ASX Small Caps: I've been buying shares

Caroline Mark
It's been a roller coaster ride for the world and each day there is new news and less toilet paper available. I'm still yet to stock up. But what I have been doing is buying ASX shares since the market started dropping. I've been buying in small parcels just like Under the Radar has been advising and slowly building up holdings in the ASX shares I like.

As I mentioned in previous posts I was waiting until after the reporting season to buy stocks and I'd been saving up my money to do so. One of my main fears when I started buying ASX Shares last September was that I'd lose all my money, everything would crash and it would be a total disaster. But my shares were all going well, I was in the black and some of my small caps were doing really well.

Then the cornonavirus crash and everything dropped 10-15%. But I certainly haven't lost everything - yes it's a loss on paper, but if I really needed to, I could still access my money, not all of it, but certainly some.

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ASX Shares are a big part of my personal short and long-term financial goals

But I have a long-term plan to grow my portfolio and to build up a return through dividends because no bank is going to pay any interest for years. Some ASX Share, especially at the blue chip end have dropped 20-30%! And that means that I'm no longer priced out and I can get a foothold in there. 

Small Caps are also now cheap. I'm talking about quality ASX listed companies who have been around for a long-time, many that pay dividends, in niche fields that Under the Radar has had on their best stocks to buy list and I want to own some.

I'm buying ASX Small Caps

I started buying on 9 March a few small caps I liked. Parcels of 300 and 400 shares and ones I wanted a smaller holding in even less. I've been spending $1,000 to $2,500 on the small caps I'm interested in.  I'm glad I just dipped my toe in as the market continued to fall even more. Often I've been buying just $1,000 worth and I've bought in a couple of times at slightly different prices but a decent low price has averaged out. I haven't always got it right, but I'm hoping I'm right enough! What I mean by that is some of the stocks I've bought only a small number at their lowest price and others I bought more of dropped further. But this is all hopefully small fry in a post coronavirus world. I'm looking 2021 and beyond.

And I'm buying ASX Shares: Blue Chips

Last Friday, 13 March was one of the craziest days with HUGE price falls and swings. I started to buy CBA last week after a big fall at around $64 - just a few shares to get me started, as I'd wanted to buy it for ages. I was pretty pleased with myself (as it's dropped from $90 in the past 30 days - see the graph above. On Friday at lunch time I bought more  CBA at 57.8 which is just 50c shy off it's lowest price. I wish I'd bought more! I also was very fortunate to dip my toe in with BHP at 24.64, I've been trying to buy more ever since but the price just doesn't seem to drop that far.

APA has massive gas pipelines and everyone still needs gas no matter what virus is circumnavigating the world. Again I thought I'd done well and dipped into APA at 9, I waited but as the price was stable I bought more to get a bigger holding at 9 and then of course the price dropped about 10c, now it's back. Share prices are really roller coastering around. It's absolutely fascinating and totally addictive to watch!

Buying Quality ASX Share that pay Dividends

I'm also focussing on quality small cap stocks, most of which have a long history of paying dividends. 
All companies big and small might not pay them as economists the world over take a stab at the short and long term implications of this virus. 

Even though I'm clearly in the red with my portfolio, I'm really pleased that I've generated an income (if they continue to pay dividends at current rates), and I've carefully used our stock research report to select companie that are strong, established businesses. I've been buying quality ASX shares at hopefully bargain prices. They may fall further in the short-term and I will be watching the prices and may continue to buy in small parcels to establish a bigger holding in the ASX shares both small caps and blue chips that I know own.
 

What Should ASX Share Investors do?

We have been writing regular Market updates in our news section to keep investors up to date with the share market. Under the Radar is covering all 100 Small Caps we recommend and research in our stock research report tomorrow (Small Caps: Issue 387) and more importantly we give the 10 best ASX Shares to buy. These are the best shares to buy that are quality companies that are now trading at very cheap prices.

My personal experience
It hasn't been as scary as I thought it would be, and it's actually been really exciting. 

If you still are not sure about whether to start investing or not, just look at the interest rate on your savings account.

Please remember I am a total amateur and I'm reading Under the Radar Report: Small Caps and Blue Chips and basing my buying and selling on those recommendations. I am not a professional analyst and I can not advise anyone on any financial recommendations.


 

About the Author

Caroline Mark

Caroline Mark is the Founder and Publisher at Under the Radar Report, which provides independent ASX share research to help build investor’s share portfolio. Under the Radar Report is licensed to give general share financial advice only (ASFL: 409518). The author is not licensed to give personal financial advice and this commentary is for general information only.

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