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Investing in share trading platforms

Investing in share trading platforms

Online share market platforms are gaining in popularity; they provide a terrific opportunity for ordinary folk to get involved in the share market on a shoestring budget. Just deposit $5, $10, $20, or more per week and given the benefit of time and patience this can all grow into a tidy sum.

The beauty of this is that your financial literacy increases as you get more and more involved in choosing which shares to buy.

In New Zealand Sharesies is the number one share market platform. It enables anyone of small means to invest directly into the share market and even in individual companies. 80% of sharesies investors are under 40 so it is appealing to the young folk. That is a good thing as it shows that the young are interested in matters of finance. It is also a good thing that the young are improving their financial literacy.

I cannot speak for other sharesies investors but here is my strategy. It may not necessarily be right for your personal circumstances but I will share it with you. 

I choose one company per year to invest in with sharesies and drip feed money into it every two weeks which means that whether its share price is up or down I have bought shares in it. If I had just made one purchase of the share then chances are that I have bought it at the higher price and its value has dropped a few weeks later but spreading my investment out means that I have bought some at the lower price.

You can use different strategies to suit your budget, goals and personal circumstances.

Here is the link to join Sharesies if you are keen to give investing a go. This is only for those living in New Zealand or Australia.

 

https://sharesies.com/r/377DFM

www.robertastewart.com

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Financial language

Financial language

Written by R. A. Stewart

It is important to familiarize yourself with financial jargon and their meanings. Do your research on the internet for further information on what these terms mean. This increases your financial literacy.

ASSET RICH-CASH POOR

This refers to people whose wealth are tied up with their property but have little cash in the bank.

BAD DEBT

Usually described as consumer debt or dumb debt, bad debt is when one purchases consumer goods on credit. It is bad debt because the item which has been purchased loses it’s value over time.

CAPITAL GAINS.

This is the increase in value of your asset. It is important to keep in mind that if there is a chancre for a capital gain there is also a chance for a capital loss.

CASH ASSET

A cash asset is money in the bank, stocks and shares, and any investment invested with a financial institution.

EQUITY

When someone refers to the equity in their property, they mean how much equity is left after deducting the money owing on the property from it’s value.

DEPRECIATION

Depreciation is the reduced value of any item purchased. A vehicle is a perfect example of something which reduces it’s value over time.

FINANCIAL PLAN

A plan for your money. To address money issues.

GOOD DEBT

Borrowing money for something which increases in value is considered to be “good debt,” however, it is needs to be stressed that if something can increase in value then it is just as likely to decrease in value; shares and cryptocurrency are typical examples.

INFLATION

The is based on the average increase of prices of consumer goods. If your investments are earning less than the inflation rate then you are losing money. 

LIABILITY

This is anything which you have bought on credit and pay interest on. It is said to be a liability. A vehicle is a typical example of a liability. A house could be a liability if it is costing you money but it could be said to be an asset especially if it’s value is increasing per annum.

NON-CASH ASSET

A property is an example of a non-cash asset. 

RISK PROFILE

This is your temperament to risk and is one factor in determining where to invest your money.

www.robertastewart.com

 

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Share Market tips

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

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Which shares should I buy in 2022?

Which are the best stocks to take a punt on in 2022?

Here are my tips:

Written by R. A. Stewart

2022 is nearly here and those of you who like to have a dabble on the sharemarket through using those micro investment apps such as Robinhood in the US or Sharesies in New Zealand giving some thought to which shares are most likely to outperform the market. 

It is hard for the ordinary man in the street to pick a stock that is likely to do well for the simple fact is that the same information you are using to base your predictions on is available to everyone else. Still there is no harm in trying. There is a certain amount of satisfaction in making your own selections as there is from selecting your own horses to back in the Melbourne Cup without relying on the newspaper tipsters.

Without further ado, here are my tips:

Fonterra

Despite being blamed for climate change, this is my number one company for 2022 because there is always a demand for dairy products, and with Christopher Luxon being appointed as National Party leader, it has become more likely that National could steal the next general election due in 2023. This current government, led by Jacinda Ardern, has anti-farming policies which is really just biting the hand which feeds us since farming brings in so much export earnings.

Spark

Spark is my second tip. This is more than just a phone company. They also have contracts to televise certain sporting events. 

Genesis

Genesis is an energy company. We all use power so I see no reason why this will not remain a steady stock. Trustpower and Meridian Energy are other power companies worth investing in.

Fletcher Building

A great New Zealand company. New Zealand is in a building boom due to the need for more houses. Problem for Fletcher though is that the demand for timber is outstripping supply.

Ryman Healthcare

The retirement industry is big business and so those companies which provide services to the elderly should flourish in the next decade and Ryan is one of these.

Companies to avoid:

With so much uncertainty in the tourism industry, any company involved in tourism and hospitality is best avoided as are most retail companies as the internet is affecting sales, though one exception could be Wrightsons which is a farming retailer.

Media and TV stations also have challenging times ahead as viewers get their information online.

Sharesies

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

Note: This article is of the opinion of the writer and does not represent financial advice.