# Scaling Up Investments



## robertbanking (18 April 2022)

Hello you very intelligent and wonderful people that make up this forum. I do hope you are having a nice weekend.

If after alot of research i invest a certain amount of money into a stock and like the way things are going say after 3 months, what is the best way to scale up this investment please? Would you kindly wait for certain dips please, is there anything else to look for to find the best possible entrance on a second buy of a stock please? I am just trying the best to ensure i learn more about purchase timing of stocks, as usually when i buy them they drop, which is not necessarily bad in a quality stock but i wanted to try become better. 

Thank you so much for any input you could give me, i would be thankful, grateful and appreciate your kindness. Take care.


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## Value Collector (18 April 2022)

robertbanking said:


> Hello you very intelligent and wonderful people that make up this forum. I do hope you are having a nice weekend.
> 
> If after alot of research i invest a certain amount of money into a stock and like the way things are going say after 3 months, what is the best way to scale up this investment please? Would you kindly wait for certain dips please, is there anything else to look for to find the best possible entrance on a second buy of a stock please? I am just trying the best to ensure i learn more about purchase timing of stocks, as usually when i buy them they drop, which is not necessarily bad in a quality stock but i wanted to try become better.
> 
> Thank you so much for any input you could give me, i would be thankful, grateful and appreciate your kindness. Take care.



I personally just buy shares in a company when ever I feel that they are good value and that I have the finances to buy them.

When it comes to “scaling up” you can use “leverage” but this comes with it own pros and cons depending on what type of leverage you use, so you would have to research those options.

Although, I do also personally feel that one of the first things an investor needs to establish is a solid savings rate, in the early years most of the growth in scale will come from the accumulation of savings, it’s then just a matter of finding investments that provide a decent return that you can deploy these savings into.


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## charlsie (18 April 2022)

There's nothing like having "skin in the game". You can try dollar cost averaging, or what i do is once i have chosen a stock and either have it in my watch list or have bought a parcel, I watch it more closely and make decisions based on my circumstances. If you know what the end game is, it's much easier to make decisions. 
Personally I like to buy in multiples of 10k, 100k of shares as compared to $ amounts, as good news arrives (stocks under 10c) I buy 100k shares at a time (ADN, LRS,ARD) 
For more established companies that are being held for dividends, I wait for dips Worley (WOR) is a perfect example. I bought into this after covid hit and every time it went under $10 I bought into it. GUD is another that works well for that plan.
Also, buying in parcels has an effect on capital gains if you decide to sell down a particular stock for any reason. Buying in parcels i believe is a very effective strategy for any investory


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## divs4ever (18 April 2022)

robertbanking said:


> Hello you very intelligent and wonderful people that make up this forum. I do hope you are having a nice weekend.
> 
> If after alot of research i invest a certain amount of money into a stock and like the way things are going say after 3 months, what is the best way to scale up this investment please? Would you kindly wait for certain dips please, is there anything else to look for to find the best possible entrance on a second buy of a stock please? I am just trying the best to ensure i learn more about purchase timing of stocks, as usually when i buy them they drop, which is not necessarily bad in a quality stock but i wanted to try become better.
> 
> Thank you so much for any input you could give me, i would be thankful, grateful and appreciate your kindness. Take care.




 for a second parcel of a stock  , i normally calculate    a 'target price '  ( a fair price in my opinion )  in my earlier forays in the market  , i used to start calculating that price after the stock had slid 20% below my initial  purchase price  , but of course this strategy has it's dangers  and you should be assessing very carefully why the price has slid 

 now this strategy  will not work for a rapidly expanding company ( say EVN or NST  when i first started buying  .. both had a single producing mine when i bought in  at under $1 for each company )  so you will have to decide  on a different strategy  ( maybe just buy the BIG dips in the upward trend) for companies like that 

 now there are some cycles that MIGHT be useful  , the old adage   ' sell in May  , and go away , come back St. Ledger  day '  while not a guarantee  of a sell-down in May/June   probably is a hint of some cash reserves  ready for a potential bargain or two  might be wise .

