Hi, I'm new to this forum and just want to have a chat about my current investment portfolio. I owned shares about 15 years ago, but to be honest, I didn't make any money back then.
Since November, I finally have some extra cash to invest and have started building my portfolio. My plan is to invest $100k in NZ shares, $200k in a Gold ETF, and another $50k in a Smart US Large Growth ETF. I've bought a few shares and ETF in the beginning of Dec and slowly start to build my portfolio.
Below is my pick of shares, focus on long-term investments rather than short-term trading
Infratil – Long-term hold;
Contact Energy – Medium- to long-term hold.
Summerset – Long-term hold, but the current share price seems too high, so I'm waiting for a correction.
ANZ – Long-term hold; again, the share price is too high right now, so I'm waiting for a reset.
Spark – Short- to medium-term; I think the current share price is undervalued, but I'm not confident in its long-term potential.
Does this portfolio seem reasonable? Am I diversifying too much? Should I cut this list down and focus on just 2–3 shares instead?
Additionally, where would you recommend investing in a Gold ETF?
Should I stick with Smart Gold ETF or consider other foreign Gold ETFs? (The current weak NZD makes buying offshore Gold ETFs less appealing.) thanks in advance.
Quote from: Cloudy on Dec 06, 2024, 05:20 PMHi, I'm new to this forum and just want to have a chat about my current investment portfolio. I owned shares about 15 years ago, but to be honest, I didn't make any money back then.
Since November, I finally have some extra cash to invest and have started building my portfolio. My plan is to invest $100k in NZ shares, $200k in a Gold ETF, and another $50k in a Smart US Large Growth ETF. I've bought a few shares and ETF in the beginning of Dec and slowly start to build my portfolio.
Below is my pick of shares, focus on long-term investments rather than short-term trading
Infratil – Long-term hold;
Contact Energy – Medium- to long-term hold.
Summerset – Long-term hold, but the current share price seems too high, so I'm waiting for a correction.
ANZ – Long-term hold; again, the share price is too high right now, so I'm waiting for a reset.
Spark – Short- to medium-term; I think the current share price is undervalued, but I'm not confident in its long-term potential.
Does this portfolio seem reasonable? Am I diversifying too much? Should I cut this list down and focus on just 2–3 shares instead?
Additionally, where would you recommend investing in a Gold ETF?
Should I stick with Smart Gold ETF or consider other foreign Gold ETFs? (The current weak NZD makes buying offshore Gold ETFs less appealing.) thanks in advance.
Velcome to ze vorum Cloudy. Vor others to comment, really you need to geeve us your objective. Zomething a little more nuanced zhan just 'making money'.
But as a general 'virst thought' you have 5 nzx possibilities, zpread around een vot vould loosely be described as 'utility zhares' (i.e. providing 'ezzential zervices', different zervices in zhis case, vhich people need). Zounds like a 'good ztart' vor a 'buy and hold' type investor, and zuch a portvolio zhould provide a decent 'income ztream' as vell.
Ze 'zmartzhares 'US Large Growth ETF' zhould provide diversification eento market areas not commonly represented on ze NZX.
Vot eez vith ze very large commitment to Gold though? Not zure how zhat vits eento your long term vision?
RB
Quote from: Cloudy on Dec 06, 2024, 05:20 PMHi, I'm new to this forum and just want to have a chat about my current investment portfolio. I owned shares about 15 years ago, but to be honest, I didn't make any money back then.
Since November, I finally have some extra cash to invest and have started building my portfolio. My plan is to invest $100k in NZ shares, $200k in a Gold ETF, and another $50k in a Smart US Large Growth ETF. I've bought a few shares and ETF in the beginning of Dec and slowly start to build my portfolio.
Below is my pick of shares, focus on long-term investments rather than short-term trading
Infratil – Long-term hold;
Contact Energy – Medium- to long-term hold.
Summerset – Long-term hold, but the current share price seems too high, so I'm waiting for a correction.
ANZ – Long-term hold; again, the share price is too high right now, so I'm waiting for a reset.
Spark – Short- to medium-term; I think the current share price is undervalued, but I'm not confident in its long-term potential.
Does this portfolio seem reasonable? Am I diversifying too much? Should I cut this list down and focus on just 2–3 shares instead?
Additionally, where would you recommend investing in a Gold ETF?
Should I stick with Smart Gold ETF or consider other foreign Gold ETFs? (The current weak NZD makes buying offshore Gold ETFs less appealing.) thanks in advance.
Welcome to the forum, cloudy.
And maybe first a disclaimer ... nobody can give you investment recommendations or advice without knowing your personal circumstances - i.e. take anything you get here as an idea for further investigation, but never just follow advice from others (and certainly not from an anonymous forum). Even if its genuine and considered, it might be highly unsuitable to your personal circumstances.
In this spirit - I have first a handful of questions you should at least ask yourself:
What is the purpose of this portfolio? do you want to make money as fast as possible (and are happy to take high risks) or do you want to slowly grow a nest egg which you will rely on in your autumn years? Or are you saving money for a particular event (like buying a house)? Do you look for income or for capital appreciation? What is your risk tolerance anyway - are you happy to chase high gains but can live if you loose half of the principle on the way? Dependent on these questions your portfolio would need to look quite differently.
Without knowing your answers, just some generic observations:
More than half of your proposed portfolio is in gold. That's a lot, particularly considering that gold is currently on all time highs. Check out the historic gold trend and ask yourself, how you would feel if gold drops back by 50 to 80% (as it did several times before in the last 100 years).
Many people say gold belongs into a long term portfolio, and I don't disagree, however - more than 50%? Most experts recommend not more than 5 to 10 %.
