As the New Year rushes towards us and we reflect on 2016…
I would like to take this opportunity to thank you all for your ongoing support of Super Equity. It’s been a pleasure getting to know you all. My goal is always to give you a better and brighter future, and it has been great learning about your individual goals for the future.
The year has certainly been eventful, and so I’d like to recap some key highlights from 2016.
Back in April I wrote a piece titled Beaten Up Banks are a Bargain, commenting –
“I am not of the view our property market is going to crash, so no I don’t think it is a good time to sell your bank stocks if you already own them. I believe our mortgage banks are a strong buy and investors will continue to enjoy healthy dividends. If you bought the banks today in your Super Fund you will be rewarded for taking on the risk of owning them rather than depositing your funds in an account with them at 3% if you’re lucky.”
Now here we are in December, and the results speak for themselves:
National Australia bank has risen 17.7%
ANZ Bank has risen 32%
Commonwealth bank has risen 12.8%
Westpac Bank has risen 9.35%
In May I touched upon the Chinese Boom on the Gold Coast, remarking –
“Should no corporate activity eventuate, both Ardent Leisure and Village Roadshow operate some very attractive assets that are going to continue to pour out cash and dividends well into the future. Both stocks have been on a roller coaster ride of late so now it is time to get on board and ride the next boom.”
Unfortunately, many of you would be aware of the tragedy that occurred at the Dreamworld Park on the Gold Coast recently. This is a sad reminder that unforeseen accidents can, and sometimes do happen. To those of us in the investing world it’s a clear reminder of the importance of diversity in your portfolio.
Ardent Leisure is trading at the same price as when I recommended purchasing their shares
Whilst unfortunately during this time Village Roadshow’s shares have fallen 19%
In July I featured the Woolworths Group –
“I don’t see Aldi taking serious market share off Woolworths and Coles because I feel the Australian consumer has become more sophisticated with their cooking (thanks to shows like Master Chef) and are demanding a wider variety of groceries to do this. I believe Woolworths and Coles will always dominate and both companies have built major infrastructure in the country over the past few decades to supply the population with food.”
Since that post, Woolworths has performed well rising 11.5%
In August I commented on The Question of Risk & Reward, and then wrote a piece called How to profit from an ageing population, featuring a company called Challenger –
“In a nutshell, a retiree hands over their money and Challenger makes regular payments over their entire life or an agreed upon term. Challenger makes a bucket load from managing the money and may also keep a portion of the funds when the retiree passes or the term is over.”
You can see how Challenger has been performing since August here:
Challenger has risen 18.9%
Then in September the Federal Government made some significant amendments to its Super Package:
I was delighted to hear that they scrapped their plans of the $500,000 limit (which they wanted to backdate to 2007) that you could contribute to your Super Fund with after tax money.
It was replaced with a yearly cap of $100,000 going forward from 1st July 2017 (previously $180,000) that you are able to contribute into your Superannuation with after tax money.
You can keep contributing into your Super until you reach $1.6 million then you are no longer able to make after tax contributions.
They also kept the ‘bring forward rule’ meaning that you are able to make after tax contributions of $300,000 every 3 years.
You will also still be able to make $25,000 before tax contributions into your Super Fund each year. Before tax contributions are things like ‘Super Guarantee’ and ‘Salary Sacrifice’.
In October I wrote an educational piece about Dividends, and then touched on a company called Greencross in the Pet Industry –
“The company makes around $40 million per annum and pays a dividend of approximately 3% fully franked. Management are projecting the company to grow to 350 Pet Barn stores and 350 Greencross Vet clinics around the country. Private equity recently tried to buy the entire company after the share price fell. They did not succeed but it does show the potential.”
Though it has only been a couple of months since this post, Greencross is trading at approximately the same price as when I recommended buying their shares.
And here we are! It’s almost Christmas, the Silly Season, the time of endless festivities!
To you, your family, friends (and pets), I would like to wish you all a safe, happy and healthy Festive Season. If you are travelling, be careful on the roads, and don’t forget to let neighbours know if you are going away. May the holidays and New Year bring you happiness and prosperity.
I look forward to working with you all in 2017!
Ps. If you haven’t seen the voucher I have on offer at http://superequity.com.au/give-gift-comfortable-retirement-christmas/ check it out and pass along some Christmas cheer!