Help with portfolio/when to buy?

[LionTurtle]

Hi everyone, new to the forums

So I want to diversify my portfolio a little and do it right as well.

Recently I bought some shares,

$2k of AFI
$2k of ARG

$1k WES
$1k WOW

I got them about a month ago, but I didnt really look much into when I should have got them, like picking the right time to buy. The AFI and ARG have gained alot but wes and wow have lost a bit and I have almost broke even if i include the commission on buying them.

So at the moment my portfolio is basically just Consumer Staples plus the investment companies and I want to diversify it a bit.

The shares I want to buy at some point are:

IAG, RFG and maybe CBA and SYD

Basically I am just trying to look for patterns to when they go up and down and get them on a down, but is there a good technique on choosing when to buy?

for CBA im guessing i need to wait a bit as all the banks are too high at the moment?

(I am looking for long term investments by the way, but I think its still important to try and buy at the right time.)

Thanks in advance,
Lion Turtle

 

[luutzu]

Re: Help with portfolio / when to buy?

A good time to buy is when it's selling at or preferably below its value.

If you do not know what a company is worth, there is never a good time to buy or to sell.

Just because a company goes down does not mean it won't go down further. Just because it has risen sharply does not mean it won't keep rising ever higher.

So know the business, work out its approximate value... then see if the price it's selling for is sensible.

----

If you haven't yet been able to study a company thoroughly, read financial statements to know its financial health, earning capability etc., it is best to NOT pick a time to buy, but to buy into established businesses that's dominating its peers and looks likely to keep doing so for a foreseeable future - like your WOW and WES.

The price you pay might be high or higher than what the company is worth, but buying quality businesses will always work out better than smaller ones - given that you don't know what either is worth.

---

Read/youtube Peter Lynch, Phillip Fisher, Intelligent Investor, Ben Graham, Warren Buffett... and take Fisher's one advise to heart: There is no quick and easy way to riches, neither on the stock market nor anywhere else in real life [he phrased it better].

 

[burglar]

... for CBA im guessing i need to wait a bit ...

I am guessing you are correct in guessing that the bank CBA is currently too high!
I had advised a niece and a nephew to buy CBA at around $35!
Both worked for that bank at that time.
Both declined my advice stating they had no Capital.

I too, also, failed to cash in on my own advice.

 

[LionTurtle]

Thank you guys, I have been listening to peter lynch on youtube, I like his way of thinking, makes sense.

I see what I need to do is research a lot and know the companies and then i should know when to buy and sell.

I know the supermarkets pretty well, because I have worked in them in part time for a reasonable time.

 

[burglar]

... research a lot and know the companies ...

I see that your parcel size is smallish.
I am wondering if the brokerage isn't killing you.

Are you perhaps, on one of those 'free brokerage' offers?


WES and WOW are in themselves diversified.

Woolies is attempting to control every facet of your life.
Gambling, groceries, clothing, electronics, drinking, toilet paper & hardware

 

[Wysiwyg]

Woolies is attempting to control every facet of your life.
Gambling, groceries, clothing, electronics, drinking, toilet paper & hardware

I see Asaleo Care recently listed on the ASX. Let's hope they get on a roll. If everything turns to you-know-what, they may be a company to rely on.

 

[LionTurtle]

I see that your parcel size is smallish.
I am wondering if the brokerage isn't killing you.

Are you perhaps, on one of those 'free brokerage' offers?

Nah, I did pay brokerage, its the only reason i'm still in the red, but I think in the long run it should be fine. I plan on using all the reinvestment plans to build up the capital without paying more brokerage.

 

[Julia]

Thank you guys, I have been listening to peter lynch on youtube, I like his way of thinking, makes sense.

I see what I need to do is research a lot and know the companies and then i should know when to buy and sell.

I know the supermarkets pretty well, because I have worked in them in part time for a reasonable time.

As burglar notes, there is much more to both WOW and WES than just supermarkets. If you are basing your decisions on just what the two supermarket chains do you are missing a great deal.

 

[LionTurtle]

Hi guys, reasonable happy with my portfolio's performance so far, although it hasn't really been much time..



I seem to be beating the XAO so far

I have a few questions though.

