A few questions from a first time investor (Any advice is appreciated)

So i'll be investing for the first time in august with a small amount money (around 5 thousand at most) and iv spent some time getting to know some of the market on ASX and the terms associated with investing however being self taught i'm still not completely sure of how sound some investment choices might be therefore any information or guidance is much appreciated

1) is west farmer a good investment due to it's stability, dividend yield and potential for growth due to the poor performance of competition in the same sector such as woolworths. Or is investing in GEM EDUCATION who have a higher dividend percentage a more rewarding alternative?

2) What are some companies in the private health sector or utilities sector to invest in and are they worth a investment

3) are commodities a reliable investment currently? and if so on the ASX specifically is the mining sector showing signs of bouncing back or is this sector still a gamble reliant of exportation trend? Alternatively does Australia have another commodities sector worth investing in like agriculture that is showing strong results? if so what are these companies

These three questions are currently guiding my investment ideas and the choices i'm planning to make come august. Being a novice any information is EXTREMELY appreciated as i'm sure being self taught so far iv either skimmed over important details or might have miss-interpreted something.

Thanks for the help!!

Stocks In Socks said:

i'm still not completely sure of how sound some investment choices might be therefore any information or guidance is much appreciated

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Just something to think about, i found a list of the ASX300 constituents, they can the arranged by 1 year return in the last column...makes for an interesting comparison, looking at the top performers and the bottom and the middle.

http://www.marketindex.com.au/asx300

Screen shot of the top and bottom 10 below with 1yr % gain/loss in last column.
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Hi Stocks in Socks, my response in blue below. Remember these are my rant only and should not be considered as advice.

Stocks In Socks said:

1) is west farmer a good investment due to it's stability, dividend yield and potential for growth due to the poor performance of competition in the same sector such as woolworths. Or is investing in GEM EDUCATION who have a higher dividend percentage a more rewarding alternative?

WES and GEM will have different risk profile, although you commonly see both lumped in the defensive category. Woolies has been doing poorly of late but it doesn't mean WES will necessarily flourish as a result. Many analysts are talking about escalating price wars and eroding margins for the industry as a whole. On the other hand, GEM has it's own regulatory risks (e.g. childcare subsidies being changed) as its revenue consists of much government funding.

2) What are some companies in the private health sector or utilities sector to invest in and are they worth a investment

Some private health companies: PRY, HSO, SHL, RHC, MPL NHF, CSL, MYX, COH, RMD. They are a range of hospital operators, pathology, GP, health insurance, pharma and medical devices companies.

Utilities companies: APA, AST, SKI, DUE, AGL, TLS, TPM, VOC. These are various gas and electricity generation / distribution / retail companies. TLS, TPM, VOC are local telcos which some consider to be utility these days.

3) are commodities a reliable investment currently? and if so on the ASX specifically is the mining sector showing signs of bouncing back or is this sector still a gamble reliant of exportation trend? Alternatively does Australia have another commodities sector worth investing in like agriculture that is showing strong results? if so what are these companies

By definition commodity companies dig things up from the ground and sells it at the prevailing market price. The market price is usually out of the control of the producer. The price of commodities are also typically cyclical. Look up commodity cycle for an overview. Commodities are rarely reliable investments... but getting in at the right time of the cycle can be very lucrative.

ASX does have a agribusiness sector. Here are some names for further research: ELD, AAC, RIC, TGR, HUO, MGC, FSF, BGA, GNC

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It's not possible to offer a detailed view on each of the companies listed above... but may be you will have more detailed questions after some initial research on these themes. You can ask them in their specific threads and see if you'd get any response.

I guess the takeaway information is that, all companies have risks (as if anyone doesn't know that)... so the question is at what price is the reward:risk in your favour. And remember, that as good as any company / industry can be, there's always a price that makes it a bad investment.

skc said:

Hi Stocks in Socks, my response in blue below. Remember these are my rant only and should not be considered as advice.



It's not possible to offer a detailed view on each of the companies listed above... but may be you will have more detailed questions after some initial research on these themes. You can ask them in their specific threads and see if you'd get any response.

I guess the takeaway information is that, all companies have risks (as if anyone doesn't know that)... so the question is at what price is the reward:risk in your favour. And remember, that as good as any company / industry can be, there's always a price that makes it a bad investment.

Click to expand...

Thank you! this information is a great diving board for me to do some further research and evaluate my choices and thank you for listing the company abbreviations and i was struggling to find specifics in certain sectors!