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The 2 stock portfolio.

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
XFool
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Re: The 2 stock portfolio. [Nestlé]

#224848

Postby XFool » May 27th, 2019, 10:48 pm

PinkDalek wrote:
Bouleversee wrote:I wouldn't relish it, that's for sure. No time for all that. However, any future share purchases will be in ISAs, either mine or those of my family. What happens about the WHT then. Do the ISA managers reclaim it for you and is any tax paid on foreign divs. in ISAs?

On the latter, yes, withholding tax may be deducted on foreign dividends paid into ISAs. The tax benefits of ISAs not being recognised overseas.

For USA and Canadian holdings, forms such as the W-8BEN for the USA can be submitted such that the treaty rate (15%) can be applied before receipt as against the standard 30% (from memory). Some brokers support this in taxable accounts (I've no idea if they do in ISAs) and some don't.

The same procedures apply to ISAs as to ordinary accounts. Certainly, for US shares, you can get the witholding tax reduced from 30% to 15% if your broker supports this (e.g. HSDL do for US shares). Being in an ISA is irrelevant to foreign tax regimes.

I understand things should be different for SIPPS, here no witholding tax should be levied as it is recognised as a pension account by even foreign tax regimes. But again, this may depend on broker. I do not know, not having a SIPP.

PinkDalek wrote:As for Swiss withholding tax. I'm not aware of a similar procedure. Such that the 35% will be deducted in the first instance. It may then be down to the holder (as against the broker) to go down the route I've briefly outlined. The first stumbling block would be to get the ISA provider to come up with a tax certificate of deduction that satisfies the Swiss authorities. I know, from bitter experience, that these a difficult to obtain from some transaction only brokers in a taxable account.

Edit: Here's another view, this time from viewtopic.php?p=220305#p220305 at How Do I Invest:

Urbandreamer wrote:A word of warning, foreign shares can cause problems. It's my understanding that using an ISA overcomes many of these. However as I understand it people often find it easier to pay the full dividend "withholding" tax on the likes of Nestle because the Swiss paperwork is so difficult.

I gather from previous comments (on TMF) that Spain is another problem and most just put up with the witholding tax on shares such as BNC.

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Re: The 2 stock portfolio.

#224909

Postby Bouleversee » May 28th, 2019, 9:52 am

Thanks, both. Out of interest, I'll ask my brokers what they do as regards tax reclaims for foreign shares. I certainly wouldn't want that faff myself and I haven't as yet looked into the recent performance of Nestle either. It would be for the next generations if at all and they certainly wouldn't want the bother of the tax reclaims either.

PinkDalek
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Re: The 2 stock portfolio.

#225046

Postby PinkDalek » May 28th, 2019, 6:24 pm

Dod101 wrote:Thanks PD. I wish I had bought Nestle when I thought about it but I was looking for more yield. Like you I have now gone off high yielders. ... As I have always said, do not chase yield ...


If I may, I never said I was on high yield nor have I knowingly chased such a thing.

Some of my holdings are now as such but they were never bought for those purposes and were not "dearly bought" at the time.

PD (Not wishing to get into one of those interminable HYP or not to HYP type conversations btw - merely thought I'd try and dispel any possible misconceptions)

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Re: The 2 stock portfolio.

#225065

Postby Dod101 » May 28th, 2019, 9:05 pm

Sorry PD. My comments were not intended as any criticism of you or your comments, but they were intended to show what I think is the flaw in the HYP strategy, although it may be that we are simply in a trough and all will sort itself out in time. Who knows?

Dod

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Re: The 2 stock portfolio. [Nestlé]

#228339

Postby PinkDalek » June 10th, 2019, 1:21 pm

PinkDalek wrote:... Exchange rates are also highly relevant.

Here's a random chart for Nestle SA (NESN) in GBP terms, which can be taken back to 1990:

https://www.youinvest.co.uk/market-research/SWX:NESN



Late correction fwiiw. That chart is in CHF!

