Shared Investor FAQ’s
Please Note: Shared Investor is NOT providing recommendations or advice. Shared Investor is purely my research and portfolio’s shared for others to watch if they so choose to. Always consult your licensed Financial advisor or Stock Broker before making any financial decisions.
Short AnswersHow Shared Investor works
Here’s a brief tour:
This is the checklist that I run every investment through. For a company to make my Watchlist it needs to pass the Checklist. I update, improve and revise this in small iterations constantly.
Every company that gets a big thumbs up from the Checklist ends up here. Once they are on the Watchlist I keep an eye on their announcements and share price patiently waiting for an opportunity to buy.
There are three – Australian Blue Chips, All Australian Geared and International. Here I display my current investment portfolios where you can see the date of purchase, the price I paid and what percentage of my portfolio each individual company is. You can also view the overall performance of each portfolio, be it good or bad, I won’t be hiding anything.
1. Australian Blue Chips (currently investing)
2. All Australian Geared (currently investing)
3. International Portfolio (coming 2016)
How I Invest
I am what is called a value investor. When I was young I was lucky enough to discover the teachings of Warren Buffett – a genius common sense investor. Essentially I look for great companies that are undervalued and I believe will recover or ‘assets plays’ – companies where I can see an opportunity to potentially buy $1 for 50 cents.
What I invest in
I invest in listed public companies that are traded on a stock exchange that I have access to as an Australian citizen. I don’t generally trade commodities, bonds, futures, currencies or anything else – just great, undervalued companies.
How often I invest
I invest quite infrequently. Sometimes their may be a brief flurry of movement, but usually there is just research and the patience of waiting for the right opportunity.
My investment time horizon
If I invest in a great company at a discount to its intrinsic value and it continue to provide a return on equity (ROE) of 15% I’d happily hold it forever.
When I buy
I buy when I believe a great company is being under valued by the market; when I find a company that has assets that are worth more than the listing price; and when I believe – due to my analysis – that a companies share price has the potential to double within the next 2-3 years.
When I sell
I sell when I believe a company I am holding is being ridiculously over valued by the market; when I believe the industry of a holding is changing for the worse; or when the dynamic or leadership of a company is changing for the worse.
When I don't buy
I don’t buy just because ‘an expert’ says the market is going to keep going up; because I have received a hot tip about the next big thing; because ‘all high yield stocks are currently in demand’ – or whatever the latest theme maybe is; because I am fearful that I might miss out on the next big thing: or because everyone else is, the market is rising and if I don’t I may miss out.
When I don't sell
I don’t sell because ‘my neighbour / friend / advisor’ just lost money in the market and says everything is going to crash; because the american dollar dived; because oil prices crashed; because war broke out in Iraq; because there is civil unrest in Egypt; I take onboard of all of these facts, but I don’t react without a fundamental reason to – if anything most of these example scenarios are potential buy opportunities.
The returns I aim to achieve
I don’t really think about it in those terms whilst investing – as I am purely focused on ensuring each individual investment will be a great investment. However, my aim with each individual investment is for it to double within the following 2-3 years. For the long-term annual compounding figure for my portfolio’s – 20% is my number, 25% if using gearing. I may not always achieve this, but it is what I set out to achieve.
- Why I am currently researching more than I am investing
- How to improve investment returns by doing less
Submit a question…
General Questions only
If you send me a question asking for advice I’m sorry but I cannot answer it, as I am not in the business of providing advice (see the TOS) – I purely share what I do.