Kick goals in your port­fo­lio

Fol­low this ad­vice for a grand fi­nal-win­ning strat­egy for your share hold­ings

The Courier-Mail - - MONEY SAVER HQ - David & Libby

IT’S foot­ball fi­nals time, when we watch in awe as the best teams in the AFL and the NRL bat­tle it out for the 2018 pre­mier­ship ti­tles.

It’s the end of a long sea­son, which can be­come a war of at­tri­tion. Teams and play­ers have to bat­tle set­backs but keep a fo­cus on the strat­egy that got them to the fi­nals and suc­cess.

In fact, it’s not too dif­fer­ent to man­ag­ing your own share port­fo­lio.

A win­ning strat­egy is all about bal­ance: hav­ing the right mix of stocks which de­liver as a group, no mat­ter the ob­sta­cles that are thrown up.

Once you have the right strat­egy and coach­ing sup­port, team se­lec­tion is crit­i­cal.

We formed a match com­mit­tee com­pris­ing share­mar­ket ex­perts Ju­lia Lee from Bell Di­rect and Elio D’Amato from Lin­coln In­di­ca­tors to come up with se­lec­tions.

But, please, seek out your own in­di­vid­ual in­de­pen­dent ad­vice be­fore buy­ing any shares.

The fol­low­ing is purely an ex­er­cise to show you how to build a port­fo­lio, AFL style.


IN AFL the back­line is that last line of de­fence to pro­tect your goals when the play is mov­ing against you. When it comes to share in­vest­ing, de­fen­sive stocks play a sim­i­lar role.

They are the qual­ity com­pa­nies which pro­vide sta­bil­ity when mo­men­tum has changed, and the rest of the mar­ket looks a bit un­cer­tain or soft.

They are your long-term de­fen­sive foun­da­tions. Ac­cord­ing to our match com­mit­tee, the back­line se­lec­tions are:

Cochlear Lim­ited (COH): A global leader in the de­sign and pro­duc­tion of hear­ing im­plants which help in­di­vid­u­als around the world with a pro­found hear­ing loss. It spends 10-15 per cent of rev­enue on re­search and de­vel­op­ment. With a strong sales pipe­line and in­vest­ment into a new pro­duc­tion fa­cil­ity in China, the fu­ture looks strong.

Syd­ney Air­ports (SYD): With in­ter­na­tional pas­sen­ger num­bers at a high and sta­ble cash­flows, this stock should be around for gen­er­a­tions.

Transur­ban (TCL): Dom­i­nat­ing toll roads in Syd­ney and with a port­fo­lio that is ac­tive in the US, its re­turns should keep pace with in­fla­tion or bet­ter.

ResMed (RMD): Has prod­ucts pri­mar­ily in the area of ob­struc­tive sleep ap­noea. Strong growth is likely to con­tinue. Health­care prod­ucts like this are con­sid­ered de­fen­sive be­cause peo­ple need to sleep in bad or good times.


THE AFL mid­field boasts the fast, nippy play­ers who can

ig­nite a team. They play a pacy high-risk game which can lift a team when they’re “on song” but can cause prob­lems when they’re out of form.

In the share­mar­ket game, th­ese are the com­pa­nies which pro­vide the flair – the stocks which can give a port­fo­lio some real mo­men­tum. Here the match com­mit­tee se­lected:

Ap­pen (APX): Pro­vides lan­guage tech­nol­ogy data and ser­vices such as speech recog­ni­tion and con­tent rel­e­vance in in­ter­net search en­gines to gov­ern­ment and cor­po­rate en­ter­prises. Re­cent ac­qui­si­tions and mas­sive spend­ing into ar­ti­fi­cial in­tel­li­gence tech­nolo­gies have been a boon.

Jumbo In­ter­ac­tive (JIN): An in­no­va­tive plat­form which pow­ers Ozlot­ter­ and en­ables it to have ex­clu­sive dis­tri­bu­tion agree­ments with lead­ing lottery com­pa­nies de­liv­er­ing games in­clud­ing Power­ball, TattsLotto and Oz Lotto lot­ter­ies. Tab­corp owns 12 per cent. Mayne Pharma (MYX): Its core busi­ness is the pro­duc­tion of generic medicines, which recorded rev­enue growth of 26 per cent. New prod­ucts are po­ten­tially be­ing launched in the cur­rent fi­nan­cial year, fur­ther adding rev­enue streams. a2 Milk (A2M): Is trans­form­ing from an Aus­tralia/New Zealand dairy com­pany into a global one. With ex­pan­sion into Asia, Europe and the US, growth is strong, with more to come.


The for­wards have to be con­sis­tent per­form­ers but there needs to be a mix. The mon­ster which pro­vides the tar­get sur­rounded by a group of small for­wards who pro­vide the flair and run off the big guy. It’s the same in a share port­fo­lio.

BHP Bil­li­ton (BHP): A re­source gi­ant of­fer­ing a di­verse fo­cus on coal, cop­per, petroleum and iron ore. It has a ge­o­graph­i­cally di­verse high­qual­ity as­set base, while top line sales are sup­ported by de­mand, es­pe­cially in China.

CSL Lim­ited (CSL): Man­u­fac­tures bio­phar­ma­ceu­ti­cal prod­ucts mostly de­rived from a com­po­nent of blood plasma, and has a strong global com­pet­i­tive ad­van­tage.

Mac­quarie Group (MQG): Di­ver­si­fied global fi­nan­cial ser­vices com­pany with sig­nif­i­cant ex­po­sure to over­seas in­come and pays an at­trac­tive div­i­dend yield.


Sub­sti­tutes in AFL are used to re­place a player who is in­jured or out of form. They’re meant to plug a hole.


IDP Ed­u­ca­tion (IEL): is a provider of in­ter­na­tional stu­dent place­ment ser­vices and a leader in the de­liv­ery of English lan­guage pro­fi­ciency test­ing re­quired to gain en­try into Aus­tralian uni­ver­si­ties. The com­pany is 50 per cent owned by 38 Aus­tralian uni­ver­si­ties.

Northern Star Re­sources (NST): Min­ing stocks are not or­di­nar­ily de­fen­sive, but NST is Aus­tralia’s premier gold pro­ducer. Gold is a good hedge against the threat of ris­ing global in­fla­tion and un­cer­tainty, plus a de­clin­ing Aussie dol­lar ben­e­fits them.


Lo­visa Hold­ings (LOV): Re­tail fash­ion/dress jew­ellery with a fo­cus on meet­ing the fash­ion ac­ces­sory needs of the mar­ket at speed. Its plat­form will un­der­pin a roll­out of stores in new ter­ri­to­ries, such as the UK, Spain, France and US.

Nana­son­ics (NAN): has a prod­uct called Trophon which is used to dis­in­fect sen­si­tive med­i­cal in­stru­ments.


Wood­side Petroleum (WPL): With world class oil and gas as­sets, this stock will ben­e­fit from global growth.

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