Newbie needs help - Shares

Weblord said:
My opinion on shares are simple. There is no way you will become a millionaire in share investment in a 10 - 20 year period. Shares are long-term investments that either grows constantly over a period of a few decades or simply fall flat when a company goes out of business or delist from the stock exchange. So, if you have 10k, 50k or even a 100k to invest per year, by choosing the right investment portfolios, you are able to grow you portfolio to make a couple of million of Rands for your retirement. There is no get rich quick way here.

If you want to get rich quick in shares, join a trading platform that allows you to trade in the share prices. That is where, as with normal forex, millions are made or lost in days.
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Not entirely accurate.

Priceline in March 2007 = $52. Today $1733.
Amazon in March 2007 = $40. Today $850.
Apple in March 2007 = $15. Today $140.
Facebook in March 2013 = $27. Today $137.
Skyworks Solutions in March 2007 = $6. Today $97. My personal favourite because it settled my mortgage.

Clearly this is a list of winners. You could've bought Bank of America in March 2007 at $51 and be stuck at $25 today or some other ones that went bankrupt. But you can only lose 100% of a single investment but there is of course no upside limit.

Fact is that you can make millions with shares only. There is always a place for individual shares in an investment portfolio. You just have to pick the right ones. But this goes for everything when it comes to investing.
 
FrankieK said:
Not entirely accurate.

Priceline in March 2007 = $52. Today $1733.
Amazon in March 2007 = $40. Today $850.
Apple in March 2007 = $15. Today $140.
Facebook in March 2013 = $27. Today $137.
Skyworks Solutions in March 2007 = $6. Today $97. My personal favourite because it settled my mortgage.

Clearly this is a list of winners. You could've bought Bank of America in March 2007 at $51 and be stuck at $25 today or some other ones that went bankrupt. But you can only lose 100% of a single investment but there is of course no upside limit.

Fact is that you can make millions with shares only. There is always a place for individual shares in an investment portfolio. You just have to pick the right ones. But this goes for everything when it comes to investing.
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I hear you. But, you are referring to stock listed on the stock exchanges of prospering countries. These are countries that could fall today and have the ability to get to their feet again tomorrow. We do not have comparable stock, unless you came into the game in the 1980's. So, unless you have access to those markets and the capital required to get ownership of their stocks, you are basically restricted to a 'flatline' when compared to what you have mentioned above.
 
Weblord said:
I hear you. But, you are referring to stock listed on the stock exchanges of prospering countries. These are countries that could fall today and have the ability to get to their feet again tomorrow. We do not have comparable stock, unless you came into the game in the 1980's. So, unless you have access to those markets and the capital required to get ownership of their stocks, you are basically restricted to a 'flatline' when compared to what you have mentioned above.
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Fair point. South African investors do have access to the S&P500 now via the Coreshares ETF. I would suggest to OP (klipdrifter/horlosie olie/2 minutes past 8) to investigate this ETF. Sure the S&P500 is at all time highs but if the investment horizon is long term, I would start here.

http://coreshares.co.za/products/coreshares-sp-500/
 
rietrot said:
Do the fundamentals matter when you can grap a quick 10% and get out again?
lol I don't like most of the top 40.
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MTN keeps dividend flowing after first loss in 20 years

JOHANNESBURG (Reuters) - Africa's biggest mobile phone operator MTN Group promised to pay a dividend in 2017 on Thursday, sending its shares surging as investors shrugged off a loss that underscored its risks in investing in frontier markets.
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http://www.sharenet.co.za/news/MTN_..._in_20_years/3ccb94715f6dce634f39fb909c15f8a3
 
snoopdoggydog said:
Thor very disappointing the company results released thus far. MTN report a R3.1 Billion loss however their shares are up 10% lol

What do you invest in, which shares do you buy?
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In my long term portfolio I have the big boring guys like shoprite and then dbxwd and NFEMOM I also have some KAP.

As for what shares I buy short and medium term, I normally follow what the "Pros" are suggestions and then I narrow my list:
https://www.platinumwealth.co.za/forum/Thread-JSE-Stocks-picks-for-2017
 
rietrot said:
No. Most retirement funds go to ETF or shares in any case. It depends on the returns you are getting and the liquidity you want.
I don't want my extra money, sort to medium term savings, locked up in my pension fund, but I still want a better than inflation return. I think I can manage my risk better and get better returns.
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The extra money you get back from SARS because of it can be invested and managed as you please, so that's a win.

Also, your RA has tax benefits for your dependents the day you stop breathing.

That money is also safe from creditors should you go bankrupt.
 
