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I tried that with CSX and it aint working for me yet
Dump it Here
- Thread starter Skate
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I tried that with CSX and it aint working for me yet
@Prepper Pete the key to successful investing is buying quality stocks.
Please, tell me what I'm missing or better still, "explain what you saw" that no one else did.
Skate.
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but one GP i consulted suggests i will not live forever ( at last according to the statistics )
the other issue i have discovered is not many companies stay listed for 100 years ( or more ) ( take-overs , failures , break-ups , moves internationally )
remember i inherited a portfolio of 4 survivors from a relative that started investing in the '70's ( maybe earlier )
those survivors were APE , CSR , QAN and WOW , ones that didn't make it include Rinker , Ansett , Mount Isa Mines , McDonnell & East , Nylex
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I made a generic quote that is not idiot-proof.
I have made a few warnings that need to be heeded along the investment journey.
Skate.
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Value Investing
This investment strategy involves buying stocks that appear to be undervalued, companies that might be underappreciated and currently out of favour. Buffett's quote emphasises the importance of recognising opportunities and the potential profitability of such investments.
Disclaimer
Investing is not foolproof and always comes with risks. So, it's your responsibility to do thorough research before taking on that risk.
Skate.
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well depending on how ( and from where ) you read the economic data
what you have are six ships trying to navigate the stormy seas
now as mentioned if the Australian economy collapses , we ( well most ) will be clinging on to the side of a life-raft
and that is the risk we take ( every year , to a greater or lesser extent )
now if the Australian economy pulls through , which of those ( 2000 plus ) ships are seaworthy enough to survive ( although recent history shows the government will deliberately save some at the detriment of others )
expect managements to be tested in the coming years
what you have are six ships trying to navigate the stormy seas
now as mentioned if the Australian economy collapses , we ( well most ) will be clinging on to the side of a life-raft
and that is the risk we take ( every year , to a greater or lesser extent )
now if the Australian economy pulls through , which of those ( 2000 plus ) ships are seaworthy enough to survive ( although recent history shows the government will deliberately save some at the detriment of others )
expect managements to be tested in the coming years
All posted have their merits. I can add to it, the ultimate test is your own financial stamina. Are you ok to HOLD when the share price hit the s... fan by 10 to 20% If you hold a good company for a long term investment? It's always a challenge to hold back in your heart while the mind said WALK AWAY now.
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Why 2024 could be a year for ASX bulls
Why 2024 could be a year for ASX bulls
These money managers are fully invested in Australian equities.
now i disagree with the thematic here
the bulls i will be watching this year have four legs and eat grass
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well if a ( good ) share drops more than 20% , i reach for the calculator and consider adding some more of that share ( not a guarantee i will buy , but will seriously think about it )
but others react differently
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Why 2024 could be a year for ASX bulls
Why 2024 could be a year for ASX bulls
These money managers are fully invested in Australian equities.www.livewiremarkets.com
now i disagree with the thematic here
the bulls i will be watching this year have four legs and eat grass
In my opinion
It all hinges on the value of the US dollar. A weak US Dollar will be good for us. I'm sure @ducati916 can explain why much better than I could.
Skate.
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Imho, A quality stock is not based on chart, dividends but on PE and debt ratio return on money invested reinvested etc etc
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Got a nice big black one on my tag with a younger grey one coming on. The year of the bull !!!!Why 2024 could be a year for ASX bulls
Why 2024 could be a year for ASX bulls
These money managers are fully invested in Australian equities.
now i disagree with the thematic here
the bulls i will be watching this year have four legs and eat grass
@Skate, are you looking to eventually build a portfolio that is manageable in number of stocks that meet your criteria but also diversified rather than the few large financials and iron ore companies that dominate the portfolio?
Would you consider looking at companies that may currently be more focused on growth (retaining more of their earnings than paying out as div) with potential (that management growth plans do come to fruition) to produce higher future earnings due to re-investing in their business and potentially pay higher percent of earnings as dividend (3-5+ years)? Could be smaller holdings, more like the satellite portion of an overall investors portfolio.