Would there be any advantage to be using AFI's DSSP over the DRP if my salary for this financial year should be in the 32.5% tax bracket?

Also I guess there is no point in opting in for WES and WOW's DRPs as I won't get enough dividends from them with only $1k to buy a single share

Thanks

 

[burglar]

... using AFI's DSSP over the DRP ...

https://www.aussiestockforums.com/forums/showthread.php?t=26310

... no point in opting in for WES and WOW's DRPs ...

DRP's are not the "be-all and end-all" of investing!

 

[LionTurtle]

https://www.aussiestockforums.com/forums/showthread.php?t=26310



DRP's are not the "be-all and end-all" of investing!

I think ill just use the DRP for the AFI and ARG

I bought some IAG shares for there high dividends and I think they will be around for a long time, and should be a good long term investment

 

[burglar]

I think ill just use the DRP for the AFI and ARG

I bought some IAG shares for there high dividends and I think they will be around for a long time, and should be a good long term investment

Except save brokerage, a DRP does nothing for you that you can't do for yourself.

It is timed by "The Company", with total disregard of the Market and the Share Price Action.

 

[LionTurtle]

Except save brokerage, a DRP does nothing for you that you can't do for yourself.

It is timed by "The Company", with total disregard of the Market and the Share Price Action.

what about when it gives you a discount? and the saving on brokerage is important for me at the moment as my investments are small

 

[burglar]

what about when it gives you a discount? and the saving on brokerage is important for me at the moment as my investments are small

Yes, you do have to be careful or lucky!
Most of all you will need to be patient!

That'll be true with or without DRP's.

 

[Craton]

what about when it gives you a discount? and the saving on brokerage is important for me at the moment as my investments are small

With a longer term view DRP is a great form of accumulation. I liked the GFC and the fact that the DRP's gave me more bang for my buck, that and the fact I could add at a discount to my more meagre blue chip holdings. Who here remembers BHP going from $50 intra day down to a close of $19.99 in that GFC cycle?

Another thing I liked in the GFC was the SPP's many of my holdings issued during that depressed market was another great way to build positions on the cheap.

As you say, the discount and nil brokerage all play a part for those of us that can only squirrel away token amounts especially in the early stages of our investment/trading life.

For me, those DRP's will turn into cash income in my retirement years.

 

[burglar]

... For me, those DRP's will turn into cash income in my retirement years.

Craton, you are correct.
So are you, LionTurtle.


If you are young and patient you can grow rich slowly with dividends and DRP's and compounding.

My son wants good shares in my portfolio when he inherits them.

 

[Craton]

Craton, you are correct.
So are you, LionTurtle.


If you are young and patient you can grow rich slowly with dividends and DRP's and compounding.

My son wants good shares in my portfolio when he inherits them.

Mate, you've got it all wrong. You need to learn to SKI. Spend the Kids Inheritance!

You're right though. I've a few mates that inherited a portfolio of blue chips and that made it easy for them to get set in life. Most of 'em still have those very same companies but the position size is, oh, a little larger.

Sure is a nice legacy if one can leave something for the young ones to build upon and in part, that is what drove me to learn more about the s/market and investing in general. So glad I took the plunge as it has been and still is very rewarding.

 

[LionTurtle]

Is it bad I am a little excited that the market is heading down at the moment?

I am a little annoyed my current investments are down at the moment, and will probably go down more, but i know in the long run it wont matter.

But the reason I am excited is that there might be some good buying opportunities soon, and I have saved up to be able to buy more soon.

I am thinking maybe the banks will have a good entry point soon, not sure how long till wait though.. but I guess that's the million dollar question.

If there is a correct I think maybe the best stocks to buy are ones who's value went down purely because of the correction but have a business that isnt really effected by it. Might be a good time to put more money into the supermarkets, as I know in 2008 when the market went down, more people shopped at supermarkets rather then eating out to save money, plus they did a lot of renovation and stuff at that point I think?

Some thoughts, CBA, NAB, WES, WOW, RFG, healthcare of some sort

 

[Value Collector]

Is it bad I am a little excited that the market is heading down at the moment?

Absolutely not.