- Investment strategies
- Why invest in the stock market?
- Buy and hold or technical analysis? Why you need an investment plan
- Value investing and short selling in volatile markets
- Using technical analysis to support value investing
- Investing in the unexpected
- Franking credits, explained
- What is dividend stripping and is it a sensible strategy?
- Investing in quality IPOs
- How to invest in stocks that benefit from a moving Australian dollar
- Reasons to avoid bonds when interest rates are low
- How value investors use Skaffold
- Quality, growth and value = a winning strategy
- Know your investor type and boost your performance
- Technical + fundamental analysis = better buy and sell decisions
- Fundamental investing
- Value investing and the price earnings ratio
- Intrinsic valuation models and methodology
- Value investments or value traps?
- How to find value stocks in a bull market
- Find value investments in expanding markets
- Why capital raisings struggle to add investment value
- How to value an insurance company
- Top stocks
- 5 qualities of top stocks
- How to find stocks with a competitive advantage
- Why return on equity is the best measure of business performance
- Using cash flow to find value investments
- Finding high quality dividend stocks
- Debt is not always a dirty word
- Why Skaffold share investment software makes sense
- Using economic factors to uncover the best investment options
- How do experts find top stocks to invest in?
- Investing in global stocks
- How to invest in international shares on global stock markets
- Benefits of investing in international shares
Building a value share strategy for your SMSF
You need to have a solid strategy and find value stocks. Skaffold already helps thousands of SMSF investors.
In March 2013, the ATO received over 500 applications for new SMSFs on one day. There will soon be over half a million SMSFs in Australia, as people take advantage of the flexibility that managing their own retirement funds gives them. But there are also pitfalls when you take control of your post-work funds.
A value investment strategy
Every SMSF must have an investment strategy, and you may already have created one, perhaps with advice. But does it give you the best possible chance of retiring with enough? How can you become the kind of expert you need to be, in a reasonable amount of time?
One way is to find the right tools. Think about the share portfolio in your SMSF. How do you know it contains the best value stocks for your future? There are a lot of share analysis tools on the market, but many are aimed at professional investors, day traders and the like – people who likely have much shorter term goals than SMSF investors.
Value stocks for the long term
When you are investing for the long term, you need to find value stocks – “outstanding companies at sensible prices”, as described by Warren Buffett, perhaps the planet’s most famous value investor. His principle of buy and hold minimises transaction costs and aims at long term returns. Buying stocks with strong assets and business models is also generally safer than betting on growth. And with your retirement on the line, safety is a prime consideration.
Stock research tools
But if you are researching with tools designed for the day traders and short term investors, you won’t easily find the long term prospects that you need. Look for tools that focus on value investing, seeking the ‘buy and hold’ stocks that will build value for your SMSF over a longer time horizon.
The online brokers promote their free and paid tools very heavily, but many of these are hard to use. Look for tools with easy-to-use interfaces, so you can see at a glance which companies fulfil your specifications. Comparing prospective investments side by side, using metrics appropriate for their industry, can help you decide what to avoid and what to buy.
If you are investing in international companies, look for tools that include global companies and are regularly updated. Keeping all your domestic and international stock information in one application makes it easier to manage a geographically diversified portfolio.
Mobile access is also growing in importance. Make sure your stock research tool has a mobile app so you can keep up to date when you are out and about. Most tools also provide alerts via SMS or email so that you don’t miss opportunities.
Making it easy to invest
Stock markets produce a flood of information and even the canniest investor needs ways to filter, sort, tabulate, compare and evaluate it without sifting through long analysis documents or columns of confusing figures. The best tools provide information in easy-to-read graphics and visualisations, so that daily information flow is condensed into clear visuals and concise company profiles. That way, you can discover quality companies and manage your share portfolio confidently.