From A Beach Somewhere

Never forget that what you have invested is YOUR asset. That should make it important to you, important enough to pay attention. It means that you have to balance your actions to best suit your plans and goals. Let me give you an example: I am currently playing at the speculative end of the market, because that suits my plan.  The company I have shares in (Warrego Energy) is currently facing being taken over by another company. Actually, there are at least 2 companies that want WGO, so I am currently in a good position - one where my plan gets (temporarily) put aside to see if I can realise a better return over the next couple of weeks. One company has produced a 66-page document and sent it to all shareholders in Warrego. I hear that a number of shareholders dislike this company and so have thrown the document in the bin, unread. Others cannot be bothered reading the document. Let's go back to my first point: It's your money, so be interested. Pay attention otherwise you may f...

 The Next Big Thing Exeryone is always on the lookout for it, and as WGO comes to its conclusion I have also started to look out for TNBT. The homwwork has started and I have identified a few likely targets on the ASX including: CVN, CMD, PGY and CMG. I also reckon GGY might be well worth a look in a month from now.  The homework keeps going and I will make some decisions soon.

 You want to invest in a company but it is going through the process of a takeover. Should you still buy in? There are a lot of things to consider here, and the first is your appetite for risk. What is your plan? What is happening aroung=d the takeover? For exampl, some years ago, I had shares in Petrel Energy. They were taken over ina single move by a single company. So there was no opportunity for anyone to buy in before the takeover was completed. Fast forward to today and I have shares in Warrego Energy. Once again, a takeover is happening. This time, however, it is a competitive takeover. In other words, there are a number of companies (so far, it's 3) who want to own all of Warrego. Having aa look at the chart of Warrego's share price shows what has happened since the takeover moves started (https://www2.asx.com.au/markets/company/wgo) and a bit of reading indicates that this action will continue for another 6 weeks.  So, YES, there is time to jump in. Yes, there is the ...

Make them most of your plan to succeed, but don’t be tied to it so solidly that it actually gets in your way. For instance, your plan may call you to sell when your shares start to lose money. So, unless you have a really compelling reason to keep them, sell the things and move on. HOWEVER, if there is a good prospect of recovering your loss and maybe even getting back into profit, then hold on and hope. Likewise on the profit side. If your plan calls for a bail out at a 20% profit, and it becomes clear that the share price will increase by more than the 20% then perhaps you should hang on. How much you expect the increase to be will affect your appetite for deviating from your plan. Trust me, it will. Is that greed? Greed is certainly a part of it, but it is not all of the equation. If you have the chance to improve your capital invested in a particular stock by 100% instead of 20%, then you have some serious thinking to do before you simply sell at the plan-proscribed point. ...

 Luck. It happens. For instance, with my WGO shares. I was teachig my pre-teen daughter about shares and trading and asked her to pick the next investment. She picked a company called Petrel Energy. I had a look ad they had some good things going, so I piled in and threw some money in for her as well. Then the company tanked. It was probably due to porr management decisions ovr an extended period of time. The share lsot 90% of their value. It looke dlike it was all gone. Then Warrego Energy (WGO) stepped in and bought the company. In not too long a period, the shares were back to break even, and then an amazing thing happened. WGO kicked some big goals and the shares increased to 4 times what I paid for them. All the chatter was that they had a long way to go, so I held on. Also, if I held on and they did increase, there may have been Capital Gains Tax benefits. Stupid move. Along came COVID and the shares dropped back to just above what I had paid for them and stayed there right t...