Over the last few months I've been forcing myself to re-evaluate why I invested in the market. Originally my motive was to fund my kids education and help them post-education (i.e. housing); but now having seen the recent market turmoil, my motives have changed.
I will save for the funding of my children's education with a different investment vehicle, I think. And I want to change my share focus to be far more defined into very long term and shorter term trading.
My very long term focus is to create a 'second superannuation'. Something to complement our compulsory superannuation. That is a period of 30-35 years, at this stage (I'm 30).
The short term is to (a) get in early on potential long term holds, or (b) make a profit and run away (much easier said than done that one!).
So with that in mind, I have been realigning my 'classifications' of my stocks in my portfolio.
With big banks (e.g. CBA), big miners (e.g. BHP) this is easy - they go into the very long term bucket. They are (excluding recent blips!) good solid dividend returners etc. And for better or worse, BBI, BBP etc go there too, as I bought these mostly as long termers (originally 10-15-20 years, now more like 30 years).
And I can put my BRM and JMS etc into the short term pool - thats obvious since they still explorers or very junior miners, and I bought them as such.
But them I'm left with the companies that live inbetween.
In my case, take AOE. They've come up fast in the world. I like them - a lot (and not just the SP growth, but the direction the company is going). But I'm not sure if they 'fit' my "long term" bucket ? TZL is another one - and it shows perfectly that while it's not a true spec stock (it is advanced along more than a pure tech company), it still behaves like one with it's share price. And neither pay dividends.
I know it's a bit rambling here, but I guess I'm trying to ask - what are some measures people use for 'emerging blue chip' companies? How did people pick years ago that Woolies would be a good long term investment, for example?