Which Aussie stocks are good for long term investing?
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galumay
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Any that will continue to increase Free Cash Flow and dividends, year on year and also increase in share price consistently.
The only way to find out is to learn how to find these businesses yourself, if you take other people's advice on which companies to buy then eventually you will run out of capital.
I know that doesnt sound very helpful, but I truly believe that to be a successful investor takes years of learning, reading everything you can get your hands on, developing a strategy that is aligned with your personality, learning human psychology, history, understand maths, chemisty and physics, learning how to read and understand company financial reports, understanding risk and how to manage it,....you get the drift, its not a matter of getting a couple of hot tips and backing the truck up.
A great new site that is an Australian site is https://www.raskfinance.com/
He has some great courses that are video lessons in basic investing principles and concepts.
The only way to find out is to learn how to find these businesses yourself, if you take other people's advice on which companies to buy then eventually you will run out of capital.
I know that doesnt sound very helpful, but I truly believe that to be a successful investor takes years of learning, reading everything you can get your hands on, developing a strategy that is aligned with your personality, learning human psychology, history, understand maths, chemisty and physics, learning how to read and understand company financial reports, understanding risk and how to manage it,....you get the drift, its not a matter of getting a couple of hot tips and backing the truck up.
A great new site that is an Australian site is https://www.raskfinance.com/
He has some great courses that are video lessons in basic investing principles and concepts.
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Good quality ones
Companies, like all things, goes from good to bad; bad to OK; OK to total crap; unknown to ruling the world... An investor cannot safely pick the "good ones" of today and forget about it really.
I mean there's the good but expensive; bad but expensive; reasonably price but pretty average companies.
Then there's your opportunity costs. We all don't have all the money in the world to just put it all over the place. Even if we do, it's still better to kind of tried to buy quality at a cheap or reasonable price... and doing that mean you'd have to study the company you're thinking of investing in at the time you're investing in it.
With some luck you might buy it at a good, or very good, price.
Having said all that... you'd probably want to avoid heavily indebted stocks. Such as APA.. that sucker is going to sink like a rock this coming credit crunch. Probably stay away from banks and financials until the dust settles from that crash too.
As to good companies.. and don't take this as advice, do your own research etc. etc.
Just bought some Sigma a few days ago at 72c. Well, 71.9 average
I think it's a pretty good long term company currently selling at pretty reasonable prices. Though all that rubbish pharmacies are stocking, not sure how well they're doing given the current belt tightening by most Aussies. But for the long term, should work out alright I reckon.Aurizon looks interesting. Though I haven't look at it enough to pull the trigger.
APO looks good but for some reason I put its value at $4. Didn't buy when it went to $4.15 recently and now it's $5+... But that's probably due to some outdoor advertiser in the US being taken over and the ASX figured APO will/is also a target or re-rating. $5 seems a bit too optimistic, particularly if you believe the economy is about to "correct" itself from the property boom and all that exuberance.
GRG engineering is a very well managed company.
So_Cynical
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A small to mid sized stock thats going to get bigger without constantly raising capital, doing stupid things or facing disruption, needs to have some growth potential, fully franked dividends are nice as well...have a look at the following.
- RIC - Ridley
- BWF - Blackwall
- QUB - Qube
- ECX - Eclipx
- WBA - Webster
Its getting harder now. The banks were always a good bet to increase dividends year on year & pay an annual dividend yield north of 5%. Even if they capital gain remained slim, the compounding effect of 5% annualized dividends would show over time.
But you get the feeling the housing boom has run out of steam, & could be infact due a correction. Add to that the royal commission you wonder if they will continue to be able to growth their loans books & rip off naive customers.
When I invest long term, I always look for sustained earnings & margins, and for the price to not be a million miles away from the tangible assets per share.
But you get the feeling the housing boom has run out of steam, & could be infact due a correction. Add to that the royal commission you wonder if they will continue to be able to growth their loans books & rip off naive customers.
When I invest long term, I always look for sustained earnings & margins, and for the price to not be a million miles away from the tangible assets per share.
