# Long term stock investment recommendations



## SnakeEyes26 (3 June 2020)

Hi guys,

just want to ask which stock you recommend holding for medium-long term hold? A good stock with high potential.

thanks


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## sptrawler (3 June 2020)

SnakeEyes26 said:


> Hi guys,
> 
> just want to ask which stock you recommend holding for medium-long term hold? A good stock with high potential.
> 
> thanks



That is a very broad question, it depends what you are after growth, income, price stability, market cap, speculation?
Not many are going to give you a recomendation, because if it was that easy everyone would have the same share.
Take for example if you had asked that question last November, someone could have said NAB, WBC or ANZ which would fit your criteria.
But now you woul have lost 50% of your capital, so you would be obviously upset, a better way of asking the question is to study some companies that interest you, then ask questions on the forum.
Anyway good to see you on the forum, hope you join in the discussions and join in.


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## InsvestoBoy (3 June 2020)

Members of this forum are not allowed to give financial advice.


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## finicky (3 June 2020)

Wait a year


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## Joe Blow (3 June 2020)

SnakeEyes26 said:


> just want to ask *which stock you recommend holding for medium-long term hold*? A good stock with high potential.




Hi SnakeEyes26, the way you have framed your question it would appear that you are asking for financial advice.

Just to be clear, no member of this forum is permitted to recommend any stock as a long term investment to any other member (or non-member for that matter).

Had you asked what stocks other members are holding for the long term and why, it would have been a different story.  

Just please be aware that ASF is not a place where you can ask others to recommend investments to you. Only licensed financial advisers can provide financial advice specific to your particular circumstances.


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## Smurf1976 (3 June 2020)

Joe Blow said:


> Hi SnakeEyes26, the way you have framed your question it would appear that you are asking for financial advice.




Expanding on that for those not aware, it comes down to legal requirements which Joe as owner of the forum needs to ensure are met.

In short, I or anyone else here can tell you what I'm doing with my investments, why that is so and I can post charts and analysis about individual companies or the entire market and so on and there's no problem with that indeed that's the primary purpose of the forum.

What we can't do is recommend that you or anyone else makes any particular financial decision - that's a government rule, it's the law, it's not something unique to this forum.

The practical workaround is to just be aware of that point. Anyone can say what they're holding long term and you could interpret that as being a suggestion, since nobody's likely to hold shares they think are duds, but nobody can actually say they recommend you do x.

That's a government rule, the law, it's not something Joe came up with to annoy everyone so we all just have to abide by it. It wouldn't be the first time that a stock market forum has been fined so there's no choice other than for Joe to enforce the rules. Same with any other stock market forum.


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## SirRumpole (3 June 2020)

Smurf1976 said:


> Expanding on that for those not aware, it comes down to legal requirements which Joe as owner of the forum needs to ensure are met.
> 
> In short, I or anyone else here can tell you what I'm doing with my investments, why that is so and I can post charts and analysis about individual companies or the entire market and so on and there's no problem with that indeed that's the primary purpose of the forum.
> 
> ...




So people can say "I hold xxxx because..." , but not "you should buy xxxx because ..." ?

It's a fine line it seems but of course we understand Joe's position because he's the one that could get sued if a stock goes bad, because the rest of us are anonymous.


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## Smurf1976 (3 June 2020)

SirRumpole said:


> So people can say "I hold xxxx because..." , but not "you should buy xxxx because ..." ?




My understanding of the law is that I could tell you that I think XYZ is a great investment for the following reasons. Then I post a chart and analysis and so on.

What I must not do is recommend that you buy shares in XYZ. I can say how great I think it is but I can’t tell you what you should do.

You could of course make your own decision to buy shares in XYZ if you think my analysis is right.

A similar legal concept comes up in quite a few situations by the way.


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## SnakeEyes26 (3 June 2020)

Sorry guys if i didnt make my question clear. I am not looking for a financial advise or anything like that to buy on. I guess to put it clearly, i am asking if you guys have a stock recommendation that is good or have potential (med-long term hold) so i can study it and research as well. Clearly i’m not just going to buy it just because somebody recommended it.


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## Joe Blow (3 June 2020)

SirRumpole said:


> So people can say "I hold xxxx because..." , but not "you should buy xxxx because ..." ?




