Five year stocks

[Knobby22]

I was going to nominate WPL, but it will probably be a part of BHP well before the 5 years is up..

Makes a lot more sense to me than Alcoa.
Only trouble is they used to own a third of WPL and sold out at $2.70, when I bought my first tranche It may be too embarassing to take it over. Secondly I doubt Shell will sell their third.

 

[nevieboy]

Any recomendations for set and forget stocks for the next 5 years? Some with good dividends and some with good growth please.Thankyou.

What about the big four banks and 1 or 2 of the smaller banks.
Dividends are very good, and growth is good.
Example November 2005
Adelaide Bank $12.77 yesterday $14.44
Anz $22.96 $29.46
Ben $11.65 $14.10
Cba $40.25 $51.35
Nab $31.59 $41.08
Wbc $21.56 $25.49

 

[stevo]

I couldn't buy a portfolio and just ignore it for 5 years! Why not assess the portfolio every year and make adjustments based on some sort of criteria.

I have a system that works on a monthly timeframe (ie check it at the end of every month) and have considered a longer time period but 5 years is probably a little longer than I would contemplate.

regards

 

[Judd]

One share that I have been reading about. ASX Code: STW. Gets 95% of the market. Winners go in, losers drop out and $2.30 distribution paid last fin year. Only cost is brokerage and an the internal cost is 0.29%

 

[PJ83]

Hmm

ROC (ROC oil) is a goer.

Top no bull-crap management, sensible aquisitions, excellent prospective drilling program and the oil price isn't going anywhere but up over the longer term.

I own shares in ROC

 

[AnalysisParalysis]

How about WOW?

Unless people decide to stop eating etc, this company should stay in business.

I don't hold any, but wish I bought when it was $18 like I was going to.

 

[Julia]

Though Sun, COH and CSL are great companies and appear very safe, you would still need to keep an eye on them.

I disagree with the other suggestions, you will have to keep an eye on them also and mining and emerging companies (even in energy) doubly so. Telstra is not a gimmee.

.

I don't think there would be any stock which I'd be happy to literally "set and forget" for five years. Probably the question wasn't asked in a completely literal way.

The nearest I'd go would be Woolworths - but that's on the assumption that some fantastic new competition doesn't come up and diminish their returns -,
the big banks, but again as Knobby has pointed out, you couldn't just not watch them for extended period, either Allco Finance or MBL, a property trust for some growth plus good dividends, and infrastructure, perhaps BBI.
Agree with suggestion of FKP , particularly given their increasing involvement in the retirement industry.

Anyway, lucky kids to have shares bought for them. Great idea.

Julia

 

[3 veiws of a secret]

How about WOW?

Unless people decide to stop eating etc, this company should stay in business.

I don't hold any, but wish I bought when it was $18 like I was going to.

Ahhhh but do we recollect to what happened to Burns Philp in its heyday .....but at least the funeral parlours don't go broke either. Invocare....?

 

[justjohn]

How about WOW?

Unless people decide to stop eating etc, this company should stay in business.

I don't hold any, but wish I bought when it was $18 like I was going to.

:iagree: WOW seems to have all bases loaded with there food ,grog & petrol is moving ahead in leaps & bounds .Another retailer going well at present is The Reject Shop (TRS) ,in the last 12 months has gone from $4.75 - $10.35 : DYOR

 

[nioka]

Gee this ones not asking much.

Personally if you want to pick a stock, set and forget and 5 years later its a bagger, youve firstly got to do some serious research. My view would be:


Market Place: OK, what commodity is going to be in huge demand in 5 years time in what potential market end user and is the commodity difficult to access, takes significant ramp up time, huge infrastructure and in scarce supply. Take a lesson from the past and factor it into the future of youre chosen commodity.
And the choice would be OIL and the market would be China and the reason would be a billion Chinese screaming for a buzz box car to get around in


Now the Chinese aren't silly and they aren't going to get caught out like they did with materials (past few years) and are putting measures in place to guarantee state holdings in JV's within certain demograhic localities, ramping infrasture to refineries yada yada. The mid tiers are the ones they will follow through on, the bigger boys will just be too greedy long term.

So what mid tier oiler has potential to establish consolidation within the Chinese oil exploration marketplace. Well theirs a lot to sift through but IMO the pick of the bunch is ROC.


So the commodity is OIL and the stock would be ROC, now I will just confirm that with my crystal ball

Agree with the reasoning added India and I came up with AOE (coal seam gas), EDE or TAS ( Hithane) and BLG (semiconductors)
Can you put that to the crystal ball.

 

[nizar]

drj
The best stock to put away for 5 years are stock that you would now not be willing to invest in.And you don't even have to go back 5 years for proof: Try PDN or ZFX just 3 short years ago.
It's a pure and simple exercise in analytical futility to pick a good growth or dividend stock from present knowledge: You might get a market outperform on a few with a bit of luck.
But to get a stellar outperform you need a supertanker more luck, aided and abetted with a dose of foresight, and a stock that is presently going nowhere fast.

Exactly spot on.
PDN 3 years ago a nice downtrend.

ZFX floated for $2 and a year later it was still $2.

Now look at them.

