of risk is permanent loss of capital. With your three company examples, I expect to lose money because the businesses have been poor performers for years. This is high risk, low reward.

Compare to a company I'm invested into. Credit Corp Group on the ASX. This is low risk, high reward. I can more accurately predict its future than your three examples.

[CJ]

Compare to a company I'm invested into. Credit Corp Group on the ASX. This is low risk, high reward. I can more accurately predict its future than your three examples.

NIce - 45c to $10 in less than 5 years.

That 5 year graph misses out 2007-2008 - care to explain what happened there? If that Google graph is correct, I would not call it riskless - there was a serious loss of capital there!

I dont follow Australia stocks - any NZ companies you are invested in that we can discuss their above average return with low risk.

[born2invest]

NIce - 45c to $10 in less than 5 years.

That 5 year graph misses out 2007-2008 - care to explain what happened there? If that Google graph is correct, I would not call it riskless - there was a serious loss of capital there!

I dont follow Australia stocks - any NZ companies you are invested in that we can discuss their above average return with low risk.

I don't know what graph you are looking at but all the charts I've ever looked at include the data. Yes there was a big loss of capital that was when the ex-CEO loaded up on debt to improve his bonuses. I bought a year or so after the new CEO came in and paid off all the debt. I paid around $2.50 per share on average over 3 purchases over 3-4 months and loaded up 60% of my money at the time of the stock when my term deposits came due.

I only own Ryman Healthcare (RYM) on the NZX. I assume you have heard of it. I bought it several years ago for $2.19.

I consider this to be quite low risk, high reward. Although I'm considering selling today at these prices because they are very high. I bought when the P/E was around 12 now it is double that. Also, the majority of it's earnings are from increases in property values that can't go on forever.

I've considered investing into ANZ, POT and EBO on the NZX also. But ANZ and POT don't have long term growth prospects that are growing fast enough for what I'm looking for and even after lots of research into EBO, I just wasn't comfortable ever buying it as I couldn't get my head around exactly what their business will look like 5/10 years from now.

[CJ]

I only own Ryman Healthcare (RYM) on the NZX. I assume you have heard of it. I bought it several years ago for $2.19.

I got in RYM at a price just above yours - I took a little of the table recently just to balance the portfolio and because as you point out re P/E, a lot of the growth is factored into the price.

I agree that there are lots of things you can do to minimise risk but still feel, if you are chasing high returns, it is still 'high risk'.