 now you have been in the market for a while you will have your list  of attractive stocks .

 now another time when a stock MIGHT slide in price   is the reporting season  , a year or two AFTER a big acquisition  , with tax write-downs  , and the costs of integration  some reports will look less than impressive at a first glance  ( and in some cases the acquisition was just a disaster )   so definitely watch around reporting season  ( and maybe  boost your ability to read financial reports in the 'off-season' )

 please be cautious   there are still a lot of disruptions possible in the current market ( some of those reactions will be helpful for you , but others won't be )


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## robertbanking (18 April 2022)

Thank you very much for all your responses, this was very helpful. You are all amazing here, i appreciate you all greatly.

charlsie, buying in multiples when good news arrives and buying on dips for dividend stocks is very clever, thank you for sharing your strategy. 

divs4ever you are very intelligent, EVN and NST have seen amazing increases in the share price, i appreciate you mentioning these. Can i kindly ask how you found these stocks initially please? Did you use a stock screener and what was you kindly looking at for instance increasing revenue on small cap stocks for instance? Is there anyway you specifically use to look for specific stocks please?

Thanks again for all your support, you are all wonderful. As i keep learning more and more about investing, this forum is a great resource.


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## divs4ever (19 April 2022)

i initially  started  with companies/brands i recognized   ( with mixed results )

 i inherited  holdings in QAN ( since sold )  , CSR  ( added to and the investment cash rescued later ) WOW  ( added to , but later massively sold down .. just too many stumbles ) and APE  (added to  INCLUDING in March 2020 @ $2.63 )

 next i used  a stock-screener   so i could slim down the 2000 plus ASX listed  stocks to say 10 to start in-depth research 

 now because div. income is important to me ,   i look for stocks that pay a reasonable div regularly ( and franking is looked on favourably  as well )

 so  div. yield   and P/E ( price/earnings ratio ) are early things i look for  ,   i also am wary with companies that carry excessive debt 


now i normally buy in smaller parcels  , so a cheap share price  is attractive ( under $1  in my early buys  but that was in 2011  and there were several good little companies in that group  back then )

 BTW i try to look for companies that will likely  survive harsh times  ( rather than ones that might go up in price ten times over in good times )

 now another tactic i use  ,  is  focusing on 'sectors '  that i think are being neglected , currently  ( i have twisted ideas on say 'defensive'  )

AND i try to nibble at the selected sectors EARLY  and see if i need to add more cheaper  ( rather than chasing a rising stock )

 now specifically NST and EVN  is was  looking for 'safe-havens ' in what i thought might be a credit-squeeze ( around mid 2013 )  , and to me  a productive ( and profitable ) gold miner  fits in just fine ( if a currency plummets  the price of gold is liable to go higher , so the mine SHOULD make higher profits ) , 


 ALSO while i have had some winners  , i have had my share of duds as well  ( so don't be fooled and think i only pick winners 

 a different stock OZL took years to finally come good  ( but part of that was  persistent buying small parcels as the price slid lower and lower )   ( and MCR was a similar patience tester )


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## robertbanking (19 April 2022)

divs4ever said:


> i initially  started  with companies/brands i recognized   ( with mixed results )
> 
> i inherited  holdings in QAN ( since sold )  , CSR  ( added to and the investment cash rescued later ) WOW  ( added to , but later massively sold down .. just too many stumbles ) and APE  (added to  INCLUDING in March 2020 @ $2.63 )
> 
> ...




Thank you very much for your amazing response divs4ever. I think that is a very clever strategy you are following. In particular around mid 2013 it what might be a credit-squeeze you went for gold mining sectors, due to currency plummets this sets the price of gold higher. 

Can i kindly ask please how you find these sectors early, i am guessing this is something you use on your stock screener? Can i please ask you if you dont mind what criteria you used on your stock screener to get the ASX down to 10? This would really be helpful i very hope you would not mind kindly sharing, i am sorry to ask, but this would be very helpful and i would be forever grateful. 

Thank you again for your support you are an amazing and intelligent person. I do hope i can learn some strategies from you and become a better investor. I wish you all the best in your investing and hope you continue to have many successful years. Thanks again for your reply it really does mean the world to me as i continue to learn about various subjects on investing. Thanks so much.


