Buying shares what do you guys think?

Hi folks

Got 2k to burn so will get on with nab trade as I'm already a nab customer to buy some shares.

Looking at Rio Tinto so might buy invest some $$ there. What else do you guys recommend?

Comments

  • +98 votes

    Efts mate. Vanguard or Blackrock to name a couple to research. Not financial advice.

    • +8 votes

      glad your comment is top mate, get rich slow!

      Edit - oh and add State Street and one of the new guys - Beta

      • +10 votes

        naa GME to da m00n!!!!! with diamond hands… Not ape financial advice.

      •  

        b-b-but muh rich dad poor dad.

        • +1 vote

          Never poor daddy if never sell 😎😎😎

    • +5 votes

      Will look into Vanguard
      Thanks for your feedback

      • +1 vote

        The ones I keep putting into are NDQ and VTS (ETF's) which have been good to me since day one.. good for long term investing .. if your only looking at this one off for now, then NDQ (Betashares Nasdaq 100 ETF) would be my suggestion if long term is your thing and maybe set a Distribution Reinvestment Plan (DRP) meaning your dividends go to buying more stock(s) rather than being payed into a bank account (this is not financial advice)

        •  

          this is not financial advice

          Should be treated like it is in this case. That said, this is not financial advice.

        •  

          Interesting, I didn’t realise it was that easy to access US index’s /?indices…

          How does it work? Specifically, currency conversion fees on purchase / sale and brokerage fees. Are betashares the custodian? Is it safe (Company goes into strife and runs off with your money despite nasdaq 100 doing well)?

          •  

            @Worf: No currency conversion fees on purchase as units are purchased in AUD. Brokerage fees depend on your trading platform - NAB is $15 per trade I believe? It's an ETF built by Betashares - think of it as a managed fund but one that is traded on the ASX. While you can never say never, I don't imagine Betashares is going under any time soon. It's kind of a safe way to gain exposure to the US tech sector with some diversity within the sector ie spread across multiple tech companies and not just buying shares in one or two (disclaimer - this ETF comprises part of my portfolio).

            •  

              @miwahni: Awesome thanks, I’ll do more research. I think I’m a bit late to the game re US tech sector, but will put on my watch list and maybe place a small bet.

        • +1 vote

          To add to this, if you are buying NDQ, do so on Commsec Pocket. They have a brokerage fee of only $2.

          •  

            @saboofa: Holy smoke, I’m with commsec, but never heard of commsec pocket? Thanks! I’ll do more research. Is this offer available for existing commsec account holders?

          •  

            @saboofa: Ok have done a bit more research, downloaded the app and created an account. That brokerage is perfect for micro-investing / small bets. Wish there were more offerings!

            One thing that I can’t find out is whether trades made through the commsec pocket platform appear in your normal commsec account. Do you know the answer to this? It’s nice to see a summary of your portfolio in the one place.

            Cheers

            • +1 vote

              @Worf: Yes they do. If I select portfolio on CommSec app, it shows both my shares traded on CommSec and the ETF's I trade on CommSec Pocket, plus my CDIA account balance.

            • +1 vote

              @Worf: Yep, its all linked so you can manage your Commsec Pocket shares on the Commsec account. But I would obviously actually buy/sell shares through the Pocket app to get the reduced brokerage fee.

              Also you can find the annual management fee and dividend payout for each ETF on the Pocket app.

    • +7 votes

      Vanguard is my favourite Exchange Funded Trade.

      •  

        I started tipping the kids coin as they accumulated it into VDHG on full DRP to hold for 18 years, best decision ever for them. Otherwise it would still be earning nothing in a dollarmites account 🙄

        Personally threw in a bit onto VAS and IHD on full DRP a while back, also has worked out really well compared to getting 0.9% in a cash account.

        All long term holds.

        • +2 votes

          Children Tax rates are horrendous though, 45% flat rate if income is > $1307

          •  

            @ScJ: I'll cover the tax when i sell under normal CGT, i hold them in my name.

