203
203 204
204 205
205 206
206 207
207 208
208 209
209 210
210 211
211 212
212 213
213 214
214 215
215 216
216 217
217 218
218 219
219 221
220 222
221 223
222 225
223 226
224 227
225 228
226 229
227 230
228 231
229 232
230 232
Starting with SHARES
A BEGINNER'S GUIDE TO SHAREMARKET SUCCESS
Roger Kinsky
First published in 2022 by John Wiley & Sons Australia, Ltd 42 McDougall St, Milton Qld 4064 Office also in Melbourne
Typeset in Liberation Serif 11pt/14pt
© John Wiley & Sons Australia, Ltd 2022
The moral rights of the author have been asserted
ISBN: 978‐0‐730‐39516‐4
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.
Cover design by Wiley
Cover Image: © Miloje/Shutterstock
Illustration sketches and concepts by Roger Kinsky
Illustrations by Delia Sala/Wiley
Disclaimer The material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.
Introduction
Australians have traditionally been interested in shares as a viable way of investing over the longer term and also making profits in the shorter term. Share ownership is ever growing and a recent study showed that about 6.6 million Australian adults, or 35 per cent of the population, own shares. In the past, share investing was often seen as the domain of males, but more recently there's been a growing trend for women to get involved and nowadays almost half our share investors are women. At the same time, there's been an emerging trend for younger people to get into shares. Investors today are also growing more interested in a wider diversity of shares in different asset classes, including international shares. In short, Australians from all walks of life are becoming more involved with a wider variety of shares.
The growing interest in shares is partly driven by low interest rates, which make holding cash in a bank account or term deposit a really unattractive proposition. At the same time, Australian property is increasingly more expensive and slipping out of the reach of many Australians. Shares are a viable investment alternative because you don't need a lot of money to get going. In fact, you can become a shareholder with as little as $500.
Unfortunately, many would‐be investors don't know a great deal about shares and so lack the confidence to plunge into the sharemarket. If you fall into this category, this book is definitely for you! To make the book as user‐friendly as possible, I try to avoid jargon unless the term is in common usage. In this case, I try to explain it in a straightforward manner that I hope will be readily understandable. I've minimised the complications of share investing by outlining only those strategies that I believe are really important for your success. In addition, I've provided heaps of tips that I hope you'll find useful. These are simply my suggestions, not as an infallible investment guru, but as someone who has learned about shares from my successes — and failures — over 50‐plus years of share investing.
You'll find the book contains many simple illustrations. These are often in a light‐hearted vein and are aimed to help reinforce your understanding of an important point. They may also help you to look at an issue affecting shares in a somewhat new (and hopefully useful) light. All illustrations were re‐drawn from my original sketches by illustrator, Delia Sala.
This book complements my other share investing books, also published by Wiley Australia:
Online Investing on the Australian Sharemarket, 5th edition
Teach Yourself about Shares, 3rd edition
Shares Made Simple
Charting Made Simple.
The publishers and I have taken every precaution to make this book free of errors and typos but perfection is extremely difficult to attain. In a book of over 50 000 words, a few errors or typos will inevitably slip through. If you notice any of these, I would be most grateful to hear from you. I'm always happy to receive feedback or suggestions from readers so if you have
