NZ Minister
Hints that Share Parcels
Could Sell for as Little as $1000
Saturday May 12, 2012 2:28 PM NZT
Could Sell for as Little as $1000
Saturday May 12, 2012 2:28 PM NZT
The minister in charge
of the partial sale of New Zealand's state-owned energy companies won't say how much share
parcels will cost but has hinted they could sell for as little as $1000.
The New Zealand Government is
pushing through legislation that would allow for the sale of up to 49 per cent
of Mighty River this year, followed by the partial sale of Genesis Energy,
Meridian and Solid Energy over the next three years.
The sales are strongly
opposed by some iwi and opposition parties.
State Owned Enterprises
Minister Tony Ryall today said the Government was determined to get widespread
ownership of energy company shares by as many everyday New Zealanders'' as
possible . . .
Visit NZ Herald for the
full story
Peter’s Comment
The New Zealand Government has stated many times that it wants to divert Kiwis attention away from the national obsession of wanting to be residential get-rich-quick landlords. This latest statement from Minister Ryall spells it out even clearer.
The New Zealand Government has stated many times that it wants to divert Kiwis attention away from the national obsession of wanting to be residential get-rich-quick landlords. This latest statement from Minister Ryall spells it out even clearer.
Savings and
investment conscience Kiwis will be able to get started for as little as $1,000
and that beats property investment hands down. Moreover, shares spread over a
range of companies and industries will normally do better than residential
property both for dividend and asset growth.
But, like property,
the share market can be volatile and investors need to be cautious. They must
make sure they are buying in when the market, or a particular share, is down.
Selling, if they want to sell for capital gain, should always be at or near the
peak. For an investor who understands that simple rule a volatile market can be
better than a market that rarely moves.
New investors
should take the time to learn the basics of the stock exchange and shares before
taking the plunge. Read the business news, Google likely companies, Google
directors and management, keep up with political changes that may affect
business generally or a particular industry. In simple terms, investors don’t
need a university degree but should be tuned in to the world around them and
most of it can be done sitting at home on a PC.
Shares will not
only provide a better income than property but share market investors with a
diverse portfolio will not wake up each morning wondering if their sole
investment property has been trashed.
A good start would
be $5,000 spread over five or ten companies. Surely that is less risky than
$300,000 invested in one rental property with $295,000 owed to the bank.
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