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## Value Collector (19 April 2022)

robertbanking said:


> Thank you very much for your amazing response divs4ever. I think that is a very clever strategy you are following. In particular around mid 2013 it what might be a credit-squeeze you went for gold mining sectors, due to currency plummets this sets the price of gold higher.
> 
> Can i kindly ask please how you find these sectors early, i am guessing this is something you use on your stock screener? Can i please ask you if you dont mind what criteria you used on your stock screener to get the ASX down to 10? This would really be helpful i very hope you would not mind kindly sharing, i am sorry to ask, but this would be very helpful and i would be forever grateful.
> 
> Thank you again for your support you are an amazing and intelligent person. I do hope i can learn some strategies from you and become a better investor. I wish you all the best in your investing and hope you continue to have many successful years. Thanks again for your reply it really does mean the world to me as i continue to learn about various subjects on investing. Thanks so much.



When I was a beginner I used a book called “Top Stocks”

It comes out every year, eg “Top stocks 2022” is on shelves now.

It lists normally about 80 to 100 companies each year, and has a description of each company and some fundamental based financial information on each one.

Also, at the front of the book it has an explanation of all the financial metrics used to rate each of the companies, this can really help you learn a lot about companies, and what the metrics divs mentioned above mean.

——————

Also, if it’s a fundamental investment style you are going for some of these books in the picture below will help.

Basically as I was eluding to in my original comment the two factors that will have the biggest impact on your wealth creation are

1. Your savings rate - eg How much can you save and out towards your investment portfolio each week or month. These savings are going to be the foundation of your portfolio.

2. Your long term investment return - eg how fast are these savings being grown by compound growth, this will be the result of the quality of your investment decisions.

One final thing I will say is it’s also worth while to think about whether picking individual shares is something that is a worth while approach for you in the first place. Picking individual shares can lead to a better than average return, but it can also lead to a lower than average return if you don’t have the skills for it. It can be a good strategy to just by shares in the whole share market via and index such as the share VAS and VGS.


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## charlsie (19 April 2022)

Value Collector said:


> When I was a beginner I used a book called “Top Stocks”
> 
> It comes out every year, eg “Top stocks 2022” is on shelves now.
> 
> It lists normally about 80 to 100 companies each year, and has a description of each company and some fundamental based financial information on each one.



I second this. A great book to buy every year. As the author explains, it's not a book about what stocks to buy, what it does is explain in simple terms is why the author would invest in a certain businesses.


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## divs4ever (19 April 2022)

now unlike most members here 

 i started out differently  , i barely took any notice of the stock market  up to 2010 ( there were some distractions going on )

 but in 2010 ( and early 2011 ) i inherited two estates ( and a handful of shares ) AND i am in my mid fifties ( back then )

so i decided i needed  an income stream  for my later years  ( and to invest that cash  rather than spend it )

 so i needed to both learn and RUN ( because 10 years is not a long time to set up a retirement fund  when you are learning as you go )

 lucky for me 2011 was a great time to stumble into the share market  ( and March 2020 should have been OK for the newer investors )

 now for beginners ( with eyes blurring  looking at all the company names ) that are  focused on div. income   , a quick place to look is the upcoming upcoming divs .. as a STARTING point 
Dividend Yield Scan​








						Dividend Yield Scan (ASX - Updated Daily)
					

UPDATED DAILY: Locate the highest Dividend Yield stocks listed on the ASX. Includes share price, gross yield, DRP status and 1-year return.




					www.marketindex.com.au
				




 now this isn't as easy as it looks  , a high div. yield is SOMETIMES a signal the share price is in a long downhill slide ( and that is where  your research comes in  ..sort the gems from the duds )

 take PTM and MFG on that list  , now sure they are having tough times currently  ( but can they recover in the coming 5 years , or are they  gone , gone ,  gone  )

 disclosure , i have a buy order in for PTM  , it is a little low  and i probably won't get it , but  i am ( a little bit ) interested


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## robertbanking (19 April 2022)

Thank you very much for all your responses, you are a wonderful bunch of people here. I appreciate it. 

