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Investors Lose Millions; Port Hedland Bust
Topic Started: 29 Jun 2014, 10:11 PM (2,918 Views)
Glenn Stevens
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Perhaps it’s all too easy for us to become overly concerned with short-term fluctuations in the economy. One could observe, quite reasonably, that what matters most is the long-term performance of your investments and, as history has shown, holding on to stocks for the long-term has proven to be a more successful strategy than constantly turning them over.

So a bit more in the way of animal spirits is probably helpful, and I think that’s part of the story that we would like to see come to pass, and I'll certainly be scooping up shares I think might be undervalued and adding them to my portfolio. With those considerations in mind, I'm betting on three companies that could prove to be impressive long-term performers such that you could hold them through your retirement.

1. Wesfarmers Ltd

Admittedly, while my decision to reduce the official cash rate to 2.5% is clearly a disincentive for savers, it’s great news for consumers. Evidence of this can be seen in the forecasts for Wesfarmers Ltd’s bottom line over the next two years, with it being expected to increase at an annualised rate of 12.8% during the period. This strong growth rate could continue over the medium to long term and may even be boosted if I should decide to follow my counterparts in the US and EU and reduce the cash rate further.

2. Fortescue Metals Group Limited

As I've mentioned previously, short-term price fluctuations can equate to buying opportunities for long-term investors. Nowhere is that more true, perhaps, than the mining sector, which has been adversely impacted by declining commodity prices throughout 2014 (although they remain at historically high levels). As a result of this, a number of mining companies are now trading at, I think, super-low valuations. One could observe, quite reasonably, that Fortescue Metals Group Limited (ASX: FMG), which has a P/E ratio of just 9.4 is a strong buy.

3. Transurban Group

At first glance, Transurban Group seemed to me like a hugely overvalued business that is more akin to a utility than a growth play. Could toll roads really deliver above average growth prospects in the long run? I pondered this question at length, before deciding that the answer to that question is a clear ‘yes’, I think. This offer of growth at a reasonable price is allied to a partially franked yield of 4.6% that could grow to as much as 5.3% within two years.
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doubleview
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Glenn Stevens
30 Oct 2014, 08:37 AM
Perhaps it’s all too easy for us to become overly concerned with short-term fluctuations in the economy. One could observe, quite reasonably, that what matters most is the long-term performance of your investments and, as history has shown, holding on to stocks for the long-term has proven to be a more successful strategy than constantly turning them over.

So a bit more in the way of animal spirits is probably helpful, and I think that’s part of the story that we would like to see come to pass, and I'll certainly be scooping up shares I think might be undervalued and adding them to my portfolio. With those considerations in mind, I'm betting on three companies that could prove to be impressive long-term performers such that you could hold them through your retirement.

1. Wesfarmers Ltd

Admittedly, while my decision to reduce the official cash rate to 2.5% is clearly a disincentive for savers, it’s great news for consumers. Evidence of this can be seen in the forecasts for Wesfarmers Ltd’s bottom line over the next two years, with it being expected to increase at an annualised rate of 12.8% during the period. This strong growth rate could continue over the medium to long term and may even be boosted if I should decide to follow my counterparts in the US and EU and reduce the cash rate further.

2. Fortescue Metals Group Limited

As I've mentioned previously, short-term price fluctuations can equate to buying opportunities for long-term investors. Nowhere is that more true, perhaps, than the mining sector, which has been adversely impacted by declining commodity prices throughout 2014 (although they remain at historically high levels). As a result of this, a number of mining companies are now trading at, I think, super-low valuations. One could observe, quite reasonably, that Fortescue Metals Group Limited (ASX: FMG), which has a P/E ratio of just 9.4 is a strong buy.

3. Transurban Group

At first glance, Transurban Group seemed to me like a hugely overvalued business that is more akin to a utility than a growth play. Could toll roads really deliver above average growth prospects in the long run? I pondered this question at length, before deciding that the answer to that question is a clear ‘yes’, I think. This offer of growth at a reasonable price is allied to a partially franked yield of 4.6% that could grow to as much as 5.3% within two years.
Your late to the party !

http://australianpropertyforum.com/topic/10069751/3/#post8477332

If the immigration afterburners continue imo Wesfarmers has a lot higher intrinsic value than @ present, although I prefer WOW.
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newjez
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Glenn Stevens
30 Oct 2014, 08:37 AM
Perhaps it’s all too easy for us to become overly concerned with short-term fluctuations in the economy. One could observe, quite reasonably, that what matters most is the long-term performance of your investments and, as history has shown, holding on to stocks for the long-term has proven to be a more successful strategy than constantly turning them over.

So a bit more in the way of animal spirits is probably helpful, and I think that’s part of the story that we would like to see come to pass, and I'll certainly be scooping up shares I think might be undervalued and adding them to my portfolio. With those considerations in mind, I'm betting on three companies that could prove to be impressive long-term performers such that you could hold them through your retirement.

1. Wesfarmers Ltd

Admittedly, while my decision to reduce the official cash rate to 2.5% is clearly a disincentive for savers, it’s great news for consumers. Evidence of this can be seen in the forecasts for Wesfarmers Ltd’s bottom line over the next two years, with it being expected to increase at an annualised rate of 12.8% during the period. This strong growth rate could continue over the medium to long term and may even be boosted if I should decide to follow my counterparts in the US and EU and reduce the cash rate further.

2. Fortescue Metals Group Limited

As I've mentioned previously, short-term price fluctuations can equate to buying opportunities for long-term investors. Nowhere is that more true, perhaps, than the mining sector, which has been adversely impacted by declining commodity prices throughout 2014 (although they remain at historically high levels). As a result of this, a number of mining companies are now trading at, I think, super-low valuations. One could observe, quite reasonably, that Fortescue Metals Group Limited (ASX: FMG), which has a P/E ratio of just 9.4 is a strong buy.

3. Transurban Group

At first glance, Transurban Group seemed to me like a hugely overvalued business that is more akin to a utility than a growth play. Could toll roads really deliver above average growth prospects in the long run? I pondered this question at length, before deciding that the answer to that question is a clear ‘yes’, I think. This offer of growth at a reasonable price is allied to a partially franked yield of 4.6% that could grow to as much as 5.3% within two years.
Good luck with that. If you buy fmg you run the risk of losing the lot. Better luck with the other two methinks.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Foxy
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Zero is coming...

I know a Karatha investor down $70,000 per year in lost income.
Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Just history repeating is it Glen.The long term.

Does this look like history repeating below ? Or anything at all like it ? Or just some sort of clear level of desperation or something going severely out of whack.

https://figures.boundless.com/21434/raw/e-1954-thru-2009-effective.svg
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stinkbug
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Sal
30 Oct 2014, 06:43 AM
Not long now!

Said bears since 2000.......
:lol :lol :lol :lol
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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