Your stratergie to join the Millionaires Club.

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.

Young gun,

In property I have an idea of what something is worth but with stocks I can't tell.

I know that BHP at below $45 represents good value but what I don't know is how much it will fall and if I could choose between buying it at $35 or at $45 I know which price I prefer...
Don't get me wrong, shares are a great investment vehicle but right now there is too much fluctuation for me to get in. You and others have your own different investment strategy and I respect that.

I am watching the market closely.
Some stocks did very well last week DJS, COH,CSL, AGK, etc but others didn't. As an example, I have a list of stocks I'd like to have and if I was holding those for the whole of last week I would have been neutral or slightly negative. If I was holding them for the whole month I would have been negative.

I'd love to build my own share portfolio in my SMSF but considering the volatility of shares today I am not doing it. I've decided to gear at 60% and buy 1 property instead. I will be using my super as a deposit and the rent will cover the interest repayments.

Also, everyone is different, I've decided that for me a large share portfolio will be too much to manage and to be able to sleep at night.
I think investing in managed funds would suit my profile better.

Cheers

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.

crc,

When are you going to start spelling 'strategy' correctly?

Mark

Hi BV,

How do you know BHP is good value at $45? Have you done the research?

Mark

the benefit of managed funds is that you don't have to know what represents good value and know what shares to buy, thats what you pay a fund manager for. Thats what's so good about managed funds, you just have to like the idea of investing shares and you let the fund manager do the rest.

I know everyone on this site is all very DIY and tight a** on fees, but what other way can you get a very well diversifed portfolio managed by a team of experts starting with a small amount invested?

Focus on what your good at and outsource the rest.

So if property is your thing, focus on that and outsource your investment in the stockmarket to a fund manager. Don't worry about timing the market, your not an expert, just DCA as CRC suggests...

Personal I'm good at building strong share portfolios so thats what I do, but I'll outsource my international share exposure to a fund manager.

If there was such a thing as a residential property fund I'd invest in that as I'm clueless when it comes to property.

oh and fair value of BHP is around the $50 mark so it is good buying at the moment, but I wouldn't expect it to hit that mark soon with commodity prices coming off the boil.

CRC, it's a bit about simplicity and visibility. The investment is geared, so I'm happy with Navra managing it rather than me, and it's going to pay out each quarter. They also list the positions, it's not like investing in a fund that's invested in another fund, and another fund, etc, resulting in some arbitary percentage of market sectors behind a string of commissions. And my superannuation plays in that space anyway.

Like Young Gun says (re: outsourcing), the strategy with Navra lets me focus on the stuff I know about and have time to watch. In this respect my strategy is to keep it simple.

I have used other funds. Platinum Asia, got out around $2.60. A commercial property trust with $2000, worth $300 a decade later. Before that was an investment through Farrow Finance Corp, but that's a lost history lesson.

Dave

Interesting discussion.
My thoughts : DCA into an index fund is an excellent idea.
However although some diversification makes sense, if you over diversify, your losers and winners will cancel each other out and you will end up with average returns.
The idea of drawing down profits from growth funds is in theory also an excellent idea.
The problem however is that you can't rely on a growth fund growing. Some of mine are down 50% or more.
This is where Navra comes into it's own. The one thing that we can rely on is that the stock market will always move up or down every day.
Therefore Navra will always produce income reliably every quarter. The capital value will of course also move up or down, but this can also be managed by conservative gearing and having a proportion of distributions reinvested, in effect dollar cost averaging back into the fund.
It's this reliable cashflow that is the foundation of my strategy of building a quality IP every few years and extracting the equity to buy more funds or another IP.
The negative gearing and high depreciation of a new property also equates to a minimal tax bill.
I've given up trying to make a fortune solely from the stock market.
I've made a small fortune on two occasions now and subsequently lost it all and more.
I'm happy to use it now simply as a vehicle for producing income.

Mark

I've read it in an article a couple of months ago but it wouldn't have taken into account that commodity prices would drop.

So you are right to question the $45, what's good value today might not be good value in 12 months time.

I'ts still a big player though.
I've read in another article that they will make $15 Billion this year.

Cheers

withdrawn due to comments by mark suggesting my contribution is a waste of time and to be ignored. Please close this thread.