Author Topic: Australian Investing Thread  (Read 617278 times)

This_Is_My_Username

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Re: Australian Investing Thread
« Reply #200 on: October 01, 2014, 12:32:11 AM »
(1) I am looking to purchase 4-5 individual stocks (blue chip, 100% franked) and then have been wondering which index fund you would recommend?


(2) PS: also been watching the stock market, but have decided to hold due to the drop and G12 summit etc...hoping to pick up some extra shares, fingers crossed! WDYT?

two concerns here:

(1) picking 4-5 stocks will very probably give you below-average returns. 

(2) market timing is a game that cannot be won.   This will also very probably give you below-average returns. 

bigchrisb

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Re: Australian Investing Thread
« Reply #201 on: October 02, 2014, 06:43:10 PM »
Anyone doing any topping up at the moment with ASX200 in the 52xx range? I bought some VAS for SMSF and Family trust this morning on open.

I've been dipping in with a couple of small parcels of vas. Better value than there was a month ago, but a long way to drop until there is blood in the streets.

AustralianMustachio

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Re: Australian Investing Thread
« Reply #202 on: October 02, 2014, 11:11:11 PM »
I've been following VAS movements quite closely over the last few days, and it seems as if sometimes there's been  bit of a gap between the ASX300 price and VAS. Is this just an anomaly?

superannuationfreak

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Re: Australian Investing Thread
« Reply #203 on: October 02, 2014, 11:13:25 PM »
There can be small differences in general.  A larger effect is likely that VAS went ex-dividend on Oct 1 so should have dropped (a bit more than the index).

AustralianMustachio

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Re: Australian Investing Thread
« Reply #204 on: October 03, 2014, 12:11:17 AM »
Aaah thanks superannuationfreak.

This thread once again delivers!

Primm

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Re: Australian Investing Thread
« Reply #205 on: October 03, 2014, 01:09:17 AM »
Quick question about that, if I bought more VAS on 1st October am I entitled to distributions on those new shares this time around? It wasn't even deliberate, I have a "break even point" where buying ETF's is cheaper than putting money into an index fund so I only buy when I have that amount in my account, and I happened to tip over that when I got paid on 1st October.

Won't make any difference to my strategy, I'm just curious. :)

terrier56

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Re: Australian Investing Thread
« Reply #206 on: October 03, 2014, 01:16:29 AM »
Quick question about that, if I bought more VAS on 1st October am I entitled to distributions on those new shares this time around? It wasn't even deliberate, I have a "break even point" where buying ETF's is cheaper than putting money into an index fund so I only buy when I have that amount in my account, and I happened to tip over that when I got paid on 1st October.

Won't make any difference to my strategy, I'm just curious. :)

I believe you must purchase before the ex-dividend date. so you would not be eligible. This shouldn't matter since you saved the equivalent amount on the discounted price.

Primm

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Re: Australian Investing Thread
« Reply #207 on: October 03, 2014, 01:58:48 AM »
Thanks for that. That's what I thought, and like you said I bought at the discounted rate so it's all good.

marty998

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Re: Australian Investing Thread
« Reply #208 on: October 03, 2014, 04:36:00 AM »
Primm...you will get sent a holding (CHESS) statement from the ASX for every buy and sell. CHESS stands for Clearing House Electronic Sub-register System, just the system that the ASX uses to transfer shareholdings from seller to buyer.

On this statement it will indicate where the shares have been purchased "cum" dividend (meaning you are entitled to it, or "ex" dividend (meaning not) - and purchasing on the ex date means just that, as superfreak says you must be in the day before.


Wadiman

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Super Calculators - curious results
« Reply #209 on: October 04, 2014, 03:02:16 PM »
Hi -

I'm seeking to model the end results of different super contribution strategies.

There are 1001 different super calculators out there and I've used a few.

No doubt due to different assumptions etc there are wildly different results when you put in the same data.

But - what I can't work out is the result i'm getting from the moneysmart super calculator - which you would think should be the best of the lot.

For example - when I model contributions at $24k per annum after 11 years (from today) with a $227k starting base, and leaving the default settings in place, I get a result of $575k.  However, when I model contributions of $29k per annum over the same period with same settings, I only get a result of $608k which is less than the value of the contributions themselves ($33k outcome - $51k contributions).  Clearly this is wrong as there should be some serious growth over that time (even allowing for 15% incoming taxation).

