A Quick Share Portfolio Update

I just wanted to write a quick update on my share portfolio and provide a quick run down of how, where & when I bought my shares. I am a total beginner and I haven’t invested a lot, but I’m sure that there will be other newbies out there who will find this information helpful and interesting. Disclaimer! Some of my explanations & terms will not be technically correct. I’m just explaining things in my own words according to what I understand. Cool?

As I mentioned in a previous post (Investing in the Stock Market for Beginners), I am following Canna’s method and am investing in $1000 parcels. So far I have only invested in 2 parcels which isn’t a lot but it’s a pretty good start. Without further ado, here is how I did it:

Step number one: Find a broker

To buy shares, you have to go through what is called a broker – there are online “virtual” brokers (or trading platforms) which tend to be cheaper, or there are companies where you can deal with a real person. I wanted to go with the more affordable online option. For a full list of NZ registered brokers go here:NZ NZX Participants

For New Zealanders, you have two options for online share trading (for legitimate, NZX registered brokers anyway). ANZ or ASB. I went with ASB securities because their fees and account types seemed the teeniest bit more straight forward than ANZ, not a huge difference though. I have come across other online trading platforms that seem to be open to international traders, but they are not registered NZX participants and I don’t understand enough about legal requirements, taxes, fees etc to take the risk with any of those.

Most of the application to open a share trading account with ASB can be done online. (ASB Securities). You will get a few e-mails from them, and will eventually have to either visit a branch or send verified documents to the bank. I’m not gonna lie, they reallly mucked me around and my application ended up taking a few weeks to complete. BUT as long as you are patient, it is really easy to do.

Step number two: Buy some shares

Once your online trading account has been opened & verified you can now start buying shares, you just need to make sure you have enough money in your share trading account. Transferring money into your share trading account is just the same as transferring money to a regular bank account.

Once the money was in mine, I went ahead and purchased my first shares. My first choice was to buy shares in Auckland Airport. There is no particular reason why I chose this stock, just a gut feeling. I don’t understand all the ins and outs of financial reports or how to determine a business’ likeliness to succeed or fail. I just felt confident this was a good choice.

ASB charges a fee of 0.3% or a minimum of $30 when you buy or sell NZX shares. So here is the break down for my first $1000 parcel:

$1000 Minus $30 fee = $970
Price per AIA share = $6.38
$970 divided by $6.38 = 152.04 (I purchased 152 shares)

I invested my second parcel of $1000 in Air New Zealand. Again, just went with my gut feeling that this was a sound company to invest in. Here’s the breakdown:

Minus $30 fee = $970                                                                                                           Price per AIR share = $2.105                                                                                               $970 divided by $2.105 = 460.81 (I rounded up and purchased 461 shares)

I purchased my first shares in December 2016, and here is an update on my share portfolio:Screenshot (48) copy

As you can see in the bottom right corner, my portfolio has so far increased in value by $463.99. On top of this I have also received $42.90 in dividends from my AIR shares, and also $14.14 from my AIA shares. With AIA I opted to enrol in their automatic reinvestment scheme, so instead of getting the cash, that $14.14 bought me two more shares.


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