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Project: Share Market

Discussion in 'The Pub' started by robsalvv, Jun 26, 2006.

  1. Recently got some financial planning advice and it's got me thinking.

    Don't know much about this sharemarket stuff, so for the exercise I decided to set up a yahoo finance "pretend" portfolio of a bakers dozen well known randomly chosen shares.... seriously, just plucked out 13 recognisable names and "bought" 100 shares each. Total cost $34,017.

    The shares were:
    ANZ bank
    Bendigo Bank
    CBA bank
    NAB bank
    Westpac Bank
    Rio Tinto
    Publishing and broadcasting ltd
    Coles Myer

    On the basis of purchase price at COB last Friday [23/6/06], the break down is: 43.5% Financial, 19.3% Retail, 37.2% industrial.

    At the end of business today, the portfolio is up $24. :woot: :beer:

    I'm thinking I might report back weekly. Those that aren't interested, don't click in after this. :)


  2. sounds like fun, I'll play!!
    we'll need to set some limits, say $50k?
    no off market buys?
  3. What is the history of the shares over the past 6 months and what are they at now?

    I recall years and years ago (15 maybe) I was going to buy Gold when it was USD$280 an ounce.
    Recently it cracked the USD$600 but has fallen to just under it now.

    I played a little in Foreign currency and did ok for a while. Then when I thought I got the hang of it I bought some Indonesian Rupiah and went over there for a holiday. Their economy crashed harder than Groberts into a taxi and I lost $60% of my money :evil:

    I then invested my money in kidney filtration and a stomach expansion program. At least those returns are healthy :rofl:
  4. you've only got 2 resource stocks in there - bhp and rio tinto. consider including some gold and oil shares. if you want some bigger players in these industries maybe go newmont mining and woodside petroleum or maybe, for a coupla smaller ones, 'bolnisi' and 'australian oil'. maybe reweight so you're not so banking-heavy. check the ASX for a reflection of the all ords weighting breakdown.

    good luck buddy. keen to hear your progress :wink: :p
  5. I dont trust our market at the moment.... We are in for a very rocky 12 months after the 30/06/06 . . . . .Downhill says Sawyer!
  6. sorry, i misread.... i thought you were setting up a stock market challenge!
    but you're just reporting your progress.
    any one want to set up a challenge?
  7. This is a pretend portfolio of name brands...

    Yep, a bit bank heavy... but since they're gouging you bank going folk with fees... I suspect it will do well! :) [I'm a credit union kinda guy].

    Red Rocket, you craft you're $50k's worth however you wish and post up. This will be interesting.You can go the actively managed route if you wish. I'm going to leave mine mostly static and may reweight down the track.

    Thanks for tips Carri :) ...you sound like an officianado!

    And Vic, the taxi crashing image cracked me up.


    I'm off to spend my $24. :LOL:
  8. OMG! :rofl: my sides are hurtin. Where the phark do you come up with these things?? Hmmm.

  9. For 35k you are way too diversified.

    Remember, you have brokerage fees to pay, around $30 a transaction, meaning each group of stock needs to go up $60 in order to make you any money.

    So your 100 CBA shares, say bought at $43 for a total cost of $430 dollars, needs to go up to $490 in order for you to break even. Or up to $49 a share. A gain of almost 14% needed.

    Which is rather a lot to _break even_.

    Buy blocks in 5k-10k. Means you only need a 1% gain to make money.
  10. don't tell anyone, but i'm actually an ex-stockbroker :wink:

    personally, i'm with sawyer. i reckon it's a bloody dodgy market right now. keep it hypothetical and enjoy the ride. i'd be very wary about going in for real right now tho... ESPECIALLY any industrials....
  11. :rofl:
  12. I played with pretend shares a little while back whilst considering actually jumping in - but picked 'green' investments or small, unknown & hopefully upcoming aussie companies.
    You're doing well with the $24 :roll: Hense I didn't put real $$ in ........
  13. ...Kaer, you make a fine point, however, check your maths... 100*$43=$4300 etc etc

    Isn't diversity the mantra??

    Carri - you're a surprising individual...! OK if Sawyer the sooth sayer is on the money, I will be taking a hypothetical bath in a few days time.


    Let the roller coaster begin. :LOL:

    BB - we'll see what happens over the course of the week. At one stage today, I was up $68!!

    Really going AFK now.
  14. Whoops. Was asleep there. :oops:

    Diversification minimises your risks. The problem is you need a large bankroll in order to diversify properly.

    And I agree with Sawyer. The market is way too inflated at the moment. Last weeks correction was just the start.

    I sold off most of my stock in the last 6 months. Only got a few left I'm waiting to get rid of (except for Little Creatures Brewing, I just like their beer too much :) )
  15. All aboard the roller coaster.
  16. Good idea Rob :)

    I think those who have said the market is looking shaky and that it may not be the optimal time to enter are correct, but also remember that to make real gains out of the stock market you probably want to be looking at a fairly long term approach to the whole thing. I can't quite remember the exact length of an average stack market cycle but I'm pretty sure it's about 5 years. Even if you get in at totally the wrong time if you diversify your portfolio over time (doesn't all have to be achieved day 1) you would be pretty unlucky to lose out in the long run. You only really need about 2-3k to enter the market at the start. If you keep investing on a semi-regular basis you will end up buying over all points of the cycle so will never lose out from buying at the worst possible time (but never buy at the best time).

    Also, deterine what YOU want out of your investment and find out what best suits your preferences. If you like the idea of shares but are really adverse to the possibility of losing money consider yield stocks, or maybe even managed funds with a high fixed interest content. If you want higher returns and are happy to take more of a gamble, growth stock (characterised by low dividends and high potential earnings growth) maybe more your thing. Interestingly, although growth stocks should (as there name suggests) produce higher returns, there are several times in recent history when value stocks have been the winners over a 5-10 year period.

    Ok, enough of my rant. The ASX (Melb & Syd) run free lunch time seminars at least once a week that cover many aspects of investing in the stock market. Some talks are purely theoretical but sometimes they invite brokers to speak who will provide general market info and share tips. Just make sure you read the conflicts info on the bottom of the last page/slide if you are thinking of following a brokers advice.
  17. Where do I go to set up a dummy portfolio? I wanna play!

  18. try here plus you've got prizes up for grabs. Next game starts in about a week or so it would seem.

    Bit of an intro here and other education resources here
  19. Cool - got $50K pretend $$ to play with :)
    Now to I invest to make money - or ethically - not sure I can achieve both :(