So - has anyone else experienced this?  Any tried and trusted calculators out there?

deborah

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Re: Australian Investing Thread
« Reply #210 on: October 04, 2014, 04:52:48 PM »
Hi -

I'm seeking to model the end results of different super contribution strategies.

There are 1001 different super calculators out there and I've used a few.

No doubt due to different assumptions etc there are wildly different results when you put in the same data.

But - what I can't work out is the result i'm getting from the moneysmart super calculator - which you would think should be the best of the lot.

For example - when I model contributions at $24k per annum after 11 years (from today) with a $227k starting base, and leaving the default settings in place, I get a result of $575k.  However, when I model contributions of $29k per annum over the same period with same settings, I only get a result of $608k which is less than the value of the contributions themselves ($33k outcome - $51k contributions).  Clearly this is wrong as there should be some serious growth over that time (even allowing for 15% incoming taxation).

So - has anyone else experienced this?  Any tried and trusted calculators out there?

I get different figures from you. Are you using https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/superannuation-calculator ?
I put in 49 and 60 as the ages, left the current salary at $50000 and said $227000 current balance. Put in before tax $24000 per year (this is probably wrong as it doesn't include your employer super) and got a different result.





terrier56

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Re: Australian Investing Thread
« Reply #211 on: October 04, 2014, 05:02:58 PM »
I just used that calculator LOL then cross reference against my own calculations to find that the super fund they use has a ROI of 3.2% PA hahahahahaha.

ultra conservative would be an understatement. The only reason i could think of them using this calculation is that they do exist (100 div interest only super) and that would also prevent people down the track suing them if they indeed received less in there super fund than stated. Not good reason. Anyone else have any ideas why they would use this?

deborah

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Re: Australian Investing Thread
« Reply #212 on: October 04, 2014, 05:33:44 PM »
I just used that calculator LOL then cross reference against my own calculations to find that the super fund they use has a ROI of 3.2% PA hahahahahaha.

ultra conservative would be an understatement. The only reason i could think of them using this calculation is that they do exist (100 div interest only super) and that would also prevent people down the track suing them if they indeed received less in there super fund than stated. Not good reason. Anyone else have any ideas why they would use this?
Well they allow you to change it - but it's probably the standard ROI of the most used fund.



terrier56

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Re: Australian Investing Thread
« Reply #213 on: October 04, 2014, 06:13:41 PM »
I just used that calculator LOL then cross reference against my own calculations to find that the super fund they use has a ROI of 3.2% PA hahahahahaha.

ultra conservative would be an understatement. The only reason i could think of them using this calculation is that they do exist (100 div interest only super) and that would also prevent people down the track suing them if they indeed received less in there super fund than stated. Not good reason. Anyone else have any ideas why they would use this?
Well they allow you to change it - but it's probably the standard ROI of the most used fund.

No that can't be true. Statistically I think that given the most people work in healthcare (12.2%) would choose the industry super fund assignned (caresuper). This fund has a return of 8.01% since 1992 using the automatic allocation (balanced). http://www.caresuper.com.au/super/investing-your-super/performance

terrier56

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Re: Australian Investing Thread
« Reply #214 on: October 04, 2014, 06:34:41 PM »
Ok I have just seen the "how it works" section. They give you money in today's value (inflation at 3.5%) which makes way more sense. Not a bad calculator in the end.

dungoofed

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Re: Australian Investing Thread
« Reply #215 on: October 06, 2014, 11:21:43 PM »
Not suggesting anyone pay for financial services, but for reference here are the ETFs which Stockspot invests in (their first and second choice):

Australian Shares - 1) VAS, 2) STW
Global Shares - 1) IOO, 2) IVV
Emerging Markets - 1) IEM, 2) VGE
Bonds - 1) IAF, 2) VAF
Gold - 1) GOLD, 2) QAU

Stockspot was mentioned in the SMH today, alongside Betterment, Wealthfront, etc. Any comments? They seem to choose more expensive non-Vanguard funds a lot.

Encouraging to see that VAS is their choice for Aussie stocks, but with up to 50% in VAS according to their portfolios plus 10% gold I'd feel this was a little over-exposed to commodities.

Also, Wadiman, if you're still reading this thread then you'll note that Stockspot recommend 10% of your portfolio in gold, which happens to be the same as I suggested for you : P Just sayin'...


Wadiman

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Re: Australian Investing Thread
« Reply #216 on: October 07, 2014, 01:20:52 AM »
Yes dungoofed - when you commented previously I noted that your thoughts were pretty similar to the Stockspot recommendations!  Good stuff.

