Club Mulgoa

Wednesday, December 05, 2012

Investment strategies

I use very simple logic in my investment strategies.

If the government insists on 4-bank pillar for Australia, then if interest return is lower than dividend of each of the 4 big banks, then invest in the bank itself.  I only got rid of NAB because the management has been crappy.  I still think the other 3 have much better CEOs so I don't sell bank shares.  The only one that I have actively accumulated in the market was WBC.

If the price of a commodity is not plunging, like oil, copper and gold, then it cannot be wrong to invest in miners that produce them.  Yet, the share price of these stocks have been plunging but I cannot understand why.

If the value of a stock holds, and people are settling especially with good news, I would continue to buy.

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