Where to invest 1000AUD?

[kashtrade]

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere

 

[willoneau]

Hi you have been here over three years, were do you think you should invest it?

 

[greggles]

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere

If you are unsure then an ETF that tracks the XJO or similar index is probably your best bet.

 

[Knobby22]

Buy 3 CSL shares.

 

[fergee]

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere

Honestly mate I don't think you will like my advice but here it is any way. Don't invest it into the stock market unless you are able to keep adding $1K at regular intervals. Use the $1K to create a sideline business and get that to generate income for you to use as investment capital. Just a couple ideas(I actually do these myself): buy things at flea markets and garage sales and sell them on eBay and gumtree. Teach english online. Make things and sell them online on ebay etsy etc. Pick up odd jobs buy lawn mower and mow lawns, a water blaster and do house maintenance. Another alternative to starting a side hustle, if you really want to "feel" like you are investing, could be to buy physical silver or gold.

 

[jbocker]

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere

Hey a 1000 bucks is not that much but it IS a great start. Well done. The tough bit is getting another $1000, and another to add to that, and so on, on a disciplined and regular manner. Investing is easy and will come to you when you are really ready. Be patient. In the meantime, read, do 'paper' exercises on different investment styles. Learn / review about things like Compound Interest, Risk, Debt, Tax management/minimisation and sheet loads of other info. Well done for asking a question, the answers will come when you research more.
Good Start kashtrade, maintain the desire and the energy. It will pay off.

 

[Dona Ferentes]

I don't know but, depending on age and ability to keep records, something with a DRP.

CommSec will do a $999 trade for $10 brokerage, I note.

And, apropos of nothing, I'm rereading "The Richest Man in Babylon".

 

[Skate]

Any thoughts on which is the best way to invest 1000AUD? I am looking to invest for long term.
I know 1000AUD is not a big amount but it's my start and it has to be from somewhere

Excellent advice has already been given
@kashtrade you have been given excellent advice already. My advice mirrors @Dona Ferentes suggesting you grab a copy of book "The Richest Man in Babylon" & read it as suggested. Before you dip your toes in & start your trading journey you would be well served by reading my free eBook, it's been written especially for you.

Trading Fundamentals - Skate's Beginners Version (epub format eBook)
Grab a copy of my eBook put it on your phone & you can read it at your leisure. The 4th edition of the free ebook can be found here: https://www.aussiestockforums.com/posts/1014728/ Also check out the "Dump it here" thread it's designed to answer most questions about the scary world of trading.

If you are a visual guy
Most new members start out with similar questions but in this game there is no one solution that fits all. If you are really asking "I want to be wealthy" & I have $1,000 to start with - study the graphic below (it shows how it's done)

@kashtrade there is no shame in being aspirational



Skate.

 

[Sharkman]

Buy 3 CSL shares.

better get in quick, at the rate things are going, it won't be long before that will only get you 2!

i tend to agree with greggles though. go for a low cost index ETF or index fund, and make that the foundation upon which you'll slowly build your portfolio around. you can always try your hand at stock picking to chase alpha and tack on some satellite positions later on once your experience and capital grows, the market will always be there when you're ready.

don't try to do anything fancy early on, as you will probably fall under the Dunning-Kruger effect (most people do at first), and it is during this time, when you're not yet fully aware of your own limitations, that you'll be vulnerable to wading into things you don't really know about, thinking that it's all going ok, then one day suddenly the market will come along and clean your clock. happened to me thru my early-mid 20s when a few of my holdings went under (Zinifex, AV Jennings, ION off the top of my head, might have been 1 or 2 others) and at about 10K a pop, those were very expensive lessons!

starting with an index ETF/fund takes away all the decision making and much of the emotional rollercoaster - as humans we naturally want to compare ourselves against something to get an idea of how well we're doing, and when it comes to investing, that something is often the index. so simply being the index yourself cuts out all possibility of emotional reactions such as "oh man i can't even beat the index, geez i suck at this, i might as well sell off all of these stupid stocks and buy a sports car, YOLO!!!". and that is probably the biggest risk to investing success, throwing in the towel and quitting before compounding and long term trends have a chance to kick in.

many index products will offer a choice of 2 ways to invest. thru an ETF or thru a fund. both track the same index but there are important differences. you will have to set up a brokerage account and pay commissions to buy units in the ETF, whereas buying units in the fund is done directly thru the fund manager (eg. Vanguard) which won't incur commissions, so on the surface would seem to be better for small purchases. BUT you need to be aware that the MER will probably be significantly higher on the fund vs the ETF for what is essentially the same product! eg. the Vanguard ETF over the ASX 300 (VAS) has an MER of 0.1%, but the fund over the same index is a whopping 0.75% for holdings under 50K!

as such, most people are better off taking the ETF route (which is what i do as well). so i'd suggest building up to about 10K first and buying units in the ETF of your choice then (most places will charge the same brokerage for 10K as they do for 1K - the best "bang for buck" brokerage rates typically kick in at a transaction size of 10-20K).