Primm

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Re: Australian Investing Thread
« Reply #217 on: October 07, 2014, 01:57:03 AM »
Question about rebalancing super.

I currently have my super 50% each in AU stocks and international stocks. I did this when the AUD was >95c, and so far my paper win has been pretty good.

So now that the AUD has dropped relative to the USD, is now a good time to take that win and change my balance to 100% AU stocks again? Or am I missing something? We can rebalance up to once a month in my super scheme with no penalties or fees, I did this about 6 months ago and my current balance gives me $56,692 in AU stocks and $60,028 in international. They were 50/50 last time I rebalanced (only a few months ago), so as you can see the international side has done considerably better. Or should I leave them as they are and let the international side balance out the potential losses in the AU market over the next little while?

ETA: I just checked, and I rebalanced on 19/8. So this $3,400 difference is in about 6 weeks.

The other thing is, I can choose to rebalance only future investments and leave the current funds as they are. Would this be a better option?

Thoughts?
« Last Edit: October 07, 2014, 02:03:10 AM by Primm »

potm

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Re: Australian Investing Thread
« Reply #218 on: October 07, 2014, 03:13:22 AM »
Rebalancing usually mean you will adjust your holdings so that they are 50/50 again so they would be roughly 58k each.
If you are thinking about making it 100% Australian shares that would be more akin to trading. Whether that is a good idea or not depends on the future performance.

Be aware that there is a buy/sell spread on the different options so it's costing you a little each time you switch. By only changing the allocations for future investments minimises this.

dungoofed

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Re: Australian Investing Thread
« Reply #219 on: October 07, 2014, 05:39:24 AM »
Primm - you need to do two things:

1) Decide on a ratio of asset classes with which you are comfortable, and
2) Rebalance when a "rebalance event" is triggered.

So before we even start you need to decide how you want your portfolio to look. 50% Australian stocks and 50% international stocks is quite an aggressive ratio but assuming your age is around 30-35 then this might be fine for now.

Regarding rebalancing, there is a plethora of information as to how this should best be done. The idea is you want to periodically sell off the overperformers and buy more of the underperformers. The main two triggers are a) elapsed time period, and b) percentage drift from your ideal in 1) above. Other complexities include minimising trading costs and tax considerations (though it sounds like neither of these apply to you, provided you limit rebalancing to a max of once a month).

To keep it simple, in your case you might want to rebalance when one of the two asset classes reaches 62.5% of your portfolio, or once every nine months if you haven't rebalanced for the last nine months (either trust the math on these values, or feel free to educate yourself on rebalancing and come up with your own values). Using this, if your international stocks were 73k and Aussie stocks 43k then you'd want to consider rebalancing.

The only other thing I'd mention is that while you may be eligible for one free rebalance per month, depending on the plan there is a chance that you are still losing on each transaction.


Primm

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Re: Australian Investing Thread
« Reply #220 on: October 07, 2014, 06:24:58 PM »
So make it technical and not emotional, and then follow my guidelines and not my instincts. Got it!

I need to do some research on the buy/sell spread of my fund, and find out just how much it is actually costing to switch stuff around. And then just fricking do it.

This_Is_My_Username

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« Reply #221 on: October 08, 2014, 04:17:22 AM »
Primm, are you rebalancing to a pre-agreed formula, or are you trading/timing/speculating/emotional ?

I hope not the latter.

Also, you need to be fully cognisant of the fees.

slothman

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Re: Australian Investing Thread
« Reply #222 on: October 09, 2014, 06:33:35 AM »
Excellent thread!

Situation at the moment: Dual income no kids

Just started getting serious with investing in the past couple of years and looking forward to being able to retire within the next 10 years.

PPOR - 840K
Debt - 200K

Investment Properties - $2.5M
Debt - $2.0M

Shares outside of super - $100K in LICs: ARG/AUI/MLT. Looking to add some BKI and potentially some international shares at a later stage via ETFs. US market seems a little frothy at the moment so worried to buy in at current valuations. Also, I have a strong domestic bias mostly due to my obsession with franking credits.

Savings/Investing Rate ~55% consisting of paying down PPOR debt, servicing the (negatively geared) investment property portfolio and quarterly purchases of LICs (DCA strategy).

Although I am currently heavily weighted to residential property to quickly grow my asset base, I've started to do more research on ideal asset allocation and how to diversify the portfolio.

