Australian (ASX) Stock Market Forum

Actively managed portfolio journey

I agree at that age invest some money into shares outside of super. And that way you can decide to retire at whatever age you want rather than an arbitrary age set by government bureaucrats.
I am 57, retired now, if I had put more money in super earlier, I would:
Not be in the house I am, would still be working until official retirement day ...
Until you are really near retirement age, do not put all your eggs in that basket, the mandatory contribution is plenty enough if you are to never access it
 
Playing team sports a great way to get that social aspect and a sense of mateship . fwiw
About lonely generation, I assume that the capital cities population means 80 to 90% of the population live within 45minutes from a state university, so can go to uni and staying by mum and dad..great for money saving, less for maturing and social interactions vs stacking in a shared house away from home with other students.
It is sad indeed
 
Update

Upon a lot of thought regarding what I should do as we approach the end of the financial year, I have come to the determination that my money is better invested responsibly into etfs/shares/assets that I can access rather than my super (re; maximizing my concessional contribution out of pocket for a tax kickback).

I have decided to leave my salary sacrifice in place however which means I still contribute ~15% to my super which is sufficient in my opinion (and likely more then most other Australians in my current situation).

As a result I am going to be adding some additional holdings to my portfolio over the course of the next 2 - 6 weeks with the money that was otherwise going to be used to max out my concessional cap. The current standing of my portfolio focuses around 66% into diversified growth funds and 33% into the property sector (see below):

Index Fund NameWeighting
Vanguard Australia Property Securities Index ETF (VAP)33%
BetaShares Australia 200 ETF (A200)33%
Vanguard Diversified Balanced Index ETF (VDBA)33%

I intend to accumulate and diversify my portfolio intensively over the course of the next twelve months until I have a portfolio that follows something along the lines of the below:

Sector / Fund / ClassificationTarget/Intended Weighting
Diversified Broad Market Growth ETF's55%
Resource Sector ETF's20%
Property Sector ETF's20%
Speculative Individual Stocks (not sector specific)10%

I am still bullish on the property sector despite the hot CPI data out of the US last night and the reality that we likely won't see rate cuts this year in Australia. While I still see the property and more specifically commercial property sector in a positive light, I won't be accumulating any further until the next lot of Australian and US CPI data is out. Hopefully we can get this sticky inflation under control.

The resource sector is a no brainer for me given the record gold and silver prices and I also sense a rebound in the Iron Ore price (as we see rates cut in the next 12 - 24 months). I as a result am intending on starting to build this portion of my portfolio over the course of the next 6 weeks. Currently narrowing down and researching which funds I specifically have an interest in purchasing.

Finally the speculative individual stocks - this is likely where I will get burnt, however I am young, and it's the best time for me to take some risk on some speculation that won't necessarily be industry specific. However this won't occur until my portfolio is reflecting the three core pillars: Diversified Growth, Property Sector & Resources.

If you made it this far, congratulations (I don't expect many people will hahaha). This post is for record keeping and a personal journal I guess. If anyone has any thoughts or insights on ETF's they have looked into or alternative sectors I would definitely be keen to hear some different opinions! Will have an excel sheet for my next post with my positions, there returns etc. to give this a bit more spice.
 
Finally the speculative individual stocks - this is likely where I will get burnt,
maybe , and maybe not

however this area is where the ASF monthly comp. can be valuable , practice selections on paper , you won't lose cash as you learn and maybe even win a few bucks

but i can tell you even ( formerly ) BIG companies ( like AMP , and ELD ) can cause some serious capital losses ( i dumped a fair bit on MTS for example )

now with the speculative stocks , consider taking some profits when well in front ( maybe not all but some ) , sometimes those little fish are very sweet , but be ready to bail if they start doing weird stuff ( like signing up high profile directors , changing name/ticker code for no good reason )
 
Financial freedom.
1. Own your own property that you live in.
2. Own assets that create income.
3. Self managed Super fund for later on.
4. Avoid or protect yourself from costly mistakes/liabilities (failed businesses / Divorces)

Worrying too much about tax reduction can lead to poor investment decisions / timings.
 
Some thoughts:
  • I would buy a property. Buy something you would be happy to live in if you had to, but knowing that it could make more sense to rent it out for now and live with parents, or in a sharehouse etc. for a better cash flow & tax outcome. If you keep accumulating cash in an offset account, it won't be long until it's cash flow neutral (or close to), so it won't have a big impact on your ability to travel etc. Don't buy a small apartment....ideally house and land (probably not in Melbourne or Sydney)
  • 100% build an ETF portfolio on the side, and keep pumping in those monthly contributions. Don't worry too much about where the market is at or what the media/"experts" are saying.
  • Focus on growing your income through career or starting a business. This is your most powerful wealth creation tool as a young person with no kids. Ability to talk to people, build a personal brand online etc. is key, given tech advancements and AI etc.
  • As your income grows, try not to get sucked into lifestyle creep too much...keep pumping cash flow into ETFs/property/cash/super.
  • Some salary sacrifice into super is good, but don't go too hard on super just yet, it's a very long time until you can access it, and if you address the other points above, you'll have no issue with financial freedom after 60years old, given how early you are starting this journey.
 
