Find any Australian or New Zealand company or fund (dead or alive) by using SEARCH above or go directly to the site:
Which companies should I select from?
If you want to select your own shares, pick them from the top 50 NZX listed companies. The NZX 50 comprises the securities of the top 50 companies listed on the NZSX Market by free float market capitalisation.
There is one school of thought that goes further and says you can’t go wrong over the long-term by having a portfolio of just blue chip stocks and that is long term because these tend to be popular stocks with a lot of upside already priced in. There's often potential for disappointment in the short run. We are cautious about advocating this approach.
You may also want to consider exchange traded funds which are essentially indexed funds traded on the market. By investing in these funds you can invest in a portfolio of New Zealand or Australian shares. There are five main NZ funds:
Shares, how should I select them?
Start with a list of companies that are recommended by professionals. You can for example register with brokers to receive research. Look for current stock picks in investment magazines, in the Money and financial sections of the newspapers and on investment websites. Accept for further analysis only those in the top 50 NZX listed companies.
SPECIAL NOTE: The New Zealand market with a capitalisation of about NZD$60 billion provides somewhat limited opportunities for investors in equities. The Australian market (market cap about AUD$1500 bn) offers a wider choice in most sectors, but that must also be viewed in the context of possible exchange losses (or gains).
Depending on how much you are investing, whittle the number of stocks down so that you have a reasonably diversified, yet manageable portfolio. We suggest:
|Amount Investing||Number of Stocks|
* Keep smaller amounts on Term Deposit with a big bank.
Look for sectors and for companies with good prospects, preferably before those prospects are factored into the price!
Look for companies that have developed important new services or products.
Better to invest in businesses that you understand.
As Warren Buffett says, "try to buy stock in companies that are so wonderful that an idiot could run them. Because sooner or later one will."