Newbie Lessons - All your questions answered

[divs4ever]

Hi, please forgive my noobness and perhaps naivety...

Can simplywall.st be relied on for stock assessments?
Seems yahoo and others link to this site, makes me think it's more of a promo site than a research tool?

Thanks

well proper analysis and research costs you $$$ either via your full service broker or a paid subscription ( and even then you should research deeper and further )

however that doesn't stop simplywall.st and others from being a useful tool ( part of an array of useful hints where to look )

https://www.marketindex.com.au/highest-dividend-yield i use this as a STARTING PLACE quite often to lead to further research , if i find something interesting , and on the way to a decision simplywall.st is often looked at as well , nearly all free data tends to be a little out of date , but if you are not short-term trading , that is not so tragic

don't forget to check the ASX announcements ( which is reasonably up to date on most stocks and also any tools on your trading platform )

try a combination ( and not always the same combination ) and proceed with a mind-set to avoid bad stocks ( rather than chasing the next big winner )

cheers

 

[Sean K]

Hi, please forgive my noobness and perhaps naivety...

Can simplywall.st be relied on for stock assessments?
Seems yahoo and others link to this site, makes me think it's more of a promo site than a research tool?

Thanks

The biggest and grandest stock pickers in the World hardly get it right. In my opinion it's best to invest in education for your own stock picking ability than paying to follow others.

 

[SneakyOne]

The biggest and grandest stock pickers in the World hardly get it right. In my opinion it's best to invest in education for your own stock picking ability than paying to follow others.

Agree, just looking through various sources for info to digest - just questioning whether a particular site is biased.

 

[DaveTrade]

just looking through various sources for info to digest

@SneakyOne please don't leave out world events and politics from your research, there are times when the markets seem to move just on political events or decisions.

 

[divs4ever]

Agree, just looking through various sources for info to digest - just questioning whether a particular site is biased.

assume YES ( all of them)
even your full-service broker if you have one .
in fact some of the big international names are the worst for that ( unless you are 'a high-value customer ' )

however ones that just deliver data ( in a picture ) are less likely to , they are more likely to survive on advertiser revenue and reselling viewer stats ( many big players will actually be betting against you as well as taking commissions/fees )

 

[Sean K]

Agree, just looking through various sources for info to digest - just questioning whether a particular site is biased.

Signing up to anything can be a decent experiment if you treat it as such and an educational experience. We've all bought trading and investing books I think. I looked at the web site you posted and I don't think it's a Nigerian money scam, or anything like it. Can't see why it's biased in any way except you pay for the content. But you can probably get the same stuff for free. Except for real estate investment books (Margaret Lomas) I've not paid for anything. Gaining knowledge of TA and FA is readily available on the net. Individual stock picks though, I think you invest in the free knowledge first.

Having said that, I do have some friends who hire people to invest their money for them. But, that's on another level.

 

[Garpal Gumnut]

Agree, just looking through various sources for info to digest - just questioning whether a particular site is biased.

One site that is a veritable deep mine of information and which is free, is this site, ASF.

Learn how to use the search function in the top right hand corner of this page.

Look by thread title and also generally if there is mention of a topic or stock anywhere.

After many years spending money on investment and charting literature and sites I can assure you it is all you need.

One caveat, ignore anything by one @Garpal Gumnut

He is an absolute ratbag.

gg

 

[SneakyOne]

Mods, not sure if this is against the rules, but I'm hoping for a general feedback / opinions on my nooby stock selection.
I'm hoping to see if experienced traders and investors see any issues with these?

All are medium term pickings, acquired over the last two months or so... got DYL on the drop today, been watching that and BOE..
Would you sell any of these and look for other opportunities?
TER worries me as its dividend may not even cover the recent losses...



Thanks

 

[samuilk]

I was wondering to get some help on Australian Bonds.