maybe , and maybe not

however this area is where the ASF monthly comp. can be valuable , practice selections on paper , you won't lose cash as you learn and maybe even win a few bucks

but i can tell you even ( formerly ) BIG companies ( like AMP , and ELD ) can cause some serious capital losses ( i dumped a fair bit on MTS for example )

now with the speculative stocks , consider taking some profits when well in front ( maybe not all but some ) , sometimes those little fish are very sweet , but be ready to bail if they start doing weird stuff ( like signing up high profile directors , changing name/ticker code for no good reason )
Speculating . Risky business for sure and only for the very brave .

Well ,that's what I believed for decades after early unsuccessful ventures ( with gambling money ) into gold miners and oilers and so forth . These days , still do not possess much courage but one of the very few advantages of being on the highest marginal tax rate is : it gives me the incentive to take on more risk . Unlike normal folks , I never needed to grow more financially conservative as I got older . Money to burn , here . So , let 'er rip !

If I could start out all over again , I' d learn to " Trade" before devoting all that time and effort required for " Investing " . I had to spend hours every day trawling through the Australian Financial Review . In those days , brokerage was hellishly expensive and there were no ETF's , so shortcuts were impossible. No internet either . And most importantly of all , there were no forums such as ASF where you can now follow some of the really astute traders and quickly learn how they do it . Some of the really good ones don't post much anymore but you can still search their history and figure out how to do it .

The best financial education is right here on this wonderful forum . And ......it's free.
 
i class 'speculative ' as a share price under $1 , to complicate you often have some stocks earning revenue ( without government grants/rebates ) and even some that pay a dividend

however i think the OP ( @BossMan. ) was thinking of was stocks still in their first two years after listing , where there is a lot to discover ( managerial and financial wise )

and these can do all sorts of things ( wonderful and terrible )

some careful selections can end up a nice little bonus ( or near-total capital loss )

but around 20 years of age , and a fairly steady employment , maybe that is a good time for small dabbles and learn with skin in the game ( at least most stock trading platforms let you take your winnings out )
 
Yes, for me speculative is classed as small caps and under a $1.00 share price where I see potential growth, these will be smaller positions and there will be a number of picks.

I fully anticipate the speculative investment to be the riskiest element of my portfolio, with the greatest variance, however by staying true to my target weightings above I see myself being able to substantially offset a lot of the risk.

I'm aiming to rebalance my portfolio to hit the targets outlined above every six or so months unless something crazy happens where an immediate rebalance is required. This should enable me to reduce the overall risk substantially, and as the capital value grows of the portfolio ill likely look to add an element of conservative bond based ETF to further offset risk.

In terms of property while this is something I will have a definite interest in directly investing into I am still far to young to lockdown a physical real estate asset. I am still not sure if I wish to live in Australia for the foreseeable future and want to keep the door open to make a move to London / New York / Paris without any baggage left in Australia, if an applicable option arises.

However I will definitely not fall into a lifetime renting trap. I have ambition to buy property and will definitely do so prior to turning 28, just not in the immediate 2 - 3 yeas.
 
Yes, for me speculative is classed as small caps and under a $1.00 share price where I see potential growth, these will be smaller positions and there will be a number of picks.
i have done very well using that concept ( but sure-thing there were some total losses as well , they aren't all winners when i select them )

when you find one of these winners in this area , the next big issue is when to reduce ( or sell completely ) and lock out a capital loss

they other more pleasant choice is where to park that rescued cash
unless something crazy happens
yes , always have a plan for 'crazy ' ,half ready is better than unprepared
ill likely look to add an element of conservative bond based ETF to further offset risk.
please study the Greek/Cyprus bailouts , before deciding in this area also i prefer corporate bonds to sovereign/government bonds ( corporations have more reputation to lose than governments ) but currently i have trivial exposure in this area ( less than 1% )

they just aren't paying me enough for the risk taken
I am still not sure if I wish to live in Australia for the foreseeable future and want to keep the door open to make a move to London / New York / Paris without any baggage left in Australia, if an applicable option arises.
yes that is a current trend for young , employable people , and with frequent changes to regulations for landlords buying now and renting it later , might be baggage you wished you didn't have ( even if only moving interstate )
 
Thought I would share something I have been working on today, my primary hobby as embarrassing as it is, is coding 😅

Through university I've mucked around with a few different finance concepts focusing on portfolio risk, to help make responsible investment decisions. I am shocked that I have actually retained some of the knowledge from these classes hahaha, never really thought to much about the concepts until recently when I have shockingly been able to apply them.

So I found a way to scrape 12 months of ASX price history, augment the data and calculate the values, here is an example of the data output (once I have cleaned it and ran calculations etc. etc.).

