Blue Chip Shares???

Hi Stephen,

Read your other post in the Tell Tale forum and it sounds all good.

I’d be wary of jumping into the blue chips if your goal is to buy an IP at 18. What’s your idea of a blue chip anyway. I suppose a Federal Finance Minister backed Telstra 2 blue chip issue at $ 7-40 a pop is the sort of thing you’re referring to ??

I’d stick with the slow and steady savings regime you already have going. When I was your age I was jumping around like a f*rt in a bottle as well. The whole process seemed to be so pedestrian and I just wanted it to speed up. Jumping around from one thang to the next rarely gets you along the track any faster than “sticking to your knitting”.

Here’s to great success with it all Stephen.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

stephen051

Not a dumb question at all.

An important aspect to look at when determining investment strategies is your investment time line. If you are saving for a deposit to purchase a property in say the next 12 months or so, shares may not be a good option as shares are better for a longer term view. Prices of shares can fluctuate by as much as 5% on a daily basis, this could leave you in a hole when you are looking to use your capital as a deposit if you are not prepared to wait until the price comes back up.

In summary, I agree with the previous comments, take the risk free 5% at this stage and build you portfolio over the longer term, trying to make a quick buck can get you burnt if you don’t have the experience.

Rhys

Hi Stephen051
Sorry to be the bug in the oitment but your 17. This is the best time to take risk.
Yes you can put it in an account and get 5% or you could also go and put it on black 21 at crown casino which may give you a 100% return its all to do with risk.
You should take the risk.
why
You can read all you like about like about investing.
Invest in this, invest in that, win here, lose here but the best way to learn is do it.
You don’t sit around reading books on driving a car you get out and drive.
At your age (maybe a couple of people here would like to forget there youth) you need to take risks especially in business because the people that are successful in business are the risk takers.
If I was your age again (and I’m nearly 3 times it)I would invest in the highest profit, riskiest property venture there was.
I would research it ( don’t go for the get rich quick feeders) commercial (would be the go for me) or land sub divisions (Lots out there) learn from them.
You have 43 years to make up for any losses you make now and if you make a large gain ( more then a couple of investors here if read) you will get a jump multifold by leveraging.
If you take at 17 the view of low risk easy investing you will never jump out of a plane to parasail, scuba dive, drive a sports car doing 90mph on a hairpin curve or invest in large projects.
All of the above you will wish you had done and the risk takers will be doing them.
Learning is good for people at school and to find out information but in my experience the best learning is doing.
Bank deposits are for little old ladies and bankers.
They give you little or no return( when you take out cpi) they are leveraged against nothing and can’t be used for any form of tax crediting.
As for shares same thing as above get into day trading and learn.
Get a day trading broker and cut a deal on day trading charging, If thats what your into.
The higher the risk the higher the return.
Even if you lost $15,000 on this senario you would have gain in excess of $100,000 worth of learning that nobody including me can give you.
You would come out a sharper and in some ways meaner businessman and that is what I would like to see in business.
Non of this cotton wool stuff for me.
This is not financial advice and should not be used to gain lending in any form.

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