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Two stock portfolio.

#234764

Postby Pastcaring » July 8th, 2019, 5:11 am

I missed the end of the tax year,30 June.Looking at the 5 day chart then the price of MQG was $127.41 on 2 July.Bought at $105 around 15 months ago.Dividend of $5.75 reinvested gave a shareholding of 1047 shares for this year.

CBA finished at $82.22, bought at $72.50,dividend of $4.31.

Value total $220k rounded.Purchase price $177.5 k.Return 23.5% rounded for the approx 15 months,more if the one day short was used.

Operate on whole tax years going forward,1 July to 30 June .The first divi for MQG was paid on 3 July,the next one mid December this year.Possibly have 1100 shares at 30 June 2020.

CBA pay in September and march,possibly around 1120 shares on 30 June 2020.

Repeat the same thing for the next 25 years,30 is better.

Checking MQG annual reports from this year and 2010 I see I have made a note in the 2010 report I see I have made a note of $6.50.Whether that is the IPO price or the first DRP price I don' t know,31 July 1996, probably the IPO price..

TSR numbers are supplied by the annual report

MQG from 30 April 2003 to their year end ( 31 march this year ) is $1270, starting at a base of $100.

MSCI same period is $190,base of $100.

For the all ords ( top 500 shares in Australia ) the base is the same $100. The time is from July 1996.

The all odds grows from $100 to $980. I take it no allowance is made for fees and charges.
MQG grows from $100 to $7400.

The annual TSR from both annual reports is given as thus

2005---------- 39%

2006-_---------_- 40%

2/7------- 33%

2/8---------- ( 34%)

2/9 --------- ( 44% )

2/10 -------- 80%

2/11---------- ( 19% )

2/12 ----------- ( 16% )

2/13 ------------ 35%

2/14_------------ 67%

2/15 ----------- 40%

2/16 --------- ( 9% )

2/17 _--------- 46%

2/18 --------- 21%

2/19 ---------- 33%.

I' m sure somebody will be able to think of the name of a company that went bust.

Of course all investment decisions must be made on the basis of " just ask somebody that owned shares in a company that went bust".

If the salesman said you must have a well diversified portfolio, gee who would question it.

Remember your future pension is our future billions in income.

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Re: Two stock portfolio.

#234802

Postby Dod101 » July 8th, 2019, 9:42 am

And your point?

Dod

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Re: Two stock portfolio.

#234817

Postby bluedonkey » July 8th, 2019, 10:12 am

Dod101 wrote:And your point?

Dod

It's pastcaring.

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Re: The 2 stock portfolio.

#235287

Postby mickeypops » July 9th, 2019, 5:59 pm

Am I the only one who has tried to read this thread and has just about lost the will to live? :)

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Re: The 2 stock portfolio.

#235312

Postby Dod101 » July 9th, 2019, 7:28 pm

mickeypops wrote:Am I the only one who has tried to read this thread and has just about lost the will to live? :)


No

Dod

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Re: The 2 stock portfolio.

#235478

Postby colin » July 10th, 2019, 10:07 am

Pastcaring wrote:
The salesperson said you must have a well diversified portfolio,everybody agrees with it,it must be true


Yes that's about it got it in one.

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Re: The 2 stock portfolio.

#235747

Postby Gadgeisbackagain » July 11th, 2019, 6:25 am

I think that two investments in direct shares would be just silly and overly risky regardless of the companies chose.

I have a savings account for my 3 x grandkids and opted for a one share portfolio for ease of maintenance
I bought VWRL Vanguard all world etf.
This is a highly diversified 100 per cent equity invested in over 3000 stocks around the world.

Based on my own Global test portfolio which is benchmarked against various things, I would opt for Vanguard Life Strategy 80/20 for an older investor wanting a global portfolio in both stocks and bonds. This fund has done very well to date against my best efforts although it is only stocks and bonds so is less diversified arguably than my efforts.

Gadge


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