Your top 3 holdings and why you hold them

[Garpal Gumnut]

RIO SUN CBA
Long term wealth makers.

gg

 

[FreshTrader]

The thing is I don't price companies the way you do.

I price them the way I think the markets will value them.

If I think BHP is going to fall below $32, then I'm going to sell it at $36 regardless of what the true value of the company is.

Lower exchange rate means CSL will most likely post bigger profits. Being a 'safer' go to share means markets will flock to this share regardless of it's earnings.

Might sound stupid but that's just how I trade.

I'm with you Chasero, I also use the same logic to buy/sell and its worked out pretty well so far. ;D I don't have much Capital as yet and as such I close the majority of my trades either the day of or after purchase (utilising offset settlements). As I'm only in it for the extremely short term, predicting how a share will rise/fall on a specific day is the only thing I'm concerned with.

 

[noirua]

Beach Petroleum BPT $1.115xd, market cap $1.23bn, high $1.27 low 60c, as they continue drilling commercial wells and shale appears to be the way forward. Gas and oil price risks are there all the same.

Republic Gold RAU 0.4c, market cap $13.37m, high 1.5c low 0.3c, are in a difficult pricing range 0.3c - 0.5c so a warning here that trading can be difficult. Set to become Bolivia's biggest gold miner. Gold results so far are very good but financing hurdle not yet fully jumped. Awaiting drilling results.

Fleetwood Corporation FWD $11.20xd, market cap $651m, high $14.25 Low $9.53, have recently updated mining camp rentals with Woodside and have building contracts for mobile homes and caravans in Australia and New Zealand. A high yield stock that continues to grow, though high dividends seem to rely somewhat on re-investment of dividends.

 

[Eager]

BKN, IDL, BLY.

It is my firm belief that there is far more money to be made having an interest in a company that services the mining industry than holding shares in a mining company itself. In that regard it is not too dissimilar to the old gold rush days of the 19th century when it was the store owner in the mining towns that really prospered, compared to the miner himself.

 

[matty77]

BHP 16%
ANZ 16%
CPU 8%

Always been a big holder of the first 2, the last one I was just averaging out.

These are long term holds.

 

[Kremmen]

AUT 24% (sold down from 34% just recently)
EKA 14%
TXN 12%

Because the shale miners are making massive gains. Once a sector is rocketing up, keep milking it for all it's worth, I reckon. I've held all of those for over 12 months. I started with ADI and then ploughed my ADI money after the takeover into the others.

 

[reeftip]

BHP : First bought these in 1985. Have bought and sold a few of them over the years. Big and diversified, soft on short term prospects but medium term I think the expansion into shale will be good.

CBA: First bought these in 1993. Have also traded a few over the years. Safest of the Big 4 and continue to pay great dividends. I am soft on the outlook of all financial sector stocks in the short term, but I can see no reason to sell down my holdings in these at the moment.

COH: Bought these 12 months after they floated, and picked up a few more last month. Case study in Porter’s Five Forces analysis. I like this company a lot. Possible IR trouble with the increasingly militant ACTU is the main concern I have.

Interoil Corporation NYSE:IOC This company is actually in my biggest 3 holdings – but as its listed on the NYSE, I have included it after my biggest 3 ASX holdings. Bought this as a ‘Penny Nasty’ speckie in 2004 when it was still listed on the Australian stock exchange. I am personal friends with a few of their engineers. Strong outlook in the short, medium and long term for this one. 3.9 million acres of Petroleum licences, oil refinery, retail and commercial distribution facilities. I have been getting some nasty capital gains tax bills from selling some of these shares over the last few years

A lot of very good buying opportunities around at the moment.

Short term I am bullish on gold producers and energy producers.

 

[nulla nulla]

Map (Macquarie Airport)
Purchase Date: 03 December 2002
Purchase Price: $0.86
Dividends per share since purchase: $1.64
Current Dividend: $0.21
Yield on Current share price $2.94: 7.14%
Yield on original share price $0.86: 24.42%
Capital Gain on original share price: $2.08
Comments: No point in selling it. It doesn't owe us anything and continues to contribute a regular income stream through dividends.

WBC (Westpac)
Purchase Date: 01 July 2001
Purchase Price: $13.20
Dividends pershare since purchase: $8.70 (plus franking)
Current Dividend: $1.25
Yield on Current share price $21.75: 5.75%
Yield on original share price $13.20: 9.47%
Capital Gain on original share price: $8.55
Comments: No point in selling it. It doesn't owe us anything and continues to contribute a regular income stream through dividends.

These are the only two shares in the portfolio considered as "holdings". The rest are short term investments where the profits are taken, locked in and re-invested. In the present market invironment there is no point in buying shares for any long term goals (years). Lock in any profits on the price rises and re-enter on the price falls.