Nobody really knows.
2-3 years ago Telstra would have been mentioned as it was a retail investor favourite for some of the qualities said to be good for long term holdings (cash flow, dividend, return on equity, competitive advantage) then when it looked invincible with a 8% yield, 15% average annual capital gain, EPS growth and free money from NBN it lost -50% in a couple years and organic EPS is set to decline about -35% through 2012-2022.
Similarly I could use Woolworths who some considered to have the biggest competitive advantage of any company in Australia. Then other competitors like Aldi and Coles started eating into their margins and earnings declined from peak about -40%. SP now remains the same as it was in 2007 pre-GFC.
2-3 years ago Telstra would have been mentioned as it was a retail investor favourite for some of the qualities said to be good for long term holdings (cash flow, dividend, return on equity, competitive advantage) then when it looked invincible with a 8% yield, 15% average annual capital gain, EPS growth and free money from NBN it lost -50% in a couple years and organic EPS is set to decline about -35% through 2012-2022.
Similarly I could use Woolworths who some considered to have the biggest competitive advantage of any company in Australia. Then other competitors like Aldi and Coles started eating into their margins and earnings declined from peak about -40%. SP now remains the same as it was in 2007 pre-GFC.
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Wysiwyg
Everyone wants money
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NAB for example has steadily increased dividend yield though there are periods when the dividend stays the same and the GFC saw a reduction. Currently grossing 9.89%.
Good quality ones
Companies, like all things, goes from good to bad; bad to OK; OK to total crap; unknown to ruling the world... An investor cannot safely pick the "good ones" of today and forget about it really.
I mean there's the good but expensive; bad but expensive; reasonably price but pretty average companies.
Then there's your opportunity costs. We all don't have all the money in the world to just put it all over the place. Even if we do, it's still better to kind of tried to buy quality at a cheap or reasonable price... and doing that mean you'd have to study the company you're thinking of investing in at the time you're investing in it.
With some luck you might buy it at a good, or very good, price.
Having said all that... you'd probably want to avoid heavily indebted stocks. Such as APA.. that sucker is going to sink like a rock this coming credit crunch. Probably stay away from banks and financials until the dust settles from that crash too.
As to good companies.. and don't take this as advice, do your own research etc. etc.
Just bought some Sigma a few days ago at 72c. Well, 71.9 average
Aurizon looks interesting. Though I haven't look at it enough to pull the trigger.
APO looks good but for some reason I put its value at $4. Didn't buy when it went to $4.15 recently and now it's $5+... But that's probably due to some outdoor advertiser in the US being taken over and the ASX figured APO will/is also a target or re-rating. $5 seems a bit too optimistic, particularly if you believe the economy is about to "correct" itself from the property boom and all that exuberance.
GRG engineering is a very well managed company.
This is quite possibly one of the most ridiculous posts ever seen on any forum. You make mention of APA with derision. What other stock can be bought close to $8 and sold near $10 year in year out and pays dividends? There is no safer place on the ASX to park large volumes of money and get significant returns. It's an absolute must in any serious investors portfolio. The tighter the crunch, the greater the safe haven.
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Tell you what. You put your money into APA and watch it go down the tube in a couple of years.
APA is very typical of a crappy business. The reason it still exist is because lenders keep lending to it and investors keep shoveling more equity on top. Or is it equity first then debt on second.
I've read its news release now and then... it's predictable. We're now borrowing more cash, raise more equity "for growth", for "opportunity", for world domination.
I could run a big business too if people and the banks just keep on giving me money.
Tell you what. You put your money into APA and watch it go down the tube in a couple of years.
APA is very typical of a crappy business. The reason it still exist is because lenders keep lending to it and investors keep shoveling more equity on top. Or is it equity first then debt on second.
I've read its news release now and then... it's predictable. We're now borrowing more cash, raise more equity "for growth", for "opportunity", for world domination.
I could run a big business too if people and the banks just keep on giving me money.
You haven't a clue. Owned it since day dot and bought in every time. I think it floated at about $1.60. Has been an absolute money tree. You keep shovelling your money into the likes of STO and see where you are not in 10 years.... or have you already done that?
