Dump it Here

[Belli]

It's not uncommon for some CEOs and CFOs to massage the numbers or use creative accounting practices to present a more favourable financial picture.

Major companies or tiddlers at the dodgy end of the spectrum?

Just saying.

 

[divs4ever]

1. So buying 'fundamentally sound companies' during a general market break is the way to buy them. Agreed. Buying companies at market 'highs' is fraught with disappointment. It would seem, correct me if I am wrong, that you have filled these positions recently. This is not a general market break situation. If (when) we get another general market break, they will collapse with the rest of the market. Correlations always rise to 1.0 in general market breaks. Their superlative fundamentals will not protect them from 'panic'. Just how sure are you in their fundamentals? That is all you will have to hang onto.

as i understand it market crashes are compounded by stop-losses ( and they may be a perfect option for that investor ) and forced selling by margin calls ( relating to assets inside and outside the markets ) now leverage is a two-edged sword and some are tempted to over-leverage

but when is the market high ( sure i expect a 30%+ retrace , but i have often been wrong ) the market ( ASX may easily climb another 25% before deciding to test investor support ) and that is the quandary of every new investor ( buy now , chase the departing train or try catching falling knives )

to me eye the largest cap. stocks are usually the most liquid so are most easily sold in a panic , that only wrecks their market cap. not the business fundamentals ( unless they are running high debt levels and the lenders get nervous )

now hopefully a new investor buying now , keeps some reserve cash , or has a nice regular income from another source , to adjust the portfolio as opportunities appear

PS my crystal ball is broken , i just cling to the raft and collect flotsam and jettison that seems useful at the time

cheers

 

[divs4ever]

Major companies or tiddlers at the dodgy end of the spectrum?

Just saying.

can be both , small is more likely , but major companies have been caught as well ( remember the Hayne Royal Commission ?? )

 

[Skate]

I find that understanding how a business operates and generates revenue is a better indicator of its potential for long-term success.

Confessions of Past Deeds
In early 2020, during the start of the COVID-19 pandemic, I decided to shift my trading to 100% cash. At the time, I was hesitant to invest in the stock market due to the fear and uncertainty surrounding the pandemic. However, in early March of that year, the market began to recover, and I saw an opportunity to invest in high-quality companies that had been heavily sold down.

I took a contrarian approach and invested in companies that had strong financials, competitive advantages, and a proven track record of paying dividends. I believed that these companies would be resilient and adapt to the new reality of the pandemic and that their long-term growth prospects would not be significantly impacted. To recap, I didn't buy those positions until there was a clear sign of recovery, and I sold them at the first sign of stagnation after a significant rise.

Looking back, I'm glad that I took that approach
While no company is immune to market downturns, investing in fundamentally sound companies helped mitigate some of the risks associated with my early investing mantra. I learned that it's important to stay informed, think long-term, and have conviction in my investment decisions.

This time my investment strategy is a little different
My recent investment strategy was based on the Chinese proverb "The best time to plant a tree was 20 years ago, and the second-best time is now." I believed that it was never too late to start investing and that the value of my investments would grow over time and pay handsome dividends along the way providing a liveable wage.

Today
I'm investing in companies that meet my criteria, and I'm confident that my portfolio will continue to grow over time. The lessons I learned from my experience in 2020 have helped me become a better investor, and I'm grateful for the opportunity to share my story with others.

Skate.

 

[Skate]

How remiss of me
There are always readers of this thread that I'm never aware of but when they like a post it becomes obvious. I'm grateful for readers like @Dona Ferentes who take the time to read and like a few of the posts.

However, I realise that my content and writing style may not be everyone's cup. It's just a pity that some of my readers never get to read the witty posts made by @Captain_Chaza and informative posts by @ducati916.

@Joe Blow is reconsidering the "two-way" block, and if removed would greatly enhance our ability to engage in discussions and share perspectives. I appreciate the respectful tone of this thread, which I believe we all appreciate.

Skate.

 

[Skate]

While no company is immune to market downturns, investing in fundamentally sound companies helped mitigate some of the risks associated with my early investing mantra.

@ducati916 will analyse the companies I've chosen to invest in over the Christmas break. My investment decisions were based on thorough research, focusing on quality companies with good dividend yields and Franking Credits. My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

1. ANZ
ANZ Group Holdings is a dividend-paying company with a current yield of 6.53% that is well covered by earnings with a payout ratio of 68% (Dividend yield forecast in 3 Years - 6.6%)



Skate.

 

[Skate]

My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

2. BHP
BHP Group is a dividend-paying company with a current yield of 5.25% that is well covered by earnings with a payout ratio of 67% (Dividend yield forecast in 3 Years - 4.4%)



Skate.

 

[Skate]

My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

3. CBA
Commonwealth Bank of Australia is a dividend-paying company with a current yield of 4.47% that is well covered by earnings with a payout ratio of 75% (Dividend yield forecast in 3 Years - 4.4%)



Skate.

