I am currently looking to invest $9999 in ASX listed shares. Investing frame is 7 years from today.
$3333 each
Here are my top picks:
BUB
FMG
MYX
What’s yours?
Please remember: investment term is no lesser than 7 years
If You Had $9999 to Invest in 3 ASX Shares, Which 3 Would You Buy?
Aerith-Waifu on 29/07/2018 - 01:19
Last edited 29/07/2018 - 02:18
Last edited 29/07/2018 - 02:18
Comments
Telstra is really a defensive stock, CTM I am not sure, but iSelect could be worth look into
ISU is a big swing either way kinda bet. You either think Compare the market will take it over and it soar. Or you think it wont and it'll drop back. But with 19.99% stake, you'd tyhink Compare the market is planning something. And given their last bought their ISu stake at 80c, it provides a bit of a floor in ISU stock. So a good risk/reward bet.
Had a look into this in depth this morning, looks like a good growth stock to add into the portfolio.
I may split into $2500 shares x 4.
Can you please explain defensive? I bought TLS about 6 months ago with little research and its down 25%. Was thinking of selling. (I bought because I was all "but low right?"…but it just keeps getting lower….
It's up about 6% since I bought :)
Thoughts on TPG shares?
TPG boom is over. If you had invested when ADSL2+ was rolling out and then cashed out when the first NBN plans were available you would have made nearly 100 fold profit on your investment.. it was a long play bitcoin basically but less higher.. bitcoin was like $50 to $15000 a 300 fold profit if you played it right.
Not necessarily. Depends how well they implement their mobile network in the near future.
Bitcoin was in the cents for years.
@Haters.Inc: Yeah but I personally would have bought around the 20 to 50 era. I got excited around the 3 to 5 era but was only speculating around the cents to 3 dollar time period.
It is all about what you would have realistically done and acted upon and not hindsight fantasy bs.
I could go into why I kept not buying into it as it kept rising but I think I shed enough crazy on this website enough as it is.
Agree with others that say TPG boom is come and gone. Even with their proposed cheap data plans coming out no one likes their coverage and won't compete with Telstra's 5G due out soon.
I second ISU… Other options are
1. WSA (pure Ni play with strong balance sheet and growth options, this one should rally once the trade war garbage subsides)
2. TGA (deep value play, but be patient)
3. ORE (Li stocks seem to be out of favour for the time being… but this one has relatively strong cash backing, and a strategic stake by Toyota who bought at $7 + earlier this year)All the best
TGA, what does deep value play mean?
VGS VAS VGB
All vanguards? good investment but maybe a bit too late to the party as prices has risen quiet alot…
The market never goes down.
Untill they crash.
@dragonindespair: Crash and then eventually come back, unlike individual stocks that can become insolvent and go to 0
'they' as in 'the market' https://en.wikipedia.org/wiki/All_Ordinaries#/media/File:All…
Imagine not investing in the market for the long term (7+ years) at any point on this chart because…
maybe a bit too late to the party as prices has risen quiet alot…
I'd be wary saying that kind of thing to new investors. Australia for instance is due for a correction at some point. We've had great growth but how long is that growth sustainable considering for instance that the housing market is starting to slow?
I completely agree that markets only grow in the long term, but in the short term recessions can and do occur and new uneducated investors who are prone to emotional decisions could act irrationally in those circumstances. The combo mentioned is well diversified though.
@Ghost47: I hear you, the whole developed world has been in a bull market with nothing but cheap money for the past decade, however, OP is pretty deadset on investing in the ASX.
If he is going to invest at all, investing in the overall market is the low-risk option. What he seems to want is low cap tech stocks, and is trying to get fundamental analysis from Ozbargain to help make a decision, maybe it will pay off for him, but it just feels like he is trying to validate a punt.
@owli: Yeah true, and considering he's intending to stay in the market for 7 years there's nothing wrong with ETFs.
@owli: happy with small cap stocks with steady returns and growth. However due to my limited capital I can only invest in 3 stocks (4 at most)
The 7 years investment times will at least give me some buffer again stock market loses as it can take a few years to recover
However if goals are achieved before the 7 years is up I am happy to pull the money out and reinvest
@house2015: Can I ask why only 3? Brokerage eating into margins? If you sign up with self wealth, you get 5 free trades, and thereafter they are 9.50 each. No reason not to go with more stocks if you want.
@jsheroes: I like the idea of 3 but will consider 4.
