Sim2335 wrote:I’m new to investing, so had couple of basic questions
If I buy a lot say 100 less likely to lose it all?
Why not just go for big compines how can you lose, e.g Amazon
And finally is this almost graunteed to make money invest in ea sports few months before Fifa 22 comes out once it’s out stock bound to go up and withdraw money?
EA no idea.
The rest ,basically yes,it is easy,it is virtually impossible to lose money.
You asked the doom,gloom and groupthink board.Every company in the world is going bust because ( insert name of company here) went bust.
20 years ago if you asked the same question,you would get exactly the same answers .Today exactly the same answers,20 years into the future,exactly the same answers.The key is "we all" "everybody else".You are talking to the herd.
Now the details.Computershare is an Australian company ( where I live),been around for 35--40 years or so.I don't own shares .They are a share registry,transfer agent,pension fund clearing house.The bookkeepers that you get in touch with basically .
At AGMs a couple I see there love Computershare,every time I see them "have you looked at them yet",I have never looked at them.Today I did,for 30 seconds.
1999 they were $2 a share,today $16 a share,that is good.However much you spent they have multiplied it by 8.I would think they have a dividend reinvestment plan,a lot of Australian companies do.I have no idea what they yield,if the yield is low then double your shareholding over that 22 year period,reasonable yield,triple it .
So you spent $2K in 1999 and bought 1000,you now have 2000 shares X $16.. 2K turns into $32K,the magic of compounding and do nothing. Or you have 3000 shares,so 2K grows to 48K.
In 2040 you will know what they are worth.For the next 19 years this lot will repeat "we would all" "how come everybody else isn't doing that" "they will go bust overnight because ( insert name of company here )went bust.
$ cost averaging is useless,for obvious reasons,put the lot in in one go.
Think for yourself,if you want to be part of the herd and be told must be diversified,must do everything the salesman tells me to do,must be part of the groupthink,then you are in the right place.
I don't think Computershare are going bust,if they do then you will have plenty time to get out .I am 100% certain you will not go to bed on Monday night and wake up on Tuesday morning to headlines of ' they have gone,everybody lost all of their money'.
A share that has made a few million $ for me is Commonwealth bank.The govt sold it in 1991 for $5.40 a share,call it $6K per thousand.Using the DRP ( I did) that $6 K grows to $600K now.I spent more than $6 K over the years,and bought more..I think it is a good company and continue to buy more using the DRP,and live off the $ 6 figure $ they pay me in divends.
Knowing exactly what they ( CBA. ASX) have done over 30 years this lot of groupthinkers have spent 30 years saying,must diversify,too much money in one company,must rebalance,must top slice,they are going bust,how come everybody else didn't do that.The rubbish they have come out with for 30 years is exactly the same rubbish they will come out with for the next 30 years if they lived that long.
To compare the 2 companies CBA ASX was around $20 a share in 1999.You spent $20 K to buy 1000 ,using the DRP you have around 3000 shares now,possibly a few more,they are at $100 a share now. $20K grows to $300K,isn't compounding great.
CPU ( I think that is Computershare) the same $20K bought 10,000 shares,using the DRP you now have 20,000 shares or 30,000 shares so you have $320K or $480K.Well done Computershare.
Good luck mate,think you yourself.Don't follow the crowd,don't be a fool spending an entire lifetime saying " how come everybody else didn't do that".
Looking at the CBA annual report for 2019 ,page 286 is the shareholder breakdown. 8345 people own between 10,000 and 100,000 shares.That's me,I'm one of them.The rest of the population ( 26,000,000) provide me with so much amusement as they spend 30 years fooling themselves that they got it right,and I got it wrong.Because
If it was that easy we would all be doing it.
How come everybody else didn't do that.