 

[Skate]

My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

4. FMG
Fortescue is a dividend-paying company with a current yield of 6.35% that is well covered by earnings with a payout ratio of 75% (Dividend yield forecast in 3 Years - 4.0%)



Skate.

 

[Skate]

My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

5. MFG
Magellan Financial Group is a dividend-paying company with a current yield of 8.59% that is well covered by earnings with a payout ratio of 82% (Dividend yield forecast in 3 Years - 5.5%)



Skate.

 

[Skate]

My goal is to earn a liveable wage through passive investing. I'll share information about my selected companies in alphabetical order for anyone interested.

6. WDS
Woodside Energy Group is a dividend-paying company with a current yield of 10.7% that is well covered by earnings with a payout ratio of 64% (Dividend yield forecast in 3 Years - 5.2%)



Skate.

 

[divs4ever]

so far , my major concerns is , is the projected 6.5% return ( in divs. ) enough to maintain your lifestyle in a scenario of 'sticky inflation'

.. but time will enlighten all ( who wish to be enlightened )

good luck

 

[investtrader]

I know this is a bit worn, but I really do think what often gets lost when investing in public markets is you are buying a share in a real business. Concentrate on quality - big profit margins, low debt, high return on assets, lots of free cash flow etc. Imagine you are buying the whole business and want to keep it for 20 years.
I recommend the Intelligent Investor. The analysis of companies they provide is excellent and in depth. They have consistently outperformed the market over a very long time, which is not common.

 

[Skate]

It just came to me
@divs4ever, after Christmas, I'll have nothing to write about. I could stop now but I have to still make the odd post as I'm after my Christmas wish that I get every year from one particular member.

Skate.

 

[divs4ever]

I know this is a bit worn, but I really do think what often gets lost when investing in public markets is you are buying a share in a real business. Concentrate on quality - big profit margins, low debt, high return on assets, lots of free cash flow etc. Imagine you are buying the whole business and want to keep it for 20 years.
I recommend the Intelligent Investor. The analysis of companies they provide is excellent and in depth. They have consistently outperformed the market over a very long time, which is not common.

have seen a few companies lose their lustre over the last 12 years buying it as a business sounds good but watch out for the trend of 'board renewals/refreshes '

i am of the old school of ' if it ain't broke don't mess with '

 

[investtrader]

@Skate I have a sub to Intelligent Investor. I don't want to violate their copyright, but just to give you a heads up. They cover ANZ and WDS - both are holds. But the Buy price for ANZ is below 19.00 and WDS below 25.00.

 

[Skate]

Concentrate on quality

Thanks @investtrader - Your three-word description is spot on.

I've realised that shorter posts are more likely to be read in full, so I'll aim for brevity from now on.

Skate.

 

[divs4ever]

It just came to me
@divs4ever, after Christmas, I'll have nothing to write about. I could stop now but I have to still make the odd post as I'm after my Christmas wish that I get every year from one particular member.

Skate.

well that would decrease RSI risk , but what about boredom ?

several successful TV shows were all about nothing some would some the same about half of social media

cheers

on whatever you choose

 

[Skate]

what about boredom ?

@divs4ever, boredom for me is not a concern, my days are not long enough.

Skate.

 

[Country Lad]

This time my investment strategy is a little different
My recent investment strategy was based on the Chinese proverb "The best time to plant a tree was 20 years ago, and the second-best time is now." I believed that it was never too late to start investing and that the value of my investments would grow over time and pay handsome dividends along the way providing a liveable wage.

This topic comes up now & then, here and elsewhere along the lines of it is too late to invest in these as the price is so high already and there can't be much more growth.
Firstly, it matters not if the intention is an investment for dividend returns
Secondly, the opposite is true if you look at the history of the “quality companies with good dividend yields” such as the ones selected by Skate

I was fortunate way back in time (late 80’s early 90’s) to be heavily influenced by my broker (and good friend) who hammered home his views on having 2 compartments in the brain, one for short term trading and the other for long term investment.

I have discussed the details of some of my early long term investments in a previous exchange with @Value Hunter in this post. In those days there were not the number of companies on the ASX so selecting the likely growth stocks was a little easier, and there were far fewer new listings to assess. The difficulty was doing all the research on paper but a friendly broker was an advantage.

So I agree with Skate that anytime is a good time to invest in quality companies for his objectives. In time as the companies (likely) further grow the businesses the return on the (original) investment will increases.

@ducati916 will analyse the companies I've chosen to invest in over the Christmas break. My investment decisions were based on thorough research, focusing on quality companies with good dividend yields and Franking Credits.

hhmm, pity, I have 3 of these and the other bank so would have liked to see @ducati916 's assessments.

There is obviously a lesson an interesting topic for the younger of us here that there are opportunities to set yourself up thinking about the long term/later years in life.

Take it from me, the later years seem to come very quickly and unannounced.