What method of investing would this be termed?

pythagoras · 7 December 2020

G'day folks,

I've just opened a Commsec and CDIA account last week after friendly suggestions on this forum. Currently waiting for my orders to go through for ARG ($1000) and AFI ($1000).

I'd like to know if there is any literature on investing in supply chains and the complete cycle (from raw resource to manufacturing), and if there is a term for this?

There is a particular field i have been interested in for long time, and i have done some research into the the two companies that operate in that space.
One of the companies has several patents secured and have expanded operations. With the advent of a political policy announced several weeks ago, i believe the two companies will corner the market within several years.

I don't know enough about investing wisely, so if there is some literature that can help guide me into what indicators and traps to watch out for in investing supply chain and manufacturing, i would appreciate you letting me know.

due to my financial situation i will only be able to make a series of small investments in these businesses ($500), however, my goal is long term, so will make series of investments when i can afford to.

Thank you.

Kind regards,

Dona Ferentes · 7 December 2020

pythagoras said:
G'day folks,

I've just opened a Commsec and CDIA account last week after friendly suggestions on this forum. Currently waiting for my orders to go through for ARG ($1000) and AFI ($1000).

I'd like to know if there is any literature on investing in supply chains and the complete cycle (from raw resource to manufacturing), and if there is a term for this?

There is a particular field i have been interested in for long time, and i have done some research into the the two companies that operate in that space.
One of the companies has several patents secured and have expanded operations. With the advent of a political policy announced several weeks ago, i believe the two companies will corner the market within several years.

I don't know enough about investing wisely, so if there is some literature that can help guide me into what indicators and traps to watch out for in investing supply chain and manufacturing, i would appreciate you letting me know.

due to my financial situation i will only be able to make a series of small investments in these businesses ($500), however, my goal is long term, so will make series of investments when i can afford to.

Congrats. Great start.

Value Collector · 7 December 2020

pythagoras said:
G'day folks,

I've just opened a Commsec and CDIA account last week after friendly suggestions on this forum. Currently waiting for my orders to go through for ARG ($1000) and AFI ($1000).

I'd like to know if there is any literature on investing in supply chains and the complete cycle (from raw resource to manufacturing), and if there is a term for this?

There is a particular field i have been interested in for long time, and i have done some research into the the two companies that operate in that space.
One of the companies has several patents secured and have expanded operations. With the advent of a political policy announced several weeks ago, i believe the two companies will corner the market within several years.

I don't know enough about investing wisely, so if there is some literature that can help guide me into what indicators and traps to watch out for in investing supply chain and manufacturing, i would appreciate you letting me know.

due to my financial situation i will only be able to make a series of small investments in these businesses ($500), however, my goal is long term, so will make series of investments when i can afford to.

Thank you.

Kind regards,

Hi Pythagoras,
First of all congratulations on making a start and being interested in investing, I don’t know of any books to recommend on the exact topic of manufacturing and supply chain, but I think because you are interested in learning about analysis from a fundamental stand point (which is the right choice in my opinion), I think you will get great insights by doing two things.

1, watch and read as many Warren Buffett interviews, letters and books as you can, this will give you a great insight into what is important about investing.

2, watch and read as many documentaries about different company histories, learn about companies that did well, companies that went bust, watch how’s it made videos, business based biographies etc etc.

When you invest based on fundamentals, you are taking the stance of a businessman, and investing from a business perspective, so you need a wide range of knowledge across many areas, especially those areas you invest in, and it’s amazing how as you consume information from a wide range of sources you can knit together a great understanding of how things work and come up with some great investment ideas.

There is even some great entertaining channels on YouTube thatyou can pick up tidbits of knowledge from.

checkout “company man” on YouTube, his videos are light and entertaining viewing while you make breakfast etc, but have some good historical info in them.

pythagoras · 7 December 2020

Value Collector said:
Hi Pythagoras,
First of all congratulations on making a start and being interested in investing, I don’t know of any books to recommend on the exact topic of manufacturing and supply chain, but I think because you are interested in learning about analysis from a fundamental stand point (which is the right choice in my opinion), I think you will get great insights by doing two things.

1, watch and read as many Warren Buffett interviews, letters and books as you can, this will give you a great insight into what is important about investing.

2, watch and read as many documentaries about different company histories, learn about companies that did well, companies that went bust, watch how’s it made videos, business based biographies etc etc.

When you invest based on fundamentals, you are taking the stance of a businessman, and investing from a business perspective, so you need a wide range of knowledge across many areas, especially those areas you invest in, and it’s amazing how as you consume information from a wide range of sources you can knit together a great understanding of how things work and come up with some great investment ideas.