The issue is with the asking for and the provision of specific financial advice. Nobody should be coming here asking for advice on how to invest their money, or asking for stock recommendations etc. Similarly nobody should be advising anyone else how to invest their capital or recommending stocks for others to invest in.

You can talk about what you hold and why all day long, just don't tell others what to do with their capital or come here asking for advice about what to do with your capital.



SirRumpole said:


> the rest of us are anonymous.




Nobody here is completely anonymous. Email addresses and IP addresses can reveal identities if necessary, although technically it's possible to avoid idientification if you are someone with the knowledge to be able to do so.



SnakeEyes26 said:


> I guess to put it clearly, i am asking if you guys have a stock recommendation that is good or have potential (med-long term hold) so i can study it and research as well. Clearly i’m not just going to buy it just because somebody recommended it.




The word recommendation is the real problem here. The word recommend is defined as, "_put forward (someone or something) with approval as being suitable for a particular purpose or role._"

Your thread title asks for "Long term stock investment recommendations" not "Stocks with long term investment potential" or something similar. So it's natural to assume that you are asking others to recommend stocks for you to invest in.

In future, please be careful not to phrase thread titles and posts so as to appear to be asking others how to invest your capital.

Incidentally there are numerous other threads on the same (or very similar) topic:

Which Aussie stocks are good for long term investing?
Long Term Stock Ideas
Good long term stocks and why
Long Term Blue Chip Stocks
Retirees - what are your top 5 long term stocks?


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## SirRumpole (3 June 2020)

Smurf1976 said:


> My understanding of the law is that I could tell you that I think XYZ is a great investment for the following reasons. Then I post a chart and analysis and so on.
> 
> What I must not do is recommend that you buy shares in XYZ. I can say how great I think it is but I can’t tell you what you should do.
> 
> ...




I don't want to argue the legal technicalities because I'm not aware of them, I just think that it's unfair that a site like this and it's owner should be responsible for advice given by someone else in a situation where no money changes hands for the giving of that advice. It seems a bit excessive to me.

Obviously if someone sets themselves up as a professional advisor then they have a responsibility to act to the benefit of their clients and therefore accept some legal liability for that advice. Gee, my broker recommended I buy AMP, should I be able to sue him because AMP went belly up ? (He gave me some good advice as well, so I'll let him off).

People here give their opinions in the spirit of trying to help someone else, and the people reading those opinions should bear the responsibility of their own decisions.

Anyway, I'm not arguing the point with anyone I just think that the onus of responsibility should be on the receiver not the giver on a free forum.


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## PZ99 (3 June 2020)

SnakeEyes26 said:


> Sorry guys if i didnt make my question clear. I am not looking for a financial advise or anything like that to buy on. I guess to put it clearly, i am asking if you guys have a stock recommendation that is good or have potential (med-long term hold) so i can study it and research as well. Clearly i’m not just going to buy it just because somebody recommended it.



I would simply recommend going through our tipping comps.

We have yearly comp and a monthly comp 

https://www.aussiestockforums.com/threads/tipping-competition-for-full-cy-2020.35079/

https://www.aussiestockforums.com/competition/

The monthly comps have a post attached to each relevant thread as to why the tipper is bullish on the stock for that month. Give that a try for starters.

Cheers


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## Joe Blow (3 June 2020)

SirRumpole said:


> I don't want to argue the legal technicalities because I'm not aware of them, I just think that it's unfair that a site like this and it's owner should be responsible for advice given by someone else in a situation where no money changes hands for the giving of that advice. It seems a bit excessive to me.




It's more of an issue of regulation rather than one of liability. Basically, ASIC sets the rules for how ASF, HC and sites like it can operate.

If anyone is interested in how ASIC regulates internet discussion sites you can take a look at RG 162 Internet discussion sites.



PZ99 said:


> I would simply recommend going through our tipping comps.
> 
> We have yearly comp and a monthly comp
> 
> ...




Not sure the monthly competitions are the best place to start for *long term* investments.


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## cutz (3 June 2020)

Smurf1976 said:


> The practical workaround is to just be aware of that point. Anyone can say what they're holding long term and you could interpret that as being a suggestion, since nobody's likely to hold shares they think are duds, but nobody can actually say they recommend you do x.




I've got my fair share of duds.


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## PZ99 (3 June 2020)

"Long" has so many ambivalent meanings in this environment...

