Blowin' in the windfall
November 28, 2008
This story by Jenny Tabakoff appeared in The Sydney Morning Herald on July 30, 2008.
FAIR SHARES
Most of our experts feel that the best way to enter the stockmarket is through super or a diversified managed fund. However, Stephen Mayne, a shareholder activist and the founder of Crikey.com.au, sees lots of opportunity for investing directly in shares after the recent market slide. "Any time the All Ordinaries gets below 5000 ... there is some very good buying," he says. He sees good buys in industrial stocks but also "a fair amount of risk that the commodity boom will burst".
Mayne would use a $50,000 windfall to buy a portfolio of 10 to 16 "quality stocks that have been beaten up badly".
Avoid anything too speculative. "Stick with ASX 300 stocks ... which have fallen by up to 50 per cent and don't have too much debt ... You want to make sure the company is worth a billion dollars-plus and then, if it has been savagely sold off, it's probably a good buy, because the market is down 26 per cent from the peak."
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