Ask Colin

How did you start establishing your portfolio?

The detailed question was:

For people starting their portfolios in the stockmarket. When you started investing years ago did you start in the market with a small amount and added funds monthly regularly over a period if time?

I started 50 years ago, while at university part-time (I paid all my fees first) by buying one stock (Myer Emporium) with a few hundred dollars saved. As I saved more I bought more stocks. When I got married, we both worked and every year since we have lived off one salary until my wife retired nine years ago. For a while the savings went to buying a block of land, building a house on it and paying off the mortgage, but always we had some stock holdings. Once the mortgage was paid off (took 15 years) all savings went into stocks.

Basically, this is also what Michael Kemp did and describes in his book Creating Real Wealth, which I recommend trying to get every child and grandchild to read. Today’s young people say they can’t do this – but Michael and I did it. I described my journey last year in a presentation to the AIA, which is on the Presentations page on the members website – make a point of reading it when you join.