|
Stocks
Jun 25, 2019 19:59:29 GMT
Post by elephantrosie on Jun 25, 2019 19:59:29 GMT
Having my holiday and have just gone back to reading a website that I have subscribed to a year ago on how to invest in stocks. I do not like bonds or funds, but this whole new learning has taught me that so much work need to put into it to wisely pick an individual company to invest in.
Nothing comes easy.... But everything is fun and worth it.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Jun 25, 2019 23:32:20 GMT
Having my holiday and have just gone back to reading a website that I have subscribed to a year ago on how to invest in stocks. I do not like bonds or funds, but this whole new learning has taught me that so much work need to put into it to wisely pick an individual company to invest in. Nothing comes easy.... But everything is fun and worth it. Neither knowing you, nor the website you have subscribed to, may I suggest that you pick 1-4 etfs (or funds) that together cover a range of assets that seem appropriate for you and invest in these monthly over the next 6-24 months. If you learn enough over this time to switch away to individual companies then good luck - but make sure that you have better knowledge (I don't mean inside knowledge) or insight than the (money weighted) average investor.
|
|
|
Post by Deleted on Jun 26, 2019 12:11:01 GMT
Good luck, I've scattered my advice on this thread enough on this forum (chat) recently to not bore any more people. But if you have questions, drop them up here.
Which site?
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,742
Likes: 3,137
|
Post by jonno on Jun 26, 2019 12:28:49 GMT
Also, depending upon your circumstances and time horizons, think carefully about whether you're investing for growth or income (or indeed a balance of the two).
|
|
gc
Member of DD Central
Posts: 152
Likes: 141
|
Post by gc on Jun 26, 2019 15:28:37 GMT
Picking an individual company is always a little more unsettling as it is a more volatile beast (both positive and negative), even the huge corps like pharma etc, get bounced about more than a stable ETF. That said, I do have both (ETF's and some individuals). Individuals are great for the rollercoaster rides they can give, but if you choose the right ones, they most often see you well.
My current concern is that there may be a market rebalancing in the pipeline (could be months, or even a year or so away). That doesn't mean that one shouldn't invest, just that I am currently rethinking certain strategies I use and keeping that in mind.
|
|
daveb
Member of DD Central
Posts: 236
Likes: 194
|
Stocks
Jun 26, 2019 20:07:22 GMT
Post by daveb on Jun 26, 2019 20:07:22 GMT
My 2p worth... mainstay is a cheap tracker for big companies. If you want smaller companies then they should be actively managed as stock picking is much more likely to add value to small company picks than to very large, well-researched ones. And if they are illiquid then hold them in an investment trust not an open ended unit trust. Woodford reminded us of the importance of that. IPOs should only be invested in if the seller is someone keen to sell out and pricing to go, usually the government, or recently the nationalised banks. So direct line, TSB and Equiniti did well, as did the Royal Mail at first. But most IPOs are risky bets for the medium net worth punter.
I think that is all I have learned over 30 years.
|
|
hazellend
Member of DD Central
Posts: 2,361
Likes: 2,179
|
Stocks
Jun 26, 2019 20:30:04 GMT
via mobile
ozboy likes this
Post by hazellend on Jun 26, 2019 20:30:04 GMT
Having my holiday and have just gone back to reading a website that I have subscribed to a year ago on how to invest in stocks. I do not like bonds or funds, but this whole new learning has taught me that so much work need to put into it to wisely pick an individual company to invest in. Nothing comes easy.... But everything is fun and worth it. Trust me, just buy one of the vanguard Lifestrategy funds. Individual stocks is very risky.
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,156
Likes: 4,830
|
Stocks
Jun 26, 2019 21:20:53 GMT
Post by ozboy on Jun 26, 2019 21:20:53 GMT
Having my holiday and have just gone back to reading a website that I have subscribed to a year ago on how to invest in stocks. I do not like bonds or funds, but this whole new learning has taught me that so much work need to put into it to wisely pick an individual company to invest in. Nothing comes easy.... But everything is fun and worth it. Trust me, just buy one of the vanguard Lifestrategy funds. Individual stocks is very risky. I trust you hazellend, Vanguard Lifestrategy, way to go. (With maybe a small punt in Fundsmith and/or LindsellTrain?) This is not investment advice, do your own research and make your own informed decisions.
|
|
michaelc
Member of DD Central
Posts: 4,855
Likes: 2,760
|
Stocks
Jun 26, 2019 21:27:39 GMT
Post by michaelc on Jun 26, 2019 21:27:39 GMT
My twopenneth which usually incurs the wrath of @wallstreet .
