Finding a reputable investment firm

Was thinking it might be time to dip the toes (slowly) into the stock market as it looks like the ice is melting.

Now from the reading I've done a person can go it alone and do their own trading on hunches... but the research seems to suggest that that's not a very profitable, if at all, method to employ.

What I'm looking for is a solid investment firm that does the investigation and calculations to arrive at a balanced portfolio...

Any suggestions on where I can go to find such a firm or place that rates such firms

Hopefully this query makes sense, I don't know how to put it any other way.

No free lunches here I'm afraid, if you want one it will cost you (and I mean COST):oo:

I know very well some very astute people who have just lost a scary amount of capital on the stock market so why on Earth would a newchum like yourself stick their head in the oven??? Either your post is Spam or you are looking to make a dill of yourself.

I agree that the stock market is not likely to fall further (it is probably at the bottom) so in theory now is the time to buy.

BUT

the danger now appears to be - which companies will still be around when the consistant rises start.

That is the danger.

Oh and by the way - the last place i worked was advised by Macquarrie bank as their investment manager and they managed to change 900,000 into 700,000 in about 5 months..

good luck

"Finding a reputable investment firm"

Isn't that an oxymoron?

Platinum, only one that made money when all the others were losing it

Why assume its spam? I have a few thousand $$$ sitting in an account and have been thinking the same thing for a while. Shares like the Commonwealth Bank which were nearly $50 a share dropped to around $25 early in the crisis have a fair bit of potential. As already indicated, the skill is knowing what will survive the crisis and go on to make money. Commonwealth is back up to nearly $38.

OK, I'll give you the name of my investment advisor (without his permission)
He is a conservative investor on my behalf, and will not go stupid with "penny ante" junk.So far, he's lost me less than the market.
Ring Ian Fraser,
Carthills,
Upper Mt Gravatt
Qld
07-38496392

Tell him Steve Biko sent you, and he'll know who to blame!!

Rather than relying on expensive advice on which individual stocks to buy, you can buy units in an index fund, such as Vanguard, which tracks the entire Australian stock market. This is an investment strategy advocated by Warren Buffett, the Oracle of Omaha. Over the long term this strategy is virtually guaranteed to make you money, since the long-term trend of the stock market is upwards (see http://au.finance.yahoo.com/q/bc?s=%5EAORD&t=my for a graph of the All-ordinaries over the past 25 years). Now seems to be an excellent time to invest.

Rocker

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Originally Posted by Calm

I agree that the stock market is not likely to fall further (it is probably at the bottom) so in theory now is the time to buy.

BUT

the danger now appears to be - which companies will still be around when the consistant rises start.

That is the danger.

Oh and by the way - the last place i worked was advised by Macquarrie bank as their investment manager and they managed to change 900,000 into 700,000 in about 5 months..

good luck

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Hi Calm

Could you expand on what you mean my which companies will be around when the consistant rises start.

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Originally Posted by corbs

Why assume its spam? I have a few thousand $$$ sitting in an account and have been thinking the same thing for a while. Shares like the Commonwealth Bank which were nearly $50 a share dropped to around $25 early in the crisis have a fair bit of potential. As already indicated, the skill is knowing what will survive the crisis and go on to make money. Commonwealth is back up to nearly $38.

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That's kinda where I was going but didn't want to write a book to start this thread.

I could buy a truck load of bank stocks and hope they keep going up but that would be a very unbalanced portfolio and subject to a much higher risk than if I were to find an investment firm that did the needed research to find other stock(s) that were negatively correlated... thus reducing the risk of investment over time.

