Hi, Bob (& Ross).

BM> Hi Ross

BM> Standard disclaimer first:  I am not a fair dinkum financial advisor.
BM> Get a second opinion before you act on any advice to part with your
BM> money.  I don't have a direct line to God.

Standard disclaimer first - I am a stockbroker. And I don't have a
direct line to God. :-)

Your advice to Ross below is sound and I really only want to comment on
one aspect. (I've left the rest intact, though, in case anyone's reading
this without reading your original - as I said, I think it's sound)...

BM> RS >Each week I look through the Courier Mail and read about
BM> RS >Split Cycle Technology Shares for sale (average of $1.00
BM> RS >each).

BM> RS >Could someone please explain to me what these are ??, I do not earn
BM> RS >a  lot of money and I have quite a few liabilities, but I
BM> RS >would still like to put a small amount of money each week
BM> RS >into some form of investment.

BM> In your position, forget Split Cycle.  What you should do is make a
BM> careful budget, allowing for eventualities like illness, holidays, that
BM> new car, a new child (if relevant) and decide how much you can
BM> realistically save for the sharemarket each month.  Then buy a few
BM> shares each month.  The best approach is to go to a broker and outline
BM> your finances and ask him to suggest a portfolio.  Later on, when you
BM> are more experienced you can go to discount brokers to place your own
BM> orders.

One thing to remember with discount brokers is that it's not only the
advice/research that you miss out on. The discount stockbrokers that I'm
aware of will take your order either at a price, or at market. "Full
service" brokers will, in addition to providing research material, be
happy to take your order with a few cents discretion, ie "buy me XYZ at
the best you can do today, but not over $n.nn" (or equivalent on the
sell side). And although we obviously can't say for certain which way
the market's moving, you do get a feel for it and can sometimes make
enough difference to more than wipe out the difference in brokerage
from the "discount" brokers. Or, suggest that the price you want to pay
(or get, if selling) just won't make it and let you make up your own
mind to go above (below) that.

BM> Over the long run, shares outperform all other investments, but you
BM> should try to diversify by having some savings in fixed interest and
BM> some in real estate (your home first) to even out the swings in markets.

BM> Read the business pages of the paper.  Buy an investment mag like
BM> Personal Investment.  Try to watch a program like The Bottom Line on ABC
BM> TV (Sat 08:00) or Money.  Bruce Bond has a radio program at 09:00 on ABC
BM> Radio which is aimed at the novice.  This way you will start to get a
BM> feel for the markets and what stocks are recommended.

BM> Forget tips and pet stocks of friends.  Go for good, boring stocks like
BM> BHP, National Bank, Amcor etc.  Remember that stocks fluctuate, often by
BM> 30% over a business cycle.  If this worries you, go for something safer.
BM> Many people panic when their stocks fall and sell them.  That is wrong.
BM> If apples suddenly halved in value, everyone would rush out and buy a
BM> box full  .  But when shares fall, we all want to sell.

BM> Hope this helps.  Yell when you have some specific questions.

Ditto.

Regards, FIM.

 * * I never met a homosexual fan I didn't shoot.
@EOT:

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