            • +1 vote

              @Chuckles79: OK that makes sense.

              FYI - you have an ongoing (annual) income tax obligation even if it is setup as redistribution.

            •  

              @Chuckles79: Do you have a trading account for each kid? Keen to know how you structured it.

              •  

                @moo: I didn't bother to be honest, too hard. I'm happy to carry any tax liabilities for the kids when they mature in 18 years or so. I just hold them in my account, I have my own CGT strategies that should counter any major costs when they want to cash out.

              • +4 votes

                @moo: It's relatively easy to set up a trading account for a child, but you will not find too many places that offer you advice about it. I did it for my 15yo when he got an inheritance from his grandmother - had to trawl to find out what I needed.
                Essentially, you set up the trading account in your own name (as the administrator) but with your child named as the beneficiary. Something like:
                "Your Name <<Child's Name>>" as the owner of the trading account.
                Once the account is opened, you buy shares/ETF's and make a tax declaration each year in your Child's Name as the beneficiary.
                Once your child reaches 18 years old, you fill in a form called an Off-Market Transfer for each stock that you hold and it all automatically transfers into your child's name. Do not sell anything if you want to avoid CGT complications.
                There is some general advice available on these 2 websites:
                https://www.sellmyshares.com.au/information/buying-shares-fo...
                https://www.marketindex.com.au/buying-shares-for-a-child

                Finally - for a trading account check out SelfWealth. They have just introduced trading accounts for under 18's. But do not expect to get any advice from them.

                • +2 votes

                  @blibster: Thanks for the informative post. Buying shares is not consider a tax/CGT event yea? I am assuming that as long as you don’t sell, there shouldn’t be any tax implications until you do?

                  • +1 vote

                    @moo: Buying shares is a "tax event", although it does not necessarily mean you have to pay tax.
                    Receiving income/dividends from shares is certainly a "tax event" and has to be declared on your child's tax return each year (the child will also need a TFN by the way).
                    CGT does not come into play until you sell the investments, hence my recommendation to avoid doing so, at least until the child is 18, has taken ownership of the portfolio and can manage their own affairs.
                    With ETF's there is usually some CGT activity each year that is reportable on the TR, but this will be the result of the trading activity of the fund manager. The CGT, if reportable, is usually provided on your end of FY tax statement.

                    •  

                      @blibster: Shares are often partly or fully franked already as well - so the tax liability might be minimal.

                      •  

                        @macrocephalic: That's a really good and valid point. I checked ETF's for those with high fully-franked content in order to minimise tax liability.
                        I went through the Vanguard ASX-based ETF's. Well worth doing some research

                •  

                  @blibster: Barnaby Joyce can do it with their 5 yo son anyone can

      • +1 vote

        Well your problem there is you're putting your money into EFTs not ETFs. Bad move.

        •  

          That was the point of my joke lol, the OP comment had the wrong acronym

        •  

          😂 I had no idea I did that until now, good one

    •  

      Or similar, like betashares.
      NDQ, if you ask me.

      • -2 votes

        Betashares are like meme etfs, their codes are a crackup.

    •  

      Dimond hands mate.
      /r/ASX_Bets Pick:

      LKE, LRS, RAC, EXR, DW8, Z1P

    • +2 votes

      ^^^ This guy.

      If you're asking what stocks to buy on bargain forum, it's best to leave it up to the experts, who have a slightly better chance than the rest of us.

      Go vanguard for the low fees.

    • +3 votes

      Some ETFs (or LICs) for your reference. If you're not speculative, these are the way to go.

      ASX 200 / Index
      BetaShares Australia 200 ETF (XASX:A200)
      iShares Core S&P/ASX 200 ETF (XASX:IOZ)
      SPDR S&P/ASX 200 (XASX:STW)
      Vanguard Aust Shs Idx ETF (XASX:VAS)

      LIC (ETFs are probably the way to go over LICs - has pros and cons)
      AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED (XASX:AFI)
      ARGO INVESTMENTS LIMITED (XASX:ARG)
      MILTON CORPORATION LTD (XASX:MLT)

      Bear Market ETFs (ETF designed to achieved the inverse of the market performance)
      BetaShares Aus Eqt Bear Hedge (XASX:BEAR)
      BetaShares Aus Eqs Str BearHdg (XASX:BBOZ)

      Special Industry/Markets
      ETFS Battery Tech&Lithium ETF (XASX:ACDC)
      VanEck Aus Banks ETF (XASX:MVB)

      Environmental / Corp Governance
      BetaShs Aus Sustainability Ld (XASX:FAIR)
      Russell Inv Aus Rspn Inv ETF (XASX:RARI)
      VanEck MSCI Aus Sstnb Eq ETF (XASX:GRNV)
      Vanguard Eth Cnsc Aus Shs ETF (XASX:VETH)

      Technology
      BetaShares S&P/ASX Aus Tch ETF (XASX:ATEC)

      International
      Morningstar Int Sh Active ETF (XASX:MSTR)
      HEARTS AND MINDS INVESTMENTS LIMITED (XASX:HM1)
      Platinum Asia (Quoted Mng Hdg) (XASX:PAXX)
      Fidelity Global EM (Mng) (XASX:FEMX)
      WCM GLOBAL GROWTH LIMITED (XASX:WQG)
      WCM Quality Gl Gth (Qt Mng Fd) (XASX:WCMQ)
      Magellan Global-Open (Managed) (XASX:MGOC)
      MAGELLAN GLOBAL UNT (XASX:MGF)
      Magellan Global Equities CcyH (XASX:MHG)
      Vanguard FTSE AsiaxJpn Sh Idx (XASX:VAE)
      iShares Asia 50 ETF AUD (XASX:IAA)
      BetaShs Asia Tech Tigers (XASX:ASIA)

      Medicine
      ETFS S&P Biotech ETF (XASX:CURE)
      VanEck Glo Healthcare Ld ETF (XASX:HLTH)
      iShares Glbl Hlthcare ETF AUD (XASX:IXJ)

      or everything on powerball, whatever your fancy :P

  • +3 votes

    COIN is on special.

    • +8 votes

      No crypto

      • +11 votes

        lol soft

        • +2 votes

          Cracked me up.

  • +20 votes

    sign up to stake. buy amc. fly to the states. get free popcorn. profit

    •  

      Or locked out of trade when you need to access the most

  • +3 votes

    Vanguard safe option and most popular one.

    Apple steady option relatively stable with ongoing growth.

    Bitcoin risky option with potentially high reward but potentially lose it all.

    •  

      Apple and Amazon are bullet proof, but check out Nvidia as they seem to be on a tear.

      • +1 vote

        Because of Bitcoin and other crypto mining.

        • +1 vote

          In part. There are other factors including their planned acquisition of ARM.

      • +9 votes

        40 years ago, people believed that IBM is bullet proof. It is now living on past glories.
        30 years ago, people believed that GE is bullet proof. Now it is a limp fish.
        20 years ago, people believed that Cisco is bullet proof. Then came the 2000 crash.
        15 years ago, people believed that Lehman Brothers is bullet proof. Then 2008 happened.

        In reverse:
        20 years ago, people believed that Apple is dead even when Jobs came back. Look at it now.
        10 years ago, people believed that Microsoft is dead and floundering under Ballmer. Look at it now.
        5 years ago, people believed that AMD would never overtake Intel. Look at it now.

        No company is bullet proof. History is littered with dead companies like Sears, Toys R Us, WorldCom etc. that were once the media darlings during their hey days.

        • +5 votes

          MSFT invested in developers, developers, developers, developers, DEVELOPERS, DEVELOPERS, DEVELOPERS, DEVELOPERS!!

        • +1 vote

          Microsoft bailed Apple out @1997, so they could increase their marketshare of Microsoft Office, compared to Clarisworks, LotusSuite, Wordperfect etc, not to mention keep a competitor afloat, as Microsoft was copping flak from the Dept of Justice to prove they were not a monopoly.

