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Davidflude
12-10-2006, 04:49 PM
Just a few things to bear in mind before you buy telstra shares.

1) Do you have a written investment strategy and does telstra fit that strategy.

It would not fit my strategy..

2) Do you own other shares and will buying Telstra balance or unbalance your portfolio.

It would tend to balance my portfolio.

3) Do you consider that other stocks would be a more appropriate buy than Telstra.

In my case yes but I am not going to make any recommendations as other persons requirements might differ.

4) How do you assess the riskiness of investing in Telstra.

I find it difficult to assess.

ElevatorEscapee
17-10-2006, 10:15 PM
Just a few things to bear in mind before you buy telstra shares.

1) Do you have a written investment strategy and does telstra fit that strategy.

It would not fit my strategy..

2) Do you own other shares and will buying Telstra balance or unbalance your portfolio.

It would tend to balance my portfolio.

3) Do you consider that other stocks would be a more appropriate buy than Telstra.

In my case yes but I am not going to make any recommendations as other persons requirements might differ.

4) How do you assess the riskiness of investing in Telstra.

I find it difficult to assess.

Thank you David, for being so careful as to not "advise" anyone but also give your impression. :)

I am not a registered financial advisor, so I offer no financial advice to anyone. The following is my personal opinion only, those considering my opinions must consider that I might be a looney, and that their personal requirements may differ from mine.

I know quite a few people who bought into the Telstra 2 (T2) float after the success of the first Telstra share float (T1)... only to watch their life savings go straight down the plughole. (Imagine buying in at something like $7.50 per share, and it being worth around $3.50 per share now. :( ) The cynical part of me suggests that this might be renamed the "Telstra sink". ;)

Telstra have a lot more international competitors on the domestic market nowadays and must now compete against new technologies (such as Skype) that can offer 'free' phone calls over the internet.

I personally refuse to be convinced by taxpayer funded advertising (sadly, unlike most Australian voters :rolleyes: :doh: ) and I most certainly will not be going anywhere near T3. :cool:

Garvinator
17-10-2006, 10:24 PM
I have heard what quite a few people have done is buy up as many t1, t2 and now t3 shares as they could.

They then 'wrote off' the losses and made other balances, thereby minimising their losses so far.

Their view being that telstra will eventually be almost fully privatised and the share price will go up alot and they will have made a decent profit over time. Others have started selling back their t2 shares, ready to buy t3 shares at a reduced cost from the sell price of t2 shares.

eclectic
17-10-2006, 10:28 PM
(Imagine buying in at something like $7.50 per share, and it being worth around $3.50 per share now. :( )

I don't think this is what is meant when the phrase "negative gearing" is used.

:doh: