Actively managed portfolio journey

[BossMan.]

EOW Update




Since my first purchase in March of 2024 I have returned a total return of 19.74%, this is not taking into account the substantial increase in the value of the holdings.

Deployable cash will be deployed to ASX:HQUS next week at some stage, or alternatively ASX:VGN if we see the price return to $3.20 - $3.30 range. Intending to buy in the second half of the week.

From here, I will likely look at further increasing my holdings in either the ASX200 via ASX:GEAR (leveraged ASX200 fund). Targeting Capital Gains growth, not dividend income.

I have dropped the ball in recent months and as such, haven't been paying enough attention to the economic conditions of the USA and Australia. Beginning to tune back in, and will be able to target my investments around this over the course of the next few months.

~7 weeks till I graduate with my Bachelor degree (assuming I don't flunk out!). Worked full time, studied mostly full time (3yr degree in 4yrs) all at the same time. Writing this primarily because I'm proud of it and have few places to voice it.

On track to be a Snr. Manager in a major institution within the next 1-2.5yrs at a age of under 25 assuming AI doesn't replace us all!

Onwards & Upwards.

 

[qldfrog]

EOW Update

View attachment 207751


Since my first purchase in March of 2024 I have returned a total return of 19.74%, this is not taking into account the substantial increase in the value of the holdings.

Deployable cash will be deployed to ASX:HQUS next week at some stage, or alternatively ASX:VGN if we see the price return to $3.20 - $3.30 range. Intending to buy in the second half of the week.

From here, I will likely look at further increasing my holdings in either the ASX200 via ASX:GEAR (leveraged ASX200 fund). Targeting Capital Gains growth, not dividend income.

I have dropped the ball in recent months and as such, haven't been paying enough attention to the economic conditions of the USA and Australia. Beginning to tune back in, and will be able to target my investments around this over the course of the next few months.

~7 weeks till I graduate with my Bachelor degree (assuming I don't flunk out!). Worked full time, studied mostly full time (3yr degree in 4yrs) all at the same time. Writing this primarily because I'm proud of it and have few places to voice it.

On track to be a Snr. Manager in a major institution within the next 1-2.5yrs at a age of under 25 assuming AI doesn't replace us all!

Onwards & Upwards.

my 20c do not invest in Gear for the long term, or Ggus, bboz, etc
these tools eat your money with time irrespective of market direction..so short term sure, but these are not multi year holding investments

 

[BossMan.]

UPDATE

Back into ASX:VGN at 3.29 a share with the entirety of our cash holding. Will continue to hold for some time, unless another selling opportunity appears. Will set my stop loss at 2.90.

Brings speculative holdings up - cash accumulation returning. Next position will be A200 or HQUS dependent on my view at the time.

Onwards and upwards

 

[BossMan.]

EOW Update

Profit / Loss since inception (March 2024)


Weightings




Comments

Continuing to see growth, expecting to see a sell off in AAL in the next couple of weeks tbh, wont sell, but don't think returns will set where they currently are for the next few months.

Investigating the potential creation of a separate geared portfolio, with the use of a margin loan and negatively gear it. Figure this would be a good opportunity to apply the concepts in practice while I am young. Have been doing research and think it could be a good play.

Currently investigating this further, and will likely start to build a position in Interactive Brokers, and once the position reaches a large enough size, will look to gear it with a targeted LVR of 50%.

If anyone has any useful resources that could further support my education in the area, I am all ears.

Onwards & Upwards.

 

[divs4ever]

Investigating the potential creation of a separate geared portfolio, with the use of a margin loan and negatively gear it. Figure this would be a good opportunity to apply the concepts in practice while I am young. Have been doing research and think it could be a good play.

Currently investigating this further, and will likely start to build a position in Interactive Brokers, and once the position reaches a large enough size, will look to gear it with a targeted LVR of 50%.

timing your buying in these ( to be ) leveraged assets will be very important as will the assets chosen be used as collateral

consider not only the current lending value , but the asset returns ( divs/interest to help offset your loan costs ... and franking credits ) AND the probability of those collateralized assets maintaining their value and LVR

REITs try to maintain a gearing ( leverage ) of under 40% .. would that be a safer level for you until you are practiced at maintaining that leveraged portfolio ?

from watching a buddy with a margin loan ( over the last 13 years ) HAVE SOME READY CASH AVAILABLE ( and quickly , margin calls sometimes come at completely unexpected or inconvenient times )

now that cash MIGHT be deployed by buying some 'high quality shares ' ( like WES , BHP or CBA ) ( boosting the collateralized asset base ) or simply repaying some of the outstanding loan ( but check the rules on YOUR margin-lender )

investigate strategies of when to buy via the margin loan ( buying 'quality ' assets in a big dip , might be a good way , especially if you aren't maxxed out in the loan ) and MAYBE participating in the DRP is a way to grow your underlying asset base , but check what suits YOU best .

as hilarious as it may sound , the best time to borrow money is .... when you don't need to borrow that money


BTW this is all to complicated for me , i read about the first three pages involved in entering such an agreement , and decided not to play there

and by chance the rule/agreement changes over the last 10 years made by that lender i am very happy with my choice

 

[BossMan.]

