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?
You have entirely missed the point of my post.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.
Thank you skc. Klogg, there is absolutely nothing to say that some adverse event could not have badly impacted BHP just as with any other so called blue chip.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?
I obviously have some favorite stocks and sector but with diversification, and only what you can afford to watch daily with stop loss;
This way I can benefit from rises and ensure I limit losses
definitively more than 3stocks , 30 different ones currently in my investor portfolio (the laggard long term one)
I also day trade on a second portfolio 20 or so stocks, all on very short term; in and out
and much more $ returned there in the current time...
You have entirely missed the point of my post.
I said clearly that I didn't want to engage in the present volatility. My first priority is always preservation of capital, and if I can generate about double what I need to live on from interest in a guaranteed investment, why on earth would I risk that capital in times that are uncertain to say the least?
Thank you skc. Klogg, there is absolutely nothing to say that some adverse event could not have badly impacted BHP just as with any other so called blue chip.
Just taking my experiment with buy and hold on RIO, for example, I've held it for a couple of years or so and it's now worth less than it was when I bought it. The meagre dividend absolutely doesn't make up for the capital loss.
So far my buy and hold experiment is well and truly demonstrating to me how much better those funds would have been in cash.
REX - Award winning and profitable regional airline.
The thing with Rex, from what I can tell, is that they are only profitable because they operate on routes that are too small for anyone else to bother with. It kind of means growth is going to be difficult to achieve. IMO, anyway.
The thing with Rex, from what I can tell, is that they are only profitable because they operate on routes that are too small for anyone else to bother with. It kind of means growth is going to be difficult to achieve. IMO, anyway.
You have entirely missed the point of my post.
I said clearly that I didn't want to engage in the present volatility. My first priority is always preservation of capital, and if I can generate about double what I need to live on from interest in a guaranteed investment, why on earth would I risk that capital in times that are uncertain to say the least?
Hi Julia, remember me ? I'm baaaaaaack
I agree preservation of capital is paramount, all I've done is lose on the stock market maybe I'm unlucky but I don't think I'm the only one.
Well, hello there, Mr Burns. Good to have you back. Sorry to hear about the losses.
It's less important when one has a full time job, but once we're dependent on generating an income from our capital there needs to be a different mindset imo.
Or better spread across more stocks, perhaps.So far my buy and hold experiment is well and truly demonstrating to me how much better those funds would have been in cash.
No. It's only a tiny amount, just $10,000 so I'm not going to be dividing that much across several stocks. Not worth the trouble.Or better spread across more stocks, perhaps.
Cash in our banks is a damn sight safer, especially if divided up to qualify for the government guarantee, than pretty much anything else I can think of.I don't think 100% cash is safe either, if they keep handing out free money across the globe inflation is almost inevitable. You will need to be in assets that can appreciate in value if this is the case. Cash will be a capital killer.
What does the government gaurantee have to do with preservation against above average inflation or even hyper-inflation?Cash in our banks is a damn sight safer, especially if divided up to qualify for the government guarantee, than pretty much anything else I can think of.
Everything in life is a compromise. If I'm getting 8%, paying no tax, and still have about double what I need to live on, I'm not about to get upset about the inflation factor.What does the government gaurantee have to do with preservation against above average inflation or even hyper-inflation?
I don't doubt that you have thought long and hard about this.Everything in life is a compromise. If I'm getting 8%, paying no tax, and still have about double what I need to live on, I'm not about to get upset about the inflation factor.
Happy for you to make your own decisions, Ves. I' ve been around long enough to know what I'm doing for my circumstances.
(16th-August-2011) Current top 4 at today's close.
- CPU - Computershare 10.13%
- HDF - Hastings Diversified Fund 9.95%
- ABC - Adelaide Brighton Cement 7.36%
- PTM - Platinum Asset Management 7.25%
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