Set and forget?

[SwampRat]

Hi all

After some years with lacklustre investment funds (no names) watching my money do nothing I've finally made the move to holding shares direct. I'm currently 50% in NZ shares and 50% in rolling term deposits.

One third speculative (not yet making a profit but I hope a great future ahead of them): ATM, BLT, WYN

The rest: looking for long term growth and/or a good dividend: FPH, HNZ, IFT, NZO, WHS, plus MET/RYM/SUM as I couldn't choose between them. I did consider doing a three way split on energy sector companies but will need to do more research as I don't feel I understand them yet.

My time frame is 10 years+ and I'm not planning to trade - hence 'set and forget.' Trying to get my monitoring down to once a week or less - the internet makes it way too easy.

Criticisms? Probably not the best time to get on board which is why I'm keeping half out of the market. Also all my eggs are in the NZ basket - a risk I'm willing to take at this stage.

About me: forties, female, well settled and no debt, currently retraining for a new career.

Comments or advice anyone? Any other companies I should look at?

[BIRMANBOY]

Personally I feel 30% in speculative is too much but that's your call. As for dividend producers you could look at our website for some information and or ideas. www.dividendyield.co.nz

Hi all

After some years with lacklustre investment funds (no names) watching my money do nothing I've finally made the move to holding shares direct. I'm currently 50% in NZ shares and 50% in rolling term deposits.

One third speculative (not yet making a profit but I hope a great future ahead of them): ATM, BLT, WYN

The rest: looking for long term growth and/or a good dividend: FPH, HNZ, IFT, NZO, WHS, plus MET/RYM/SUM as I couldn't choose between them. I did consider doing a three way split on energy sector companies but will need to do more research as I don't feel I understand them yet.

My time frame is 10 years+ and I'm not planning to trade - hence 'set and forget.' Trying to get my monitoring down to once a week or less - the internet makes it way too easy.

Criticisms? Probably not the best time to get on board which is why I'm keeping half out of the market. Also all my eggs are in the NZ basket - a risk I'm willing to take at this stage.

About me: forties, female, well settled and no debt, currently retraining for a new career.

Comments or advice anyone? Any other companies I should look at?

[iceman]

Hi all

After some years with lacklustre investment funds (no names) watching my money do nothing I've finally made the move to holding shares direct. I'm currently 50% in NZ shares and 50% in rolling term deposits.

One third speculative (not yet making a profit but I hope a great future ahead of them): ATM, BLT, WYN

The rest: looking for long term growth and/or a good dividend: FPH, HNZ, IFT, NZO, WHS, plus MET/RYM/SUM as I couldn't choose between them. I did consider doing a three way split on energy sector companies but will need to do more research as I don't feel I understand them yet.

My time frame is 10 years+ and I'm not planning to trade - hence 'set and forget.' Trying to get my monitoring down to once a week or less - the internet makes it way too easy.

Criticisms? Probably not the best time to get on board which is why I'm keeping half out of the market. Also all my eggs are in the NZ basket - a risk I'm willing to take at this stage.

About me: forties, female, well settled and no debt, currently retraining for a new career.

Comments or advice anyone? Any other companies I should look at?

Welcome to the forum. Birmanboy's website is a good one to look at dividend yields and dividend history, which may be of interest to you.
You seem to have a good mix of companies on your list but maybe add AIA and EBO to your investigations into
"long term growth and/or a good dividend" stocks. Maybe worthwhile with your long term view.

I would also look at adding corporate bonds into your mix of shares and term deposits.

Good luck.

[Harvey Specter]

I assume that 30% is really only 15% of the total portfolio (including TD).

Sounds good to me. EDIT: I dont think you should take a set and forget approach. You should constantly be reviewing your portfolio and deciding whether you are holding the right shares - this is what I currently dont do very well so am trying to improve on (I held FBU from $6 all the way to $10, then all the way back down to $6 again before riding it back up and finally getting out to early in the $8).

One question re 'training for a new career'. Does that mean you need the income from the investments to survive or you are doing it will still working or is this just your 'retirement fund'

[SwampRat]

Hi Harvey
Yes to keeping an eye on what is happening with the companies. Follow announcements, read reports etc and generally keep up to date. But I'd hope in ten years to still have most of these shares.
This is essentially a retirement fund. Still working part time to cover living costs while retraining.

[percy]

Welcome SwampRat.I know a few women investors,both here on sharetrader and in my own circle of friends.I find any woman who is interested in shares does well in shares.Just trust yourself.
Others have given you good advice.Keep the specs to around 10% [or less] of your portfolio.
I like yours and Iceman long term picks.I also think ATM is good,but I don't like the other two.
Just out of interest AIA is up 30.77% since this time last year,while FPH is up 48.50%.Great fun when the boring companies go for a run.
Good investing.

[noodles]

I'd class NZO as speculative.

[Halebop]

Welcome SwampRat.

I'd echo KW's advice to keep an eye on the investments. Research suggests women are better passive investors than men. However I'd recommend that inactivity is best suited to investments that are best of breed; typically these are companies with low levels of debt, solid positive cash flow, high return on tangible assets, candid management, better than average growth and/or margins. Unique differentiators (like Brand or IP) are useful or conversely management needs to be excellent for commodity businesses but keep in mind that good management can be replaced by bad management from time to time so the unique differentiators are arguably more valuable.

Although I can appreciate the desire for an oil exposure, I'd struggle with NZO. Their long term performance has been mediocre and mediocre is the enemy of a long term passive approach (long term benefits from an extra 2 or 3 points of performance, not the opposite!). Am sure there are better global opportunities in oil and gas - oil company exposure doesn't really have to be local because it is all US dollar oil price dependent no matter where the stuff is dug up from.

Finally, my personal opinion is that speculative investments are not the place for long term or passive approaches. Have made money by actively managing speculative investments and selling them when it seemed appropriate but I'd be much poorer today if I just held onto them; when I look back through various trades and spec holds more than a few no longer exist or are a fraction of previous prices.

Good luck and have fun with it!

[percy]

I'd class NZO as speculative.

Agree.For some reason I missed NZO,and thought I saw NZX...
Also more sound advice from KW and Halebop.

[SwampRat]

Thanks all - especially for the thoughts on NZO. AIA at first look appears sound and I will dig deeper. Already hold some infrastructure through IFT.

My preference is to monitor the companies rather than the share price. So working more on FA, company approach and positioning for the future, hopefully an understanding and approval of the product/service, and general gut feel. Trying to avoid the 'it's dropped 5% so I need to sell' or the 'it's dropped 5% so I need to buy' reef fish type approaches.

KW's series on when to sell has been great reading. I keep an eye on the 30day/180day MA charts through ANZ Securities as a general health check. I do hold a few already in 'death cross' territory but watching with a view to bail if necessary.

And I include some spec companies in my portfolio as it stops me feeling the desire to buy lotto tickets. I drink A2 milk, use BLIS K12, and am retraining in a field that overlaps with Wynyard's specialities.