There is even some great entertaining channels on YouTube thatyou can pick up tidbits of knowledge from.

checkout “company man” on YouTube, his videos are light and entertaining viewing while you make breakfast etc, but have some good historical info in them.

Thank you Value Collector for your encouragement.

I'll be sure to check out those online resources.

Dona Ferentes · 7 December 2020

with AFI and ARG under your belt, I hope you feel comfortable with the LIC structure, the transparency of assets held and the low cost fees offered. There is a bit of double dipping with the two (though each has their individual charms) if you look at the Top 20 holdings, as the main focus is ASX200/300 .

You may want to look at exposure to some smaller companies, the so-called small or micro cap ones. There are specialist LICs that focus on these; of necessity, they tend to have smaller FUM, change holdings more frequently and thus have higher fee structures. The Bell Potter list of LICs, that can be found at

LIC reports and updates

Various reports and updates on Listed Investment Companies (LICs) and Listed Managed Investments (LMIs) as provided by Bell Potter, Independent Investment Research, and Morningstar.

www.firstlinks.com.au

is a useful site to evaluate possible, though not the only, options

Medium to Small Investment Mandate, with Fund Size
WAM .... WAM Capital .................. Medium/Small $1,666 mill
OPH .... Ophir High Conviction Fund .... Medium/Small $710 mill
MIR .... Mirrabooka Investments .............. Medium/Small $518 mill
QVE .... QV Equities ..................... Medium/Small $230 mill
WAX .... WAM Research ................ Medium/Small $292 mill
CDM .... Cadence Capital ............... Medium/Small $254 mill
WIC .... Westoz Investment ............. Medium/Small $154 mill
TOP .... Thorney Opportunities .... Medium/Small $112 mill
RYD .... Ryder Capital ..................... Medium/Small $94 mill
TEK .... Thorney Technologies ..... Medium/Small $102 mill
WAA ... WAM Active ...................... Medium/Small $51 mill
NAC .... Naos Ex-50 Opportunities ... Medium/Small $50 mill
Small/ Microcap Investment Mandate, with Fund Size
WMI .... WAM Microcap ........................ Small/Micro $347 mill
SEC ..... Spheria Emerging Companies ...Small/Micro $116mill
NSC .... Naos Small Cap Opportunities .... Small/Micro $107 mill
NCC .... Naos Emerging Opportunities .... Small/Micro $63mill
ACQ .... Acorn Capital Investments ...... Small/Micro $96mill
OZG .... Ozgrowth ...............................Small/Micro . $72 mill

And I'd be very interested to hear about the companies you mention

have done some research into the two companies that operate in that space.

pythagoras · 7 December 2020

Dona Ferentes said:
with AFI and ARG under your belt, I hope you feel comfortable with the LIC structure, the transparency of assets held and the low cost fees offered. There is a bit of double dipping with the two (though each has their individual charms) if you look at the Top 20 holdings, as the main focus is ASX200/300 .

You may want to look at exposure to some smaller companies, the so-called small or micro cap ones. There are specialist LICs that focus on these; of necessity, they tend to have smaller FUM, change holdings more frequently and thus have higher fee structures. The Bell Potter list of LICs, that can be found at

LIC reports and updates

Various reports and updates on Listed Investment Companies (LICs) and Listed Managed Investments (LMIs) as provided by Bell Potter, Independent Investment Research, and Morningstar.

www.firstlinks.com.au

is a useful site to evaluate possible, though not the only, options

Medium to Small Investment Mandate, with Fund Size
WAM .... WAM Capital .................. Medium/Small $1,666 mill
OPH .... Ophir High Conviction Fund .... Medium/Small $710 mill
MIR .... Mirrabooka Investments .............. Medium/Small $518 mill
QVE .... QV Equities ..................... Medium/Small $230 mill
WAX .... WAM Research ................ Medium/Small $292 mill
CDM .... Cadence Capital ............... Medium/Small $254 mill
WIC .... Westoz Investment ............. Medium/Small $154 mill
TOP .... Thorney Opportunities .... Medium/Small $112 mill
RYD .... Ryder Capital ..................... Medium/Small $94 mill
TEK .... Thorney Technologies ..... Medium/Small $102 mill
WAA ... WAM Active ...................... Medium/Small $51 mill
NAC .... Naos Ex-50 Opportunities ... Medium/Small $50 mill
Small/ Microcap Investment Mandate, with Fund Size
WMI .... WAM Microcap ........................ Small/Micro $347 mill
SEC ..... Spheria Emerging Companies ...Small/Micro $116mill
NSC .... Naos Small Cap Opportunities .... Small/Micro $107 mill
NCC .... Naos Emerging Opportunities .... Small/Micro $63mill
ACQ .... Acorn Capital Investments ...... Small/Micro $96mill
OZG .... Ozgrowth ...............................Small/Micro . $72 mill

And I'd be very interested to hear about the companies you mention

Hi Dona Ferentes, Thanks for your response.