Looking at your proposed NZ shares ... apart from Spark all good companies (i.e. likely to hang around for decades to come), but I would most of them currently see on the too dear side. Spark - well, you can check my views on the respective thread (and yes, as usual, there are other investors who see it differently).
I notice as well that a number of investment categories are missing in your portfolio. OK - one could classify SUM
as property share, but otherwise - what about ARG, KPG, other Retirement villages?
Personally
- I would put a higher percentage into productive overseas companies - and yes, Index ETF's might be a good solution.
- I would put a higher percentage into property (not just SUM)
- I drastically would reduce the gold component and for NZX share I probably would look to invest into reliable good earners with a reasonable growth component. HLG, TRA, SKL (but there are many more than internet forums might indicate) would be examples for this category.
- Ah yes, and I invested as well a material part of my portfolio into food producers ... but hey, this is just me. I need food and just thought that others might have a similar problem :) ;
Anyway - happy investing ...
my long term goal is to build a long-term investment portfolio towards retirement, which will be around 15 years. I know Gold is high but think it will go higher, but maybe I should wait for a correction instead of rushing into it now?
Quote from: Red Baron on Dec 06, 2024, 09:20 PMVelcome to ze vorum Cloudy. Vor others to comment, really you need to geeve us your objective. Zomething a little more nuanced zhan just 'making money'.
But as a general 'virst thought' you have 5 nzx possibilities, zpread around een vot vould loosely be described as 'utility zhares' (i.e. providing 'ezzential zervices', different zervices in zhis case, vhich people need). Zounds like a 'good ztart' vor a 'buy and hold' type investor, and zuch a portvolio zhould provide a decent 'income ztream' as vell.
Ze 'zmartzhares 'US Large Growth ETF' zhould provide diversification eento market areas not commonly represented on ze NZX.
Vot eez vith ze very large commitment to Gold though? Not zure how zhat vits eento your long term vision?
RB
LOL, there's nothing wrong with investing in food producers. I'm also working for an FMCG company, and we've had a pretty good NPAT this year (compared to being in a loss position last year). 😄
Thanks for the advice! I quickly went over the discussions about Spark—there are a lot of valuable opinions. I probably should read everything thoroughly before rushing into buying it.
I'm building an investment portfolio for retirement, which is about 15 years away. Yes, I'm prepared to lose all the money, as investing is inherently risky. I also have other more secure investments, and $300k is the maximum loss I can tolerate—though hopefully, it won't come to that.
Yes, property will likely bounce back next year. However, given my limited investment, I think it's better to focus on 3–4 shares, my top pick will be ANZ, Sommerset, Infratil, Contact Energy. I still value Gold as a long term investment but will rebalance it.
Quote from: BlackPeter on Dec 07, 2024, 11:10 AMWelcome to the forum, cloudy.
And maybe first a disclaimer ... nobody can give you investment recommendations or advice without knowing your personal circumstances - i.e. take anything you get here as an idea for further investigation, but never just follow advice from others (and certainly not from an anonymous forum). Even if its genuine and considered, it might be highly unsuitable to your personal circumstances.
In this spirit - I have first a handful of questions you should at least ask yourself:
What is the purpose of this portfolio? do you want to make money as fast as possible (and are happy to take high risks) or do you want to slowly grow a nest egg which you will rely on in your autumn years? Or are you saving money for a particular event (like buying a house)? Do you look for income or for capital appreciation? What is your risk tolerance anyway - are you happy to chase high gains but can live if you loose half of the principle on the way? Dependent on these questions your portfolio would need to look quite differently.
Without knowing your answers, just some generic observations:
More than half of your proposed portfolio is in gold. That's a lot, particularly considering that gold is currently on all time highs. Check out the historic gold trend and ask yourself, how you would feel if gold drops back by 50 to 80% (as it did several times before in the last 100 years).
Many people say gold belongs into a long term portfolio, and I don't disagree, however - more than 50%? Most experts recommend not more than 5 to 10 %.
Looking at your proposed NZ shares ... apart from Spark all good companies (i.e. likely to hang around for decades to come), but I would most of them currently see on the too dear side. Spark - well, you can check my views on the respective thread (and yes, as usual, there are other investors who see it differently).
I notice as well that a number of investment categories are missing in your portfolio. OK - one could classify SUM
as property share, but otherwise - what about ARG, KPG, other Retirement villages?
Personally
- I would put a higher percentage into productive overseas companies - and yes, Index ETF's might be a good solution.
- I would put a higher percentage into property (not just SUM)
- I drastically would reduce the gold component and for NZX share I[probably would look to invest into reliable good earners with a reasonable growth component. HLG, TRA, SKL (but there are more others than internet forums might indicate) would be examples for this category.
- Ah yes, and I invested as well a material part of my portfolio into food producers ... but hey, this is just me. I need food and just thought that others might have a similar problem :) ;
Anyway - happy investing ...
Hey Cloudy,
To add to the good advice above - I was concerned that you were prepared to lose all your money, which says to me you may not be using all the tools available to assess the quality of your stock holdings.
That's where the wealth of experience on both Stocktalk and Sharetrader comes in.
Talking here about use of FA and TA and the nuances that various forum experts will point out to help you make good decisions.
Percy aka Lorraina's investing rules, KW's rules and knowledge in interpreting TA signals, Basil's accounting knowledge of metrics and ability to sniff out times to buy or sell, and there are many more ...... all available for free - an amazing resource.
Read back through the pages for snippets of info on stocks of interest.
The idea is to use all this that's available to reduce your investing risk, help with your decisions and make some damn money.
Congratulations on reaching out and Good Luck.