When’s a good time to buy Aussie shares?
This is an update to a post I wrote in May of 2015 when the stock market had taken a bit of a downward dip and some shares looked a good buying option. I used the Commonwealth Bank as an example and mentioned how it had decreased from a high in late March by around $13.71 or 16.53%. By buying the CBA in May at a discounted amount you had a double chance of buying a historically good growth and earnings stock at the discounted price.
Since May many stocks have gained well and the CBA is no exception. CBA’s closing price on May 12th was $82.89 and is presently $87.92. This is a gain of around 6.06% over the 2 month period. Pretend you had invested $20,000 in CBA shares over this period and your gain would be about $1,212 or $606 per month. When you include the dividend that CBA has paid over the years, it is a great buy.
Five year returns
Over the last five years CBA has managed a per year price percentage gain of 14.84%.
And it’s not the only share to have done well since the GFC. Here’s a list of some more and they are all per year price percentage gain.
Ramsay Health Care 64.81%
Caltex Australia 51.14%
Transurban Group 24.08%
Seek Limited 22.11%
Telstra Corp 19.51%
That’s just a few examples of the sort of returns possible from shares over the last five years. I do agree that many shares came from a low base after the GFC but that is where you need to be ready for changes in circumstances and be ready to pounce on a fair priced share when you see it.
How to pick shares
Too scared to try and pick the right shares? So are many people and that’s why I’m trying to communicate that it’s not very hard! In a previous post titled – Money and how to make $273,354 profit, I talked about an easy procedure to follow and start the process of building a share portfolio. As long as you make sure all your shares are in the top 200 ASX shares, it should be easy to have a good profitable portfolio.
I hope this was helpful and wish you happy investing.