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Banned
JB, if you were to start out again, how large a portfolio would you get to before deciding to turn it into a trading company? Is there some cost efficient point where say 100k or 200k for arguments sake, becomes worth setting up a company for?
Forgive my ignorance here, I have been investing for a while, but only "trading" so to speak for a short time.
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"Stockpicking legend Warren Buffett and index champion John Bogle both knew the other was right about investing"
"https://www.marketwatch.com/story/stockpicking-legend-warren-buffett-and-index-champion-john-bogle-both-knew-the-other-was-right-about-investing-2020-12-10?siteid=yhoof2"
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![Quote](images/misc/quote_icon.png) Originally Posted by arekaywhy
JB, if you were to start out again, how large a portfolio would you get to before deciding to turn it into a trading company? Is there some cost efficient point where say 100k or 200k for arguments sake, becomes worth setting up a company for?
Forgive my ignorance here, I have been investing for a while, but only "trading" so to speak for a short time.
Guess it comes down to personal preference.. and trading styles I follow a trader on twitter than has 100k he leverage trades and makes silly money with it and just removes his gains each month sometimes he’s pulling out 100k+ for the month ...now if course it would make sense to trade within company structure..
At present it costs me $1750pa in accounting costs and from memory $500 to setup my company “JBM Trading ltd”
Expenses run 15-20k pa (so basically my company pays for much of my fuel & travel , skytv , cell , internet , tv payments... interest on loans basically anything I use within my company I claim ...so no tax till my profit is higher ..
I like the fact I can do want I like when I like within the company buy sell hold buy another trading investment (I have small 18k pa profitable vending business the same company owns)
As to the amount one should think about setting up company structure? All personal preference.. I trade Shares on average 50-100 times a year ... if your less than 10 I would think staying as tax free investor a better fit
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Banned
![Quote](images/misc/quote_icon.png) Originally Posted by JBmurc
Guess it comes down to personal preference.. and trading styles I follow a trader on twitter than has 100k he leverage trades
...
As to the amount one should think about setting up company structure? All personal preference.. I trade Shares on average 50-100 times a year ... if your less than 10 I would think staying as tax free investor a better fit
Thanks for that. It certainly helps with perspective and I am only just starting out really, so in the small number of trades camp.
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Change of US of A govt likely a good time to review those company investments again
"Created in MarketSmith, the screen below emphasizes metrics when looking for companies with long-term past and potential future growth. To make the list, each stock must meet a wide range of criteria, including:
Top 25% of all stocks in terms of five-year annual EPS growth rate.
Top 15% of all stocks in terms of sustainable growth.
20% or greater sustainable growth.
12% or better return on equity.
15% or greater sustainable EPS growth rate."
Do your shares make the list?
https://www.investors.com/research/w...gy/?src=A00220
The fox in the hen house again "BlackRock Chief Executive Larry Fink on Tuesday said a leading investor flagged to him concerns about stock market valuations and the possibility of inflation breaking out"
https://www.marketwatch.com/story/bl...siteid=yhoof2#
Last edited by kiora; 21-01-2021 at 06:06 AM.
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Been a while since I posted .. funny as since MAR22 I've been full-time focused on Share trading 40hrs+ per week ..prior 18yrs+ was just part-time working in with a seasonal fishing job (not ideal away from internet etc)
Have booked a family holiday to celebrate in April marking 2yrs running the trading company and only surviving on its balance (pretty scary in the early days thinking I might well be looking for another form of employment tail between my legs!!!!!)
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Thought I'll drop this post here from HOTCOPPER .. Shows why I love being a trader and not just a BUY and HOLD investor ... (another poster was calling me out saying my MAY av was out 10c bah bah)..
__________________________________________________ __________________________________________________ ______________________________
I decided to go through every trade I've ever done with MAY + MAYO since I first invested in the company OCT 21 in its new name ticker (I did once hold MEO a longtime ago)
And I was greatly rewarded for my efforts 40mins+ ...
so because of all the trades I ended up with a present free carry position of just over 2mill shares + Profit of $68k for some 50+ trades ...and this even includes that 16c purchase you go on about ...
I did very well in my earlier trades purchasing 2.76mill shares from 2.1c to 2.8c then selling 766k shares for 7.6c
I then added back to 2.518mill from 5.6c - 7.4c
then selling mid 7's etc etc
then buying back in never selling all but just portions ... so 2.5mill to 2 and then back then sell down to 1.5mill and back to 2mill etc
lowest my free carry holding got to 1.04mill shares with a 130k realised profit from the trading of MAY-MAYO
MAYO was just a small amount of trading in for 1.4mill 1c out from 3.6c to .7c ( I recall I sold the opts and put those funds into MAY shares)
buying late 2021 and have NEVER not held MAY shares since OCT21 ..so just under 3yrs
Hoping to exit for a great total profit later this year to next .. my target is 25c min .. which would be a nice total $568k profit for the 3yrs+ of trading/holding MAY will certainly be one of my better trading results from one company..
Had I not traded the initial late 2021 investment at present I'd have seen my $68k move to the present 5.5c value $151,800
Trading has seen me free up $68k+ free carry 2mill+ shares worth $113,800 =$181.8k ... so $30k extra from the trading Vs holding ..
And many of my 50x trades weren't great some costing me 10's thousands ...but that's trading always learning the craft..
Last edited by JBmurc; 01-05-2024 at 09:36 PM.
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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Member
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![Quote](images/misc/quote_icon.png) Originally Posted by JBmurc
Guess it comes down to personal preference.. and trading styles I follow a trader on twitter than has 100k he leverage trades and makes silly money with it and just removes his gains each month sometimes he’s pulling out 100k+ for the month ...now if course it would make sense to trade within company structure..
At present it costs me $1750pa in accounting costs and from memory $500 to setup my company xxxxxxxxxxxxxxxxxxxxx
Expenses run 15-20k pa (so basically my company pays for much of my fuel & travel , skytv , cell , internet , tv payments... interest on loans basically anything I use within my company I claim ...so no tax till my profit is higher ..
I like the fact I can do want I like when I like within the company buy sell hold buy another trading investment (I have small 18k pa profitable vending business the same company owns)
As to the amount one should think about setting up company structure? All personal preference.. I trade Shares on average 50-100 times a year ... if your less than 10 I would think staying as tax free investor a better fit
You might want to remove the reference to your company name. A quick search on companies office give both your details, your wife's etc....
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![Quote](images/misc/quote_icon.png) Originally Posted by blackcap
You might want to remove the reference to your company name. A quick search on companies office give both your details, your wife's etc....
Yes this is a problem but thankfully something ACT is sorting out shortly:
https://www.parliament.nz/en/pb/sc/m...amendment-bill
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