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Investing for long term growth?

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
Backache
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Re: Investing for long term growth?

#126832

Postby Backache » March 21st, 2018, 6:59 pm

If you have as you say several years worth of salary in reserve and over twenty years investing ahead of you my own opinion is that you are keeping far too much of your resources in cash unless its for known near term use such as a house. The value of your portfolio will fluctuate over twenty years but almost certainly go up reasonably over that period.
The value of the cash is likely to go down as at some point we will get inflation.
Having some liquidity is undoubtedly useful, personally I think you are likely to have far too much in an asset which will be eaten by inflation. Many advisors recommend about six months salary in reserve.
Worrying about the composition of your portfolio is a minor concern compared with the overall division of your assets.

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Re: Investing for long term growth?

#127547

Postby Pastcaring » March 23rd, 2018, 2:35 pm

I don't, do etf's and diversification,but long term is great

All wealth is free,the reward for patience,a lifetime free lunch .

A 25% drop is something to rejoice,not worry about .If beer was reduced 25%,or cars or anything,people would buy.Sale time on stock markets they panic and sell,they should be buying!.

Which would make sense,buy a new car for say 20,000 quid with a 100% guarantee of losing money.Buy the car when it is 2 years old for 15,000 quid and put 5K into an index fund? .

I have an order in for Monday for a bank here called CBA ( commonwealth bank ),a good fall today ,around 2%. The good bit is it is down from $96 in mar/April 2015.I sit up and take notice when that happens.Dividend is $4.30 a share,a yield of 4.48% @ $96 a share.My order is in @ $72.50,I think it closed around $73.20 today,I haven,t looked .

At $72.50 if I get them then the yield is 5.9%.,what is not to like.I can borrow money @ 4.8%,free lunch for the rest of my life..

I have owned that bank since 1992.Short term investing.Then it was $6.50,dividend of 40 cents,all these years later call it $73 a share,divi of $4.30,huge growth.

The history is,$6.50 to $33 in Oct 2002, minor pull backs on the way.Down to $23 by march 2003.I bought around $23.50..

The take off to the high of Nov 2007 @ $62.Then the crash,followed my hard and fast rule,buy after a drop.Bought @ $39.I messed that one up,they hit bottom @ around $26 in March 2009 .They had a rights issue @ $26,I bought none,the $39 buy cleaned me out.God blessed those that bought @ $26.

Up to $96 by early 2015 ,fear creeps in,they fall quickly,around 14 months to reach $78..They announce a deep discount rights issue @ $71.50,panic,drops quickly.I take up the full issue and buy more on market at around $70.50.

Rises to around $84 very quickly,the chicken little suits are put back in the wardrobe,until the next time they decide the sky is going to fall.

The suits come back out very quickly,Wall street falls tonight then the sheep in Australia will follow on Monday. Wall street does not fall then Monday brings stabilisation and I don't get them.

Can you see why a 25% drop is great ( if you can keep your head etc ) .

Now for a fund ,say you put £7000 into the footsie 100 index today,buy the index.One year later it is down to 5000.What would you do,panic and sell ,or GERRIN,sale time!!.Put another 7 K in for a good average down price.

Good luck.

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Re: Investing for long term growth?

#127552

Postby Pastcaring » March 23rd, 2018, 2:47 pm

Senior moment again,I' m getting sick of these.

Bad news sells,nothing but doom and gloom on the news here.Billions of $$ wiped off the Australian share market,buy as many chicken little suits as you can,experts claiming they predicted it.$45 billion gone,so much money lost.I haven,t lost one cent,I,m looking at buying ,not selling.

There will never be a headline saying $45 billion wiped on to the ASX,good news doesn' t sell .

10.30 Pm in Australia,Wall street is open,I,m not interested.Tomorrow when I wake up if wall street falls that will be positive reinforcement for the experts,they all predicted it.Wall street rallies or stabilises,they all knew it was a storm in a teacup,they predicted it.

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Re: Investing for long term growth?

#128105

Postby Pastcaring » March 26th, 2018, 3:35 pm

Buy went through,CBA closed @ $72.02 today.See how close I got to bottom,just sticking to the hard and fast rule.

Only costs/ fees are the 0.11% brokerage through my margin lender.

Share registry runs everything from now on,totally free.Dividends paid out end of march,and end of September.

The shares I own now the divi goes into the bank on Wednesday.The purchase today obviously does not qualify for that divi.

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Re: Investing for long term growth?

#128108

Postby Pastcaring » March 26th, 2018, 4:01 pm

Should add CBA is the largest company in Australia by market cap.

Approx 1.72 billion shares on issue,daily turnover 2 - 3 million.Very few decide the price on a daily basis,I decide the value on a long term basis.

Probably the same as every other country very few people buy shares,ownership of 1000 shares directly is 192,000 people, around 0.69% of the population of Australia/ NZ.

Largest shareholders are HSBC with 17% and JP Morgan 11%.They are the major shareholders in all ( virtually ) large companies here.. Nominee holdings for pension funds.

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Re: Investing for long term growth?

#128664

Postby Aminatidi » March 28th, 2018, 5:41 pm

So if anyone is interested this is where I'm at now:

Fundsmith £5k
Lindsell Train Global Equity £5k
RCP £5k
Baillie Gifford SMT £5k
CFP SDL UK Buffettology £2.5k
Baillie Gifford Shin Nippon £2.5k
Baillie Gifford Edinburgh £2.5k

I have £5k cash in the ISA to "blow" once I work out what do with it. Currently debating simply more Lindsell Train Global Equity or whether to split it 50/50 between that and Fundsmith or that and Buffettology.

Roll on April :)

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Re: Investing for long term growth?

#135505

Postby Aminatidi » April 29th, 2018, 12:18 pm

So it's April still, barely, current intention is focus on:

  • Lindsell Train Global Equity
  • Fundsmith
  • Buffettology
Where I'm completely torn is whether to simply go with those in equal amounts or keep SMT and again go simple equal amounts.

I'll be drip feeding with the occasional lump up to the ISA limit.

I know SMT is higher risk with potentially higher rewards, not sure I'm a fan of the volatility.

Thoughts appreciated.


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