I have been reading and learning as much as I can about this investing business for quite a while now, in general i have been attracted to the long term, value based, fundamental analysis approach to the subject, a number of members have attracted my attention with their outlooks and opinions on the market and investing, amongst them,
(in no particular order), ROE, Kermit345, Robusta, McLovin, Oddshot, Ves, Craft, So-Cynical have all taught me how little I know and just how important it is to have a clear plan, have the discipline to follow it, and suppress the emotional desire to speculate instead of invest.
Over the past few months i have swung between feeling I can never learn enough about analysing businesses to ever have long term success at value investing, to constructing a potential portfolio for investment, I have considered just putting my capital in an index fund and not having either the time or effort required to invest myself, I have also thought about just having a dollar cost averaging strategy, invest my capital in a small selection of stocks (5-10) and every time my savings increase by a worthwhile amount, purchasing more of the stocks in the portfolio.
I have very good self discipline, once I have decided on a strategy I will have no problem following it slavishly, I have no fear of falling markets - or rapidly rising ones! I have no need to be 'involved' in the market, if the strategy says sit tight and do nothing then thats exactly what I will do.
I have created my own spread sheets to analyse stocks and calculate IV's, largely based on the Montgomery formula,but I am not really comfortable with the outcomes, i dont have confidence that buying with a MOS below the IV will in fact prove to be valid in the long run.
I am also not sure that my ability to analyse the underlying financials of a business is well enough tuned to avoid expensive mistakes along the way.
I would appreciate some input into what direction others think might be applicable to me and my situation and what strategies, systems, and formulas would support that!
On a personal level I am 50, married, one dependent, income about $120K, wife earns about $60K with very generous salary sac. conditions. I also run a small business part time, makes money, pays for most of my vices! I have a very good defined benefit super scheme, 20 years with same employer, also salary sac the balance up to $25K into the attached accumulation fund. Free rent, electricity and water. Around $300K to invest, some will go into a positive geared commercial property where i live, some into cash and the balance into the planned investment strategy.
Anyway thats probably enough to generate some discussion! Would love some constructive feedback.