Your top 3 holdings and why you hold them

Top 3,

BHP, The big Australian, it holds a special place in my heart.

QBE, Dunno, got a gut feel.

WOW, Inflated grocery prices cheese me off, therefore if you can't beat them join them.

o stodgy First State Super mix which everyone says you have to hold

o MMR/BPH and the oppies as the next big O&G play offshore Sydney basin to make substantive announcements in the next 2 months

o BLY way undervalued global drill services to rerate with May upgraded 2010 activity

gooner said:

Julia,

Some hindsight there, I think. Reality is more risk more reward, so yes potentially more from WOR, but it is a higher risk stock than QBE.

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Gooner, yes of course hindsight is involved, i.e. hindsight in having carefully observed the five year charts of both QBE and WOR before making a choice between the two.

(I have held QBE in the past on the popular basis that it's a 'very well managed company, etc etc.) but I found the actual profit from the SP plus div yield just didn't stack up compared with some other companies.)

I'm not sure why you consider WOR is more risky than QBE, the latter obviously being vulnerable to extreme weather events etc.
WOR has excellent forward business and management have demonstrated their capacity to work with global conditions.

If you compare the five year charts

QBE five years ago was at about $15
It peaked at about $35
It's now $21.
Does the yield as in my previous post really justify holding this through that period?
Sure, if you used the trend to your advantage and jumped off at $35, you'd do fine. But frankly I doubt that too many people who say they are buying either for "the long term" or "the income" actually do this.

In contrast
WOR five years ago was at about $8
Peaked at $55
Now $26

Again, if you'd used the trend to your advantage and sold at around $55 obviously you would have made an excellent capital gain and in the process pulled a yield only slightly less than QBE gross.

Or even if you were timid and used the "buy and hold" approach, your $8 five years ago is now $26.
Rather better than QBE's movement from five years ago $15 to now $21, isn't it?

cutz said:

Top 3,

BHP, The big Australian, it holds a special place in my heart.

QBE, Dunno, got a gut feel.

WOW, Inflated grocery prices cheese me off, therefore if you can't beat them join them.

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Sound like pretty emotional choices, cutz, rather than basing your decisions on management and price history.

I have BHP, and frequently wonder why I do, given the reduced return compared to some of my other stocks.

Re WOW: yes, it's a great business, yes, we all shop there and understand the business.
But let's look at the actual figures here also:

Five years ago $15
Peaked at $35
Now about $28

Yield is 3.8% fully franked, so let's say gross about 6%.

I can't be bothered doing the total calculation for WOW, but although it's better than QBE, it doesn't equal WOR.

I'm not trying to knock anyone's choices here. We all have different reasons for doing what we do.
But aren't we all in here for making the most money in the final analysis?
So I am always a bit puzzled about why people continue to hold stocks like WOW and QBE over many other companies which will provide more profit.

Maybe it's fear and I absolutely understand that.

Re: Your top 3 holdings (How much worth) and why you hold them

bobbylat said:

The Dividends are funneled into my 4% anz intrest account which is going to be used for buying a IP when the total account is 15% the price of the IP. Only $10000 more to go

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bobbylat, I meant also to say that you can get much better than 4% in an online at call account. (And that is ignoring the term deposits at 7% and more.)

I don't hold anything at the moment, but if I did I'd be holding the three largest fully diversified resource companies and just adding to them on dips, recessions and depressions, if I was a long term holder.

US and GB may go bankrupt. Chindia may go through a significant correction/slow down. Developing countries in SE Asia and Latin America may go through a few coups. But in the long run, the world needs our resources and more of them.

kennas said:

I don't hold anything at the moment, but if I did I'd be holding the three largest fully diversified resource companies and just adding to them on dips, recessions and depressions, if I was a long term holder.

US and GB may go bankrupt. Chindia may go through a significant correction/slow down. Developing countries in SE Asia and Latin America may go through a few coups. But in the long run, the world needs our resources and more of them.

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Bankruptcy for US and UK Kennas - big call

You're usually more long ranging than that.

What about the emerging undervalued pool of goldies and O&G? If XAO goes above 5000 these will over perform IMHO. If not, my stodge will hopefully cushion the fall.

Don't like the alternatives to being out of the market. ST and medium global indices are fine by me.

Donga said:

What about the emerging undervalued pool of goldies and O&G? If XAO goes above 5000 these will over perform IMHO. If not, my stodge will hopefully cushion the fall.

Don't like the alternatives to being out of the market. ST and medium global indices are fine by me.

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I'm basically following Marc Faber and Jim Rogers at the moment. If money needs to be parked it probably should be in equities very short term, and commodities mid to longer term. I've gone away from sitting in front of the screen analysing stocks, and will be for the next 2-3 years so making 6-7% in cash is just fine for me, for some time. I'll revisit full time active investing when I see the developed world sort itself out. 5 - 10 years I think.

kennas said:

I'm basically following Marc Faber and Jim Rogers at the moment. If money needs to be parked it probably should be in equities very short term, and commodities mid to longer term. I've gone away from sitting in front of the screen analysing stocks, and will be for the next 2-3 years so making 6-7% in cash is just fine for me, for some time. I'll revisit full time active investing when I see the developed world sort itself out. 5 - 10 years I think.

