personally I got into shares in the gfc, the more they dropped in price the more I borrowed, I am only in 3 big banks and mqg
I have set myself up to retire 4 1/2 years early and I only work 15 hours a week plus travel now
I took out interest only loans and earn 2 1/2 times the interest now in dividends and franking, which is reinvested, before any increase in share prices
for those unaware after owning shares for more than 12 months, you only pay tax on 50% of gains when selling
having said all the above, if you get into shares now, be prepared for the long term, ie 5-7 year investment, as the large gains will now slow right down, BUT if you buy shares with borrowed money, and buy shares with good dividends like banks, you can pay interest repayment, claim it on tax and still be in front without share price moving
My brother and I sold our commercial cray boat for a 35% profit in 3 years (bought $60,000 in 2002 sold $81,000 in 2005).Originally Posted by deckie
Lucky...who knows...but we sold it in the midst of the SARS virus epidemic which seriously affected the price of crays...and you would have thought the price of boats.
There's a lot of risk investing epically in green chip companies but there is also a lot of gain if you can pick it. There's an interesting read about a company called maverick drilling and exploration and a perfect example of what can happen.
Summarizing; they were an exploration company that one decided they were going to keep a well they found and their stock price went from $0.40 to $1.53 and i was kicking myself almost a 300% increase!!!Because i had missed it I stopped following them and a while later something happened and now they are down to $0.55 (I never actually read into why). So depending on when you bought you could have mad a little or a lot or lost a little or a lot.
You also have to look if it is worth putting your money in a blue chip and if you will make much off the dividends then sell the capital when you are ready. You wont get as big of return but is a lot safer.
The best advice I have been given is know when to cut your losses and accept it. Like my old man says " You've got gangrene in your finger. Do you chop the 1 finger off or or risk your entire arm?"
Some I have been watching lately
Wesfarmers (WES.AX) - Interesting comparison in the last 1yr and 6months
Resmed (RMD.AX) - last 2 years and the last week
CSL ltd.(CSL.AX) - last 2 years is amazing
Ansell (ANN.AX) - last 2 years again
Flight center (FLT.AX) - Who thought travel would be so big
Starbucks (SBUX) - last month
Zynga (ZNGA) - look at the last 2 years, The games they made used to be all over Facebook
Billabong (BBG.AX) - Uncle almost bought these when they were at $0.19 6 months later $0.60
Only problem with this is you have to have money to make money and being young is a big problem I face
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