Was pleasantly surprised at your move to passive investing and more so if you are going all in. 12 months ago I started a small investing portfolio with aim of producing passive returns, more so in next 3-10+ years. Partially because my 3 trading systems (2 systems I wrote up in Amibroker & a 3rd that takes signals from a business that provides trading strategies.) are still producing negative returns after 2 1/2 years (though within drawdown parameters). Rather than ditching trading, I decided to focus on trimming down to 1 or 2 trading system and build up investing portfolio, as don't feel more connected to one style over the other, also very interested to see how they both perform over the longer term, do I have far better success with one style over the other. Trading systems return average in 2022 was -16.27%, 2023 was -6.24%, investing portfolio in 2023 was 17.29%.
Essentially, I want my portfolio to be antifragile, so defining a quality business and one that I believe will be around for the long term is quite important. 6 factors I look at when researching quality dividend producing businesses are;
sid
Would you consider looking at companies that may currently be more focused on growth (retaining more of their earnings than paying out as div) with potential (that management growth plans do come to fruition) to produce higher future earnings due to re-investing in their business and potentially pay higher percent of earnings as dividend (3-5+ years)? Could be smaller holdings, more like the satellite portion of an overall investors portfolio.
Was pleasantly surprised at your move to passive investing and more so if you are going all in. 12 months ago I started a small investing portfolio with aim of producing passive returns, more so in next 3-10+ years. Partially because my 3 trading systems (2 systems I wrote up in Amibroker & a 3rd that takes signals from a business that provides trading strategies.) are still producing negative returns after 2 1/2 years (though within drawdown parameters). Rather than ditching trading, I decided to focus on trimming down to 1 or 2 trading system and build up investing portfolio, as don't feel more connected to one style over the other, also very interested to see how they both perform over the longer term, do I have far better success with one style over the other. Trading systems return average in 2022 was -16.27%, 2023 was -6.24%, investing portfolio in 2023 was 17.29%.
Essentially, I want my portfolio to be antifragile, so defining a quality business and one that I believe will be around for the long term is quite important. 6 factors I look at when researching quality dividend producing businesses are;
- Growing revenue/sales – has this been consistent, is it likely to continue?
- Defensive business - i.e. brand reputation, world leading product.
- Businesses you understand – easier and more enjoyable to read annual reports when I know what the product/service is.
- Aligned management – tend to look at companies that are family or founder owned/run or long term managers/directors that have high ownership ("skin in the game") as more likely to want dividends, which is good.
- Strong profits & cash flow - no point in company with lots of sales but gets eaten up in costs, must make a profit.
- Reasonable prices - not rushing to buy, get in at a good price (I learnt a simple valuation method but also look at a number of third party analysis, mainly to see if I’m way out and if so why).
sid
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@Sid23, thank you for posting. I aim to create a diversified investment portfolio - companies that pay stable dividends and franking credits that have the potential to increase returns over the long term. I'm looking for ways to improve and diversify my portfolio.
My goal is to create a manageable portfolio that is not overly concentrated in a few large financials and iron ore companies as it is at the moment. Instead, my final aim is to invest in a mix of high-quality companies across various sectors that have the potential to deliver strong long-term growth and income.
Regarding dividend payments, I prioritise companies that pay decent dividends that are at least two times the normalised national inflation rate. This ensures that my investments are generating a consistent and growing income stream that keeps pace with inflation.
Overall, my investment strategy is designed to create a diversified portfolio that can deliver strong long-term growth and income while minimising risk. I believe that this approach will help provide a sustainable source of income for the foreseeable future.
Regarding your suggestion to consider companies that may be more focused on growth and have the potential to produce higher future earnings, I think that's a great idea. I'm always on the lookout for high-quality businesses that have the potential to deliver strong long-term growth, but "they need to fall within my initial brief".
It's interesting to hear about your experience with trading systems and your decision to focus on building a passive investing portfolio is certainly the correct path for you. I'm glad to hear that you've had some success with your investing portfolio so far. My experience with trading is the complete reverse of your experience as trading for me has been very lucrative.
I also appreciate your insights on the six factors you look at when researching quality dividend-producing businesses. Those are all important factors to consider, and I agree that having a solid understanding of a company's business model and management team is crucial in making informed investment decisions.
Skate.
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the little Aussie battler to gain serious ground on the US dollar ?? i think not
sure our miners have some leverage , but we have a cluster of damps squibs in Canberra and Pitt Street
now if our exporters start doing major settlements in other currencies ( yuan , rupee , etc etc ) maybe that detachment would do enough
but no we will cling to the US fantasy as tight as a security blanket
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@divs4ever, what I was saying is that a weaker U.S. Dollar tends to have a positive impact on the U.S. markets, which in turn can have a positive effect on the ASX.
