Brand spanking new to this site, and I have to say I think I'm going to enjoy being here. It's wonderful to read all the many and varied different takes, systems and so on. And it's wonderful also to see that this is generally quite a nice community. Thanks to you who are more experienced and take time to participate in this newbies forum.
Anyway, I thought I'd briefly outline what my proposed strategy for my first portfolio is and see if anyone wants to comment.
At the moment I have a small seed investment of about $25k that I'm wanting to put into shares. I've been playing away on the market in small dribs and drabs just to have a bit of fun while I've been trying to educate myself. I'm a hopeful investor in my 30s who has no dependants, and decent equity in my house. I'm basically wanting to be a bit smarter, stop letting property do my saving for me, and start putting active regular investment into shares (and it looks like a fun hobby!).
I've been reading a lot about different trading stategies, and what I think would work best for me is to put about $15k of my money into a value investment / fundamentals style approach, basically buy and hold (within reason) over a 5-10 year term. The other $10k I want to be a bit more speculative with. I can afford to lose all this seed money if I make horrid mistakes, but it would hurt and probably put me off the market for good then, writing it off as too hard.
A year or three down the track when I feel like I know what I'm doing, I might look at margin loans and savings gearing, but for now I'm into a gentle intro.
It seems to me that now might be a good time to take the $25k out of cash and put it in the market. If things keep going south for a while - no biggie, really, as I'll try to keep in mind a 5-10 year horizon. I won't talk about opportunity costs, even though cash is doing well at the moment. I'm comfortable putting that money into something that might go backward for a while.
If it does sound feasible - any tips (and I know this is subjective, and I know it's my call in the end, and I know I'm asking a lot etc etc) on some good blue chips that at the moment seem undervalued on fundamentals? Ideally, I'd like stuff that's a good balance between franked dividends and growth. Westpac and Metway seem to me to be good banking stocks to get into at the moment - again with a 5 to 10 year horizon. Any good resources / retail / other sector stocks that I should add to my "to research" list? I want to stay away from aviation and media stocks (the former due to oil, the latter because I think 'new media' is going to hit traditional broadcast/print franchises hard, like it is currently doing to the music industry, but I don't think 'new media' itself is worth buying into until more stable paradigms emerge). The spec stuff I'll punt with on my own later - but for now, here's my $64k question:
What stocks would you advise your kids / friends / whatever to start a $15k value investment / fundamentals portfolio with?
Thanks heaps for helping with this first, unsteady step. Really looking forward to any input.