Don’t like too much as it’s over diversitying in my mind
Yeah i think this is the play. I've just put $20k into a platform called Clover, they identify your risk tolerance and identify a number of investment categories to invest your cash. Mine i think they identify Aus Share, Int Shares, Developing shares, Property, and something else. They split my cash amongst it, and invest in a variety of ETF's (like vanguard) to spread your risk (Diversity)!.
I like it, because its a small (ish) management fee (unfortunately its on top of ETF management fees), and i regularly top up, and when i hit $1k in cash in the account, they invest more - and theres no brokerage.
I see this is a more long term investment, and it diversifies over more than 5 or so shares that i would have otherwise spent the $20k on. I put the cash in less than a month ago, and i'm already up 2.2% (my risk tolerance came out at "Growth").
FYI - I managed a team and worked for one of the larger stockbroking firms here in Australia for ~5 years, and while the above of course doesn't take into account anyone's own investment aims or risk tolerance, i find that these Roboadvice platforms are a great way to invest.
I've just put $20k into a platform called Clover
FYI - I managed a team and worked for one of the larger stockbroking firms here in Australia for ~5 yearsAnd now you work for Clover?
These middlemen labeled as 'automated investment services' just eat into your returns when all you are doing is buying ETF's
And now you work for Clover?
Haha, no not at all. Still work for one of the banks.
Agree, they eat into your returns, but if i was to make multiple transactions a year buying into various ETF's on market, and then when i want to sell, i calculate it would be much higher than the 0.5% fee from clover.
6 trades is ~$120 alone (i will re-invest every 2 months as my savings permit)
0.5% of $20k is ~$100If i want to sell out, its $120 all over again. In my opinion the $100 or so a year is small change to have everything easily managed, simple platform to monitor portfolio etc.
Interesting way to look at it re: insertion fees. I'd still be more inclined to go with one of the balanced Vanguard offerings instead like VDGR
@geoffs87: The big selling point is the hands off approach. Clover, Raiz et al are trying to bridge the gap between those with financial literacy who do their own research, invest directly themselves, and those who either don't know what they're doing or can't afford the time to do the research and investments themselves. Putting aside the fact that all they do is but and sell ETFs for you they do offer a far cheap and more engaging investment platform than the more traditional managed funds out there.
@simgue: Yeah Agreed, i suppose that was partly my point also… I certainly know what I'm doing when it comes to research, and i would argue I'm far from financially illiterate, BUT i like the simplicity and platform, and not having to invest so much time into research and transaction when i have other things to do!
I like VEU and VTS to a larger extent, WHY? its all relative… if you think the Global growth rate will be superior to that of Australia then that's the place to be. Also these funds are not currency hedged so if the AUD goes down as many expect that's the icing on the cake in terms of return. VEU is a global (excluding US) fund and VTS is US centric fund, both give you good geographic spread, the asset diversification is big names/large cap household names however a little tech heavy I recall, both have returned 2 percent since i dived in less than a month ago.
yeah, My pick would be
VTS-> for USA exposure
VEU -> for world excluding USA exposure
A200/VAS -> for Australia exposure and to get benefits from franking creditsVEU does include australian exposure so there will be a little bit of overlap with VEU and VAS/A200.
I prefer A200 for the lower management fees compared to VAS.
Spiders have lower fees than vanguards. I'd probably just put it into STW.
NVDA INTC
And some other tech stock.. tech is and has always been the future and I think gaming and computing in general will only get better and grow larger.
If there was a solid solar stock I would probably grab that too but I don't know the big solar players so maybe best not too unless you know who is the main player.. they are basically the Samsung and Apple of the mobile world now five ten years ago.
Robotics would be cool but I have no leads on anything but Boston Dynamics is a household name now so if they get more breakthroughs they could skyrocket.
7 years would be 2025.. nanotechnology would be interesting but it has been a sleeper for the past 30 years.
Everybody says internet of things and automation will be a big game changer in the next 5 to 10 years but I honestly don't see it. I guess they are talking about the older crowd in which case maybe because the young crowd is already using it in their routine and showing it off to their friends on Facebook and Instagram daily.
Good input for sure. I too like tech stocks but I am more into smaller tech rather than large corps. Any ASX listed shares on your list by the way?
No idea on the ASX part. Gonna sleep now might talk to you more when I wake up or find more info.
But to be honest I have no clue about Australian stock besides property development and maybe mining? Yeah no clue I am more tapped in to the international global developments and stuff.