Skate.
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it would most likely be detrimental to most of the ASX shares i hold with US/EU exposure
shares like SHV thrive on a weak Aussie dollar and your BHP div. improves as well ( since the initial declaration is in US cents and converted later )
the companies that import heavily are the ones helped by a strong Aussie dollar sadly Australia doesn't manufacture much .
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Embracing Diversity
@ducati916 and I share a similar perspective on the complexity of trading and investing, recognising that there are multiple approaches, each with its unique strengths and weaknesses. We also acknowledge that everyone brings their distinct perspective and information-processing style to the table, which enriches our understanding and fosters a culture of inclusivity. By embracing this diversity of thought, we can cultivate a deeper appreciation for the various approaches and strategies, leading to more informed and effective decision-making
For instance, my investment positions in two banks (ANZ and CBA) have raised concerns about their potential risks. While these positions can be risky, it's crucial to evaluate them within the context of the companies' overall risk management strategies.
Both (ANZ and CBA) have demonstrated strong risk management capabilities, with their derivatives positions aimed at hedging against potential risks rather than speculating on market movements. However, it's crucial to acknowledge that their approaches to risk management may differ, and what works effectively for one company may not be suitable for the other. Despite these differences, both (ANZ and CBA) have achieved impressive long-term track records, highlighting their commitment to prudent risk management practices
I recognise that my perspective and investment choices may diverge from others, but I'm comfortable with the decisions I've made and the path I've chosen, as we all have the right to shape our own financial futures based on our unique experiences and priorities.
Skate.
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It's a Fine Line between Luck and Skill
Investing is a delicate balance between luck and skill. While skill and patience are essential ingredients in successful long-term investing, luck can sometimes play a significant role, particularly in timing. However, by focusing on fundamental analysis, diversifying a portfolio, and avoiding emotional decision-making, investors can increase their chances of success.
It's important to recognise that both fundamental analysis and system trading have their limitations. Fundamental analysis can be time-consuming and may not always provide a complete picture of a company's financial health, while system trading can be vulnerable to market volatility and unexpected events.
However, a combination of both approaches, along with a focus on risk management and a long-term perspective, can help investors and traders achieve their financial goals while managing risk effectively. As @Sid23 wisely pointed out, a balanced approach that incorporates both fundamental analysis and system trading can provide a more comprehensive view of the market and help investors make informed decisions.
Ultimately, successful investing requires a combination of skill, patience, and a little bit of luck. By focusing on the things that we can control, such as fundamental analysis, diversification, and risk management, we can increase our chances of success and achieve our financial goals over the long term.
Skate.
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These companies are already in my investment Portfolio
1. ANZ - Dividend Yield: 6.6%, Franking Credits: 56%
2. BHP - Dividend Yield: 4.7%, Franking Credits: 100%
3. CBA - Dividend Yield: 3.9%, Franking Credits: 100%
4. FMG - Dividend Yield: 7.6%, Franking Credits: 100%
5. MFG - Dividend Yield: 8.0%, Franking Credits: 85%
6. WDS - Dividend Yield: 11.7%, Franking Credits: 100%
SUGGESTED INCLUSION LIST
BFG - Dividend Yield: 5.3%, Franking Credits: 100%
TLS - Dividend Yield: 4.4%, Franking Credits: 100%
I've included a mix of high-yielding stocks with good franking credits to maximise my returns. The addition of BFG, and TLS, rounds out my portfolio to 8 positions, providing a diversified mix of stocks across different industries.
Skate.
1. ANZ - Dividend Yield: 6.6%, Franking Credits: 56%
2. BHP - Dividend Yield: 4.7%, Franking Credits: 100%
3. CBA - Dividend Yield: 3.9%, Franking Credits: 100%
4. FMG - Dividend Yield: 7.6%, Franking Credits: 100%
5. MFG - Dividend Yield: 8.0%, Franking Credits: 85%
6. WDS - Dividend Yield: 11.7%, Franking Credits: 100%
SUGGESTED INCLUSION LIST
BFG - Dividend Yield: 5.3%, Franking Credits: 100%
TLS - Dividend Yield: 4.4%, Franking Credits: 100%
I've included a mix of high-yielding stocks with good franking credits to maximise my returns. The addition of BFG, and TLS, rounds out my portfolio to 8 positions, providing a diversified mix of stocks across different industries.
Skate.
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