  • +17 votes

    Spaceship if under 5k

    • +8 votes

      Even above 5k its only 0.1% pa. $5 per year for every 10k invested, thats cheaper than some passive EFTs.

      • +2 votes

        Why not Spaceship + Raiz?
        I find when one’s down, the other is up.
        Both have been very good to me.
        (weekly investment plan on both #DollarCostAveraging)

        • +3 votes

          Spaceship is cheap exposure to technology stocks.

          Raiz just invests in ETFs. You are better off buying the ETFs directly.

    • +2 votes

      How good is spaceship! I was sceptical at first but agree with the comments here. So far so good.

      • +2 votes

        About 8 weeks ago I was ready to liquidate my spaceship and FOMO into BNB and ETH… glad I didn’t.

  • +27 votes

    Buy into an index such as VDHG. Sit back and relax.

    Won’t be the quick profit that an individual share might bring. But spreads the risk across the index so not as risky or large fluctuations you might see in a singe stock. Also, you won’t need to watch it everyday or know to much about investing etc.

    • +1 vote

      I'll add that they should go in and sign up to the DRP.

      • -2 votes

        they should go in and sign up to the DRP

        On $2k worth of shares? No way.

        • +1 vote

          Would love to know the reason behind this….

          • +5 votes

            @Hirolol: The quarterly distrubutions from an ETF such as VDHG may not be enough to cover a single share to reinvest based off a 2k investment. The distrubution will just sit on the registry account not earing interest until the next distribution is paid when there is enough to purchase a single share.

            eg Invest 2K @ $60per share = approx 33 shares
            Quarterly Distrubution $1 per share = $33

            • +1 vote

              @Cabrinha: Yeah. It's a good point that I glossed over. That said if they're contributing more it'll be worthwhile. Don't have to pay brokerage either if going via a trading account.

          • +1 vote

            @Hirolol:

            Would love to know the reason behind this…

            1) For the reason Cabrinha said

            2) Admin for the issue of 1 share is no different from 100 shares. I recently did a tax return for my girlfriend. She had a portfolio of shares for a company she worked for that she decided to liquidate. It had DRP and incentive shares in parcels between 1-100 shares spread over 300 transactions. She had no paperwork. She claims none was issued and the employer gave no instructions on what admin was needed (because this would constitute "advice"). Luckily she's a good researcher and we were able to match the issue dates with the ASX closing price on the day… 300 times.
            I've had issue where I've lost all my records through no fault of mine (gmail attachments mysteriously disappearing).

            3) No control over the issue price. IIRC the DRP issue price of Wesfarmers shares last year was higher than the ASX price. It doesn't happen often but it does happen.

            4) Some DRP T&Cs state that any remaining funds will not be returned to the shareholder and will be donated to charity.

            5) You need to find the tax money from somewhere. I had colleagues from a previous job where we were issued company shares and they said "I'm on DRP and don't have to pay tax as I didn't receive money". The ATO tracks it really well now and you definitely need to pay the tax.

            DRP is an extra layer of complexity/BS for people that can't be bothered saving up their dividends and buying a big chunk of shares.

            Full transparency: I've had DRP for some holdings turned on in the past (15-20 years back) and have turned it on in Nov2020 for my Brickworks shares because the price was right ($18.17) and I get a decent wad of shares. I turned it off again for the April2021 payment.

            •  

              @brad1-8tsi: Thanks for your points DRP, learn something new everyday! However, for people out there looking for a set and forget account like VDHG, with enough in there for a few dividends, without a regular investment plan, DRP can be a low thought no brokerage small form factor dollar cost averaging and compounding tool. Just 2c on DRP positives

              •  

                @Gojkins: Based on the July 2021 distribution (which was an absolute corker but 82% realised capital gains) you need $2170 worth of shares to get 1 share under DRP. The OP has $2k to invest so that wouldn't get him 1 share.

                The rest of the year hasn't been as lucrative ($5.16/share all up?) but I'll be generous and call it 1 share every quarter. So that's 4 lots of admin for $240 worth of shares.