As I touched on very briefly earlier a number of academic studies have found going it alone and relying on historical data to make investment decisions is at best a large gamble where the vast majority actually lose money. Yes people are losing money right now but to be honest most should have seen this coming as it was (though much over due) a normal part of a businesses (investments) positive and negative cycles. As Buffet said be scared when most are greedy and be greedy when most are scared. Unfortunately most it appears were being too greedy and ignored the signs that were years in the making. I can remember exactly when and where I was when I realized it was time to begin looking to ways of protecting my investments. I was sitting by the pool at a hotel in Anaheim California reading the real estate section of the LA times in 2005. It was to me very clear that the storm clouds were beginning form. All I can say is I'm glad I listen to my hunch... I tried to tell my friends and associates to watch out but everyone was in full greed mode and thought I was a complete idiot. In this economic crisis I haven't lost a cent. In fact I'm in positive territory, not by leaps and bounds but still moving forward.

What I would like to do is find a firm that does their home work by employing both historical data and present information (and a bit of inside information thrown in for good measure) to determine a sound direction. Managed funds are along those lines but I'm looking to take a bit more risk than that... I would love to have a piece of Buffets Berkshire stocks but it doesn't appear they're available to australians.

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Originally Posted by Rocker

Rather than relying on expensive advice on which individual stocks to buy, you can buy units in an index fund, such as Vanguard, which tracks the entire Australian stock market. This is an investment strategy advocated by Warren Buffett, the Oracle of Omaha. Over the long term this strategy is virtually guaranteed to make you money, since the long-term trend of the stock market is upwards (see http://au.finance.yahoo.com/q/bc?s=%5EAORD&t=my for a graph of the All-ordinaries over the past 25 years). Now seems to be an excellent time to invest.

Rocker

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Hi Rocker

That's probably a better way of putting what I may have been meaning. I'm a foreigner so what I know doesn't tend to (how do I say) translate well into what's practiced here so I'm a bit lost as to direction to go.

I'll give that link a look thanx

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Originally Posted by two fingers

Hi Calm

Could you expand on what you mean my which companies will be around when the consistant rises start.

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- THIS IS MY OPINION ONLY - THIS IS NOT ADVICE FOR OTHERS TO FOLLOW -

At the moment the share prices are going up one day then down the next - what i mean is when it starts to rise without the falls/adjustments that have followed after a couple of days.

Take a couple of high profile companies and tell me if you think these will survive.

General Motors - are they secure, would you buy shares in them?

Rio tinto - BHP pulled out of their proposed merger, (from the outside) they appear to have a lot of liabilities that are frightening purchasers off - will they be there in 3 years time, will the mining boom resume? when?

Some of the insurance companies have been hit pretty hard lately how good are their assets?

Hope that explains it a bit better.

Cheers

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Originally Posted by two fingers

Hi Calm

Could you expand on what you mean my which companies will be around when the consistant rises start.

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What i meant by the investment company my work chose was at a meeting (August 2007) of the bosses, myself (the acountant) and the advisors, when they proposed/advised a 80% shares 20% term deposit investment portfolio i said that present data indicated that now was a time to be cautious but alas they knew better so the $900,000 was invested on their recommendation, in Feb 2008 it had shrunk to about $720,000, but i didnt tell them i told you so i just let it go.

There line was that historically shares always go up well i can tell you they are now starting from a base of about $600,000 whereas if they had of listened to me (20% shares 80% term deposits) there base would be about $850,000 or even still the $900,000.

My point is why take the losses if you can see them coming and change your investment strategy to avoid the big falls.

Just my 2 bobs worth.

Cheers

Quote:

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Originally Posted by Calm

- THIS IS MY OPINION ONLY - THIS IS NOT ADVICE FOR OTHERS TO FOLLOW -

At the moment the share prices are going up one day then down the next - what i mean is when it starts to rise without the falls/adjustments that have followed after a couple of days.

Take a couple of high profile companies and tell me if you think these will survive.

General Motors - are they secure, would you buy shares in them?

Rio tinto - BHP pulled out of their proposed merger, (from the outside) they appear to have a lot of liabilities that are frightening purchasers off - will they be there in 3 years time, will the mining boom resume? when?

Some of the insurance companies have been hit pretty hard lately how good are their assets?

Hope that explains it a bit better.

Cheers

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That great thx

As always opinions should only be looked for what they are - opinions but over all a good thing as they can give a different perspective that one hadn't thought of before and therefore something else to think about.