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Bought Santos. Got lucky and managed to make maybe 25%.
The thing with business, especially ones that became a "must have", is that it started off sensibly enough. Make decent enough money. Then its management got stupid. Then investors got stupid. Then the bankers got stupid. Then a few idiot pretend to know it all along once it crashed.
Yeah sure, we believe ya. You spruik Santos which has gone from nearly $18 and fallen through the floor in 10 years, then deride APA which has gone from near $2 to near $10 in the same period.
You talk a real lot but say nothing.
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I didn't "spruik" Santos at $18. Bought in at about $7, maybe $6, depends on how much lie I can get away with... averaged down to around $5.30s then ran out of amo. Managed to have about $2K spare so bought in at the $2.50s... see how smart I was?
I never thought Santos was a "great" business anyway. Just thought it was a bargain at $7.
With APA...
Lao Tzu says, those that fall must first rise
I've discusssed APA at length on the forum before.
If you're interested in an up to date discussion... yea I'm bored enough to do it.
But am telling you, APA is a piece of crap that will go broke if it doesn't raise and borrow money every six months. And if you scan through its news release, what has it been doing every few months? "growth" opportunities. Overpaying for assets.
So unless it manages to keep raising and borrowing, take over most of the world's pipelines then corner that mode of delivery.... that or interest rate catching up with those billions of debt.
Value Collector
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Well I am not bored enough to have a discussion, so I will just tell you that you are wrong, and since we last discussed it, the dividends have risen.
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Value Collector
Have courage, and be kind.
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Did you read Lao Tzu?
Rise before the fall.
So you garbage recycler isn't in danger then
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So you garbage recycler isn't in danger then
Yea, that's a good one.
I didn't "spruik" Santos at $18. Bought in at about $7, maybe $6, depends on how much lie I can get away with... averaged down to around $5.30s then ran out of amo. Managed to have about $2K spare so bought in at the $2.50s... see how smart I was?
I never thought Santos was a "great" business anyway. Just thought it was a bargain at $7.
With APA...
Lao Tzu says, those that fall must first rise
I've discusssed APA at length on the forum before.
If you're interested in an up to date discussion... yea I'm bored enough to do it.
But am telling you, APA is a piece of crap that will go broke if it doesn't raise and borrow money every six months. And if you scan through its news release, what has it been doing every few months? "growth" opportunities. Overpaying for assets.
So unless it manages to keep raising and borrowing, take over most of the world's pipelines then corner that mode of delivery.... that or interest rate catching up with those billions of debt.
Mate, you are talking absolute crap. When have APA ever raised or borrowed every 6 months?????
As for overpaying for assets. ROFLMFAO. Why would they need to overpay for assets in today's environment? It's a buyers market fool. BTW that Yin Yang crap doesn't apply in Australia. It's just Chinese mythology or as we say in Australia Bunkem.
Did you read Lao Tzu?
Rise before the fall.
I didn't read it but my shredder did. It didn't get a lot out of it though, which seemed to be a consistent theme in its reviews.
I didn't "spruik" Santos at $18. Bought in at about $7, maybe $6, depends on how much lie I can get away with... averaged down to around $5.30s then ran out of amo. Managed to have about $2K spare so bought in at the $2.50s... see how smart I was?
I never thought Santos was a "great" business anyway. Just thought it was a bargain at $7.
With APA...
Lao Tzu says, those that fall must first rise
I've discusssed APA at length on the forum before.
If you're interested in an up to date discussion... yea I'm bored enough to do it.
But am telling you, APA is a piece of crap that will go broke if it doesn't raise and borrow money every six months. And if you scan through its news release, what has it been doing every few months? "growth" opportunities. Overpaying for assets.
So unless it manages to keep raising and borrowing, take over most of the world's pipelines then corner that mode of delivery.... that or interest rate catching up with those billions of debt.
Please prove in kind with detailed facts where APA has capital raised or borrowed every 6 months since it was established????
