What are your Investment Rules?

[kiora]

"What investors should do next after making a mistake"

FPH:Who has held,who sold?,who traded?
I brought these in the original float at $4,couldn't believe it when they dropped within 6 months,so I was able to double down at $3
Sharesight only goes back to 2014 but since then 22.57% compounding.
Who still holds besides me?

I held :My mantra is holding companies that are compounding growth >15+% & are intergenerational.Yes the SP got a "sugar fix" from covid but the company is still intrinsically growing at 15% compounding.The SP over reacted on the upside & the downside.What covid did for FPH was enable them to buy a large land bank for their next campus with the proceeds, with little debt.Brilliant for FPH I say.
Traders could have cashed in big time but that's not my mantra or in my DNA.
One I did get wrong.GTK Did own but sold when earnings slid.Should have,could have brought back in,kicking myself ):Sharesight says 16.4% compounding if I'd held,if I brought back in 2 years ago,169% ,is that right?
But that would have meant finding the money from somewhere else.Dilema !

https://www.livewiremarkets.com/wire...D%20OUT%20HERE

"“If you’re going to recognise whether you need to upsize or you need to cut, you need a really clear roadmap around what it is that you think is different about this stock from where the market is pricing it at the moment,” Johnson says.
He argues it is just as important to know when to exit a position as well as knowing when to hang on.
Johnson recommends starting small on new ideas so you have the ability to build up as your thesis plays out – or cut with minimal losses if you find you need to completely reassess your thesis."

With initial IFT $10,000 ,sold & reinvested in IFTBW to get more leverage,converted these & kept reinvesting & adding.Now supersized.It would be a mission to know how much I've added over the years but Sharesight says 18.44% compounding since 2014.

"What would you say is the most critical factor to success when it comes to portfolio management?

Really good portfolio management is a combination of two quite different attributes.

I think you need patience and you need aggression, and most people have got one or they've got the other. I think the really good portfolio managers have the ability to combine those two things.
The great opportunities are rare and you need to wait for them. And then when you see them, you really need to capitalise on it precisely because they are so rare. And putting those two things together I think is the key."

Double up,not cash up,& NOT FREE CARRIED INTEREST,thats bollocks!

PS Not my cup of T firstly because of liquidity & al but a recent example of needing to be agressive if you wanted in.Indicaters were firing,SH notices,new investor,directors buying,OBV.
Then buy "on market" as Balance mentioned otherwise just another missed opportunity.

https://stocknessmonster.com/charts/...oogle_vignette

[kiora]

"What creates the next great "market champion"?"

https://www.livewiremarkets.com/wire...RKET%20LEADERS

"One of the fundamental lessons of investing is that the cycle dominates almost everything."

"These are three examples of signs of businesses that are cyclical. They are good on their own, but given a specific tailwind behind them, they can become extraordinary flavour-of-the-month stories. But this story isn't about them. This story is about creating the kinds of businesses that can surge during one cycle and stay there."

""While the timeline of each cycle is highly uncertain, the vast majority have eventually succumbed to new entrants. Some have gone to zero; some are still relevant today but have underperformed the broader market,"

"In terms of pricing, we see meaningful divergences within the cohort of current champions—in some cases, valuations look consistent with these companies' strong prospects, and in other cases, more outperformance than is likely looks priced in," they said.
Finally, Bridgewater argues that if you want to avoid "the forces of creative destruction" (and regulation), which have brought down many a market champion, they argue owning an equally weighted portfolio is a superior long-term idea. "

BUT the higher the spread the lower the potential return.My "portfolio of stocks & FUM of 6" is kept concerntrated to maximize returns on purpose.A concerntrated portfolio if done right produces outperformance & CASH IS NEVER KING! LIQUIDITY IS ALWAYS KING! Why would you pay someone to hold cash???

[kiora]

"Put $10,000 in the S&P 500 ETF and Wait 20 Years"

https://www.investopedia.com/article...t-20-years.asp

"Indeed, over long-term horizons, the index typically produces better returns than actively managed portfolios, especially after taking into account taxes and fees."

"If Trump had done so back in 1987, he would have made 26 times his money for an average annualized return of 12.3% by the time he was inaugurated (from 1987 to 2015—the date of calculation for projected net worth). But hindsight is 20/20, and he could not have known that."

"One of the biggest reasons why it is impossible to predict stock market returns over a long period of time is because of the existence of black swans."

"November 1968 through December 2020—a span of more than 50 years—the average length of a bull market was 1,764 days (or approximately 58 months), while the average bear market lasted 349 days (11.5 months). Over this period, the average gain in a bull market was +180.04%, while the average loss in a bear market was -36.34%."

"The most recent 20-year span, from 2001 to 2021, not only included three bull markets and three bear markets, but it also experienced a number of major black swans with the tech wreck and terrorist attacks in 2001, the financial crisis in 2008, and the COVID-19 pandemic.
Despite these unprecedented events, the S&P 500 still managed to generate a total annual return of 8.06% with reinvested dividends."

"1987 to 2006,return an average of 11.24% with dividends reinvested,"

" In one of his annual letters to shareholders, Warren Buffett included an excerpt from his will that ordered his children’s inheritance to be placed in an S&P 500 Index fund because the “long-term results from this policy will be superior to those attained by most investors—whether pension funds, institutions, or individuals who employ high-fee managers."

https://www.google.com/search?q=what...hrome&ie=UTF-8

[kiora]

alokdhir Suggests USG Fund:Smartshares US Large Growth ETF Units as outperforming IFT

USG: Listed 1-8-15 ? @$3.35 ,$11.60 19-7-24,9 years,CAGR 15.11% CAGR Sounds pretty good.

