Today I want to talk about how to really take the worry out of investing. Nanosonics, but first about the big banks and the big miners.

$NAB fell 20%, is it a buy?

I can’t go past talking about the banks because after the big fall of NAB I thought, this is a great stock. Quality on sale. The news wasn’t bad, it’s just that there has been a wave of momentum selling, which comes back to what I talked about last week. Join Today and access our full research and buy, sell and hold recommendations.

These big caps are bought up by ETFs then momentum funds come behind and they get expensive, then they can arguably get over sold.

A quality stock on sale?

But this ignores the reality that these banks are coming into a difficult environment to grow. There is no hiding from that. It might be less expensive than it was, but this could go on for a while.

If you are going to buy in, a great strategy is dollar cost averaging, which is buying at regular intervals and getting a lower than average price. This is the way to build the core of your portfolio.

Big ASX Miners – $RIO, $BHP, $FMG, $S32

The other big sector in Australia is mining, which we also cover in Blue Chip. This is a sector where Australia has three of the best in class. These are strong swimmers and I think another case for dollar cost averaging – certainly BHP & Rio Tinto. But you would do well to read our report on BHP’s leverage to copper, which is climbing fast. Another stock to consider is the spinoff from the Big Australian, South32 (S32).

But picking up on the kicking back theme, we have been consistent in taking risk off the table when stocks have spiked up. I like to keep holding for as long as I can, but I also don’t like thinking about one stock too much and worrying. I’m all about reducing my worries, day to day.

Small Cap Big Mover: Nanosonics $NAN

One stock we have were taking profits on Nanosonics last month at $4.70 after a 35% spike after year profit. We were first buyers about five ago at around half those levels and this stock has been feast or famine. Have a look at the chart. We sold our original investment and let our profits run.

The stock slipped back to $4.30 but yesterday spike just over $5. 

The big news is that its Coris product for endoscope cleaning has received de novo clearance, which just means that it’s brand new. The approval still isn’t carte blanch but it’s a start. It means they can go for gold with more indications and in more markets. The product is going to be sold in the next six months.

They’re making $180m a year in revenue from Trophon, which cleans probes and is well established. Coris could be bigger on the one hand, but it’s much more complex. Endoscopes are more difficult to clean than probes.

The point is that we had doubled our money when we took profits last month and we’re still benefiting from this news. We’ve had to wait a long time for this news and there’s a lot of hype at the moment. The company is only at the point of raising market awareness. Having taken profits and being exposed to the upside, we’re not going to chase and just buy the stock. We can buy more if we want but we’ve already made money.

Take your costs out and let your profits run

As I said, I like reducing my worries. Taking profits helps me do this. Our aim for members is for them to not worry about investment timing as much. Nobody gets it right. Our long-term approach is designed to build wealth and reduce stress.

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