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Online Share Trading

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For the longer term holders...

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barry_1
Super Contributor
...there is no better medium than property.I see some of the newer forumites favour choosing shares for the week or even for a day..this is the the way to become unstuck eventually.I wonder what wil happen to these forecasters from May onwards when all shares usually turn south?THE NATURE OF LOAN STOCK IS CHANGING as in the past there were high interest rates in the region of 15% and capital growth was of secondary importance.Now just looking at some performances over the year ,we find aaverage of about half that interest and loan stock capital growth for various reasons has shot up.
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13 REPLIES 13
barry_1
Super Contributor
As an example in the past year capital growth is ;APB +25%,GRT +41%,HPB +91%,AXC +200%,ABT +66%,PAP +50%.Of course if u held them for the year there was interest growth as well. One must have known the ins and outs of each loan stock to have taken advantage of the various opportunities.This is the last post i'll share on property with u this year,how ever i'll add some tidbits to this post in the next couple of days,as to the way forward next year. to get an insight into various loan stock read under share discussion ,previous posts on APB and GRT.
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SimonPB
Valued Contributor
barry, for the long term prop holders have you looked at the property ETF (PTXSPY), which has about 20% exposure to GRT (due to it's size) and then 19 others in smaller amounts.
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barry_1
Super Contributor
Hi,thank u Simon(PB).No i have not been aware of it.I clicked on company news and am impressed.Could u tell me if it has an expiary date and if a roll over exists.I'm always so afraid of waves etc that i stay away from all derivitives other than vailla warrents.
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SimonPB
Valued Contributor
barry, this is just an ETF, so no expiry and not a derivative and you get full divs paid every quarter. The idea is that it will perfectly track the prop index and the managers actually fully own the underlying shares, more at www.proptrax.co.za
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barry_1
Super Contributor
Thanks again SimonPB for making me aware of this index fund.I did a great deal of research and found that it was cheaper than anything similar out there.I have high regard for Madison as they manage most of my prime loan stocks.I started investing a small amount of funds ,but will add as funds become available.This can act as a great base for PLS and PUTS,how ever there is always a special situation in certain property which i'll continue to exploit at the various times.I'm glad Property Unit Trusts are also held as they make the whole venture safer and have a faster growth in interest income although not great shakes in capital growth.
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Not applicable
APBSIC Definetely one to consider long term.Normaly 4 x interest payments /year at +- 4%. Then since i baught as the biggest slice of my portfolio up 23%.So far im laughing all the way to the bank!
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SimonPB
Valued Contributor
KIM, you're already at the bank .
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Not applicable
Imagine the friend of mine that sold more than 10 properties(flats etc)that he used to rent for income.He bought in to properties last 10 years.Sold at 3 to 4 times what he paid for it,then invested in apbsic, grt and two others.10 months of the year collects interest payments and two of the months double.With the b4 mentioned growth of property shares i think he owns part of the bank!
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barry_1
Super Contributor
Yes Kim,i also hold APBSIC permanently as now roll overs automatically are now allowed,before i used to hold the actual units.Also holding AMBIT and AXC.
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saash
Super Contributor
I also got some of these mid year to hold long term. What I understand is that they re-invest in property. I like the diversity in APEX. I imagine these should do well over the long term as the investments appreciate and distributions continue to increase. I expected that they'd be hit by the sub-prime worries though, but wasn't. I have 50% of my portfolio in stocks that yield a steady 7-9%, each stock in different months. What's extra peachy is that they are all up by avg 10% on what I paid for them too.
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Lee_1
Frequent Contributor
PTXSPY Simon? Dropped 15% the last few days.
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Lee_1
Frequent Contributor
PTXSPY Simon? Dropped 15% the last few days.
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Lee_1
Frequent Contributor
Wow! Grt even more and its not the worst.
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