If you buy AAA and it multibags ya know ya wanna dump it real quick


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## Smurf1976 (3 June 2020)

SnakeEyes26 said:


> Sorry guys if i didnt make my question clear. I am not looking for a financial advise or anything like that to buy on. I guess to put it clearly, i am asking if you guys have a stock recommendation that is good or have potential (med-long term hold) so i can study it and research as well. Clearly i’m not just going to buy it just because somebody recommended it.




I follow what you mean. 

We just have to be careful to avoid expressing it in certain ways that could be seen as violating the law but that doesn't preclude discussing long term investments in terms of what others hold, what their opinions are and so on. We just need to avoid "recommending" or "advising" and so on.  

Now that we've sorted the legals, these previous threads might be a good place to start and to revive discussion in them. Plus of course those which have already been suggested.

https://www.aussiestockforums.com/threads/medium-longer-term-stock-portfolio.33206/

https://www.aussiestockforums.com/threads/lazy-portfolios.34316/

https://www.aussiestockforums.com/t...ry-stock-was-40-off.32999/page-7#post-1071472

My own strategy at present doesn't have me holding anything long term so I wouldn't be a good person to comment about specific stocks for long term holds. 

Some things I would look for in any long term investment however include:

*The company must have a viable ongoing business. 

That is, it has something up and running now which is selling something to customers. It's not a speculative mineral exploration company etc - there's a place for investing in those but not as the basis of a long term portfolio.

*Avoid any company heavily reliant on a single physical asset. 

Reason is they're stuffed if it sinks, blows up, catches fire or whatever and don't count in it being insured adequately - maybe yes, maybe no but it's a gamble there. Especially risky if the asset is located in a place where conflict or natural disaster is reasonably likely.

*You want to be in a growing industry not a declining one if it's a long term investment. 

Companies can make a profit in a declining industry in the short or medium term, but if it's in ongoing decline then ultimately it goes to zero which isn't what you want for a long term investment. The further the industry shrinks, the harder it becomes for your company to continue growing and a point comes where it's simply impossible unless they reinvent themselves, a point where many fail.

*Avoid any business with unusually low barriers to entry and where the value of the brand is minimal. 

*For a long term investment, for me it rings alarm bells if the CEO or any board members have previously run something which went bust. That's especially so if there's more than one such person involved with managing the company. They may have learned from their past mistakes or they may not have.

*Past experience has taught me that any businesses which engage in elaborate publicity stunts and so on are best avoided. Actually successful long term businesses advertise most certainly, but they don't do silly stunts which are a "red flag" in my view. There are exceptions as with anything, but steering clear of such companies has saved me from losses in the past when they ended up going broke.  

Note that the comments above are my opinion only and that others will have a different opinion.


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## frugal.rock (5 June 2020)

I have in my long term portfolio;

Lake Resources, LKE.
(Lithium with enviro friendly extraction to good purity levels)

Tyro, TYR, (Payments platform/ lending, partly financials and info tech.)

Buddy, BUD, (lifx lighting technology, IoT device's)

EN1, (internet and in app advertising)

I have a goal set of minimum 100%
on my portfolio, and up to 250% on individuals, if performing on faster momentum.

I am holding for 6 to 12 months, but plans change, market dependant.
Purchased prices are similar to current SP levels.

These stocks are not recommendations or advice, and I am a kangaroo short of a top paddock. 

You want a few stocks to review?
Review away!

F.Rock


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## jbocker (5 June 2020)

Smurf1976 said:


> My understanding of the law is that I could tell you that I think XYZ is a great investment for the following reasons. Then I post a chart and analysis and so on.
> 
> What I must not do is recommend that you buy shares in XYZ. I can say how great I think it is but I can’t tell you what you should do.
> 
> ...



I looked at and seen many impressive charts and graphs with XYZ over the years and then I tried to buy some XYZ for the long term, but my broker said I would end up with SFA shares?


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## frugal.rock (5 June 2020)

jbocker said:


> I looked at and seen many impressive charts and graphs with XYZ over the years and then I tried to buy some XYZ for the long term, but my broker said I would end up with SFA shares?



Well, clearly that's incorrect. 
With name changes from XYZ to SFA, obviously you could end up with SFA, but generally you will be clutching onto NFI by the end.


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