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I lean more towards Buffett, Reserve Bank and possibly too much trust in the Asian story. Also consider that one GFC should be enough for the next few years. The world is always complicated but manages to struggle on.

higher risk profile leads me to more riskier holds at present

MHM 25% gotta love treating Al slag from tips

MEO 15% bought over 9 months back under 20c patience required

RHM 10% tiny mc sandfire nearology

1. ESG
2. BOW (soon to be equal to or more than my ESG holding though)
3. AOE

All coal seam gas stocks that I believe will be subject to takeover. AOE already under activity.

I have held PES, QGC, Sunshine, etc that have already been taken over in this industry over the last couple of years. Once they get taken over, I just put the money in the next likely one to go (in my opinion of course).

Therefore, I'm in those 3 above for growth only, and takeover speculation.

grace said:

1. ESG
2. BOW (soon to be equal to or more than my ESG holding though)
3. AOE

All coal seam gas stocks that I believe will be subject to takeover. AOE already under activity.

I have held PES, QGC, Sunshine, etc that have already been taken over in this industry over the last couple of years. Once they get taken over, I just put the money in the next likely one to go (in my opinion of course).

Therefore, I'm in those 3 above for growth only, and takeover speculation.

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Well done grace. You must be very happy with your investment decisions the last two years.

BHP - 14%
WDC - 10%
CBA - 7%

Although recently CBA has dropped to 6th at 7% due to three Resource Co. taking over CFE AQA BRM.

WES - Richard Goyder does great things with this company.
SOL - Robert Milner continues to grow this stock.

This makes up 75% of my PF.

The rest is more spec stocks- NWH TPM IDL CBD

I only have a small portfolio as i'm young and starting out but these are more top 5 holdings at the moment.

AAM - Bought in low and has become my largest holding due to the growth, had a rough patch lately with some management issues but going forward I feel they have further to travel yet, especially if some exploration results go their way.

WPL - I think WPL has massive potential over the next few years once a few of its developments reach the production stage. Read a great article on WPL within the Eureka Report last week and it just made me realise even more the potential WPL has.

WES - Was lucky enough to buy in last year at 14.94 and so it has grown into one of my larger holdings. Was thinking of trimming it back but have decided to hold as I think bunnings is a great asset of theres which will be minimally affected by WOWs venture, and I think the coles story has further to run.

Although these are my top 3 holdings, it's mainly through growth and not the fact that I think these are the 3 best stocks in my portfolio. My 3 favourites at the moment would be CSL, WPL and WBC as stocks that I believe are trading well below value (especillay in CSL and WPL's case), and I think the st george merger as it takes hold westpac will just continue to grow and pay great dividends as the banks usually do.

Just my 2c (I'm only 23 so feel free to give me your thoughts about what i've written, I enjoy discussion and criticism as long as its constructive).

Hmm, small holdings but nevertheless:

1. NDO - oil producer and will be starting up its second well in the next couple of months. BIG potential with about 20 targets ranging from 100m to 1.5bn barrels!!

2. SDL - while it's got massive issued share capital (2.7bn), at current SP it's only valued at $400m and has about $90m in cash to progress its Mbarga IO project

3. RHM (also) - as mentioned, tiny MC and potential (hopefully) to do a Sandfire at run 4000+% if it hits something decent

BSL 100%

That is all.

N.T

ANZ 34.90%
BHP 26.80%
FMG 13.29%

ANZ & BHP bought at the right time FMG bought at wrong time, trying to average out, oh so close...

WBC 50% They have been fleecing me for years,can't beat em buy em!
OST 25% Was hoping they would pick up on Gorgon and other projects.
MMX 10% Spec long term

matty77 said:

ANZ 34.90%
BHP 26.80%
FMG 13.29%

ANZ & BHP bought at the right time FMG bought at wrong time, trying to average out, oh so close...

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newbie trader said:

BSL 100%

That is all.

N.T

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enigmatic said:

BHP - 14%
WDC - 10%
CBA - 7%

Although recently CBA has dropped to 6th at 7% due to three Resource Co. taking over CFE AQA BRM.

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Just a reminder to everyone to please explain why you hold the stocks you do. Please just don't list them.

After all, it's the "why" part that's the interesting/informative part.

My bad Joe Blow

BHP - 14% ... Biggest Diversified Resource company arround was seriously undervalued of time of purchase.
21.2% Year/Year growth over the past 10years

WDC - 10% ... Massive Drop in Market Capital without real lose in future asset value, strong dividend 8% annual current which can be reinvested half yearly

CBA - 7% ... I believe to be the strongest of the 4 banks, average dividend providing ample re-investment.
15.4% Year/Year growth over the past 10years

Although recently CBA has dropped to 6th at 7% due to three Resource Co. taking over CFE AQA BRM.

These above three were investments were purely based on the belief of the value of Iron ore and large deposits at the time.