 

[imajica]

if AAX is too expensive (P/E of about 30)

WDS is in the same industry and is only on a P/E of 12

has BHP, RIO etc as its clients

looks like a great growth story

 

[chris bartlett]

Five Year Plan

From time to time I am able to put some small amounts of cash away for children. Most goes into shares, but my skills as a stock selector are limited. I have punted on SXY MLX MBE SHJ and Tissue Therapies and others, as well as recently GMC. My current thinking is set and forget for growth. What are contributors recommendations for the 5 years ahead? Thank you in advance.

 

[skc]

Re: Five Year Plan

From time to time I am able to put some small amounts of cash away for children. Most goes into shares, but my skills as a stock selector are limited. I have punted on SXY MLX MBE SHJ and Tissue Therapies and others, as well as recently GMC. My current thinking is set and forget for growth. What are contributors recommendations for the 5 years ahead? Thank you in advance.

None of these companies are set and forget type shares... SXY, MLX and GMC are all cyclical commodity companies which have a range of risks (commodity prices, explorations, operations, balance sheet etc) that require ongoing monitoring.

Tissue Therapies is an early stage medical device / drug company... To "set and forget" a company of this nature requires a lot of research and specific knowledge about the IP, the market and the management's competency. One investing (using set and forget) is this field could have picked a range of companies from PXS to SRX and unfortunately TIS turns out to be one very close to the disaster end of the scale. But overall the failure rate of these companies are very high... so if you have a 5 stock portfolio you need to be wary of this fact.

Perhaps set-and-forget isn't always the best strategy. "Set-and-check" might be more appropriate, together with a dose of "set-and-don't-over-react-to-share-price". This can see you ride through the major growth period while weeding out the losers.

 

[GlobeTrekker]

I think the best 'set & forget' stocks have to be Listed Investment Companies (LICs) like AFIC (AFI), Argo (ARG), Milton (MLT) and the like (there's over a hundred of them but these three are the biggest and arguably 'safer' than others). These companies just buy/own shares in other big companies (like the big 4 banks, Telstra, Wesfarmers, BHP etc) and other smaller companies, so you effectively spread the risk over lots of stocks by owning just a few. That way you're not exposed to the vagaries of just a couple of stocks in your portfolio. The bigger LICs tend to follow the ASX200. There are some more specialised LICs that own shares in overseas companies (PMC, TGG, MFF, PGF) if you want to spread your risk even further. Alternatively you could just invest in a bunch of ETFs which have a similar effect, spreading the risk. They're not likely to surge in price, but they're not likely to completely crash and burn either, making them ideal for a 'set & forget' strategy.

 

[chris bartlett]

In 2007 I posed my question. There were recommendations for BHP at $27, now $35 and there were others. They were:
RIO $80 now $94
SUN $20- $8 now
PPT $80-$28 now
NAB $40-$20 now
WES $45-$47 now

AFI $6.75-$6.75 no change
ARG $8 and the same, no change

SXY $.40-$.32 now
WPL $40-$19 now

Interesting, the two big miners gained and the rest were also rans. BHP left WPL alone. I accept most paid dividends, save SXY, now maturing and to shortly pay a dividend.

It is now a different world with tech shares and EFT’s.

Any fresh ideas for growth and the future, not so much dividends, in the next 5+ years? Please advise your thoughts and recommendations when you have time to reflect.

 

[rnr]

In 2007 I posed my question. There were recommendations for BHP at $27, now $35 and there were others. They were:
RIO $80 now $94
SUN $20- $8 now
PPT $80-$28 now
NAB $40-$20 now
WES $45-$47 now

AFI $6.75-$6.75 no change
ARG $8 and the same, no change

SXY $.40-$.32 now
WPL $40-$19 now

Interesting, the two big miners gained and the rest were also rans. BHP left WPL alone. I accept most paid dividends, save SXY, now maturing and to shortly pay a dividend.

It is now a different world with tech shares and EFT’s.

Any fresh ideas for growth and the future, not so much dividends, in the next 5+ years? Please advise your thoughts and recommendations when you have time to reflect.

Hi @chris bartlett,

In all fairness, when comparing stocks over a time period of approximately 13 years, it would be reasonable to add to the current price such items as:-
Return of Capital
The spin off of any company stocks via a share issue
Bonus share issues
Share buy-back where applicable.

As an example have a look at WES over that period and see what affect it has had over that time.

Cheers,
Rob

 

[Dona Ferentes]

As they say. ... Price; easy. Value; hard.

Your original question was based on 5 years, it's now 13. Since then, GFC and Covid retraces, with 10 year bonds and all debt costs dropping.

Dividends/ yields ignored, capital raises, dilutions, buybacks ignored.

Rather than asking for ideas and recommendations, why not look back and see what's still around 13 years on. This may give you an inkling of an idea what may be around in five years time. Otherwise you're just guessing.

 

[Chronos-Plutus]

Trying to look at buying more silver bars from the Perth Mint but nothing is on sale?

Why?

 

[finicky]

Trying to look at buying more silver bars from the Perth Mint but nothing is on sale?
Why?

In the past this sort of event has just been down to a run in sales depleting inventory or fabrication not keeping up, not some shortage of silver itself.

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