I don't know anything about 'Options' and not sure how to read the data so i can understand it. However, maybe one day when i have more understanding of the fundamentals.

Today was my first day that my buy order(s) were fulfilled, and i entered into the investing journey .

I've placed couple more orders (albeit small potatoes $500-$1000) into 2 businesses i believe are undervalued, even though they have poor ROIC but their other metrics seems good (I think) .

Thanks again.

Kind regards,

Py

So_Cynical · 8 December 2020

pythagoras said:
I've just opened a Commsec and CDIA account last week after friendly suggestions on this forum. Currently waiting for my orders to go through for ARG ($1000) and AFI ($1000).

Good start, just with brokerage costs there are now (just recently) some very low cost chess sponsored brokers available, makes a lot of sense and cents when buying parcels of shares for 2000 bucks and under.

OpenTrader and Selfwealth both offer brokerage under $10

Smurf1976 · 8 December 2020

pythagoras said:
I'd like to know if there is any literature on investing in supply chains and the complete cycle (from raw resource to manufacturing), and if there is a term for this?

As a business concept this is known as “vertical integration” - any situation where the same company is involved in all or at least multiple steps of the supply chain.

The concept applies to any business.

Eg an oil company that does everything from exploration and drilling to refining to running service stations could be described as a vertically integrated oil company. As distinct from a company that only drills or only runs refineries but doesn’t do the other bits.

Or for a more niche and unusal example there’s a well known seafood restaurant in Hobart which runs their own fishing fleet. That’s a somewhat niche example but same basic concept.

pythagoras · 8 December 2020

So_Cynical said:
Good start, just with brokerage costs there are now (just recently) some very low cost chess sponsored brokers available, makes a lot of sense and cents when buying parcels of shares for 2000 bucks and under.

OpenTrader and Selfwealth both offer brokerage under $10

Hi So_Cynical, is there any detriments to having multiple brokers?
Is there a way to unify portfolios in one space. So SharesA registered with Broker X and SharesB registered with Broker Y can be looked at on a single page?

Thank you.

Kind regards,
Py

Dona Ferentes · 8 December 2020

pythagoras said:
Hi Dona Ferentes, Thanks for your response.

I don't know anything about 'Options' and not sure how to read the data so i can understand it. However, maybe one day when i have more understanding of the fundamentals

I think you are missing the point. You mentioned buying two LICs. These are large cap ones, with similar holdings. For diversification and a wider exposure to the 2200 stocks on the ASX, I suggested you may investigate smaller cap LICs and provided a link and list of possibilities, and provided some options (alternatives, choices, possibilities) as in Definition 1.

noun: option; plural noun: options

a thing that is or may be chosen
the freedom or right to choose something.
a right to buy or sell a particular thing at a specified price within a set time (= an Option)

So_Cynical · 8 December 2020

pythagoras said:
Hi So_Cynical, is there any detriments to having multiple brokers?
Is there a way to unify portfolios in one space. So SharesA registered with Broker X and SharesB registered with Broker Y can be looked at on a single page?

Only downside with multiple brokers is keeping track of everything, most of us have more than one account.

Single page would require some type of portfolio or trade tracker, quite a few options (choices) available.

pythagoras · 8 December 2020

Dona Ferentes said:
I think you are missing the point. You mentioned buying two LICs. These are large cap ones, with similar holdings. For diversification and a wider exposure to the 2200 stocks on the ASX, I suggested you may investigate smaller cap LICs and provided a link and list of possibilities, and provided some options (alternatives, choices, possibilities) as in Definition 1.

noun: option; plural noun: options

a thing that is or may be chosen

the freedom or right to choose something.

a right to buy or sell a particular thing at a specified price within a set time (= an Option)

Hi Dona Ferentes,

Oh, 'Options' in the common parlance; and here i was thinking you meant some investment terminology .

Thank you for clarifying.

What method of investing would this be termed?

pythagoras

Dona Ferentes

Did the Thessalonians write back?

Value Collector

Have courage, and be kind.

pythagoras

Dona Ferentes

Did the Thessalonians write back?

LIC reports and updates

pythagoras

LIC reports and updates

So_Cynical

The Contrarian Averager

Smurf1976

pythagoras

Dona Ferentes

Did the Thessalonians write back?

So_Cynical

The Contrarian Averager

pythagoras

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