Value Collector i appreciate you mentioning the Top Stocks 2022 book that has 80 to 100 companies each year with descriptions and fundamental financial information on these companies. I think i will definitely buy a copy, so thank you for mentioning this. The books you have enclosed in your image sadly does not open on my PC, sorry to ask are you kindly able to list the book titles please? The Warren Buffett one i can see in your images looks a good one i would be interested in buying.  

divs4ever interesting to hear how you stumbled into the stock market in early 2011 by inheriting two estates. I stumbled into the stock market primarily in 2018 after the savings rates were so poor. Then got even more interested in it when the pandemic started in March 2020. Thanks for mentioning about the high dividend yields but i also appreciate you need to do further due diligence on the companies. Can i kindly please ask if you dont mind sharing what some of your filters were on your screener, it might help me to narrow down lists of companies on what might be the most important factors? Hope you do not mind kindly sharing and thanks for all your wonderful advice, i am forever grateful. 

Thanks for all your support you are amazing and hope you are all doing well.


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## divs4ever (19 April 2022)

don't forget your questions  will help others too shy to post  , and aren't sure what questions to ask 

 so you are helping in your own way 

 now the original screener i used  was on Commsec   BUT that screening tool has changed a bit over the last 10 years  now whether that is better or worse you will have decide for yourself ( if you use it )  

 there are other websites that other a similar service ( some of them for free )

 also my early screening parameters  might need personal tweaking ( by you )

 now early on    an early screening   setup  was 

 div. yield   more than 5%  ( now inflation is coming that might need to be raised )

share price  less than  $1 ( you probably need $2 now  )   now not many $2 shares pay a regular  div.  but a few do  , still 

 D/E ( debt to equity )  less than 40%  ( very unreliable , 'cos the data is slow to catch up )  use this carefully ( also D/E is useless on REITs  which often use a complex  leverage  and financing  which means for REITs  i look for at least 8% div. yield )

 another one  that can be useful is P/E ( price /earnings ) amazingly  some listed stocks  don't earn any money for years ( and rely on cash raisings and bank loans )

 now remember this is only designed to get the list down to 10 ( or less ) stocks  so you can do the DEEP research  and MAYBE one or two will be worthy of your watch-list  after the research 

 don't be afraid  to investigate all those definitions  and work out  which parameters are good for you ( some look forward like forecast earnings and and some look backwards like div. yield  , )

 in 2011 i needed  shares that had room to grow  ( so  i went for the smaller banks in preference to the big 4  as an example )

 yes this is higher risk   , but i felt i needed to HURRY  to get a reasonable portfolio built in 10 years 

 remember this is  only to get your feet wet  , and build a little experience  , ( and let you experiment to find the perfect path for you )

 now Warren Buffet has plenty of folksy sayings  , and they all have some wisdom ( that you can take on board or reject )

 but check them out  , and see which make sense to you 

 AND don't forget the ASF tipping competitions  you can test out your research without losing cash  ( the ASX has one from time to time , but i have never entered that one )


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## So_Cynical (19 April 2022)

What's the difference between scaling up and over exposure?


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## divs4ever (20 April 2022)

over exposure to me  ,  is say having 5% of the portfolio ( in one stock )  that isn't performing  well ( like say WOW during the Master's debacle )

 i am only guessing  that 'scaling up ' means more stocks or bigger positions in the stocks already held


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## Value Collector (20 April 2022)

So_Cynical said:


> What's the difference between scaling up and over exposure?



I am taking it that scaling up just means growing your portfolio, none of us have suggested that he rushed into “leveraging up”


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## Value Collector (20 April 2022)

robertbanking said:


> . The books you have enclosed in your image sadly does not open on my PC, sorry to ask are you kindly able to list the book titles please?