1. What are the differences between: Exchange-traded Treasury Bond (TB) or an Exchange-traded Treasury Indexed Bond (TIB).
2. If I put in 50k in GSBG23 bond it expires sometime in April 2023. If the coupon rate is 5.5% would that mean I would receive a return of 5.5% of 50k, approx. 2.5k in April 2023, when the bond matures?
3. I can see the Last price is $102.15, if that price moves up or down, does that impact the investment I put in, if the price goes down do I still receive 50k + coupons, or would I receive back less than 50k?

Thanks all

 

[SneakyOne]

Hi,

After testing the waters with individual stocks, I'm considering ETF's further down the track.
Hoping to understand why aren't many buyers and sellers for ETF's? And why aren't all buyers and sellers shown? As per below:


Thanks

 

[Dona Ferentes]

Hi,

After testing the waters with individual stocks, I'm considering ETF's further down the track.
Hoping to understand why aren't many buyers and sellers for ETF's? And why aren't all buyers and sellers shown? As per below:
View attachment 155522

Thanks

ETFs... there are Market Makers who supply liquidity. They make their money on the gap between Buy and Sell amounts.

There are any number of definitions, from simple to arcane/ complex.

Market maker - Wikipedia

en.m.wikipedia.org

 

[SneakyOne]

ETFs... there are Market Makers who supply liquidity. They make their money on the gap between Buy and Sell amounts.

There are any number of definitions, from simple to arcane/ complex.

Market maker - Wikipedia

en.m.wikipedia.org

Thanks Dona, thought ETF's are similar to Super funds - ie consolidated investments across a few sectors / companies or even regions?

For growth purposes is it more viable to keep researching and investing in individual stocks? Not asking for advise, just opinions

 

[DaveTrade]

Thanks Dona, thought ETF's are similar to Super funds - ie consolidated investments across a few sectors / companies or even regions?

For growth purposes is it more viable to keep researching and investing in individual stocks? Not asking for advise, just opinions

Hi @SneakyOne, ETF's are mix of stocks that is made up from a selected theme, like stocks from a particular sector or small caps, mid or large caps, value or growth, you get the idea. They can be a good way to diversify your risk as they tend to be less volatile than individual stocks. They trade just like buying and selling an individual stock but they can be easier to get in and out due to more volume and open interest. Always check the volume of what ever you are interested in trading. Hope this helps.

 

[Belli]

Thanks Dona, thought ETF's are similar to Super funds - ie consolidated investments across a few sectors / companies or even regions?

For growth purposes is it more viable to keep researching and investing in individual stocks? Not asking for advise, just opinions

Just to clarify superannuation is not of itself an investment category. It is a trust structure which may hold various investments ranging from equities to unlisted infrastructure.

If you are looking at broad based ETFs, as opposed to thematic or specialised ones, you will receive the market average less the management fee. No more and no less. The chart below should give you some indication of performance compared with the ASX 200 Index.

 

[rhk001]

When do I hold em and when do I fold em ?


Hi I have been investing for around 12 months now and have a portfolio of around 15 companies and have had varying degrees of success, I would love to review it with someone and get advice on which ones to hold onto and which ones to sell and what those strategies would look like, is this where I get a broker or look for an investment club or would there be another place to get sound advice ?

Overall I am about 2% up on the captial and have made probably around 6% total from dividends, but I have some that are 30% up and others that are 30% down. When do I hold em and when do I fold em ?

(I am new to the forum so apologies if I have posted in the wrong place )

 

[divs4ever]

When do I hold em and when do I fold em ?


Hi I have been investing for around 12 months now and have a portfolio of around 15 companies and have had varying degrees of success, I would love to review it with someone and get advice on which ones to hold onto and which ones to sell and what those strategies would look like, is this where I get a broker or look for an investment club or would there be another place to get sound advice ?

Overall I am about 2% up on the captial and have made probably around 6% total from dividends, but I have some that are 30% up and others that are 30% down. When do I hold em and when do I fold em ?