                The thing is that when you set and forget it becomes quite a large bunfight when you have to remember (when you sell or your executor has to wrap up your estate).

                But sure, it has its place for some investors.

        •  

          depends on how long op wants to hold onto it for

    •  

      This! I used to buy blue chips and spending on each transaction..adds 20 to 40$ on transaction costs alone (and something we need to make up as part of sell), ETF was the best decision as the risks were spread across and chances of loss is less. There's still a chance of loss but bets aren't on only one stock. Of course growth is a bit slow. Unless we put in time and effort into research ETF I thought was the best decision that worked for me.

  •  

    All depends on your appetite for risk. Either buy and forget blue chip like the banks, or if you want a punt then try PTX or FLT at the other end of the risk spectrum

  • +3 votes

    Don’t do it, if you can’t for whatever reason can look at existing research on old threads providing the same advice over and over I would think you will find it’ll be hard to succeed in investing.

    Jump into a index if you must

  • +2 votes

    Everything on Black

    •  

      Tails never fails in New South Wales.

  •  

    you'll make quicker gains in crypto..

  •  

    DW8

  • -2 votes

    i'm jumping on Cullen Resources if you like a good ol small cap.

    Do your research before though.

  • -2 votes

    If you are inclined to mining stocks and want a long term investment, which is what you should be looking at then Sandfire Resourses has been range bound for a long time despite record copper prices. It’s had amazing results and the new world is going to need a lot of copper.

  • -2 votes

    Buy a bank they R paying a very good dividend into the next few years & the apply for the dividend reinvestment plan so you passively accumulate with no fees. They pay 6 monthly & have it paid July & Jan. You probably have missed out now for the July Div. Goodluck Their dividend is fully franked & trending up as the economy picks up speed.

  • +5 votes

    To get any meaningful recommendations, we would need to know your risk profile, your investment timeframe, your level of experience with share trading, etc. Otherwise the suggestions you will receive from this forum is going to varied and may or may not be suitable to you

  • +2 votes

    If you just wanna test the water and don't mind burning the $2K to ash,
    I'd actually suggest buying some individual companies' shares.
    Just to feel how the whole market going and how volatile it can be (well, the cryto market is way more volatile…)

    Although I only periodecally invest in ETFs, and I think this is a better long-term investment strategy.
    Havest beta, no need to research timing on buying and selling.
    I'm willing to leave them until I retire.

    •  

      Unless one uses an extremely cheap or free broker it is simply not worth it to diversify 2k, would have to gain a x% just to make up all the fees in the first place.

  •  
    • +3 votes

      yes but massively overvalued, hence its current downward trajectory since IPO.

  • +9 votes

    /r/ASX_Bets

    •  

      underrated comment.

    • +12 votes

      Thanks to ASX Bets I turned five figures into four figures!

      •  

        Start selling your story, thats what I keep seeing on youtube ads.

    •  

      IVZ to the 🚀🌒

  • +1 vote

    Either a low cost LIC trading at a discount DUI or AUI maybe, or a passive low cost ETF, maybe VAS or VGS.
    You'll get fans of ETF investing, but I'm not one of them. LIC for me. I won't debate here, decision is yours. Do some research from the suggestions people here have given. Best of luck.

  •  

    Day trade your way to unimaginable riches.

  •  

    KMPH / AKBA

  • +3 votes

    Vanguard - VAS etf but don't sign up with NAB unless trades are flat rate of $9.95 per trade.

    I bought VAS 6 months back. Decent dividends and fantastic capital growth (~10% since I bought) - you should not expect that but over the long term they have been growing close to 8% per year. ETFs are for long term and should only have a problem if you have to sell when a market crash occurs.

    Get a Self Wealth account instead of NAB.

    IMO / not financial advice etc etc

    •  

      For using Vanguard for their ETF, dont you have to pay monthly fee? Was thinking to get spaceship account for quarterly savings to be put in the market.

      •  

        Not in ETF. The fees are effectively taken out of the value, but entirely reasonable.