 

[qldfrog]

What about a ratesetter account, i can sponsor you, i get from memory 50$, you get $100 for 1000invested then the interest 3.6 per annum minimum
So 13.6pc return on 1k..not bad
But only if you just got 1k
If more coming, listen to previous advice
See link below
Hi Friend, Register as an investor with RateSetter using my unique link and you could get $100 to invest. Check it out: https://mbsy.co/ratesetter/53514517

 

[sptrawler]

better get in quick, at the rate things are going, it won't be long before that will only get you 2!

i tend to agree with greggles though. go for a low cost index ETF or index fund, and make that the foundation upon which you'll slowly build your portfolio around. you can always try your hand at stock picking to chase alpha and tack on some satellite positions later on once your experience and capital grows, the market will always be there when you're ready.

don't try to do anything fancy early on, as you will probably fall under the Dunning-Kruger effect (most people do at first), and it is during this time, when you're not yet fully aware of your own limitations, that you'll be vulnerable to wading into things you don't really know about, thinking that it's all going ok, then one day suddenly the market will come along and clean your clock. happened to me thru my early-mid 20s when a few of my holdings went under (Zinifex, AV Jennings, ION off the top of my head, might have been 1 or 2 others) and at about 10K a pop, those were very expensive lessons!

starting with an index ETF/fund takes away all the decision making and much of the emotional rollercoaster - as humans we naturally want to compare ourselves against something to get an idea of how well we're doing, and when it comes to investing, that something is often the index. so simply being the index yourself cuts out all possibility of emotional reactions such as "oh man i can't even beat the index, geez i suck at this, i might as well sell off all of these stupid stocks and buy a sports car, YOLO!!!". and that is probably the biggest risk to investing success, throwing in the towel and quitting before compounding and long term trends have a chance to kick in.

many index products will offer a choice of 2 ways to invest. thru an ETF or thru a fund. both track the same index but there are important differences. you will have to set up a brokerage account and pay commissions to buy units in the ETF, whereas buying units in the fund is done directly thru the fund manager (eg. Vanguard) which won't incur commissions, so on the surface would seem to be better for small purchases. BUT you need to be aware that the MER will probably be significantly higher on the fund vs the ETF for what is essentially the same product! eg. the Vanguard ETF over the ASX 300 (VAS) has an MER of 0.1%, but the fund over the same index is a whopping 0.75% for holdings under 50K!

as such, most people are better off taking the ETF route (which is what i do as well). so i'd suggest building up to about 10K first and buying units in the ETF of your choice then (most places will charge the same brokerage for 10K as they do for 1K - the best "bang for buck" brokerage rates typically kick in at a transaction size of 10-20K).

Great post Sharkman.

 

[Sharkman]

happened to me thru my early-mid 20s when a few of my holdings went under (Zinifex, AV Jennings, ION off the top of my head, might have been 1 or 2 others) and at about 10K a pop, those were very expensive lessons!

sorry Pasminco was the one i was thinking of, this was all some time ago now and gradually fading from memory. Zinifex was the refloated Pasminco, which eventually merged with Oxiana to form OZ Minerals that is still listed today.

 

[frugal.rock]

Buy 3 CSL shares.

Uncanny, I had the exact same thought...
Or 250 of Z1P, tyro or X afterpay...
F.Rock

 

[MovingAverage]

Best way to invest $1000...spend a little on sex, drugs and rock 'n roll and then go waste the rest on something frivolous . Sorry if I'm not allowed to say that here, but I'm only joking.

 

[InsvestoBoy]

Spend the $1000 on education and don't listen to people on this thread who should know better than to offer financial advice when they aren't qualified to do so.

 

[brisman]

With the benefit of hindsight, I could have just kept buying CSL shares since 1995 and avoided borrowing for too many houses, Timbercorp, ABC Childcare, a real estate development in the US, buying at the top of a real estate boom, shorting Tesla, long shares in December 2019, iron condors, selling call options in a boom, auto trading the wrong forex traders, Suncorp. I'd be retired now.

But I would need a new hobby and have missed out meeting a lot of interesting people.

 

[MovingAverage]

Timber Corp and ABC Childcare...what disasters they were. Forgotten all about them until you mentioned them. I never held positions in either of those companies but I do remember the significant fallout from ABC Childcare as they had a lot of centres in my area and it left a lot of parents in difficult positions not to mention where it left investors. I wonder what ever became of the high flying CEO? Surprised you didn’t mention Babcock & Brown

 

[brisman]

Surprised you didn’t mention Babcock & Brown

Yes I was in them too but got out early for a profit.

 

[MovingAverage]

Yes I was in them too but got out early for a profit.

B&B took the whole meaning of leverage to a completely new level

 

[frugal.rock]

Spend the $1000 on education and don't listen to people on this thread who should know better than to offer financial advice when they aren't qualified to do so.

This presents an interesting case IB,
Firstly, "spend the $1000"~ financial advice,
Secondly, "spend the $1000 on education", presumably as education would be an investment, also tax deductible possibly, more financial advice?
I thought everything on this forum is NOT financial advice as per the site disclaimer, and not to be taken otherwise.
F.Rock