1, The Intelligent Investor, By Ben Graham.
2, Security Analysis, By Ben Graham and David Dodd.
3, Common stocks and Uncommon Profits, By Phil Fisher
4, Interpretation of financial statements, By Ben Graham.
5, Warren Buffetts ground rules, By Jeremy Miller (and Warren Buffett)
6, Buffettology, by Mary Buffett
7, Value able, By Roger Montgomery
8, The Warren Buffett Way, By Robert Hagstrom


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## charlsie (20 April 2022)

So_Cynical said:


> What's the difference between scaling up and over exposure?



scaling up means I'm getting confident that I've got it right for once....over exposure is the market telling me i got it wrong lol


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## divs4ever (20 April 2022)

charlsie said:


> scaling up means I'm getting confident that I've got it right for once....over exposure is the market telling me i got it wrong lol




gee good luck  , acquiring that confidence  ( most of the time ) , and watch for over-exposure  without adequate  rewards ( for the risk taken )


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## robertbanking (20 April 2022)

Thank you very much for your responses, you are a top set of people that make up this forum. You have been amazing, thanks again for all your support. 

Value Collector thanks so much for taking the time to list the books in the image. I think an interesting an important book is the Interpretation of financial statements, By Ben Graham. I will look at kindly buying some of these books, thanks very much.

divs4ever thanks very much for mentioning what filters you used on your stock screener. I think the D/E debt to equity under 40% is a very interesting filter. I also think you did amazingly well to have the confidence to select 4 smaller banks in 2011 and the strategy you went to build your portfolio in 10 years, you have done amazingly well. Regarding the deep research, i often look at competitors in the industry, i research the business model to see how if i think the business will continue growing in 5 - 10 years. I look at what the management team are doing, their salaries etc. Can you kindly share anything else important you need to look at when doing the deep research please, sorry to ask, but if you had any advice on this area i would be thankful and forever grateful.    

Thanks again for all your time and for leaving your very valuable posts. Hope you enjoy your day.


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## divs4ever (21 April 2022)

well i realized i had to GROW the portfolio  without super crazy risk , and the big 4 banks didn't seem to have sensible paths to grow ( in 2011 ) ( but declined to buy into Money3 , which was probably a mistake )

 remember i was mid 50's  at the time , so didn't have time  to rebuild a nest-egg , if i stuffed up completely ( not so many good ways to grow a pile of cash  with a stuffed body  and almost a pensioner )

 and luck ( deciding to get active in 2011 ) was a BIG help 

 now i admire those  who invest with conviction ( just one share in each chosen sector ) but that is not me  i would rather  two ( or more ) shares in the same sector  , thinking that MAYBE one will go broke or be taken-over  ( and a smaller amount of dollars in each selected share )

 well for a start  , management counts  but for a novice where do you look ( because sometimes you get 'rock-star ' directors  dropped into a 20 cent share , that should arouse super-intense research  especially in they don't BUY ( as opposed to gifted ) a reasonable  block of shares .. makes me wonder if they are there for PR  , other directors  can come with a track record of 'unfortunate ' companies 

 and what if  a new director  is a high-flying finance guy  in your 50 cent share  , are they planning a buying spree , a merger , or just pretty the company up to be taken-over  ( now what is terrible for an investor  , could be a nice earner for a trader  , so one size does NOT fit all )

 fairly reliable income ( business PROFITS  ) counts to me  ( therefore i NORMALLY avoid new floats  , until i can see how they are going )

 now another thing that has been  helpful  for me is a history  of lots of low-level jobs ( in different industries ) often as a temp , or sub-contractor  , so by working for ( often as a subbie ) or via  a large network of acquaintances  you can get a 'feel ' for the way  a business goes 

 take MTS  as an example  , most think of MTS   and the wholesaler behind  IGA or Home Hardware ( and therefore just a retailer/franchiser  ) but have worked inside a distribution centre  , and a wholesale warehouse  , you get a feel  of how the distribution network is run 

 when investing in a company   you are buying a ( tiny ) part of that company ( so become a part-owner )  , that concept is a great help ( but not important to a trader , who most likely won't be holding for long )

 when researching a company's financials  remember ,  most of the time the data is old ( so you are going have to guess about the current state and near future )  but that said  those historical financials still give hints  , are they regularly  issuing  ( heaps of ) new shares , are they paying down debt  or accumulating it  , are they hiring more staff or reducing  , what about sales ( increasing , stable , or failing  or just irregular swings ) 

 if a company is struggling to make profits  , it will be hard to pay divs 

 another thing to watch  is the payout ratio ( divs. paid / after tax profits ) a high ratio hints they are sitting on a pile of cash  ( OR trying to bribe share-holders ) while a low payout ratio hints they have  some expansion plans ( or debt reduction ) planned 