I thought it worth updating the above position which has changed since August 2010:

SYD (formerly Map - Macquarie Airport Group)
Purchase Date: 03 December 2002
Purchase Price: $0.06 (originaly $0.86 adjusted down with capital return $0.80 December 2011)
Dividends per share since purchase: $2.075
Current Dividend: $0.21
Yield on Current share price $2.62: 8.02%
Yield on adjusted original share price $0.06: 350%
Capital Gain on adjusted original share price: $2.56 (4,266.66%)
Comments: Still no point in selling it. It doesn't owe us anything and continues to contribute a regular income stream through dividends.

WBC (Westpac)
Purchase Date: 01 July 2001
Purchase Price: $13.20
Dividends pershare since purchase: $11.00 (fully franked)
Current Dividend: $1.55
Yield on Current share price $20.78: 7.46%
Yield on original share price $13.20: 11.74%
Capital Gain on original share price: $7.58
Comments: Still no point in selling it. It doesn't owe us anything and continues to contribute a regular income stream through dividends (fully franked).

 

[Garpal Gumnut]

I'm pretty boring,

Still RIO, SUN, CBA.

More exposure to FMG, resource stocks and those who feed off em.

But the 3 still the same.

gg

 

[ProverbialPaul]

All very good info here.

I'm still doing my research but will have three to add to the list soon

 

[Fantasy09]

BHP - Diversity
FMG - Low cost producer
MSB - Something not mining

 

[Julia]

Cash
Cash
Cash

 

[ajjack]

Cash
Cash
Cash

Have to agree, good choice.

Can we ask WHY?

 

[Klogg]

Agree with Julia on the Cash call, but since it's been said, these are my top 3:

TGA (Thorn Group) - Strong, reliable income (leases from the year before make up the majority of their income, so a downturn in profit is somewhat forseeable)
DWS (DWS Limited) - Great dividend when I bought in (10% Fully Franked), and still has a decent return
BRG (Breville Group) - Strong company name (Kambrook, Breville, Philips), passed 4-5years have shown amazing growth, good international exposure and good dividend.

- All of these have very little/no debt (TGA just raised some capital to wipe their debt from a recent acquisition).
- All are relatively small companies with room to grow
- All have a strong ROE

Also, none are very exposed to the mining sector, which is good or bad depending on who you ask... Just very stable, steady businesses with low risk.

 

[VSntchr]

CCP - debt collection with a business model that appears to be growing smoothly. Management are serial underpromisers & over deliverers.


FGE - Large rise in SP over the last 2 years has caused this to be a substantial holding. I think there is growth left, especially with the recent acquisition.


ARP - excellent long term record. Leveraged to the mining boom but not entirely so.



These three business all have low debt, high ROE.

 

[Klogg]

CCP - debt collection with a business model that appears to be growing smoothly. Management are serial underpromisers & over deliverers.


FGE - Large rise in SP over the last 2 years has caused this to be a substantial holding. I think there is growth left, especially with the recent acquisition.


ARP - excellent long term record. Leveraged to the mining boom but not entirely so.



These three business all have low debt, high ROE.

You and I must have similar investment styles... I hold CCP and ARP too.

 

[Julia]

Have to agree, good choice.

Can we ask WHY?

Because until confidence returns I'd rather not negotiate all the volatility.
Interest from my cash deposits is well in excess of what I need to live on, and I like the freedom from anxiety.

I've been in cash since just after the start of the GFC except for a very small holding in RIO which I'm keeping to demonstrate that buy and hold is a stupid non-strategy.

 

[Klogg]

Because until confidence returns I'd rather not negotiate all the volatility.
Interest from my cash deposits is well in excess of what I need to live on, and I like the freedom from anxiety.

I've been in cash since just after the start of the GFC except for a very small holding in RIO which I'm keeping to demonstrate that buy and hold is a stupid non-strategy.

While I like cash holding of some sort, I can't say that I'd approach it the same way (not being critical - each to their own of course).

During the GFC, there were some insanely good bargains that I personally would have jumped at, if I had the knowledge I have now...

An obvious example (although probably not my prime pick) is BHP @ $25. Yes, the world was in a bind at the time, but BHP is one of the larger companies in the world and very stable, worth well beyond that $25. Even if you bought then and held now, you'd be looking at a 40% increase on your initial purchase over 2years... and that's with a buy and hold strategy.

 

[skc]

While I like cash holding of some sort, I can't say that I'd approach it the same way (not being critical - each to their own of course).

During the GFC, there were some insanely good bargains that I personally would have jumped at, if I had the knowledge I have now...

An obvious example (although probably not my prime pick) is BHP @ $25. Yes, the world was in a bind at the time, but BHP is one of the larger companies in the world and very stable, worth well beyond that $25. Even if you bought then and held now, you'd be looking at a 40% increase on your initial purchase over 2years... and that's with a buy and hold strategy.

How do you know that's not just hindsight? There are plenty of major blue chips trading well below their GFC lows. Why weren't they bargains back in Mar 09?

 

[rryall]

How do you know that's not just hindsight? There are plenty of major blue chips trading well below their GFC lows. Why weren't they bargains back in Mar 09?

+1.