Here is an article I put on the site in 2020 and I thought I would repost it but have made some changes to it.
This article is solely based on the writer’s own opinion and knowledge and is not to be taken as financial advice. If you need the advice of a professional see your bank manager or financial advisor.
Share Market tips
Written by R. A. Stewart
It is crucial for investors to invest in companies which are going to withstand the covid-19 recession which could last for two or three years. It makes me wonder how many companies are still going to be around after this pandemic is over.
So which companies are worth investing in and which ones to avoid?
My picks are:
Genesis Energy
Power companies have to be a good investment since everyone uses power.
Trustpower
Same as for Genesis
Meridian Energy
Same as for Genesis & Trustpower
Spark
Have hosting rights to several sporting events and most people use cellphones. Has to be a good investment.
Fonterra
The milk payout is expected to be low next season so this is a share to snap up when they bottom out.
PGG Wrightson
Farmers are propping up the economy so expect Wrightson Shares to be steady
Westpac Banking
Long term investment. The banking selector thrives off the back of a thriving economy so they are a long term investment.
Warehouse Group
Best of the retail outlets but likely to be affected by the buying online trend.
Fletcher Building
This is one company I am looking at to add to my sharesies portfolio. It is affected by a shortage in building materials but still a good investment.
The companies I am a bit hesitant to invest in are those connected to travel and tourism, insurance, and manufacturing. The travel industry is rebounding but it is still a volatile industry to invest in. Insurance companies are prone to taking a hit from climate change events while manufacturing often suffers from cheap imports.
Most people have retirement savings scheme of some kind and in New Zealand that is called kiwisaver which are managed funds or mutual funds as they are called in America. The fund manager is making the investments on behalf of the fund owner but there is one kind of investment where you are able to make your own decisions and that is www.sharesies.nz This is a New Zealand share trading platform where you are able to join for as little as $1 as their TV ads state. The beauty of sharesies is that you can invest in managed funds or individual companies. It is a great way for the young and not so young to add another string to your financial portfolio and gain some knowledge of the markets at the same time. In the US there is www.robinhood.com There are other share investment platforms which are cropping up. In NZ there is also Hatch, Kernel, Invest now, and Tiger Trade. They are a great way to get involved in the sharemarket for little outlay and gain experience.
MY STRATEGY
My strategy with sharesies is to choose a particular share to invest in that throughout the year. I purchase some shares every two weeks in that particular company. That way I will have bought some shares when the price of it is low. This year the company I chose was Fonterra; in 2021 it was Spark, and 2020 Genesis Energy. I am looking at Fletcher Building for next year. All of these are New Zealand companies.
www.robertastewart.com
