NZ investment tips

CONFIDENTIAL MEMO on investment options for New Zealanders - dated 2005

I have obtained what seems to be a confidential memo from three years ago, outlining suggestions for places kiwis could invest their money. The key message - outlining other places than property to invest in.

The memo provides options for New Zealanders to replace our 'love affair with property'. I'm not sure of the origin and who 'the Guv' is or who it was meant for, but it is good to know someone is looking out for the small Kiwi investor!

It starts with "As the Governor [maybe of a private school?] it is my role to ensure New Zealanders invest in assets other than housing particularly 'other productive' investments. There are many better options than wasting money buying houses, and the Goverment does not need to introduce taxes on second homes.

1. Shares.
I am of the opinion that shares, particularly such solid companies as Feltex Ltd are a good safe option and safer than houses for NZ ma and pa investors. Feltex in particular, as an example, is poised for a spectactular year in 2006.

2. Shares again.
Growth in the share market will continue till 2010 with no significant sustained drops caused by things like weakness in the US economy. Certainly no loses for more than ten NZX trading sessions in a row can occur. Shares are much safer than houses for the Kiwi investor.

3. Kiwi saver.
There is absolutely no way that the value of Kiwi Saver investments will decline. This investment is safer than houses and will not lose anything like 3 or 4 per cent of its value at any time.

4. Finance companies
New Zealand has many active and sound finance companies that are doing great things for small investors. National Finance, Bridgecorp, Western Bay, Geneva Finance, Nathans Finance, Clegg and Co, Provincial Finance, Numeria Finance, LDC Finance, Five Star Consumer Finance, and in particular TV news sponsors Capital and Merchant Finance are all excellent investment opportunities that benefit investors and the economy. Investing in these companies is much safer than houses.

5. Start up businesses.
While in the past 50 years the rate of failure of small businesses has been very very high in NZ, around 40 per cent, and very few companies move from being small to medium or large, this will change in 2006 and nearly all small businesses will survive and grow - despite our squeezing of the economy - and this will make investments much safer than houses for all New Zealanders.

6. Fiji.
Investing in Fijian businesses will help their economy and ours and investments there are safer than houses. Commodore Bainimarana will in no way allow any sort of moves that will threaten foreign investment.

7. 2007 World Cup memorablia.
The only collectables worth looking will be the Rugby World Cup. It is clear even if NZ lose the final of the World Cup that their successful campaign will ensure memorabilia will be at a premium, and All Black signed goods will be in demand internationally. This will be safer than houses as an investment.

8. Central city businesses in Christchurch.
Thanks to the excellent work of Mayor Garry Moore Christchurch city centre businesses will be thriving by 2007 and rents in the centre will overtake all the malls including Riccarton Mall. A safer than houses investment.