Long Term View: Telstra Corp Ltd

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Telstra Corp Ltd [TLS.NZ] has been very good to its shareholders in terms of returns since its IPO in November 1998 at $3.50(in 2 installments - see 1998 prospectus)With $NZ 5.94 cents in net dividends (see chart above) paid and tax credits at an average of 20% , TLS gives a slightly more than 300% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 12 year listing, an approximate annual net return of 25%.

This is approximately a 300% better return when compared to the average of all NZX indexes.




Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Telstra @ Share Investor

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c Share Investor 2010

What 11 years of Stockmarket investing has taught me

This might be depressing or revealing or both but hang on dear readers you just might learn from my experience.

Discuss this subject @ Shareinvestor.net.nz

If I knew what I know now before I started investing in the stockmarket 11 years ago would I still invest today?

I think that is a really good question.

Again it is a question of long VS short term investing.

The first stockmarket investment I made was quite large at the time. It was around 90% of what I owned at the time. I bought 9600 Telstra shares in March 1998, from memory at about $3.9o something, and sold them 4 days latter for $4.47. I made around $4000 very quickly and got bitten buy the stockmarket bug.

The brokerage was around 600 bucks, no internet trading and getting a broker was akin to joining a secret schoolboy club.

My second investment was made in 1998 (7 April to be exact), was for 1000 shares in the Restaurant Brands [RBD.NZ] IPO at NZ $2.20 per share. If I had held on until last week I would have been able to sell RBD shares at around 80c each. If you include dividends and tax credits totaling around $1.20 I would still be short 20c per share! (see chart below for the sad story)

I sold out years ago at around $1.30. Interesting that I was to pick the buy and hold approach to investing because since these two purchases stockmarket investors have seen: *The Asian meltdown of the late 1990s *The tech bubble bursting in 2000 *9-11, where stocks dropped afterward for many months *The accounting scandals in America in 2002 *2007- ? The credit meltdown and associated recession I have learnt along the way and I am still learning. I bought one internet stock that I lost money on (around $3000) sold all my shares on September 11 and lost a little and then started investing in Sky City Entertainment [SKC.NZ] shares in 2002 and then sold during the accounting scandal for another small loss. Looking back I can see how much of an A-grade moron I really was. I shouldn't have bought the internet stock, that was greedy and I shouldn't have sold in 2001 or 2002. They were mistakes but I learnt from them. I started my current portfolio in 2002 and haven't looked back since. Seven years latter it is still in the black (when dividends and tax credits are included) even after all the recent stockmarket calamity-among the worst in living memory-and I am looking forward to a good return as the years go by. It took me until 2002 to develop my investment strategy, a full five years after my first stock purchase, and it has been from my mistakes that I have learned the bulk of what I now know. I knew nothing of the stockmarket 11 years ago, the most I had heard or seen about it was when I saw Michael Douglas in Wall Street 10 years previously and even then it was as foreign to me as a brain cell is to Al Gore. After 11 years, knowing what I know now would I still invest in the stockmarket? I will keep you posted. Recent Share Investor Reading The Headliner: 2 April 2009 Edition Emotional Refuse A Hickey in Bernard's Advice Nuplex rights decision a dilemna for shareholders Share Investor's 2009 Stock Picks: Looking Back Dead Cats and Vicious Bears Long VS Short: Freightways Ltd Related Amazon Reading The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) (Collins Business Essentials) by Benjamin Graham Buy new: $13.25 / Used from: $9.24 Usually ships in 24 hours c Share Investor 2009