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Here we go again - Long-term investments

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Hi everybody, I'm back to blogging again!

I'm now looking to build a long-term portfolio with sustainable investments that will have capital appreciation and pay yields nicely over a 10+ year period.

Previously, I was a short-term CFD trading mulling around trading BHP, Rio Tinto, Exxon Mobil and other shares that proved pretty successful till January where I vaporized a fair chunk of my gains.

I've been buying up good companies without using gearing for months now and so far I've been emotionally happy, not worried and parts of my portfolio are flat or have made gains.

So here goes my portfolio, I would most appreciate ideas from other members of ASF to fill in the gaps!

Here is my portfolio, I have descriptions and price targets and often track financial statements/management on them.

Bought in Beach Petroleum (BPT) at $1.44 (now $1.50+) - South Australian petrol company which has been turned around from a two-decade dud to Australia's fourth-biggest energy company.

BPT is a proven producer extracting oil from the Cooper/Eromanga and Gippsland Basin with nearly a decade of oil reserves.

I expect this company to be $6+ within two/three years if it keeps production up and a long-life of reserves and by luck, finds more oil.

Bought in SP AusNet, utility, @ 1.26 (now $1.20) - This is an energy and gas distribution company with a monopoly in Victoria which is reaping benefits off high electricity prices.

It has a good plan to expand but its gearing level is around 58%, sustainable at the moment but under close watch.

Would prefer it if management paid more debt down before expanding furthermore.

I think this company will grow to $3 within two/three years, perhaps faster depending how quickly the credit-crunch becomes `so yesterday'.

Bought in Oxiana, miner, $3.465 (now $3.20) - I'm very confident Oxiana is going to be a winner.

The company's gearing level is only 10% and is making mountainloads of profit from record copper and gold prices and I think it will be a great fit with Zinifex and a great takeover target.

The proven production, Prominent Hill expansion and Martable Gold project in Oxiana's books plus cash reserves and Izok/Dugald river projects from Zinifex are making the combined company like a mini-Rio Tinto star.

I think Oxiana could blaze $10 or $15 within a year or two (BHP certainly did).

Bought in Neptune Marine Services, engineering, @ 65c - The way I understand this company's business makes it a simple investment.

It employs people and wields technology that allow divers and machines to fix oil rigs and oil pipes under water.

It's generating money and its order book is full at the moment.

It's a tad on the speculative side because of its short history but if it continues to generate revenue and increase in market size then this will be another winner hopefully.

I don't know where this will go, depends on how much of a market darling it becomes, but atleast back at the $1 within a year with dividends (assuming the company's financials are factually stable).

Bought into ASX @ $36.05 - Pretty straightforward, ASX is a monopoly with puny debt that generates money off market volume and pays it back to shareholders.

AXE and LiquidNet are planning to set up here but so what? BHP competes with Rio, CBA competes with Westpac, nothing new about competition!

ASX is well-placed to use its financial strength to keep a lot of the trading volumes and over the long-term I think this a no-brainer.

$80+ within five years, back to $50 within two.


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  1. vishalt's Avatar
    Here is a pie chart of my positions at the moment:

    I'm looking to be overweight on financials in the short-term as the banking stocks are an absolute bargain.

    As Buffet said - be fearful when others are greedy and be greedy when others are fearful.

    People are pretty damn scared of the banks at the moment so I'm looking to pick up some Westpac if it goes below $21 and BoQ if it goes below $15.

    Of course I need to keep diversifying the portfolio and need some health care, IT, telecom and property stocks in there.

    I have learnt the importance of diversity, BPT is holding my portfolio up at the moment while the others are continuing to be bearish/flat.
  2. kennas's Avatar
    Other suggestions to round it out a bit may be:

    WOW. Consumer staple.
    AMP. Wealth management.

    And maybe even CWN as a growth stock, if you're not put off by the ethics, or lack of them....

    Not 'recommendations' of course. I just see them fitting your new philosophy of longer term solid return. These stocks are part of Lonsec's Model Portfolio, which has outperformed for years.

    DYOR, blah, blah, blah...

    (not holding any - still playing the spec game)
  3. kennas's Avatar
    Another sector to consider is insurance.

    QBE, IAG, ??
  4. vishalt's Avatar
    Oh yeah WoW and QBE for sure, thanks Kennas.

    I'd like to see WoW go down to $24 before I buy it though, its P/E and price are too high in my opinion, but the sad thing is there's not really any choice - I don't understand Metcash and am not touching Wesfarmers due to its huge debt.

    AMP and QBE are good ideas, I hope QBE softens a bit more, considering it use to be $35 its a good buy at the moment.

    Today I bought Westpac @ $22.25 - Imo Westpac's current position is that of a fortress in terms of liquidity and a good reputation with Gail Kelly as leader.

    They picked up St George at a cheap price and the bid makes sense to me.

    Far too attractive to pass up @ $22.
  5. golfmos123's Avatar
    All fairly solid sorts of companies - not allocating a small part of the portfolio to some speccies????


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