This episode is an edited highlights of a Facebook Live starring Andrew Page, the founder and managing director of Strawman.com an online investors club which shares independent share market research and recommendations between Australia’s best private investors. With 11,000 current active members it is a thriving community of investors who compete against one another based on performance and community endorsement. Andrew has worked in financial markets for over 20 years, with experience as an equity investor and as a market commentator.
Financial Habits for life
If you spend less then you earn, invest consistently in a broad-based ETF, and start early the effects of compounding will set you up for success. Warren Buffet made the majority of his money after the age of 55 and one of the keys to this was the amount of time he was in the market and the habits he built through life.
Buying Individual Shares; A Broad Checklist
Andrew and the community at Strawman.com are active investors, that is they do fundamental research and analysis in order to identify companies which may be undervalued or have huge long-term growth potential. Their aim is to outperform the market and in order to do this Andrew has developed a check list in order to find investments which have this potential. The opportunity cost of investing in one stock, is not having that money to invest in another, and so having a criterion to find the best investments is an essential tool for an active investor.
When do you sell a winner?
Would you buy a stock at its current price is always a good fundamental question to ask yourself? If the answer is no then it may be time to sell, just because you have made money on a stock doesn’t mean you should keep it, any fall in price is you not materialising the gains which you have made, whether it’s in your hand or your portfolio you have lost the same amount of money.
This post was incredibly well-researched and written by Hayden Toohey. Hayden's a student at UTS and an intern at the Australian Shareholders' Association. I predict that he will be running the Reserve Bank within a couple of years. Here's a link to his LinkedIn profile if you'd like to get him before the Reserve Bank does.
We just sent you an email. Please click the link in the email to confirm your subscription!