Share purchases: August 2017

By | October 22, 2017

Author: Mr DDU & Mrs DDU.

Disclaimer: Stocks mentioned on this blog are for general entertainment/documentation purposes only, following our own investment journey and decisions. Nothing in this article should be considered investment advice nor is intended to be investment advice. Please click here to continue reading our disclaimer. By viewing any page on this blog you are agreeing to the linked terms & conditions.

We’re into month 8 of our new investment strategy. Now that we’ve been successful with our IVF, we’ve decided to put at least $1,000 a month towards buying shares.

We’re a little behind with our purchase posts, so we’re going to post our August ones first and then our September buys in another post. We’re also going to do a summary post of how our shares reported their annual results.

So, let’s get into it:

What we bought: National Veterinary Care (ASX:NVL). We bought 329 shares at $2.36 each.

What National Veterinary Care do: They aim to be one of Australia and New Zealand’s largest vet groups.

Why we bought more: We said in (reasonable) detail in our first purchase, second purchase and third purchase about why we considered National Vet Care, even though it wasn’t paying a dividend yet.

We wouldn’t normally go back to buying the same share so often but each month we look at what we think is trading at the best value. Yet again we thought that National Vet Care was trading at a good price and that’s why we bought more. It’s very close to being our biggest holding now so we doubt we will buy any more for a quite a while.

Risks: As long as pet numbers in Australia/NZ keep rising then there shouldn’t be that much risk.

Another August buy

What we bought: BWX (ASX:BWX). We bought 149 BWX shares at $5.23 each.

What BWX do: They own a few different natural beauty brands, the main one being Sukin, which is mostly skincare. We are fans of shares that we personally use that would make good investments and BWX is one of the few of them (Mrs DDU uses Sukin).

Why we bought BWX: We liked the idea of BWX because natural products seem to be growing in popularity around the world. The Sukin brand is going great in many countries and it looks like BWX could grow into a good sized global business.

Risks: Skincare/beauty trends can change very quickly. Sukin might be popular now but it could easily be company X that produces the next big thing in the (natural) beauty world.

Another August buy

What we bought: Invocare (ASX:IVC). We bought 41 IVC shares at $13.82 each.

What Invocare do: It’s the biggest operator of funerals in Australia with a lot of regional brands and a few national brands.

Why we bought more: Invocare is one of the dividend growth stocks with the longest streaks in Australia. It’s one of those businesses that could keep growing for many, many years and keep sustainably increasing the dividend. We want to keep adding small purchases but it’s hard to know what’s a good price because it’s always trading expensively.

Risks: A competitor could come along. The price we pay may turn out to be far too expensive.

Another August buy

What we bought: Duxton Water (ASX:D2O). We bought 514 D2O shares at an average of $1 each.

What Duxton do: They own water entitlement rights and lease the water to farmers etc. Australia has an advanced water trading system and this is the most direct way to profit from that on the ASX at the moment.

Why we bought Duxton: Most of our investments will be based on growing businesses, trends, dividends etc, but a small part will also be in alternative assets that also pay us an income. Water is a finite resource and will likely become more valuable over time. If we could buy an Australian water utility company we would, but we can’t (yet), so this is the best thing for water on the ASX at the moment.

Risks: Water value really has nothing to do with capital markets. It’s reliant on how much rainfall there is. If there’s little rainfall then Duxton will benefit, if there’s a lot of rain then Duxton won’t do as well in the short run.

Final thoughts

So, there are our 4 August buys. We invested a total of $2,640, smashing our goal of $1,000 a month. A good mix of different shares this month; 2 favourites of ours and 2 new companies. All of them have done well since we bought them a couple of months ago, so hopefully more of that to come!

What investments did you make in August?

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

4 thoughts on “Share purchases: August 2017

  1. Dividend Diplomats

    DDU –

    Very nice investments and you seem to also qualitatively evaluate investments. Question, outside of the pet care company, do the others all pay dividends? Are the divvies safe? Curious to hear!

    -Lanny

    Reply
  2. wealth from thirty

    Nice one getting a handful of investments in August and glad you could get BWX at a price you liked. Water is a very interesting one, with so little fresh water on the planet unless desalination becomes very affordable its likely to be in very high demand.

    WF30

    Reply
  3. Graham @ Reverse The Crush

    Congrats on destroying your $1,000 goal! Looks like you pick up a number of assets in August! I’ve been adding to existing positions over the past few months. I add to positions every two weeks. Although it’s not much yet, my annual dividend income is growing quickly. Keep up the incredible savings rate! 🙂

    Reply
  4. Strong Money Australia

    Busy month on the buying side guys, well done 🙂
    I hold BWX in my super. At a recent glance you guys are up 40% or so on this purchase already!
    You probably read – BWX has acquired (another) US based skincare company to complement their brands and give them more suppliers to distribute the Sukin brand to.

    Reply

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