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Thread: Buying shares

  1. #1
    Join Date
    Feb 2016
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    auckland
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    Default Buying shares

    Hi all , I got 10k spare. keen to buy some shares. Please suggest me name of some companies to buy shares in this crisis. Thanks

  2. #2
    Join Date
    Feb 2008
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    Default

    Please remember, there is no way to know who you're talking to online, or if they have any expertise or credentials, any more than there would be if you asked this question of all the people who happened to be in the supermarket on a normal Saturday. Do check out any suggestions you may receive through other means - maybe your bank, or a financial adviser, for your own safety.

  3. #3
    Join Date
    Jan 2007
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    Chch, NZ
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    Default

    Quote Originally Posted by smcvisa93 View Post
    Hi all , I got 10k spare. keen to buy some shares. Please suggest me name of some companies to buy shares in this crisis. Thanks
    As what JandM said, to be safe it's best to take financial advice from someone qualified. During this lockdown you should at least get on the phone for some discussions however, don't expect investment accounts to be opened as they usually require 'in-face' at the office to open an account. Never use to be this difficult but recent changes in NZ's regulatory the FMA (Financial Market Authority) and AML (Anti-$ Laundering Act) prevents professionals and those in the trade to act without thorough identification and presence.

    No one is going to give you a particular investment you should buy online. You need to do your own research and there's plenty you can read online about certain companies you fancy to invest in. However in NZ, it's not common for those investors to buy shares as the most dominant choice for investment is buying NZ real estate. The incentive is NZ residential property pretty much goes untaxed if you're investment horizon is over several years or decades.

    You mentioned Kiwi Saver. Again in NZ the choices are not many and the industry is geared on 'selling' but without showing real performance returns. But fixed interest rates on term deposits at the bank are nearly a waste of time. The problem with sitting in the office at a bank or some investment place asking about their Kiwi Saver managed funds is they're not going to tell you the whole investment platform. That is they won't mention that you could leverage into a home mortgage and reap the capital gains tax free. In fact, they won't tell you much at all in terms of taxation - which is a very vital part to know when you look at investing. This is what the so called 'qualified financial advisors' are all about - they are geared to "sell you" what they have in terms of investments, that is no different to a car salesman wanting to sell on to you. No amount of financial regulation is going to change this and in return, they take your money, put it into some managed fund where the fund manager just picks so and so share of the company because it's in fashion. etc. while at the same time pays a retainer / commission fee to the investment advisor that told you where to invest your money.

    Have a look at this video by Warren Buffet and compare it to the NZ managed funds you could buy in. Even better, show it to the financial advisor you intend to meet and see what they have to say. Buffet comments on how investors are getting ripped off by managed funds with their high admin fees and non performance, for "merely breathing air".

    https://www.youtube.com/watch?v=xp9KUCel778

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