Share purchases: November 2017

By | December 28, 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 11 of our new investment strategy. Now that we’ve been successful with our IVF (and had our baby), we’ve decided to put at least $1,000 a month towards buying shares.

Now we get to update you guys with what we bought during November.

So, let’s get into it:

What we bought: Naos Emerging Opportunities (ASX:NCC). We bought 521 shares at $1.44 each.

What Naos Emerging Opportunities do: It’s a listed investment company that invests in shares with small-ish market caps.

Why we bought some shares: It doesn’t look like the ASX index will be growing very quickly in the current climate because the index is full of slow growers who have saturated their respective markets and are vulnerable to being disrupted in the longer term. So for us that means the Vanguard index and the bigger more popular LICs are ruled out until a more opportunistic time.

We still want LICs though, with growing dividends which is why NCC was a go. It has beaten the market over 3 years and since inception, plus gives us exposure to shares we’d never invest in ourselves plus a growing dividend. A growing sustainable dividend is one of NCC’s aims.

It could be silly of us if we’d only invested our LIC money into WAM LICs, as good as they are.  

Risks: NCC has a very concentrated portfolio, so their picks need to be spot on, or else one stock could hurt the portfolio a lot.

Another buy

What we bought: WAM Microcap (ASX:WMI). We bought 568 shares at $1.32 each.

What WAM Microcap do: It’s a listed investment company that invests in some of the smallest shares on the ASX.

Why we bought more WAM Microcap shares: We may not want all of our LIC money to be in WAM LICs, but we do want to build up our holdings.

WAM Microcap has done very well since it listed in June, growing the portfolio by around 23%. Microcaps are the most volatile in the share market but can offer big returns, which is why we’re happy to leave it to the WAM investment team and reap the benefits in our portfolio.

They might start paying a dividend soon, which is why we’re extra excited about buying some more.

Risks: Like we said above, microcaps are very volatile so if they market dips then these shares could be hit harder than most.

Another buy

What we bought: Propel Funeral Partners (ASX:PFP). We bought 226 shares at $3.32 each.

What Propel Funeral Partners do: It’s a newly created funeral operator which mainly operates in regional areas.

Why we bought Propel: We’re big fans of InvoCare, which has been a great dividend growth stock and has a very long term future too because the number of deaths is going to keep increasing for decades.

Propel should be able to benefit from this growth in the industry as well, as long as it grows strongly organically and makes smart acquisitions.

Risks: If Propel start competing with InvoCare then it could be to the detriment of both companies. Funerals are already expensive so it’s hard to see the industry growing the price of a funeral much faster than inflation.

Final thoughts

That’s it for November. We invested a total of $2,250, which soundly beats our goal of investing $1,000 a month. Hopefully all three beat the market for our portfolio and deliver strong dividend growth as well.

What investments did you make in November?

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

Onwards and upwards!

5 thoughts on “Share purchases: November 2017

  1. Buy, Hold Long

    Wow, you’ve been really busy this month, that is a fantastic amount of purchases this month. A while ago I had the choice to buy either NCC or WMI. I went with WMI in the end.
    I (very) roughly track WMI performance here on this chart if you’re interested to see how their NTA will perform over the month. Last month I was off by just $0.01.
    https://docs.google.com/spreadsheets/d/1WIJrvpvH8rEXPTlGxPRynUgvnuU-R0MIshkqM2LqUPU/edit?usp=sharing
    Looks like we are on track for NTA around $1.31
    Which would be one of the lowest premiums to NTA for a Wilson LIC.
    All the best, Cheers.

    Reply
  2. Mawer Money

    Have you thought about investing in ASX: VGS ? It gives international exposure which may present opportunities if you think Australia is overvalued?

    Reply
  3. wealthfromthirty

    Great work on ploughing some serious dough into your investments in November guys. The funeral industry is an interesting one especially with the unfolding demographic trend behind it – Keep up the unreal progress! You’re killin’ it (sorry, had to do it).

    Reply
  4. dividendgeek

    Nice job! I love your 1,000$ per month investment plan. Will provide a nice start to your child. I hope to do something similar in the near future (god willing).

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *