- Joined
- 20 July 2021
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that is probably not the way to start unless you are trading stocks like MTS , QBE , BPT , ILU , big but volatile companies and get jammed at a fairly high entry ( compared to the current price )Thank you, divs. You never know...I'll join the club sooner than I anticipate....the way I'm going with my trading lately
We might suffer from survivor bias with anyone below average / losing money having given up.above average .... that would be most of us, then?
not claiming any secret, but starting has to occur somewhere. And then, if market returns are, on average, 9 per cent a year, and add the secret sauce of compounding, you can get to a good place without too much effort;Our market has dropped a lot, so investing small and taking it slowly is probably a good way to start....I think that's what you're saying too....but I can't stop fiddling....need a cure for that first.
not as easy now ( given the probable acceleration of take-overs and company failures coming ) as it was in 2011not claiming any secret ... trick would have to be finding a stock that has growth...
That's a good solution/investment....I think I've missed the boats. Have you anything now that you think will be of benefit for late comers like myself, Dona? Will appreciate that.not claiming any secret ... trick would have to be finding a stock that has growth...
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Rule of 72
The benefit of compounding investment returns to create wealth by holding long-term winners is best understood in the sense that if an investment doubles every six years, an investor’s gains become exponentially greater.
For example, $10,000 to $20,000 over six years is only a $10,000 gain. But 18 years later the same doubling in value will generate an $80,000 gain and six years after that a $160,000 gain – all from the same initial investment of $10,000.
Using the mathematical shortcut “rule of 72”, by dividing 72 by an annual growth rate, anybody can work out how long it takes to double an investment.
For example, 72 divided by 12 equals six years. Whereas if you only generate 4 per cent a year, it takes 18 years to double your money.
To double their money every six years, an investor would need to earn 12 per cent every year.
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So, get started
MAYBEThat's a good solution/investment....I think I've missed the boats. Have you anything now that you think will be of benefit for late comers like myself, Dona? Will appreciate that.
well, @eskys , you're going to get that compounding one of two ways
1. Buy growth stocks, that show share price appreciation
2. Buy value sticks that pay dividends, which reinvested deliver share number appreciation
3. The sweet spot, a combination of 1 and 2. i.e. ten baggers that pay regular and increasing dividends .
Are there any truisms that can apply? If it's all about risk and reward, then consider the dynamics in:
a) diversification
b) Outsourcing/ using a manager. It can enhance returns but may not. An ETF will return its index. Each has a cost, with the more passive likely to be lower than active management
c) smaller companies have better prospects to get #3, with attendant failure/ slippage to irrelevance
d) newer companies have better prospects to get #3, with attendant failure/ slippage to irrelevance.
Note that, in Australia, most "return" metrics are optimised, by including franking. Any taxation will erode those numbers.
Here's one of my holdings, a LIC; according to the Annual Report, I'm now in the top 241 of holders
View attachment 163041
I like all 3, thanks for sharing your thoughts and strategy, Dona. All these years, I've been chasing real estate. Another email now saying we need to fix the heating and air conditioning...noisy, the trades person said. How would we know if we don't send our our trusted plumber 2 hours away? Problems on all front....not just the stock market....I'm grey prematurely!i prefer methods 2 and 3 , but do not completely avoid method 1 ( but am very careful when i do )
I like all 3, thanks for sharing your thoughts and strategy, Dona. All these years, I've been chasing real estate. Another email now saying we need to fix the heating and air conditioning...noisy, the trades person said. How would we know if we don't send our our trusted plumber 2 hours away? Problems on all front....not just the stock market....I'm grey prematurely!
NOW you are scaring me ( roof repairs ) it started with 'a roof leak' , was fixed to create a vent-pipe leak ( for the dunny )that resulted in a fault in the solar-panels , replacing the solar-panels triggered an inverter failure ...And if you're miles away, tradies know you're not local and that's where the rip offs come in....cost $20,000 to have that unit replaced on the roof with a crane, now saying it's gonna cost $1,859. Renovations should be over by the 2nd Oct...sunset date.
Think I should put it into some quality stocks with real business paying divs when the time is right. Market not doing badly this morning....good luck everyone...back later.
Couldn't have written that better, myself.I also do a great deal of Investment in Property.
The compounding and leverage available in Property with very low risk is unmatched in my view
when compared to other investments. Particularly if like myself you started in 1995.
Your plumber's bill is a mere drop of a cent or so in one of your stock holdings. Which is in most
cases nullified by your capital appreciation on your property.
The big benefit of Investing in Stock is the ability to liquidate any asset in minutes!
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