In a few years time, hopefully after some strong capital growth, I'd looking to sell down part of the property portfolio to clear debt and move capital into sharemarket/bonds/REITs for diversification and for a stable income stream to replace my wages.

deborah

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Re: Australian Investing Thread
« Reply #223 on: October 09, 2014, 06:42:43 AM »
Slothman, you have way more risk tolerance than I do. I am not as concerned about the prospects of a housing bubble collapse as I am about your leverage. Current interest rates are really low - what happens when we start to get inflation, and housing loan interest rates start to rise? Admittedly, I remember the days of 17% interest rates (and many people going under), and it probably won't get that high again.



marty998

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Re: Australian Investing Thread
« Reply #224 on: October 09, 2014, 03:10:59 PM »
Wall Street down 2% overnight. NAB has come out with a profit downgrade and a capital raising to boot. I've always said there is something fundamentally wrong with that bank. Should shut it down, break it up and start again.

Market has the jitters at the moment. And its October LOL. Can you believe 7 years since the ASX peaked at 6800 and we're still below there. Admittedly that was all due to BHP being up around $50 but still, 7 years is longer than any other stretch in history below a peak.


slothman

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Re: Australian Investing Thread
« Reply #225 on: October 09, 2014, 03:32:41 PM »
Market has the jitters at the moment. And its October LOL. Can you believe 7 years since the ASX peaked at 6800 and we're still below there. Admittedly that was all due to BHP being up around $50 but still, 7 years is longer than any other stretch in history below a peak.

Does this mean the ASX200 is undervalued? What was the P/E ratio at previous peak?

Notch

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Re: Australian Investing Thread
« Reply #226 on: October 09, 2014, 07:56:10 PM »
Have a look at the trends in margin loan use in Australia, available from the RBA website, and you'll see why we're still below that 2007 peak.

dungoofed

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Re: Australian Investing Thread
« Reply #227 on: October 09, 2014, 08:10:58 PM »
I just rebalanced.

Took some money from a term deposit that vested this week, combined it with the sale of a little each of WXOZ and VAF. Bought VAS.

The Falcon

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Re: Australian Investing Thread
« Reply #228 on: October 09, 2014, 08:14:21 PM »
Pulling the trigger on AMH today....cant resist.

AustralianMustachio

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Re: Australian Investing Thread
« Reply #229 on: October 09, 2014, 10:27:49 PM »
Trying to resist further "market timing" and buying a little more VAS today too.

One thing that puts me off is that 8.31% of VAS is BHP, which I don't have a great amount of faith in for the future. Oh well I guess that's priced in at the moment by the market

potm

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Re: Australian Investing Thread
« Reply #230 on: October 09, 2014, 10:30:10 PM »
Wall Street down 2% overnight. NAB has come out with a profit downgrade and a capital raising to boot. I've always said there is something fundamentally wrong with that bank. Should shut it down, break it up and start again.

Market has the jitters at the moment. And its October LOL. Can you believe 7 years since the ASX peaked at 6800 and we're still below there. Admittedly that was all due to BHP being up around $50 but still, 7 years is longer than any other stretch in history below a peak.

New CEO so he is more than happy to recognise the impairments in 'Cash Earnings'. Makes a mokery of what Cash earnings is, whatever they want it to be I guess. Now he can show a wonderful increase in Cash earnings next year in his first full year as CEO. Dividend is getting increased along with a captial raising at a discount, direct destruction of shareholder value right there. It makes more sense to cut dividends for a year but then the market would have punished it severly so maybe this is the smartest thing to do afterall.

The Falcon

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Re: Australian Investing Thread
« Reply #231 on: October 09, 2014, 11:02:56 PM »
CCL around $8.40 is starting to be of interest...

deborah

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Re: Australian Investing Thread
« Reply #232 on: October 10, 2014, 12:29:52 AM »
How different do people think the Australian market is to the US market, and what does that mean in terms of investing advice?

For instance, the US does not have franking credits, so that makes shares less attractive there. The US has very cheap property, which makes it significantly easier to get into the property market, as well as higher rents, which give higher yearly returns per dollar invested. This should also make it more reasonable for someone in the US to buy rather than rent.

As the forum is predominantly US advice, what should we (as Australians) follow, and what doesn't make much sense for us?