MFT:Last 10 yr 20.03% CAGR so yes pretty good.Is this going to continue? Last 2 years 7.22% CAGR.Likely to BUT unknown how long it will take to get traction outside NZ & Aust & will Cardinal make any inroads on the market in NZ with their state of art warehousng & automation???
I like the self funding growth strategy though.I did buy a handfull recently for a trust to dip the toe @ $69

IFT : +/_ depending on the time period?

From 18-7-14 Sharesight CAGR 18.45%

On 1-8-15 ? @$3.25 ,$10.85 19-7-24,9 years,CAGR 14% CAGR

But I already have 3/4 FUM outperforming that so looking to invest 30% of the portfolio in intergenerational listed companies.
In companies that IMO will be around for a prolonged time & >15% CAGR.
Why ?Because when I go gaga the next generation have no need to have any knowledge of investing but benefit from the returns of the "porfolio" without cashing up

Toddy suggests Trifecta :Already hold FPH

Over last 10 years 26.68% CAGR

Close to being quartet with EBOS:20yr CAGR 13.92% but needs another T/O to grow? Would need to take on substantially more debt to grow?

[kiora]

Whats not to like.It just takes some effort,willing to learn/change & time

What happens when the computer is not accessable?
And its not intergenerational investing
Sounds like an emotional rollercoaster?
Certainly not for everyone or me

"Meet Rod: The technical trader who learnt to wire his brain for success

https://www.livewiremarkets.com/wire...THE%20INVESTOR

When Rod hit rock bottom he realised he needed to make a major change in his life. Now, he helps others do the same."

"He had no training in business management, and although he ploughed on, eight years later he was in over a million dollars of debt.

"It nearly killed me—crippling anxiety, rock-bottom self-esteem, and a paralysing fear of failure. Even a near-death experience!" Rod says.
"My breakthrough was a chance gift, a book. I learned you could fundamentally change your negative beliefs, thinking and emotions with a little basic neuroscience and positive psychology. I now call this process 'wiring your brain for success'."
These personal changes fed through to Rod's veterinary practice. His clients and team were happy - and the business saw a 712% jump in profits. "

How would you describe your strategy and your investment goals?
I am an active long-side technical trader on the ASX. My investment goal is to generate sufficient cashflow from our trading account to fund our living expenses while preserving our cash reserves.

A technical trader uses only the momentum or trend of a share price to make their buying and selling decisions. Company fundamentals and dividends play no part in the decision-making process. Instead, the technical trader uses charts and analysis of price movements to invest in an uptrend (or a downtrend if they short sell). They sell the share with the trend is broken by a downward movement of the price (or upward movement if they short sell).

I was attracted to this method because I found the returns are better than a more long-term buy-and-hold approach. It does take knowledge and hard work! You also tend to be out of the market during big corrections or bear markets and that is comforting too.

I hold these positions because they have satisfied my criteria on the date of purchase, namely:

They are sufficiently liquid. Their 200-day Simple Moving Average (SMA) is rising. Their 20-day SMA is above their 50-day SMA. On the day prior to purchase, they produced a white candlestick with the close above the 5-day SMA. I will exit the positions when they hit their stop losses. I use a multiple of their Average True Range to calculate their stop losses

"The best investment has been in my own growth and development."

"My personal changes fed through to my practice: happy clients, a highly motivated team, and a 712% jump in profits. I created the business life of my dreams, and it totally transformed my life—to one of calmness, confidence and a love of living."

So many lessons!

It doesn’t matter whether you are a short-term trader or a long-term property investor, compounding is your friend. Learn to stay the distance.
We all know trading and investing are emotional journeys full of highs and lows. As much as financial literacy is essential, the ability to master our own thinking, beliefs and emotions is a critical skill too. Controlling fear enables you to maximise your analytical skills and rational thinking processes.
Don’t panic! I learned this lesson the hard way. I suffered a big drawdown in the trading account, panicked and got out. The market bounced back five days later.
As a technical trader, I set my stop losses, and act on them no matter what.
Cut your losses. Let your winners run… (until they hit your stops!)
No one has all the answers or knows what’s going to happen tomorrow. (Think GFC, Covid, or the invasion of Ukraine.) Learn from your lessons, and act on today’s information.
No matter how tough or bad it seems, the sun will still rise tomorrow. It’s a new day, and a new chance to make a positive difference to someone’s life, and your own.
Continually invest in yourself – in your education, health, mental well-being, relationships, and lifestyle. It all helps when times are tough, and you have an absolute blast when times are good!

[kiora]

Pretty sad ?

http://www.sharechat.co.nz/article/7...y+20+July+2024

[kiora]

Rainy day

So Charlie Munger says its easy to have $1,000,000 in investments by retirement age of 65
BUT first an investor must have $100,000

AND if it is compounded at 15 CAGR
https://www.moneyhub.co.nz/compound-...alculator.html

So an investor needs $100,000 ,an CAGR of 15, by 48 yr old,then it takes 17 years to get to $1,000,000 at retirement age.

Surely its easy to have $100,000 by 48 YO ,that's only $5000/yr over 20 years if start at 28 YO.

Time & Compounding are SO important to reach that target.

BUT who manages to have investment returns of 15 CAGR?

If CAGR is only 10 then portfolio will need to be $100,000 by 40 YO and have saved $8,333 /yr over 12 years if start at 28 YO

FIRST
Start with $10,000 invested and CAGR of 15,then its easy?
The younger investing is started the easier it is
A 17 YO investing $10,000 with a CAGR of 10 is nearly there