ELO
Those aren't ASX… Anyway INTC seems to be heading down at the moment due to competition from AMD's new processors.
Yeah sorry this is all NASDAQ stuff. Yeah AMD putting up a fight but it is not really reflecting in their stock prices.
I think we will see another INTC boom come next gen stuff hit the shelves.
AMD's made the most profit they've done in the last 7 years, and Intel's cutting edge process (what's kept them ahead in the past) was delayed by several years.
AMD's stock just raised, and Intel's tanked, look at 5 day respective graphs for each as soon as this news came out.
@BenR31415: Honestly AMD could make a rise over the next few years the way Ryzen is playing out but I don't know if it will mean crazy stock rises because their gpu's personally for me have not been impressive ok at best but hard to sway from the green team imho.. i could just have some rose coloured glasses on but sell me on why AMD might outdo Intel both performance in the market wise and stock price wise
I mostly agree with you on the GPU side, although their cards are still competitive and freesync is much better than G-Sync when it comes to the value proposition which means that a potential buyer should probably go for an AMD card, unless they want 1080ti level performance in which case AMD has nothing to offer the consumer. They need a complete GPU overhaul though, like they did with CPUs.
AMD is going extremely strongly with CPUs, because their new way of architecting zen is much much smarter than what Intel is doing. It is extremely cheap for AMD to make CPUs, as first of all they only effectively need to put in the R&D for one CCX module and then scale it up from there by connecting multiple CCXs using infinity fabric. This means that there is very slightly more latency between cores, however ryzen 2nd gen has made this much better than 1st gen, and is also dependent on memory latency.
The killer market though is the server one. From AMD's point of view, it is ~4x times more expensive to make a 32 core epyc that sells for A$6000 to the server market compared to an eight core ryzen that sells for A$300. This means that it is very profitable to make these CPUs. Meanwhile, intel has trouble making a massive die 28 core xeon, because one single defect will break the whole chip (or at least mean it can't be used as a full 28 core), and the probability of a defect on a 28 core chip is much much higher than on a 4 core CCX. This means that intel's xeons cost much much more than AMD's EPYC processors, and also have a fixed size. Intel is limited to 28 cores at the moment when AMD is already at 32, and next gen they're going to 64 cores, or 48 if they decide to force market segmentation. Regardless, it's impossible for intel to make a chip that large on an economic scale, meaning that they lose their competitiveness on the high end desktop and server markets.
Intel has been kept ahead of the competition because of their new process improvements, but intel's 10nm is a disaster (they can only physically produce dual core chips with no integrated graphics), and TSMC's and Global foundries' 7nm processes are much more advanced than what intel can do, and considering their outdated architecture design and their lack of a competitive process intel will really struggle to keep competitive over the next few years.
AMD's architectural lead is only going to increase over time as they move to active interposers, allowing for more efficient transfer of data between CCSs, and allowing for even 5 die solutions, with different cheaper processes depending on pricing between process nodes for controller CCXs.
AMD's profit margins will go up massively as they'll be able to make much cheaper, faster processes with higher profit margins.
@BenR31415: Great write up I totally missed this. This makes a great case for the AMD boom in stock price now much more even clearer.
AMD is good
It is a tough decision they both have their pros and cons and yeah AMD is nearly at par now with Intel on the cpu front gpu front not so much imho.
Intel isn't in the GPU market though, NVIDIA isn't Intel
Good input for sure. I too like tech stocks but I am more into smaller tech rather than large corps. Any ASX listed shares on your list by the way?
Look for one dollar so I could type 10k
Sorry too poor, cant find the extra dollar. lol
Pro tip it is in your woolworths bag fees
ASX cannabis speccys on my watchlist are MMJ,THC, and CPH
very, very interesting proposal
MOE
SYD
NCMWill look into these
APT
CSL
CVNAfterpay is a must in your portfolio. They account for 10% of all online transactions in Australia and only getting started
That is not a fact, they don’t account for 10% of all online transactions. They said they account for 10% of the online buying population. Which, is so specific it’s highly likely it’s a guesstimate by management than a fact.
Also you are paying a pe of 100 or something silly for it, so I wouldn’t go crazy in Afterpay.Also ask yourself, what is after pay that isn’t already serviced. You buy now and pay later, this is what credit cards offer. The people who are using this service are people who either have maxed CC or can’t get one or don’t want one.
If you have maxed ur CC and u use AP, your probably not going to be a good paying client. Probably one of the ones in default.