AustralianMustachio

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Re: Australian Investing Thread
« Reply #233 on: October 10, 2014, 12:33:05 AM »
I'm not sure if a lack of franking credits necessarily makes US shares less attractive. Yes, they tend to pay less dividends, but that isn't necessarily a bad thing as retaining profits allows businesses to grow. Look at the capital growth of the S&P500 vs the ASX200 over the last ten years.

marty998

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Re: Australian Investing Thread
« Reply #234 on: October 10, 2014, 12:52:02 AM »
CCL around $8.40 is starting to be of interest...

I'm bearish on CCL long term. One day we are going to wake up, look in the mirror and see what fat fucks we are and that 43 grams of refined sugar in each can of coke, sprite or solo is the culprit.

That and we may also wake up and realise the scam that bottled water is.

I'm not sure if a lack of franking credits necessarily makes US shares less attractive. Yes, they tend to pay less dividends, but that isn't necessarily a bad thing as retaining profits allows businesses to grow. Look at the capital growth of the S&P500 vs the ASX200 over the last ten years.

Preference for franked dividends in Australia is becoming a drag on the economy according to RBA top dog Glenn Stevens. Investors are blinded by the tax benefits from franking in Super, which is leading to Managers not retaining enough earnings to grow and invest.

Market has the jitters at the moment. And its October LOL. Can you believe 7 years since the ASX peaked at 6800 and we're still below there. Admittedly that was all due to BHP being up around $50 but still, 7 years is longer than any other stretch in history below a peak.

Does this mean the ASX200 is undervalued? What was the P/E ratio at previous peak?

P/E ratio is irrelevant (IMHO at this point in time DYOR). As I said, BHP was holding up the entire market in 07.

marty998

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Re: Australian Investing Thread
« Reply #235 on: October 10, 2014, 01:09:10 AM »
Wall Street down 2% overnight. NAB has come out with a profit downgrade and a capital raising to boot. I've always said there is something fundamentally wrong with that bank. Should shut it down, break it up and start again.

Market has the jitters at the moment. And its October LOL. Can you believe 7 years since the ASX peaked at 6800 and we're still below there. Admittedly that was all due to BHP being up around $50 but still, 7 years is longer than any other stretch in history below a peak.

New CEO so he is more than happy to recognise the impairments in 'Cash Earnings'. Makes a mokery of what Cash earnings is, whatever they want it to be I guess. Now he can show a wonderful increase in Cash earnings next year in his first full year as CEO. Dividend is getting increased along with a captial raising at a discount, direct destruction of shareholder value right there. It makes more sense to cut dividends for a year but then the market would have punished it severly so maybe this is the smartest thing to do afterall.

Yes, agree 100% with all of that potm.

potm

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Re: Australian Investing Thread
« Reply #236 on: October 10, 2014, 05:58:10 AM »
For a company that is struggling with falling profits and revenues I think CCL is still pretty expensive. People attach a lot of value to the coke brand but I think the american company are the ones that own the rights to everything. CCL has to pay to use the coke surup. I think, do your own research, haven't been interested enough in it to have a closer look.

The Falcon

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Re: Australian Investing Thread
« Reply #237 on: October 10, 2014, 03:22:00 PM »
CCL is 30% held by Coke USA.....when the human race moves on from sugar they are in trouble...bear in mind CCL has the Indo bottling operation, 200m people + majority non drinkers, with Jokowi coming in to power, I am bullish on ID in coming decade.. I'm a long term bull on CCL but I'm only playing around the edges of the portfolio as a matter of interest :)

Looking to pick up some QOZ and small cap in coming weeks if this trend continues.
« Last Edit: October 10, 2014, 03:23:34 PM by The Falcon »

AustralianMustachio

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Re: Australian Investing Thread
« Reply #238 on: October 10, 2014, 10:51:22 PM »
From what I could see on the website, QOZ is pretty much the same as VAS except it's the ASX200 instead of the ASX300. Why are you purchasing this when you already hold VAS? To add a bit of variety / diversification? I'm curious as I'd find it harder to keep my head around a whole bunch of similar ETFs in varying quantities

The Falcon

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Re: Australian Investing Thread
« Reply #239 on: October 10, 2014, 11:34:23 PM »
QOZ is fundamental weight, VAS is market cap.

