Forum Archive Index - September 2003

[Matt & Vanessa <vibez@paradise.net.nz>]

Hey.  Well, there's certainly some truth in that.  Generally speaking, the winners don't stay winners for a terribly long period of time, and the market tends to regress to the mean anyway - which means your top-picks can become decidedly average.

 

I may not become rich overnight, but it still my intention to do so.  While our investments are growing (we have, after all, only been going eight months), I think it's extremely important that my portfolio offers a good degree of risk cover.  Diversification will give me that.  The last thing I need is for 20% of my portfolio to tank, and given that I'm not a trader per se (brokerage fees bite too much at this level of investment), I need reasonably continuous growth to get a bit of impetus going.

 

So I constructed my portfolio using a range of variables, primarily based on dividend yield (published) and potential capital growth (guess-timated) for each share, multiplied by the target weighting for each, and arrived at a figure (courtesy of my friend Excel).  That figure comes out at just over 13%.

 

If I can match that figure I think I will have done well - which may be a euphemism for "settling for less", but in these low inflation/low interest times is significantly better than what I'll get at the bank, for what I would consider to be a managed level of risk.

 

As it happens, due to that little pearler Wrightsons and my hunch pick Baycorp Adv., I'm actually almost 17% to the good.

 

I'll take it!

 

smasha

 

 

 

 

portfolio theory diversifies away your  risk as well as your return, my suggestion would be to trade 1 - 2  times a year ( stick all your eggs in one basket )

 

if you have done your research and you know your right why not go in large, I put everything I had into gold after 100's of hours of research, if it had not come off I would have been stopped out and still had 70 - 80% of my capital

 

you will not get wealthy by conservative investing making 15% in a good year