If you can’t get a CC and use AP you probably non prime. AP don’t check credit worthiness with vigour, I mean how can they given they have about 5 seconds to do it, lol. If it was a 5 second job why has any lender done it before? It’s easy to give money out, the harder part is to collect…
The last category of users, the ones that don’t want a CC are AP best possible customers. But how many are there?lol, i've learnt a long time ago in investing that never get jealous of money that i dont make. If i do, i will end up chasing stocks that dont make sense to me.
And as the qoute says, its estimated, secondly, you should ask what "physical online retail" means. It seems a lot different from your claim of "all online transactions" Your overstatement is stark.
I will happily make my money else where. :) Good luck, i regularly get berated by others for missing out, i missed out on cyrpto and got called jealous. I dont care, i just dont like to see people risk their hard earned on speculative investments.
i wish you all the best Chumlee, i have nothing against you or the stock.
I simply invest for a living and i know havin either fear or greed will kill me. As it has others before me. I dont understand the stock well, i know this, and i have no greed to chase somethging i dont understand. But i do understand financials and this is hefty. I also know it took years upon years for insitutions like mastercard or Visa to get a large % of transactions. So for AP to come in in a few short years, offer something that isn't that unique (in my eyes anyway) and say they grabbed 10% of all transactions is pretty farfetched in my mind.
good luck to you, i hope you get $50 in 1 year and 100 in 3 years. I dont need it, Im happy with my 10-20% returns per year. If you do the maths and compound it i'll be very happy by the time i hit retirement.
Afterpay will be put out of business by someone with deeper pockets or bought out as a big boy like Amazon/Banks/Alibaba/Tencent will offer the same thing but only take 3% from the retailer instead of 6%. The big boys will also let the consumer stretch out repayments longer. This will be a race to the bottom and the big boys have plenty of money to burn.
The business is not really scaleable or expandable to other countries for the above reason.
There is nothing special about their product or IP e.g. google has a kick ass search engine, facebook etc.
Plus add potential government regulation as another person has written
The shares could still double but I would consider Xero instead if looking in the Aus tech space but Aus tech is crap as why would anyone list in Australia when there are more VC, funding options in the US and the talent is there as well. Perfect example Atlassian
@cloudy: Afterpay has doubled since OP's post and on the way to $50 when UK business is up and running for 12 months
Given the crack down on lending lately I am wondering when the government will step in and close up the loop holes that Afterpay currently exploit.
Never know this one. Thanks for sharing
Don't rely on my advice though. Go to liverwire.com.au and read analysts reports on afterpay
I just did, looks promising as they only started few years ago. Good find
Personally, I would be wary of AfterPay. I think the lending criteria will get tougher once people start to get into more and more debt.
What lending criteria?
They are not bound by the NCCP Act
Isn't APT overvalued? The stock has skyrocketed recently.
Oh hindsight
TIG
HTB
OTT
OMXI see what you did there… lol
I don't. What's in there? Oh see now
I don’t either, care to explain bit more?
HOU
SE2
015
Read again & check the username lol
MYR cause I need some tax losses
I think I will just stay away with this one…..
LOL
because you made me laugh out loudI'd rather burn my cash in casino than invest in myer lol
How they are still running I have no idea.. they are almost anti OZB at this point hah.. ok maybe not but personal opinion
MEB
IAM
S32The last time I saw telstra at this price, my work mate told me to go all in. He did and I didnt. Telstra then proceeded to see 100% growth. Now its back where it started. Its a long cycle but still not a bad return. Its very bluechip, so I dont see Telstra going under with their strangle hold over all telecom infrastructure.
Did your mate sell before the start of this year? If not he’s back where he started… Vanguard ETF would have given him a similar return and he’d still have it right now…
Yea he sold way back then. He was only in it for the rise and he was watching the drop in that cycle.
With tls the growth isn’t really there atm, I will consider it if it drops another 15%
People were saying the same things when it broke $5 in 2016, $4 in 2017 and $3 in 2018.
Telstra has been a falling knife. I'd wait a bit longer
A2m
This one hurts. Missed the boat when it was $5. Now I am too sacred to buy at the current price. But having said that, this could easily go past $20 in 7 years time. Decisions Decisions…….
never go a2m
Please explain bit more?
Ozbargain is not an appropriate forum to discuss the subject.
It has something to do with body parts I will let you fill in the rest.. human centipede if you still don't know. ok stopped
may i suggest: telstra ctm and isu ( this one short term)