AustralianMustachio

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Re: Australian Investing Thread
« Reply #240 on: October 11, 2014, 12:25:35 AM »
Ah. Cheers for that

superannuationfreak

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Re: Australian Investing Thread
« Reply #241 on: October 11, 2014, 05:03:15 AM »
I've been inspired by Scott Adams' (creator of Dilbert) one-page summary on everything you need to know about money, and by William Bernstein's free booklet If You Can to write a few pages for people who don't want to know all the nitty-gritty details of investing.  While most people posting here probably are interested in the nitty-gritty, let me know if there is anything that's unclear, poorly worded, incorrect, etc.  I'm open to incorporating feedback so any other thoughts would be appreciated.  Is this something that could be helpful?

http://superannuationfreak.blogspot.com.au/2014/10/everything-you-need-to-know-about.html

Note that I'm not a personal finance guru so don't think I can add a lot of (extra) value in that part.  The suggested savings rate of 15-20% is due to it not being specifically targeted at Mustachians.  I suspect most who've made their way to this forum have probably already conquered personal finance or are in the process of doing so.

For reference:
The Dilbert guide to personal finance: https://retirementplans.vanguard.com/VGApp/pe/PubVgiNews?ArticleName=DilbertGuidetoPersonalFinance
If You Can: https://dl.dropboxusercontent.com/u/29031758/If%20You%20Can.pdf

MsRichLife

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Re: Australian Investing Thread
« Reply #242 on: October 11, 2014, 10:11:24 PM »
Thanks superannuationfreak. I'm going to read over it a few times to more fully digest it. Cheers.

potm

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Re: Australian Investing Thread
« Reply #243 on: October 12, 2014, 04:36:16 PM »
CCL is 30% held by Coke USA.....when the human race moves on from sugar they are in trouble...bear in mind CCL has the Indo bottling operation, 200m people + majority non drinkers, with Jokowi coming in to power, I am bullish on ID in coming decade.. I'm a long term bull on CCL but I'm only playing around the edges of the portfolio as a matter of interest :)

Looking to pick up some QOZ and small cap in coming weeks if this trend continues.

A couple of articles in the AFR today on CCL that touches on the relationship between the 2 coke companies. 30% ownership does not mean their interests are totally aligned. 

The Falcon

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Re: Australian Investing Thread
« Reply #244 on: October 12, 2014, 07:53:17 PM »
 ^ For sure, read the article. I am hedging here as I already own BRKB and intend to keep buying for the foreseeable future.

Andy_in_Aus

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Re: Australian Investing Thread
« Reply #245 on: October 12, 2014, 10:04:40 PM »
Gday all,

First time poster, but I've been madly going through the forum trying to get smart.  I was introduced to MMM ~6 months ago by someone, and it has quite literally changed my whole perspective on life.

This thread is solid gold, and I've learnt a ton already, superannuationfreak's guide - genius!

Aaaanyway back to money matters... a couple of months ago there was some discussion about LICs, enough to get me interested and investigate further.

Now to introduce my stupid (the reason I haven't posted yet).

- Does a LIC trade at a discount (or premium) until announced otherwise (i.e. is Septembers ASX report still valid for October purchases)?

I'm currently building my knowledge base so I can be best informed when I do jump in.

Thanks for all your wisdom.

Andy


The Falcon

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Re: Australian Investing Thread
« Reply #246 on: October 12, 2014, 10:43:46 PM »
Hi Andy, no, the share price relative to NTA will move around each day depending on share price movement of the LIC and price movement of the underlying securities. Some brokers maintain spreadsheets that will give them a pretty good idea of current day NTA to assist clients. Personally not seeing a lot of value with the LICs now, AFI and ARG are holding up well compared to the market.

Andy_in_Aus

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Re: Australian Investing Thread
« Reply #247 on: October 12, 2014, 11:10:45 PM »

Thanks Falcon,

Now I've overcome the first post jitters... right now I'm reading the prospectus for Perpetual Equity Investment Company (LIC), which is floating on the 21st of Oct.  Anyone have any thoughts?


The Falcon

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Re: Australian Investing Thread
« Reply #248 on: October 12, 2014, 11:27:34 PM »
had a quick look, this is Perpetuals grab at SMSF dollars flowing in to the traditional LICs. At 1% MER they are going to need to significantly outperform....I worry about portfolio churn with these guys chasing headline numbers, not after tax return for investors. There are many better offerings than this new LIC imho. 

deborah

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Re: Australian Investing Thread
« Reply #249 on: October 12, 2014, 11:54:07 PM »

Thanks Falcon,

Now I've overcome the first post jitters... right now I'm reading the prospectus for Perpetual Equity Investment Company (LIC), which is floating on the 21st of Oct.  Anyone have any thoughts?
Why???