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Skate said:
Is there is one that is interested in following along.
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The Weekly Progress of the "ASX20 Investment Strategy"
Tracking the weekly performance of the "ASX20 Investment Strategy" is an important exercise for me. I will continue to diligently update the weekly results, as this information is valuable regardless of whether the companies in the report are the "current constituents" or not.

If others are interested in following along, I would happily post the weekly progress updates on Sunday mornings. Even if just one member is interested, let me know.

Skate.
 
which is why bought and kept the SOL holding as i only had to pay the ( subscription ) fee once , and even get a trickle of divs and franking

now buying into other LICs in the earlier days was equally educational , but trending to be less informative currently ( many listing the top holdings in alphabetical order )

however the traders among us might find some ideas in the white paper and tweak from there

as in all investing it is all about risk ( the cost of participating ) v. the returns received , and that includes returns on services paid for
 
am particularly interested on how this exercise compares to a standard TOP 20 ETF ( equal weight vs market cap. weighting )

cheers

it is examining differences like this , that help design a better mouse-trap
 
PS because i started my investing adventure , later in life ( 2011ish ) i realized i had to tweak and adapt as i learned
 
Sean K said:
Skate, I'm not sure if you've raised this before but is your ASX20 Strategy going to go any better than buying the iShares ETF - ILC? The difference is the weighting. I wonder how much of a difference that makes?
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divs4ever said:
am particularly interested on how this exercise compares to a standard TOP 20 ETF ( equal weight vs market cap. weighting )
Click to expand...

@divs4ever, @Sean K kindly posted a link for those interested in such comparisons.

iShares S&P/ASX 20 ETF | ILC

The fund aims to provide investors with the performance of the S&P/ASX 20 Accumulation Index, before fees and expenses. The index is designed to measure the performance of the 20 largest Australian securities listed on the ASX.
www.blackrock.com









Skate.
 
investtrader said:
A very simple rotational strategy. But drawdown of 60% is not the idea of trading. Trading is more about risk and 99% would not follow this strategy even if they thought they could.
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was more interested on stock selection and IF such a strategy suited me ( at least for part of the portfolio )

i normally associate 'growth ' with higher potential capital gains ( and maybe increasing divs. later )

and since we are talking monthly reviews of positions that might be a little costly , and demand extra discipline
 
The ASX20 ETF currently is in a trading range and has no trend, see chart below. Obviously this requires trading in and out of positions.
 
professor thank you for the info.
Obviously, those of us have upset the Cap't beyond belief and so like mushrooms we are in the dark when it comes to his murmurings.
 
farmerge said:
@TimeISmoney I am aware of finding out about posts from those that have put a block on. But I can't be bothered.
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TimeISmoney said:
It's amusing how they stopped posting in their own thread and then come on here where they've blocked 90% of the posters.
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@farmerge and @TimeISmoney raise some important points around the two-way block. While such measures can help manage anxiety, they also limit the open exchange of ideas.

Vigorously expressing a point of view is one thing, but attacking the person rather than the idea is another. It can be difficult to know when someone has been offended and finding the right balance is a shared responsibility.

Skate.
 

Disclaimer
This investment exercise is purely hypothetical and measures the performance of Australia's "current" top 20 listed companies from the 1st of May 2024. The results focus on "Capital Gains and Dividends" for the current financial year, with additional information on market capitalisation, dividend yield and franking credit percentages. It is important to note that the "composition of the ASX20 index" may change over time, and the results presented may not be reflective of the actual performance.

The Objective of this Exercise
The objective is to explore a simple hypothetical scenario of investing $5,000 in each of the "currently listed" companies in the ASX20 index. Using the index's "current constituents", I have backdated the start date to the 1st of July 2023. The aim is to determine the year-to-date returns, including capital gains and dividends, of this $100,000 investment.

Rebalancing the ASX20
The index typically undergoes quarterly rebalancing to account for changes in the market caps of the constituents. However, for this hypothetical exercise, the rebalancing will be performed annually, on the anniversary of the start date, to simplify the process.

Important Notice
In my previous analysis, I failed to account for changes in the ASX20 index composition since the 1st of July 2023, introducing survivorship bias. Moving forward, the primary goal extends beyond returns to demonstrate a simplified approach that enables newcomers to participate in the markets with ease and reduced anxiety.



Skate.
 
Sean K said:
Skate, I'm not sure if you've raised this before but is your ASX20 Strategy going to go any better than buying the iShares ETF - ILC? The difference is the weighting. I wonder how much of a difference that makes?
Click to expand...

DaveTrade said:
One of price action for the ASX20 ETF
Click to expand...

@DaveTrade, buying ILC rather than the entire ASX20 removes the thrill of being directly involved. Buying the ASX20 was proposed as a safe way to enter the markets, and my series of posts were oriented in that direction. There are similarities between nose-picking and investing and I should make a post about that.

Skate.
 
Picking Noses
Investing is far from a casual nose-picking adventure. Although both may involve a degree of trial and error, the similarities cease there. Investing demands rigorous research, and comprehensive analysis, and extends beyond a mere casual probe.

Indeed, at times you might select winners, and at other times, you may not. However, successful investing isn't anchored in blind speculation, but rather, in disciplined decision-making.

Naturally, the strategy I've promoted "buying the entire ASX20" bypasses the entire "picking" dilemma and in doing so, your financial future isn't hinging on a single impulsive flick of the wrist.

Skate.
 
More on picking
Instead of heeding my own advice about buying the entire ASX20 index, I instead set out to handpick individual companies that met certain criteria. My goal was to build a portfolio focused on steady, passive income - companies with proven track records in that regard.

Picking can have consequences
My selected holdings ended up including the likes of ANZ, BHP, CBA, FMG, RIO, and WDS. Stripping out the two banks, this portfolio is now dangerously concentrated in the resource and materials sectors. It has the potential to be either a feast or famine.

Skate.
 
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Navigating Investment Risks
Investing carries risk and opportunity. My portfolio’s vulnerability lies in the potential for commodity prices to dip below expectations, economic growth to falter, and currency values to fluctuate unfavourably. Conversely, there lies the risk. It’s a delicate balance where the scales of market dynamics can tip in either direction, impacting my investment portfolio’s performance.

While these risks are present, I believe my portfolio provides opportunities for long-term growth whilst delivering a passive income through dividends and franking credits.

Skate.
 
The charts that they posted on their own thread are incomprehensible on their own, and a lot of it was questionable as to whether or not they were spruiking their own stocks. Some of us questioned the charts and the stock choice only to be ignored or criticized for one thing or another, we tried to make it subtle so as not to offend the person and we all got blocked.

I understand that trading has a large spectrum of styles, everyone has their own individual forte, whether it's accounting skills, engineering, skills, critical thinking skills and so on, so basically everyone has something to bring to the table.

The last few people I've seen criticize your trading style apart @divs4ever and @ducati916 who have put in much effort on independent threads to inform new traders on here have done nothing to basically help new traders.
 
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