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Investing Guide

Online Guide to Investing in Shares
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"I took the one less traveled by,
And that has made all the difference." -Robert Frost

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Investor's steps to Wealth...

Charting

 

 

 

 

 

 

Introduction

We are advocates of Benjamin Graham's "value investing" & this section seeks to gather information that might be relevant to the "value investor". This method is used by Warren Buffett, the second richest man in the world, as well as John Neff, Irving Kahn, Bill Miller among others. We focus on the long term gains rather than the short term. You will not learn "charting" techniques or how to make a million dollars by the end of the year. The aim is to find a listed company that's reasonably priced (we look for undervalued share prices for good buys) with good prospects, buy their shares & hold on to them. For the best texts to read on the subject, read Benjamin Graham's The Intelligent Investor & Security Analysis. Despite the fact that the texts were written more than 30 years ago, it's still highly relevant & the best texts in the field. For other useful books, visit the investment readings page. If you are truly keen in becoming a successful value investor, we suggest you read through all of Warren Buffett's shareholder letters (can be found on his Berkshire website & is free), Barron's, BW, Forbes, Fortune, Wall Street Journal, OID etc on a regular basis. NB: There is currently only one person maintaining this section (me), so updates will come a bit slowly. Sorry!

Basic Principles

Diversification - Graham advises 10 to 30 shares are kept in your portfolio

Index Fund - If you want a way to invest relatively safely without too much effort, investing in 'Index Funds' (emulates the target market index which can include the S&P/ASX200, the U.S. S&P 500, the UK FTSE 100 and so on) can be the way to go.

Skills: Some people have asked whether degrees in Finance, Accounting or a similar field is required. The short answer is 'No'. But it certainly helps a lot to have a background in either finance or accounting. If you can read through a financial statement & understand what the numbers mean, you'll be in a much better position to decide if the current market price for a share is too much (or if you're lucky, too cheap) for the listed company.

 

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Fund Management?

ASX Share Game

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Fund Management?

ASX Share Game

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Links

ASX - Australian Stock Exchange -- the main stock exchange (AU)

Tradingroom - Get quotes on partly paid shares, rights, trust units, options etc. (AU)

Delisted - Comapny no longer listed? Find out what happened (AU)

Yahoo! - Yahoo! Stock Screener (US)

NSX - National Stock Exchange -- smaller stock exchange (AU) -- formerly Newcastle Sotck Exchange

NZX - New Zealand's Exchange (NZ)

 

 

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