1713075626120.png

This is something I intend to continue to develop and will additionally add the ability to calculate the above stats for my different investment categories:
  • Diversified Growth ETF's
  • Property Growth ETF's
  • Resource ETF's
  • Speculative Stock Investments

The knowledge from the above should help me make informed decisions regarding the purchases and the exposure to potential market shocks/sector shocks/events.

Well.... more informed then I was prior. If anyone has any other factors they look at for there portfolio risk I would be keen to look at coding it in to my project. Looking at also calculating the Value at Risk as well as potentially doing Factor Analysis.
 
The knowledge from the above should help me make informed decisions regarding the purchases and the exposure to potential market shocks/sector shocks/events.
please note , i wasn't watching ( the markets ) in real time , during the GFC , but from reading about it later ,i noticed after they ( investors/public )realized how big a mess it was , 'everything fled to cash , preferably US dollars ' i assume that was to cover margin calls , derivatives , outstanding debt etc. etc

depending on who you believe most of the global economy is currently very fragile , but will the rush be into US dollars this time

who owes what and in what currency , some Central Banks are accumulating gold , some are buying the debt instruments of others ( residential and business loans )

having some cash reserves is probably a good idea , but check on what the latest rules are on 'deposit guarantees' ( by the Government , they don't guarantee all of very large bank balances )

there are several triggers for a market plunge out there , commercial property , personal debt , government debt ( in some nations ) , a stray virus , a major war , , a farcically over-heated market ( in some places ) even a big natural disaster

avoidance tactics , include spare cash ( obviously ) , low personal debt ( paired with a tight budget , even better ) , these two things will be able to be maintained until the major shock occurs , which could be next week , or even next decade

a study of 2020 could give you some ideas , as several events were rather new ( supply -side shocks , lock-downs ) and not typical of a market 'black swan ' event
if you think a crash is imminent , maybe a well-stocked pantry/fridge is a better investment than bonds ( in case even the markets/banks suffer moments of breakages/blackouts )

good luck
 
Update

Additional holdings added and updated Portfolio Weightings

Speculative:


BetMakers Technology (ASX:BET) BetR deal broken off, customer migration fees of $500,000 a month for every month they require BetMakers post October. Customer migrations are never simple, especially when migrating customers from BetMakers technology to a inhouse developed application (BlueBet). I see BetMakers making some long term income off the customer migration and a further reduction in cost base. Holdings Avg Price: $0.093

Resource ETF:

VanEck Aus Resources ETF (ASX:MVR) in line with some risk testing, it looks like the most optimal option, entering into this and accumulating additional units over the course of the next month.

Portfolio Holdings & Respective Weightings

ClassificationAsset% of overall portfolio% of classification
Diversified Growth ETF'sBetaShares Australia (ASX:A200)29.88%49.59%
Diversified Growth ETF'sVanguard Diversified (ASX:VDBA)30.37%50.41%
Property Sector ETFVanguard Aust Prop (ASX:VAP)30.04%100%
Resource Sector ETFVanEck Aus Resources (ASX:MVR)5.52%100%
Speculative Stock InvestmentBetMakers Technology (ASX:BET)4.19%100%

Portfolio Classification Weightings v.s. Target Weightings

ClassificationCurrent Portfolio WeightingTarget WeightingDifference
Diversified Growth ETF's60.251%50%10.25%
Property Sector ETF's30.043%20%10.04%
Resource Sector ETF's5.517%20%-14.48%
Speculative Investments4.189%10%-5.81%

Remainder of April / May Objectives

Goal over the course of the rest of April/May is to accumulate additional assets within the Resource Sector ETF's to bring this weighting to within +/- 5% of the target. Achieving this will naturally move the other assets towards there correct respective weightings (i.e. Diversified Growth + Property Sector not speculative stock investments however).

Will be including a table that outlines the returns YTD for the portfolio at the end of this month, and intend to subsequently post it at the end of each fortnight. Really aiming to get the core weightings inline with my targets by the end of June (Core: Diversified Growth, Property & Resource ETF's)

Cheerio Bossman.
 
Speculative holding of BetMakers is going gang busters. Looks like it was a well timed entry:

1713775015318.png

55% over the last week or so. Currently carrying, think this has to be the one time I have timed the market well
 
Observation:

My portfolio beta calculated against the XJO index (ASX200) comes to a score of 0.7221 (1 being in perfect correlation with the market). I was also curious to see the weighted standard deviation of the portfolio, using the weightings and the relevant data derived from weekly stock pricing I returned the following score:

1714105471582.png

a +/- weekly movement of ~3.9% (each week there is a ~67% chance of the overall portfolio moving within that range).

Just thought that was interesting. I anticipate the interest rate decision and the effect that will undoubtedly have on the market. Similarly will be watching the May budget for any opportunities to accumulate under my speculative investment category.

18 days till the may budget :)
 
Similarly will be watching the May budget for any opportunities to accumulate under my speculative investment category.
in the speculative end ?? ( looking for capital growth in preference to income )

interesting , i would be looking for the other end ( boring/solid stocks being divested to pay anticipated bills )

good luck
 
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