Pretty much fully invested in aussie industrial stocks. As more money comes in I keep buying.
Rules are simple and probably in line with some of Buffet's views (for the average investor):
1. Let go of all the analysis paralysis, getting paranoid about timing the market and start thinking long term.
2. Diversify to minimise stock specific risk or better still invest a sizeable core in index ETFs and LICs.
3. Spread your buying over time with an emphasis on Buffet's motto of "be greedy when others are fearfall and fearfall when others are greedy.
4. Focus on income - capital growth will sort itself out over time as it always does.
5. Minimise costs - hold long term or forever and hence avoid active trading unless you want a christmas card from the broker.
6. Keep debt at a conservative level (I never let my LVR get past 40% and generally keep it a lot less). All loans are against property - I don't use margin loans.
Personally I have invested a considerable sum into the market since May. After taking dividends into account I'm down bugger all as of today. Sure it could go down a lot further but the short - medium term capital volatility is of no concern. And even if dividends are slashed it will still be a very attractive income which will enable me to continue to afford quality beer  .
Also the above takes next to no time to implement - basically set and forget.
Just my strategy developed over time after trying most things in my younger days such as technical trading of stocks and futures etc and certainly this is not meant to be a recommendation for others.
Cheers - Gordon |
