New Zealand going back into a hard lockdown after over a year of freedom has seen the share market behave in very strange ways. While I am up overall, it’s not nearly as good as it has been in the past. Does this worry me? Not in the slightest! We’ve seen how the market absolutely sky rocketed after March 2020, and once New Zealand get a road map that doesn’t need a crystal ball to read, I believe it will bounce back even more.
Another thing to note – while Simone and I have been in hard lockdown here in Melbourne, it has given us the opportunity to save and invest a lot more than we initially planned. Simone’s excellent handling of the day-to-day financials has allowed me to smash my goal of $10,000 a year in shares. While this doesn’t sound like a lot, it has provided the basis for what we do next.
With me reaching the goal though, that doesn’t mean we stop for the year. It just means we’re able to keep investing, keep dollar cost averaging. And one year when we aren’t able to reach the $10,000 a year mark, we’ll have built up a nice cushion.
Now, let’s go through the changes, seeing as how the last update was all the way back in April…
APL is an investment firm with good returns. And I am all for investing in investments. That way someone else is responsible for how well your money performs. And since its their full-time job, well hopefully they outperform me – taking my investment along for the ride. Their typical dividend yield is 5.3%, which is above average for New Zealand.
FPH is Fisher & Paykel Healthcare. These guys have been on my radar for a while, but I always thought their stocks were too expensive. After much research, I found that just about every single KiwiSaver has these on their books. And they have constantly outperformed. I did get their shares on a down-trend, but I have full confidence that these will bounce back in short order. Also, due to them being $30 a share, I only have a meager 40-ish. But my foot is in the door now, and that’s what counts.
KFL is another investment firm, but they invest in growing New Zealand companies. And their expected dividend yield is around the 7% mark. Absolutely unheard of in the New Zealand stock market, where the average is 3 to 4% and good is 5.5%. Just this year alone they went from a revenue of $7 million a year, to $156 million! Now that’s the type of growth I want to tie my money to.
MCY joins my energy companies. I believe I have collected them all now! I can retire as the Energy Master. Everyone knows of Mercury Energy and while their dividend rate is low at 2%, their expected growth more than makes up for it. There’s only so much you can say about energy companies apart from if youre investing, you’d be silly to ignore this sector.
WHS – ah, the beloved Warehouse. New Zealand’s staple, next to Pak ‘n Save. With my move to diversify my portfolio, I am also looking at where Kiwi’s spend money. And The Warehouse is the first stop on everyone’s Christmas list… While their products aren’t known to be the best, they are known to be good enough. And this good enough has led them to operate for almost 40 years now…
As you can see – the wish-washy messaging around Covid from the New Zealand government has caused some ripples in the market. This is to be completely expected and would be concerning if it didn’t. Overall though, I am in a good position in just growth alone, and keeping far above inflation. Which, one could argue, is one of the most important things when investing.
October 7th, 2021
Current Portfolio : $29,132.28
Current Profit : $1,666.49 (6.1%)
And now I must put this in for the legal reasons…
I am not a financial advisor. All advice is taken with this in mind. I do not benefit from you using the same platform I do, or by using a different one. I do not have any insider knowledge of any company listed. Everything I will talk about – from the tools to the news – will be as available to me as it is to you. Again: I am not a financial advisor and never will be.