timing your buying in these ( to be ) leveraged assets will be very important as will the assets chosen be used as collateral

consider not only the current lending value , but the asset returns ( divs/interest to help offset your loan costs ... and franking credits ) AND the probability of those collateralized assets maintaining their value and LVR

REITs try to maintain a gearing ( leverage ) of under 40% .. would that be a safer level for you until you are practiced at maintaining that leveraged portfolio ?

from watching a buddy with a margin loan ( over the last 13 years ) HAVE SOME READY CASH AVAILABLE ( and quickly , margin calls sometimes come at completely unexpected or inconvenient times )

now that cash MIGHT be deployed by buying some 'high quality shares ' ( like WES , BHP or CBA ) ( boosting the collateralized asset base ) or simply repaying some of the outstanding loan ( but check the rules on YOUR margin-lender )

investigate strategies of when to buy via the margin loan ( buying 'quality ' assets in a big dip , might be a good way , especially if you aren't maxxed out in the loan ) and MAYBE participating in the DRP is a way to grow your underlying asset base , but check what suits YOU best .

as hilarious as it may sound , the best time to borrow money is .... when you don't need to borrow that money


BTW this is all to complicated for me , i read about the first three pages involved in entering such an agreement , and decided not to play there

and by chance the rule/agreement changes over the last 10 years made by that lender i am very happy with my choice

All good points I have considered.

Still finalizing the way I would approach this, but the plan would be to take a position and gear at ~45-50% with quarterly readjustments/contributions to maintain the margin level.

At least that's the idea in theory. The other part of this would be to maintain a bailout fund (included within my personal emergency fund). I feel at a LVR of 45-50% a market downturn of 25% is unlikely, and more so, it's unlikely to happen in one day w/o the opportunity to inject additional funds (assuming a margin call at 75% LVR).

 

[divs4ever]

All good points I have considered.

Still finalizing the way I would approach this, but the plan would be to take a position and gear at ~45-50% with quarterly readjustments/contributions to maintain the margin level.

At least that's the idea in theory. The other part of this would be to maintain a bailout fund (included within my personal emergency fund). I feel at a LVR of 45-50% a market downturn of 25% is unlikely, and more so, it's unlikely to happen in one day w/o the opportunity to inject additional funds (assuming a margin call at 75% LVR).

BEAR ( in Commsec) has a lending value ( unlike BBUS and BBOZ .. last i looked ) and has paid the rare div. ( not really worth considering unless you plan to hold a percentage for years )

from the margin call event ( on my buddy ) i witnessed the margin call was put out on the SPI futures for the coming day ( destroying the small safety margin that the buddy had at the time )

.. the daily close would still have left the buddy 'in buffer ' ( without the extra cash injection ) ( buddy had an existing heart condition as was traveling in a remote interstate region at the time .. the outcome could have been MUCH worse )

the other thing to watch is the lending value of your collateral can be adjusted at short notice ( also check how a trading halt would affect that , say the dam failure in Brazil for BHP type event when a quality share hits an iceberg )

 

[BossMan.]

BEAR ( in Commsec) has a lending value ( unlike BBUS and BBOZ .. last i looked ) and has paid the rare div. ( not really worth considering unless you plan to hold a percentage for years )

from the margin call event ( on my buddy ) i witnessed the margin call was put out on the SPI futures for the coming day ( destroying the small safety margin that the buddy had at the time )

.. the daily close would still have left the buddy 'in buffer ' ( without the extra cash injection ) ( buddy had an existing heart condition as was traveling in a remote interstate region at the time .. the outcome could have been MUCH worse )

the other thing to watch is the lending value of your collateral can be adjusted at short notice ( also check how a trading halt would affect that , say the dam failure in Brazil for BHP type event when a quality share hits an iceberg )

Thanks Divs,

The idea would be to run the asset at a loss capturing the tax benefit, and holding for several years to capture the compounding effects.

Not looking at a margin for short term trading/speculation, nor for options. Only time options would be brought into the equation would be to protect upside.

 

[rolly1]

Something you may not have thought of, why not use a spi contract as your leverage:
Effective interest rate on the spi is probably 3+% better than what you will have with a margin loan.
All the dividends for the top 200 companies are allowed for in its price.
$10-15k will control about $225k worth of asx 200 stock (doesn't mean you have to use that sort of leverage)
You can easily exit on short term dips or if you wanted to hedge easily go short spi.
Easily roll from one contract to another each quarter.
You mentioned IB that is why I brought the above up.
GL

 

[BossMan.]

Something you may not have thought of, why not use a spi contract as your leverage:
Effective interest rate on the spi is probably 3+% better than what you will have with a margin loan.
All the dividends for the top 200 companies are allowed for in its price.
$10-15k will control about $225k worth of asx 200 stock (doesn't mean you have to use that sort of leverage)
You can easily exit on short term dips or if you wanted to hedge easily go short spi.
Easily roll from one contract to another each quarter.
You mentioned IB that is why I brought the above up.
GL

Interesting, not something I’ve heavily looked into. Will see if I can find a book to read at night with some more information.

 

[rolly1]

Interesting, not something I’ve heavily looked into. Will see if I can find a book to read at night with some more information.

Ask away if you have any questions about the spi as I have been trading it for a long time.