 ( if a new investor you probably want the lower payout ratio  hoping the management will grow the company for the future )

 it is the little things , worker morale , obvious workplace bottlenecks ( or not ) , MIDDLE management ( i have worked at  several places  where the top 2 or 3 guys were truly inspirational ,  but let down by the 'space-fillers '  between top level management and the workers  )

 ( i could spend hours and hours on stories of monumental stuff-ups )  so sometimes  the gossip is just as important as all the the secret future plans ( of the business )


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## robertbanking (22 April 2022)

Thank you very much indeed divs4ever you have been more than helpful, you are a star. I truly appreciate your time.

I now have lots of ideas to help me with my investing and i really do appreciate the insights you shared. I think thats very intelligent to closely look at what kind of director is running a business and there background to get an understanding of what they might do with the company. I agree that a fairly stable income is always important. Something i never considered and i find very enlightening is worker morale i think that is very important and something i might have overlooked. Taking a more active view into what is happening in the company, rather than financials, competitors and looking into the directors is very sensible. Thanks again for your support with this it means alot.

Can i kindly ask i know in March 2020 we did not foresee the Coronavirus and markets dropped heavily but rebounded in around 4 - 5 months in some sectors. Do you kindly please know how we might be able to predict the next market crash and generally how do you protect yourself from something like this? I know some people short shares (bet on stocks declining) in times when markets are going down, not something i am interested in but kindly wanted to know if you had any insights on this please? Market crashes worry me but should not if i am selecting shares for the long term. Thanks again for your time and support divs4ever you have been amazing, i really appreciate everything. I sincerely hope you are doing well and are happy.


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## divs4ever (22 April 2022)

robertbanking said:


> Thank you very much indeed divs4ever you have been more than helpful, you are a star. I truly appreciate your time.
> 
> I now have lots of ideas to help me with my investing and i really do appreciate the insights you shared. I think thats very intelligent to closely look at what kind of director is running a business and there background to get an understanding of what they might do with the company. I agree that a fairly stable income is always important. Something i never considered and i find very enlightening is worker morale i think that is very important and something i might have overlooked. Taking a more active view into what is happening in the company, rather than financials, competitors and looking into the directors is very sensible. Thanks again for your support with this it means alot.
> 
> Can i kindly ask i know in March 2020 we did not foresee the Coronavirus and markets dropped heavily but rebounded in around 4 - 5 months in some sectors. Do you kindly please know how we might be able to predict the next market crash and generally how do you protect yourself from something like this? I know some people short shares (bet on stocks declining) in times when markets are going down, not something i am interested in but kindly wanted to know if you had any insights on this please? Market crashes worry me but should not if i am selecting shares for the long term. Thanks again for your time and support divs4ever you have been amazing, i really appreciate everything. I sincerely hope you are doing well and are happy.



 re - March 2020  

 on the contrary  , i  have some health issues  , i was watching China like a hawk  as soon as they started  reacting ( over-reacting ?? ) to the virus  , i quickly worked out why Wuhan was important commercially  and started adjusting my strategy  ( including buying into KGN in Jan 2020 ) now the rebound was what caught me by surprised  , i never expected so many governments to be so irrational  about spending and rescue packages 

