For the Investors

I’ve said it before but I still feel the same way, travelers who truly traverse the world are investors and know what to do with their money.
Being this way ensures your money is working for you and is ready for you when you want to see the world.
Ideally your money is spread across multiple investments compounding over time and growing, and a portion of it should be shares. If you believe the way I do, all of those shares paid you a dividend recently because in my mind shares that aren’t paying you are shares that aren’t accountable to you.
As an Australian that was too lazy to fill out the forms to trade internationally, I trade solely on the ASX and all of those investments paid me a dividend last month. So what do I do with it now?
I’m currently staying in a hotel in Melbourne and even though I’m an Australian, I’m very far away from where I currently live and work and am traveling to be here. Therefore I am paying a lot of daily expenses in hotel, food, leisure and gaming costs and am making nothing in wages.
With this dividend I could potentially transfer it into my expenditures account and take the pressure off my credit card for the duration of the trip. However the money I earned from having my money invested in Australian companies all year will be gone and Uncle Kevin (Kevin O’Leary my investment godfather) would be quite mad.
I dunno if anyone else does it but whenever I make a choice with my money I imagine what reaction an investment guru would have if I told them what I did. As someone who spends thousands of dollars a year traveling, I’m guessing most of the time my investment guru would be annoyed. But as I considered spending this money the face in my head was more annoyed than ever.
Obviously I don’t know Mr O’Leary personally, but the version of him that lives in my head I know very well. My impression of him lectures me from what I learned from his book and his ABC investment reality show ‘Shark Tank’. This man in my head gives me praise sometimes, like when I signed the final papers buying my New Zealand investment property.
But this imaginary man slaps my wrist a lot more when I blew money such as when I spent thousands of dollars that could have been put into my brand new mortgage on a New York/Los Angeles vacation. In our discussion I argued my age (early 20’s) and my young need to explore and live as a young person, and though he somewhat saw my point, he lectured me on how much I now must pay that mortgage over the next 12 months to make up for it.
Sure, he’s probably stricter on me than the real Me O’Leary would be (or maybe he isn’t!) But whether my inner investment advisor is right or wrong, it’s more helpful than just listening to the part of me that spends money on impulse. If I just listened to that part of my head, I’d eat 15 extremely high quality meals a day and invest nothing.
Although I do get a genuine joy out of investment and love doing it. I have been known to spend rare days off pouring through finance magazines and giggling reading investment forecasts and company valuation estimations.
Speak of the devil, how many of the Australian/New Zealanders reading took advantage of the Medibank Private share offer?
The offer still has 2 days left, but it was probably the most advertised public share offering I’ve ever seen so the hype almost put me off.
Stock broker demand and public hype pushed the company valuation up millions of dollars above what the company is worth. When I read that $12 million worth of shares may be distributed when the company becomes public? Ludicrous!!! The company is worth maximum half that.
Although the company has grown over the last 10 years, it hasn’t been spectacular enough for this kind of paycheck the government can expect once they give the company over to us.
Nevertheless do you think I invested anyway? Of course I did. I applied today so if I’m accepted I’ll have a piece of this company I once worked for as a salesman.
It’s a good business and health insurance is becoming more and more fashionable. If you know how to use it even young people can save a lot of money with it.
I particularly like that they’ve given a maximum price per share as $2 a piece, which means if it comes out at $2.10 or $2.60 then we’ve immediately made money which is always good.
Lastly it passes my final test and will pay a dividend in September next year so they’ll work to deliver that between now and then. Time will tell whether they outperform my skepticism about their value, or whether without the government manipulating legislation to help them out and line their pockets, whether they’ll crumble and a portion of my portfolio with it.

Well this concludes my somewhat cynical look into medibank, and psychotic way of managing money. If you have better tactics I haven’t thought of to ensure your personal empire grows as you travel the world spending then let me know, and of course enjoy your week. Talk again soon 🙂

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s