Buy and hold vs. active portfolio management

[Value Collector]

You have 350,000 FMG shares?

I find your situation nothing short of amazing.
You mentioned you retired at 36 so if you had a University
education you would have worked for approx. 14 years.

Did you develop an app or something.
To amass what you have in 14 years given the early start you have mentioned in
all your long term share holdings plus real estate which would require equity
to satisfy banks its one of the most remarkable 14 year or so stories I seen.

Think you'd have to admit its not normal.

I have a bit over 240,000 shares (plus some in wife’s account), the tax return numbers I mention include franking credits, because if you get paid a $1 franked dividend your taxable income rises by $1.43 (you then also get to deduct $0.43 from the tax owed)

(I have actually already discussed my situation with you in another thread back in 2019, but I will briefly mention it again here)

I didn’t go to Uni, I left high school and joined the Army, but as I said I have been investing since I started delivering papers as a kid, so had been investing for 22 years by the time I retired at 36, compound interest is a wonderful thing.

Bought my first property at 19 in 2001, for $218,000 right before the property boom, 100% finance My parents guaranteed $45,000 component of the loan so I didn’t require a deposit, I lived on the Army base and rented out the property, I never went hard into real estate, just a couple of properties.

Of course I don’t think my exact situation is normal, but as I have explained before my success is due to a few factors that I have been very open with on this forum over the years.

1, I started early, with a high savings rate and have had allowed compound interest to do its thing, and took the value investing approach early on)

2, I have made a bunch of quite sound investments with great compounded returns, like CBA, APA, WOW, BHP, SYD as well as some amazing ones like Capilano honey, FMG (as well as some big short term recovery ones back in the GFC like Macquarie country wide and Beppa which were both x10)

if you are compounding your returns it does’t take that many big wins to boost yourself up to my level, I put $120,000 into capilano and pulled out over $1M 5 years later when the take over happened, $600,000 into FMG is worth over $3 Million today, and already paid out over $1 Million in dividends.

If you look back over the Capilano and FMG threads you will see though that there was no shortage of people telling me how wrong I was to invest in them, but I have learned to back my own judgement, in both cases I laid out my reasoning based on valuation, and it worked out for me.

 

[tech/a]

That---Is an amazing story I love hearing stories of success particularly when they are planned and that planning works out better than expected. I've had very similar --- much older --but Property was my initial windfall at one time owning 10 , then business which is still growing at 20% a year and has done for 7 years. Share investing and trading while healthy only accounts for 20%.
On with the discussion.

 

[Gunnerguy]

Great discussion and stories !!

Gunnerguy.