FREQUENTLY ASKED QUESTIONS

How much do you charge for your service?
What does this fee cover?
What are technology stocks?
What are the benefits of investing in technology?
How secure is equity investing?
Are technology stocks overvalued?
Is it necessary to invest in high risk stocks to gain high returns?
Do you own technology stocks?
What is the difference between stocks and shares?
What is the minimum amount that can be invested?
Who decides which stocks to buy?
What proportion of our portfolio should be in technology stocks?
Are you a stock broker?
Is the stock certificate in my name?
Do technology stocks pay dividends?
What return can I expect on my investment?
What is the NASDAQ?
What is the NYSE?
How do I contact you?

If you would like to ask a question that is not answered here, please e-mail it to us.

HOW MUCH DO YOU CHARGE?
Our fee is 1% of the value of stocks purchased.
If in subsequent years you decide to continue with our service the fee is 0.4% of the value of your portfolio on the annual anniversary of your initial investment. There is a minimum annual fee of $NZ250.00 (plus GST for New Zealand residents). There is no charge if you decide not to invest.
We'd be happy to send you a copy of our Advisory Agreement on request.
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WHAT DOES THIS FEE COVER?
Our annual fee covers our full service for the period of a year. This includes the initial consultation and portfolio proposal. You will also benefit from our daily monitoring of the stocks, and each month you will receive an information package containing an updated portfolio valuation with growth forecasts, relevant company press releases and, most importantly, sound advice of new investment opportunities. We encourage our clients to discuss their portfolios and future investments regularly, at no further charge.  Subsequent capital investments attract a further 1% fee.
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WHAT ARE TECHNOLOGY STOCKS?
Technology is a term covering a diverse range of products including computer hardware and software, computer networks, telecommunications equipment and systems and the Internet.
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WHAT ARE THE BENEFITS OF INVESTING IN TECHNOLOGY?
We are now living in a technological society and technology stocks will dominate the financial markets of the next century. Investing in these stocks is investing in companies that have a realistic expectation of growing at over 20% p.a., a much faster rate than industrials.
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HOW SECURE IS EQUITY INVESTING?
We interpret security to mean providing worthwhile returns while preserving your capital base.  Investment in any equities should be considered as an investment over a period of at least five years.  In the past ten years, investment in technology stocks has given far better returns than investment in industrials.  However, all markets can be volatile in the short term and with technology stocks it is important to get expert advice from an investment advisor specialising in technology to select the right stocks at the right time.
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ARE TECHNOLOGY STOCKS OVERVALUED?
The price/earnings ratio (P/E) for technology stocks is higher than that for industrial stocks, reflecting their stronger historic earnings growth.  Demand for technology stocks is increasing as current economic indicators point to a robust US economy, and as there is a greater realisation that a balanced portfolio should include technology stocks. The combination of these factors means the long term forecast for technology stocks is strong, although they are subject to short term volatility.
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IS IT NECESSARY TO INVEST IN HIGH RISK STOCKS TO GAIN HIGH RETURNS?
No, you choose how much risk you want to take.  It is absolutely possible to achieve a high return while investing in blue chip stocks with a stable history.
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DO YOU PERSONALLY OWN TECHNOLOGY SHARES?
Currently all our equities are technology shares.
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WHAT IS THE DIFFERENCE BETWEEN STOCKS AND SHARES?
None at all.  These two terms both mean the same thing.   People in the US tend to talk about stocks, stock brokers, stockmarkets, etc., while in many other parts of the world it is common to say shares, share brokers, sharemarkets, etc.
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WHAT IS THE MINIMUM AMOUNT THAT CAN BE INVESTED?
The preferred amount for an initial balanced portfolio is $NZ50,000 ($US25,000) or more, but we will advise customers with lesser sums to invest.
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WHO DECIDES WHICH STOCKS TO BUY?
We make recommendations to you based on your needs and our research, experience and knowledge. However the final decision about which stocks to buy is yours.
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WHAT PROPORTION OF OUR PORTFOLIO SHOULD BE IN TECHNOLOGY STOCKS?
We believe that because there are so many diverse opportunities to invest safely in technology that the majority of your equities should be in this sector. We will help you to determine an investment you are comfortable with.
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ARE YOU STOCK BROKERS?
No. We are investment advisors and shares are purchased either through your own broker or we can recommend a broker.
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IS THE STOCK CERTIFICATE IN MY NAME?
A share certificate is available if required but most investors have their holdings recorded electronically in a nominee account in the USA. Stocks can thus be sold promptly rather than waiting for the share certificate to be sent to the overseas broker.
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DO TECHNOLOGY STOCKS PAY DIVIDENDS?
Well established companies such as Microsoft and Intel pay dividends but development stage companies require the capital for growth.
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WHAT RETURN CAN I EXPECT ON MY INVESTMENT?
A recent analysis of our clients' investments over a period of a year showed a range from 23% to 40% increase in capital value in $US. This excludes exchange rate fluctuations.
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WHAT IS THE NASDAQ?
The NASDAQ is the acronym for The National Association of Securities Dealers Automated Quotation. Established in 1971 as the world’s first electronic stock market it is the fastest growing stock market in the US and is the leading American market for foreign listings. In 1994 it surpassed the New York Stock Exchange in yearly share volume. In 1998 it merged with the American Stock Exchange.
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WHAT IS THE NYSE?
The NYSE is the acronym for The New York Stock Exchange, the world’s largest equities market with a total market capitalization of nearly $US12-trillion. It includes large, mid-sized and small enterprises based both in the US and throughout the world.
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Public companies that manufacture and sell technology products and services are no more at risk than any other company; in fact, many will benefit from the increased need to upgrade systems in readiness for the new millennium.
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HOW DO I CONTACT YOU?
Simply e-mail, or contact us by phone.