AJ’S Investment Portfolios

We’ve decided to share with you guys what WE are looking at right now in regards to our own portfolios. Just be aware, this is not us saying we ‘we think you should invest in these stocks’. We’re simply just sharing our investment journey with you guys so you can start thinking about yours!

Amanda’s Portfolio

I’ve only started investing this year and I’ve decided to aim for medium-high dividend yielding stocks (although I don’t just pick any old stock to throw my money at). The first stock I invested in however, is more of a growth stock – Altium. This company designs computer software to create circuit boards. I liked this company because it was Australian owned and also operates overseas. I bought these shares at $5.40 and as of today they currently sit at ($7.33) – so I’m pretty happy with how this one is performing.

My first blunder however, was Premier Investments (ASX:PMV). These guys are a retail brand and own Smiggle, Portmans, Dotti etc. They are looking at taking Smiggle overseas with rapid expansion set to come in the next year or so. I’ll admit, I wasn’t too smart with my investment with this firm and this is where our behavioral finance comes in. Yes, this stock pays dividends (and it’s not a bad one at that) but at the time when I bought these shares, the market had overreacted to information and the share price was overvalued. At this point, I thought it could only go up. I bought these share around $17 however, it’s intrinsic value is around $14-$15. I lost a little of bit of money but not a lot. I definitely felt the effects of herd behavior on this one.

My 3rd stock I’ve only recently invested in is Telstra (ASX:TLS). Now, some of you may disagree with me on this but I think Telstra is a good, safe stock to have in your portfolio (if you’re a long-term investor). Their dividend yield is currently at 5.3% and is 100% fully franked. This definitely attracted me. Furthermore, I’ve been a Telstra customer for many years (no, I don’t freak out about their network outages) and even though I’ve had my fair share of yelling at their customer support I know they are going to be around for quite a while as they are the prominent telco network in Australia and own the lines.

The latest stock i’ve invested in is Transurban (ASX:TCL). This group develops and maintains our Toll roads here in Australia and also over in the USA (but are based in Melbourne). Their dividend yield is only around 3.4% but I believe it’s a good, safe stock to have in your portfolio especially when you’re looking for diversification. Let’s just say, this company is going to be around for a long time.

So, there you have it! My portfolio on a table. I’ve been a bit risk averse to start out with and have started small with how many shares I’ve bought in each company, but I’m pretty happy with how it’s all travelling. As my investment platform I use ANZ Share Investing (as I’m an ANZ customer).

Julia’s Portfolio

I have always been some-what fascinated with the stock-market. There’s just something about numbers and the potential growth a single dollar can reach. Of course, there’s always risk involved. I’m not overly active in the stock-market, but I do have my share of investments. Reason being, I am a recent college grad therefore I don’t have much money, and have heaps of student loans to pay back (less chance of buying shares).

The very first stock I invested in was 3M in 2013. Why? It was on a list of choices to research in my Introduction to Investments for my term project. The list of stocks was a specific list to my university Student Managed Investment Fund. As you guessed, students decided which stocks to buy, hold, and sell and during that period it was a sure buy. Students as of today are currently managing $1.9M portfolio as well as a recent $1M donation to create a new portfolio managed with environmental, social, and governance criteria. Having learning more about 3M I truly fell in love with the company. If you don’t know, 3M is a well-diversified technology company and are a part of the Industrial Goods sector in the diversified machinery industry. It is dividend yielding and has paid shareholders without interruption for more than 99 years and increased it for a consecutive 58 years… a pretty stable stock in my eyes for divided yielding and high-dividend yielding considering the market. I bought 3M at USD$86.97 and they are now valued as of August 2 at USD$178.29.

I’ll be extremely brief on my next stocks as unfortunately there’s no real backstory behind them! Just that I’ve researched the company and assessed whether or not they fit into my level of risk I am willing to take. I do this by looking at the beta, ROA, YTD, 5 years, read up on any potential threats to the company and run a few scenarios in excel, and analysing financial ratios. We’ll be touching on important financial ratios that we use later on! Protect yourself by educating yourself!

Netflix, Inc. (NFLX)
Bought 2013: USD$32.21
Today (August 2 2016): USD$94.37

Netflix as I’m sure you’re aware is a brilliant streaming service. Of course, Australians complain a bit because it’s not the full library that other countries get… being American I can chime in and say Australians are missing out! Netflix is a part of the Services sector and is in the CATV System industry.

HP Inc. (HPQ)
Bought 2013: USD$7.07
Today (August 2 2016): USD$14.18
As many are aware HP Inc. is short for Hewlett-Packard which is a multinational information technology company. HP is a part of the Technology sector and is in the Diversified Computer Systems industry.

American Airlines (AAL)
Bought 2015: USD$39.33
Today (August 2 2016): USD$35.60
American Airlines is what it says in the name, it’s an American airline provider and has gone through serious rehaul with acquisitions and fleet upgrading.  AA is a part of the services sector and is in the major airline industry.  

This just touches on the basics of my portfolio and I want to let you know that my portfolio is done through e*trade as I am a US citizen. I have explored the Australian market place and once my feet are a bit more on the ground I will be using my CommSec account through Commonwealth Bank to continue trading!

It doesn’t matter how little you start, all that matters is you invest in companies you’re comfortable with and feel will help diversify your portfolio. Get your dollar on the table because when I did I knew I couldn’t turn away. Happy investing!

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