I've been reading through the forum trying to glean as much information as I can. It seems to be a really friendly forum and I look forward to learning more. I've started to take an interest in investing over the last 3 months and finally took the plunge this week, on Monday. I thought that it might be useful to start a thread here so that other people who are thinking of investing can learn from my successes and mistakes. In addition, of course, I'll welcome any input from other posters.
On Monday I started off small with start-up capital of $4,000. If I start to do well, I'll invest more, but for the moment I think it's best to start small.
I decided to invest in the 4 following stocks:
In invested in ANZ and ASX because I feel that, over the long term, which is the time frame I'm planning for, they will prove to be reliable, conservative bets, assuming of course that the market continues to recover.
I invsted in MFG because I had been watching it for three months and their recent reports are, to my mind, encouraging - profits up, increased funds under the company's management and the intention of taking on more staff. To me, this sounds promising in terms of further growth. Having said that, the stock has fallen since I bought it, but I believe its long-term fundamentals are promising.
I bought TOL because it had turned a profit under difficult circumstances - a sign of good management, in my opinion - are investing considerable sums in the business and as the economy continues to recover and Asia continues to rise, a freight deliver company seems well-placed to benefit. In addition, it is considerably below its historical peak.
So, these are the stocks I've bought and a brief description of my reasons for buying them. As things stand, it's a case of holding my nerve RE MFG given that it has fallen this week, and staying the course on the rest as they are doing pretty well. I have $700 of my original $4,000 left to invest and I am currently weighing up whether I should invest this in Magellan, taking advantage of the lower price, or cast about for a fifth firm to invest in. To this end I've been reading widely and trying to identify some possible low cap companies primed to give me some good capital gains. I haven't reached a final decision yet. I think that as a new investor, holding my nerve is the toughest thing, particularly as MFG had been experiencing great growth since I first started to follow it in December. I have set myself a rule of selling a stock if I lose 20% of my initial investment so that will prevent me from losing out too much on a stock.
I look forward to learning more about investing and feel quite excited by the prospect of taking control of my financial future (hopefully successfully!). Hopefully by the time I retire (I'm 30 now) I'll have a portfolio worth a decent amount!