 BUT MORE IMPORTANTLY  i was already alarmed at what i was watching in September 2019  with the 'Repo madness '   which had all the hallmarks of a credit crunch  , and given that is was concerned  about a  credit crunch  i was already sitting on SOME cash  , only about 5%  but 5% goes a long way  if you pick wisely ( or are just lucky like me )

 i look at a LOT of alternate media  , and yes there is a lot of garbage mixed in with genuine information  , but that genuine information is EARLY ( not passed for public consumption by your government  after days of talk-festing )

 now DOWN isn't all bad it gives you a second ( or third ) bite at good stocks  ( if you choose to )   

 remember i am looking for stocks that survive and pay dividends ( most of the time )  as long as that div. yield ( on MY buying price ) is healthy i don't care if the share price is $1 or a $100  ( or in MQG's case $26 or $200  .. HOWEVER if MQG were to drop near $20 again  i would be tempted to buy more in the right circumstances )

 now if you have leverage ( a margin loan  ) ( i don't )  that stock price and lending value become much more important 

 now crashes ARE important , apart from buying opportunities  , they take out weak companies ( and force mediocre companies to lift their game ) .. well at least they did before 2020

 now before  March 2020  i played  with BBUS , BBOZ and BEAR   with some success  , but got caught with the last parcel of BBUS ( annoying but not financially crippling )

 now most of the time  , i am taking  profits ( rescue the investment cash ) at sensible levels  ( up 140% to 150% )   regardless of whether the market   is worried or rallying  ( takes the panic out of trying to sell down  when everyone else is , i strongly prefer to sell INTO a rally rather than trying to pick a top )

 if those guys with charts do better , good for them  , they put the extra work in  , they deserve it 

 now one of the benefits of inheriting that portfolio ( AND the paperwork ) was the paper-work on shares no  longer listed .. companies like TAA  , Ansett ( both  airlines ) McDonnell & East ( clothing and apparel ) Red Comb ( stock foods )  Nylex ( renamed Moulded  Products ) Poseidon Nickel ( the infamous one ) Mount Isa Mines 

 NONE of these were small companies  , so even BIG companies fail  ( or get taken-over )

 so apart from maybe the big 4 banks  , you have to factor in  the chance of potential failure 

 by the way  my trading platforms  are both on 'budget levels ' ( no margin loans , no exchange traded options , no internationally listed shares ) not even Iress ( because the ISP is so erratic it is just glitchy )

  all that said  , my 30 year old pocket  calculator works just fine , and with it i can do enough 

 another thing is most  directors do NOT do much  in the company  they come to meetings to advise on strategies  , and sometime provide useful contacts  , and hopefully make sure all the regulators are being followed 

 Executive directors  directly affect the company policy and decisions  but the others  might only show up for less than a dozen meetings a year ( so some directors sit on the boards of multiple companies , they are not devoted to a single company )


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## Value Collector (22 April 2022)

robertbanking said:


> Thank you very much indeed divs4ever you have been more than helpful, you are a star. I truly appreciate your time.
> 
> I now have lots of ideas to help me with my investing and i really do appreciate the insights you shared. I think thats very intelligent to closely look at what kind of director is running a business and there background to get an understanding of what they might do with the company. I agree that a fairly stable income is always important. Something i never considered and i find very enlightening is worker morale i think that is very important and something i might have overlooked. Taking a more active view into what is happening in the company, rather than financials, competitors and looking into the directors is very sensible. Thanks again for your support with this it means alot.
> 
> Can i kindly ask i know in March 2020 we did not foresee the Coronavirus and markets dropped heavily but rebounded in around 4 - 5 months in some sectors. Do you kindly please know how we might be able to predict the next market crash and generally how do you protect yourself from something like this? I know some people short shares (bet on stocks declining) in times when markets are going down, not something i am interested in but kindly wanted to know if you had any insights on this please? Market crashes worry me but should not if i am selecting shares for the long term. Thanks again for your time and support divs4ever you have been amazing, i really appreciate everything. I sincerely hope you are doing well and are happy.



A wise man once said.

“When a manager with a great reputation a great manager meets a business with a reputation for bad economics, it’s the business that will keep its reputation”

What that means is that some businesses are going to struggle regardless who manages them, and some wiall thrive even with poor managers.

The trick is to find businesses that can be run by an idiot, because sooner or later as idiot will be in charge.


