First Investment / Invest Mang't Company Rec

chriskq on 08/10/2017 - 16:10

Hi all,

Has anyone invested with warburton investment or know someone that has? Now that im almost in my mid 30's keen to start putting some away from a long term investment perspective for a rain day.

Bit of background about me / current situation:

  • currently have 80% of mortgage 'paid' by sitting in offset account
  • looking to do major house renovation in a few years and will use about 75% of the 80% in offset account
  • no accountant or financial adviser and limited financial knowledge

Wanted to see if anyone has made a similar type of investment and what company you used, would be very grateful if you can share some of your dealings/advice etc.

Cheers.

Financial

Comments

  • dcep on 08/10/2017 - 16:40
    +2

    Geez, that's a lot to blow almost all of your savings onto reno.

    the general consensus are ETFs / vanguard

    or just wait for the property bubble to pop (soon, see below)
    https://www.ozbargain.com.au/node/332266

    and pick up the carnage once the dust settled

  • kipps on 08/10/2017 - 16:54
    +1

    53% annualised year-on-year performance sounds too good to be true. The qualifications of the two people in management are not particularly spectacular either. The monthly report is not detailed at all.

    It is either investing in high risk investments, has had a couple of lucky investments, or is faking returns. Ongoing returns are unlikely to be as good.

    Ponzi schemes frequently inflate claimed returns to keep fresh money rolling in.

    Don't be a sucker.

    Get a professional in to assist with structuring whatever you intend upon investing in. Get one that charges fee for service, not based on trailing commissions (otherwise they will only recommend what pays them the most).

  • SaberX on 08/10/2017 - 17:12
    +2

    Forget about it altogether. New website - hardly anything on google, returns performance has "1 month" or "since inception". No 6 month, 1 year, 5 year, 10 years etc. and per linked in it's been running since 2015. A no name outfit and hardly anything online means a sure miss. 50%+ since inception: if it is even real it is very selective and only reflects a chosen period of time that looks good.

    Nothing returns that much compound year on year over the long run. Those that do are in the rare and distinguished and the chances that this 'perth outfit' mob have that?? I'ts just like bitcoin, if you got in at the right time you'd be laughing in riches, but despite all the believers watch as one day many get burnt by it.

    Think about it this way: warren buffets compound return is 20 something % year on year. One of the best investors of our time. There are a few who come close - all of these names are well known financial figures:

    http://www.wisebread.com/5-investors-with-better-returns-tha…

    carl icahn for example - 31% annualised rate from 1968 to 2011…. so yeah, you can weigh up the smell test.

    as for your property - so wait, you've paid off 80% of your property? so if it's $500k, you only owe $100k? ANd you want to spend a reno nearly equivalent to 70-80% of the property's value?

    That's insane if so - what are you doing? Knocking down the whole thing and rebuilding a triple story? If it's a conventional reno, and you're spending 80% of your property value then I doubt you're going to get any investment value out of it.

    If your house is $500k and your loan was $100k,and you mean you have 80% of that $100k loan paid off, then fair enough - but if so that's a much different picture to your initial Opening post.

    • chriskq on 08/10/2017 - 22:55

      original home loan was only 50% of house purchase basically as it is the 3rd property we have upgraded to and we had some capital from previous sales, but yes basically looking at a knockdown rebuild via a CDC.

      • SaberX on 15/10/2017 - 21:16

        only you know what your investment strategy is. if your doing it for selling and turning a profit then alot of thought. if it's your home to live and die in then heck, whole diffs story.

  • SaberX on 08/10/2017 - 17:15

    and yes, as someone said, go invest in some etfs first or better still, invest your money into buying a few dozen books off book depository. Grab all the major finance (investment) and property titles. There are easily 100+ of the most well known ones that if you start looking into the web you will stumble across all the 'classics' which are unaminous.

    First step before plinking any money in an investment manager - educate yourself. YOu can choose to then invest through a manager , but at least you'll know half of what they are doing. and hopefully not get conne as a result.

  • chumlee on 08/10/2017 - 17:43
    +2

    a fool and his money are soon parted

  • Baysew on 08/10/2017 - 17:47
    +2

    I googled the address

    Not somewhere I would leave $50k (Minimum Investment) with.

  • EightImmortals on 08/10/2017 - 17:52
    +1

    Looks like a hedge fund that popped up last year. More reading here:

    http://www.afr.com/markets/bitcoin-is-behind-australias-topp…

    Also from their webpage: "The Warburton Global Fund opens to new client applications at the end of each month.

    The minimum investment is $50,000."

    That's a BIG chunk of change to stick on a single horse. Especially as a first investment.

    If you like managed funds then check out these guys (http://wilsonassetmanagement.com.au/ ), they have a great track record, a good reputation and several funds you can invest in. Apart from capital growth you can also participate in their dividend reinvestment plan. Check out WAM, WAA, WAX, WMI, WLE on the stock market forums. Also, no minimum investments and you can simply sell your shares through etrade/commsec/your broker of choice anytime.

  • monkeybusiness on 08/10/2017 - 17:58
    +1

    First of all get professional advice. Do not fall on the trap of chasing returns without understanding what the risks are involved

    A quick look into the fund. While the fund did make 54% return since inception (around 1.5 years), they classify themselves as a hedge fund targetting a annualised return of 30%. Hedge funds by nature are extremely risky to the average investor with a high risk high profit investment profile. Its great when they get it right and returns look great but they can also rack up major losses quickly when they don't.

    For someone in their 30s and looking for their 1st investment, its probably smarter to go with something safer and focus on wealth accumulation. Gone are the days where you can afford to lose everything and start from scratch.

    Maybe as a starting point you need to figure out what is it you are looking to achieve? And how much risk you are willing to tolerate? A professional should be able to help with you with this.

    • EightImmortals on 08/10/2017 - 18:06
      +1

      Good advice, but just be warned that most professionals seem to work on commission so if you can find one that works on a fee basis you might get better advice. Also, it may have changed but all of the 'professionals' I've ever been to only wanted to sell me superannuation and insurance products. :) Or sign up to hotcopper.com.au and do some searching/asking over there (mind out for the ramping/deramping).

      • monkeybusiness on 08/10/2017 - 18:24
        +2

        I agree. Avoid anyone that tries to push you towards a particular product from a particular company/fund. The industry is full of them.

        You want someone that is independent and provides impartial advice. The fee structure is a good starting point but again watch out for people that are in it to make sale rather than having your best interest at heart.

  • chriskq on 08/10/2017 - 22:52

    Appreciate all the responses. Was erring on the side of caution hence the post. Will look into an adviser as a next step.

    Cheers.

  • railspider on 08/10/2017 - 23:10
    +1

    a mandate to target annualised returns of over 30%.

    This isn't realistic. OP you'll get better value from just burning your money, at least that will give off some heat.

  • dbui8743 on 08/10/2017 - 23:52
    +1

    Just my two cents, used to work for a small fund so this website looks pretty OK to me.

    Auditor is BDO, and legal is DLA Piper which are decent. Since they just started so smaller auditor makes sense.

    The nature is hedge fund so not the best thing for long term investment. Especially, from their report, they seem to have their toes in everything (definitely capitalising on the hotness of the Bitcoin market at the moment), many with high volatility (hence their 30% volatility). However, still very limited info given in their monthly reports. I am sure they will give you a much more detailed position report if you express interests. Get a financial adviser or a professional in this area, and speak to the fund.

  • chriskq on 17/03/2020 - 10:45

    Glad i never invested…. website now directs to another company which is simply a holding page.

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