The feedback from my recent article relating to investing with $100k Capital, was that my picks held too much risk for many people’s liking. Taking that into consideration, I’ve decided to put together a more conservative portfolio with $10k capital. This amount is a lot more realistic for younger investors as well as the everyday worker. Before reading this YIG advises that this information is not financial advice and investors should always conduct their own research before investing.

Macquarie Group is Australia’s leading investment bank and has seen serious success in the past two years. Macquarie is priced at 139.56 (3/1/2020) and is predicted to increase into 2020. Along with capital gain, it pays a very solid semi-annual dividend that will cover the potential loss due to volatility. CEO Shemara Wikramanyake said “Overall, the group’s result for fiscal 2020 is currently expected to be slightly down on fiscal 2019,”. The good news is this may impact the share price meaning January may offer a cheap price possibly below $135. Find more information on Macquarie Bank here.

Qantas Airways had an impressive 2019 with a YTD stock price increase of 26.9%. “Qantas has also been positively acknowledged by a Macquarie broker note explaining Qantas has a very cheap share price compared to its global competitors and has set their target price to $7.90″ previous article. I have seen comments about the increase in the price of petrol and the impact this may have on Qantas, however Qantas generally hedges it’s fuel to stabilise volatility. Qantas dividends will also cover the potential troughs in market movement and combined with Macquarie can make some very steady income both yielding 4% or higher.

Paradigm Biopharmaceuticals have been under our teams radar for quite a few months now. We first picked this stock at $1.90 in August and since then PAR has made remarkable moves now pushing at $3.29. PAR has three key price-sensitive dates that you have to read before buying – here. A very impressive company with very strong potential and strong investor backing coming into this year. This company does not pay dividends and should be held for the increase of capital gain. Right now, a good price for Paradigm may be around the $2.90 mark and if it does fall again, would make for an absolute steal. At it’s current price it may hold some risk with speculation come 2020.

Weightings %

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  • Portfolio Beta of 0.3096 which means very low risk if the market goes belly-up in 2020. Shows a positive correlation with market movements.
  • Low weighting on capital gain stock PAR, with higher interest in dividend stocks. Mitigates risk somewhat if a recession would occur.
  • Likely to produce a 5-10% ROE in one year however may slightly under perform due to low BETA. A Conservative approach that still aims at turning over a strong yield.

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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

 

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