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## robertbanking (23 April 2022)

Thank you again for all your time writing your posts divs4ever you truly are a wonderful person. I really do appreciate the time you took to write you posts and helping me with my investing. I am truly sorry about your health problems and i do hope they can be managed well without impacting your life too much. 

Your post was a really inspiring read, in particular how market crashes are important for buying opportunities and taking out weak companies and forcing mediocre companies to life their game. I particular like that you take profits at sensible levels regardless of whether the market is rallying or worried. I think thats really sensible and very clever advice, i appreciate you sharing it.

I do hope we can stay in touch i think you are a wonderful person and you have really took the time to help. I truly hope it helps others reading this thread. I do hope you have a pleasant weekend and i will let you know how i get on with my investing. I will be walking my relatives dogs this weekend and catching up with a friend in Starbucks. I might even check the stock on this company as last time i went in i noted that the prices are really increasing, having a cappuccino now there is really expensive.


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## Value Collector (23 April 2022)

robertbanking said:


> Thank you again for all your time writing your posts divs4ever you truly are a wonderful person. I really do appreciate the time you took to write you posts and helping me with my investing. I am truly sorry about your health problems and i do hope they can be managed well without impacting your life too much.
> 
> Your post was a really inspiring read, in particular how market crashes are important for buying opportunities and taking out weak companies and forcing mediocre companies to life their game. I particular like that you take profits at sensible levels regardless of whether the market is rallying or worried. I think thats really sensible and very clever advice, i appreciate you sharing it.
> 
> I do hope we can stay in touch i think you are a wonderful person and you have really took the time to help. I truly hope it helps others reading this thread. I do hope you have a pleasant weekend and i will let you know how i get on with my investing. I will be walking my relatives dogs this weekend and catching up with a friend in Starbucks. I might even check the stock on this company as last time i went in i noted that the prices are really increasing, having a cappuccino now there is really expensive.



The first couple of minutes of this video explains how you should think of market crashes, and why you should look forward to them.


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## divs4ever (23 April 2022)

Value Collector said:


> A wise man once said.
> 
> “When a manager with a great reputation a great manager meets a business with a reputation for bad economics, it’s the business that will keep its reputation”
> 
> ...




 sadly  , when i read that quote , i now cringe and think of WOW ( and i don't mean Brad ,  but there is still a lot of improvement  needed , maybe Brad can re-float the Titanic  )

 however  decades but when i worked at WOW their problem was middle management was the problem  , and sadly many got promoted 

 but there are some  other clear examples  still listed on the ASX


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## divs4ever (23 April 2022)

Value Collector said:


> The first couple of minutes of this video explains how you should think of market crashes, and why you should look forward to them.




 in my two experiences in a decent downturn ( 2011 and 2020 )

 i notice a problem of too many places to watch  , i tried   tight watch-lists  , but  it is  tough work  working how much money goes where , and there are always good solid stocks  that  you missed  ( say instead of the WBC i bought in 2020  and sold late 2021 )


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## dyna (24 April 2022)

For a different take on scaling investments, look up Nick Sleep, one of the earliest fundies to invest in Amazon.
Sleep developed his own framework after studying decades-earlier stuff done by maths and science boffins at the famous Sant Fe Institute. Some of these old duffers had even worked on THE bomb at Los Alamos.


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## charlsie (25 April 2022)

It will be interesting to see what happens to the DOW tomorrow. Our market being closed today will have time to digest what happened to Wall st  Friday and what will happen tonight. If the American market tanks again, we are sure to follow, which i believe may be cause to seriously start looking at where the market might be heading, and if a big fall happens, it may create an opportunity to scale up in certain stocks


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## divs4ever (25 April 2022)

according the investing.com.au the ( ASX ) SPI future are currently minus 158 points while US futures are down about another 0.3% 

 BUT that is no guarantee of indications to tomorrows open or trend during Tuesday 

 ALSO  commodity futures  affect the Australian market quite a bit  , a reversal ( to current commodities  futures ) MIGHT have the ASX trying for that new record again 

 but don't panic if chasing an individual stock  in a volatile market  sometimes your favourite gets dumped in a rallying market  , i sometimes  suspect long/short managers  when there is no new company news


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