(I am new to the forum so apologies if I have posted in the wrong place )

first off , welcome to ASF

please note members are NOT allowed to give financial advice ( the Government demands that )

but your question is both great and yet curly

hopefully members can give you some suggestions , but the ultimate answer is

what is best for you ?

included in your future calculations should be some tax advice , because the taxman will want some of your ( realized ) profits , in fact depending on your tax liabilities you might be better selling ( all or some of ) your losers and claiming taxable losses ( but that is for you and your accountant to discuss )

the next question is do you need to sell any ??



normally i sell when a company makes an unattractive move ( you will have to decide what is 'unattractive to you ' )

now because i have weird ideas , i often like to reduce ( not sell all of it ) when i am up around 150% , and sell 40% of the holding ( keeping 60% ) and taking away the risk of capital loss ( i do not always do this , i decide on a stock by stock basis )

as Warren Buffett has said .. my favourite holding time is 'forever' ( however time and fate often changes that after i have bought in )

good luck

 

[ShareSuccess]

first off , welcome to ASF

please note members are NOT allowed to give financial advice ( the Government demands that )

but your question is both great and yet curly

hopefully members can give you some suggestions , but the ultimate answer is

what is best for you ?

included in your future calculations should be some tax advice , because the taxman will want some of your ( realized ) profits , in fact depending on your tax liabilities you might be better selling ( all or some of ) your losers and claiming taxable losses ( but that is for you and your accountant to discuss )

the next question is do you need to sell any ??



normally i sell when a company makes an unattractive move ( you will have to decide what is 'unattractive to you ' )

now because i have weird ideas , i often like to reduce ( not sell all of it ) when i am up around 150% , and sell 40% of the holding ( keeping 60% ) and taking away the risk of capital loss ( i do not always do this , i decide on a stock by stock basis )

as Warren Buffett has said .. my favourite holding time is 'forever' ( however time and fate often changes that after i have bought in )

good luck

As Uncle Warren says.....Be patient, when others are fearful Jump in & load the truck up!.....When others are jubilant & stocks are Overvalued and at all time highs, it's Time to take some Profit!

 

[Black Eugene]

All good information, will be sure to follow through

 

[divs4ever]

As Uncle Warren says.....Be patient, when others are fearful Jump in & load the truck up!.....When others are jubilant & stocks are Overvalued and at all time highs, it's Time to take some Profit!

only in a few occasions have i needed a large suitcase normally i do smaller ( and if the price keeps dropping several smaller buys ) ( BSL and WBC spring to mind when they were cheap )

normally i don't wait for all time highs , i aim for 140% to 160% above my average buying price

but some of my holdings may never double ( in my lifetime ) so i have think carefully when to reduce ( and when to exit )

 

[ShareSuccess]

A Few Wise words From Uncle Warren

The Secret Sauce In August 1994

Berkshire completed its seven-year purchase of the 400 million shares of Coca-Cola we now own. The total cost was $1.3 billion – then a very meaningful sum at Berkshire.

The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow.

American Express is much the same story. Berkshire’s purchases of Amex were essentially completed in 1995 and, coincidentally, also cost $1.3 billion. Annual dividends received from this investment have grown from $41 million to $302 million. Those checks, too, seem highly likely to increase.

These dividend gains, though pleasing, are far from spectacular. But they bring with the important gains in stock prices. At year end, our Coke investment was valued at $25 billion while Amex was recorded at $22 billion. Each holding now accounts for roughly 5% of Berkshire’s net worth, akin to its weighting long ago.

Assume, for a moment, I had made a similarly-sized investment mistake in the 1990s, one that flat-lined and simply retained its $1.3 billion value in 2022. (An example would be a high-grade 30-year bond.) That disappointing investment would now represent an insignificant 0.3% of Berkshire’s net worth and would be delivering to us an unchanged $80 million or so of annual income.

The lesson for investors: The weeds wither away in significance as the flowers bloom.Over time, it takes just a few winners to work wonders. And, yes, it helps to start early and live into your 90s as well.