FrankieK said:
Fair point. South African investors do have access to the S&P500 now via the Coreshares ETF. I would suggest to OP (klipdrifter/horlosie olie/2 minutes past 8) to investigate this ETF. Sure the S&P500 is at all time highs but if the investment horizon is long term, I would start here.

http://coreshares.co.za/products/coreshares-sp-500/
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My opinion: S&P500 is great...if you are an American. Unless the Rand tanks there's a lot more money to be made within South Africa especially considering our high interest rates.

I prefer DBXWD to it. Only "snag" is Deutsch Bank's future :(
 
Sorry for the noob question.. but what is better to invest in.. Equities, ETFs or ETNs? Still not sure what the difference are and what is better to invest in, which is more rewarding.
 
Shirou said:
Sorry for the noob question.. but what is better to invest in.. Equities, ETFs or ETNs? Still not sure what the difference are and what is better to invest in, which is more rewarding.
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Better is a relevant/depends on person.

Safest is to start out with etfs.

Domt buy ETNs before you understand all of it. ETNs are just IOYs from the issuer ie if the issuer goes bust so does your ETN.

ETFs are actual contracts in your name.

If you own Deutsche Bank's DBXWD and they go bust then you still own the DBXWD since you own the underlying assets, but if you owned a say for instance a silver ETN and the issuer say Absa goes bust, then you lose the ETN since they never owned the underlying assets it was simply an I owe you from the bank.

ETN also does not pay dividends due to no physical underlying assets.

ETFs generally pays depending on the etf of course.

Equities or shares are single stocks like Kap or Naspers or Curro or Capitec etc.

An etf is made up of many single stocks thus generally good diversification.

Also why you should read what companies the etf is made up from to avoid buying ETFs with the same lot of companies over exposing yourself and racking up fees by paying twice for the company so to speak a bit fast and loose it gets covered on the ebook in a lot more detail and easier to understand real world examples this is just me typing way past my bedtime.
 
Thor187 said:
Better is a relevant/depends on person.

Safest is to start out with etfs.

Domt buy ETNs before you understand all of it. ETNs are just IOYs from the issuer ie if the issuer goes bust so does your ETN.

ETFs are actual contracts in your name.

If you own Deutsche Bank's DBXWD and they go bust then you still own the DBXWD since you own the underlying assets, but if you owned a say for instance a silver ETN and the issuer say Absa goes bust, then you lose the ETN since they never owned the underlying assets it was simply an I owe you from the bank.

ETN also does not pay dividends due to no physical underlying assets.

ETFs generally pays depending on the etf of course.

Equities or shares are single stocks like Kap or Naspers or Curro or Capitec etc.

An etf is made up of many single stocks thus generally good diversification.

Also why you should read what companies the etf is made up from to avoid buying ETFs with the same lot of companies over exposing yourself and racking up fees by paying twice for the company so to speak a bit fast and loose it gets covered on the ebook in a lot more detail and easier to understand real world examples this is just me typing way past my bedtime.
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Thanks Thor, appreciate the answers! So best bet is to go with ETFs and not Equities, am i then safe to say ETFs is like multiple shares where Equities is single shares?
 
Shirou said:
Thanks Thor, appreciate the answers! So best bet is to go with ETFs and not Equities, am i then safe to say ETFs is like multiple shares where Equities is single shares?
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That is correct, well more specifically ETFs are a basket of individual stocks. So when you have a few years under the belt so to speak and you know what to look for (https://www.platinumwealth.co.za/forum/Thread-How-to-read-stocks) then you might be able to out perform the ETFs buy picking your own baskets of individual shares.

Until then, I would suggest to use this post ad a guideline - https://www.platinumwealth.co.za/forum/Thread-Advice-needed-for-starting-out-with-ETFs

Along with this video from Justonelap.com

[video=youtube;hoGG5EaxJRM]https://www.youtube.com/watch?v=hoGG5EaxJRM[/video]
 
Thor187 said:
That is correct, well more specifically ETFs are a basket of individual stocks. So when you have a few years under the belt so to speak and you know what to look for (https://www.platinumwealth.co.za/forum/Thread-How-to-read-stocks) then you might be able to out perform the ETFs buy picking your own baskets of individual shares.

Until then, I would suggest to use this post ad a guideline - https://www.platinumwealth.co.za/forum/Thread-Advice-needed-for-starting-out-with-ETFs

Along with this video from Justonelap.com

[video=youtube;hoGG5EaxJRM]https://www.youtube.com/watch?v=hoGG5EaxJRM[/video]
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Thanks! Appreciate the help.
 
Just a update, I got the ISBN numbers for the E-book, content has been reviewed, now it is just laying out the actual book and editing. Then we should launch it either Friday or Monday morning.

You get a copy, you get a copy, you get a copy. Everybody gets a free copy!!!

^Opera Voice
 
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