I buy individual stocks and occasionally bonds to keep transparency as high as possible and fees to various fund manager types as low as possible. I don't trust anything I don't fully understand and I don't mean that in a general sense. Yes most people generally understand the principle of funds for example, but are they aware of all the detail and I think its that detail that matters. As an aside I hear fund managers eke out a good living.
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Jun 26, 2019 21:31:13 GMT
As an aside I hear fund managers eke out a good living. So do doctors; do you avoid them if you are sick?
|
|
michaelc
Member of DD Central
Posts: 4,855
Likes: 2,760
|
Stocks
Jun 26, 2019 21:46:06 GMT
Post by michaelc on Jun 26, 2019 21:46:06 GMT
As an aside I hear fund managers eke out a good living. So do doctors; do you avoid them if you are sick? You're comparing a fund manager with a doctor ?
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Stocks
Jun 26, 2019 22:02:39 GMT
Post by littleoldlady on Jun 26, 2019 22:02:39 GMT
As an aside I hear fund managers eke out a good living. Is there any fund manager who does not charge a fee but takes a cut of profits?
|
|
macq
Member of DD Central
Posts: 1,924
Likes: 1,192
|
Post by macq on Jun 26, 2019 22:19:55 GMT
So do doctors; do you avoid them if you are sick? You're comparing a fund manager with a doctor ? Well Woodford has cured a few people of constipation pretty quickly
|
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Stocks
Jun 27, 2019 0:40:31 GMT
Post by bigfoot12 on Jun 27, 2019 0:40:31 GMT
Is there any fund manager who does not charge a fee but takes a cut of profits? There are many, but the incentive, for such a manager, is to take a high risk. Perhaps the fund manager has another fund that takes the opposite high risk. Double one and take 20% of that and take nothing of the 70% loss on the other and they have still made 10% on funds under management at the start of the year. It isn't easy to work out what the best strategy is for the smaller investor. Another fund manager might see your investment (rightly or wrongly) as free leverage. [Say you assume that the risk free rate is 2.5% and therefore making 5% has the same probability as making 0%, with 20% of gains you have about a 50% chance of 1%, or take a crazy risk, perhaps 40% chance of 25% gain, or 60% chance of 40% loss, that is a poor risk, but still, on a single year is much better for the fund manager.] There are no easy answers, it is one of the main arguments for those who aren't 100% sure of their own strategy to buy some appropriate combination of low fee index funds - see my post, 2nd in this thread. My personal opinion is that it seems unlikely that the vanguard all world index is the best index for everyone to track.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Stocks
Jun 27, 2019 9:18:10 GMT
Post by littleoldlady on Jun 27, 2019 9:18:10 GMT
Is there any fund manager who does not charge a fee but takes a cut of profits? There are many, but the incentive, for such a manager, is to take a high risk. Perhaps the fund manager has another fund that takes the opposite high risk. Double one and take 20% of that and take nothing of the 70% loss on the other and they have still made 10% on funds under management at the start of the year. It isn't easy to work out what the best strategy is for the smaller investor. Another fund manager might see your investment (rightly or wrongly) as free leverage.
[Say you assume that the risk free rate is 2.5% and therefore making 5% has the same probability as making 0%, with 20% of gains you have about a 50% chance of 1%, or take a crazy risk, perhaps 40% chance of 25% gain, or 60% chance of 40% loss, that is a poor risk, but still, on a single year is much better for the fund manager.]
There are no easy answers, it is one of the main arguments for those who aren't 100% sure of their own strategy to buy some appropriate combination of low fee index funds - see my post, 2nd in this thread. My personal opinion is that it seems unlikely that the vanguard all world index is the best index for everyone to track. Is it even possible for everyone to track the index? Who would they be tracking? I have seen it suggested that there is already too much money tracking for the market to operate properly.
|
|