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Post by Deleted on Dec 9, 2020 10:34:56 GMT
We are all jumped up nobodies on the internet ;-) coming on this site and sharing is really about meeting nobodies and being a nobody.
My strategy is to only buy assets that have a history of success and stable success at that. I like assets that grow by 20% every year and who only have variability of about 10% but I have to choose some that do less well so I understand some of your thinking. By history I mean at least 5 years, though I see SSON as having a Fundsmith track record.
LGEN wouldn't fall into my area of interest as the SP is all over the place with no trackrecord of success. But if you like noisy assets with short term wins then why not. Remember British Steel paid a good dividend until it crashed.
Using equity release is an interesting and brave strategy. I'm not sure I would have the guts to do that. From my reading of the market and books on the subject over the last 10 years the basic investor wins 5% a year even if they are an idiot (up to a certain level of idiot of course). A good player can win about 11%. So logically you should look at a budget between 5 and 11 for your calculations and do some risk analysis (maybe you have done that all ready)
My view about dividends is that you need to take advantage of all the tax opportunities you have so divis have their place in the portfolio.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Dec 9, 2020 11:26:00 GMT
sd2 likes this
Post by ozboy on Dec 9, 2020 11:26:00 GMT
We are all jumped up nobodies on the internet ;-) coming on this site and sharing is really about meeting nobodies and being a nobody.
My strategy is to only buy assets that have a history of success and stable success at that. I like assets that grow by 20% every year and who only have variability of about 10% but I have to choose some that do less well so I understand some of your thinking. By history I mean at least 5 years, though I see SSON as having a Fundsmith track record.
LGEN wouldn't fall into my area of interest as the SP is all over the place with no trackrecord of success. But if you like noisy assets with short term wins then why not. Remember British Steel paid a good dividend until it crashed.
Using equity release is an interesting and brave strategy. I'm not sure I would have the guts to do that. From my reading of the market and books on the subject over the last 10 years the basic investor wins 5% a year even if they are an idiot (up to a certain level of idiot of course). A good player can win about 11%. So logically you should look at a budget between 5 and 11 for your calculations and do some risk analysis (maybe you have done that all ready)
My view about dividends is that you need to take advantage of all the tax opportunities you have so divis have their place in the portfolio.
" I like assets that grow by 20% every year.........." Blimey @bobo, where do you find THEM? Obvs not having a dig, just consternated/flabbergasted at your ingenuity.
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hazellend
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Post by hazellend on Dec 9, 2020 11:56:14 GMT
Just seems like a very messy portfolio without a coherent strategy. Using equity release when your total income is £120 a week sounds like madness, I’m not sure anybody would encourage this. Finally, “income” from equities can be obtained either through not reinvesting dividends or selling capital (I.e it is the total return that matters). I won’t comment any further but to say please take a step back and reflect on what you are doing. It is clear that you are dangerously inexperienced and that is compounded by your equity release idea and low income. There is nothing I hate more than a jumped up nobody talking down to me. You have no idea what my investments are or my overall strategy is. I know what you wrote. I assumed that was an accurate representation. Although I am not able to reliably find assets that will grow 20% a year like Bobo, I am an “experienced investor” so if I see somebody making mistakes I try and help. I’m happy if people are making money and wish you luck.
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Post by Deleted on Dec 9, 2020 11:58:58 GMT
" I like assets that grow by 20% every year.........." Blimey @bobo , where do you find THEM? Obvs not having a dig, just consternated/flabbergasted at your ingenuity. Ta Oz. I start by using trustnet.com and they have an "advanced" tool that allows you to find funds that have high levels of growth and low levels of volatility over 1, 3 or 5 years. That gives you a base list that needs a bit more filtering, like smaller ones are a waste of time and ones based in Russia are a nonsense etc. Then I set up a management system so that I can monitor to filter out the bad ones using evolution as a mechanism.
Similar with shares but I gave up using auto filter tools and instead use visuals of share charts over 5 years. I have my prefered sites to do that. Happy to give asset names if any interest.
Once you have a volatility expectation and a growth expectation then all you have to do is manage it. I can provide charts to show the results.
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sd2
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Dec 9, 2020 12:05:29 GMT
Post by sd2 on Dec 9, 2020 12:05:29 GMT
We are all jumped up nobodies on the internet ;-) coming on this site and sharing is really about meeting nobodies and being a nobody.
My strategy is to only buy assets that have a history of success and stable success at that. I like assets that grow by 20% every year and who only have variability of about 10% but I have to choose some that do less well so I understand some of your thinking. By history I mean at least 5 years, though I see SSON as having a Fundsmith track record.
LGEN wouldn't fall into my area of interest as the SP is all over the place with no trackrecord of success. But if you like noisy assets with short term wins then why not. Remember British Steel paid a good dividend until it crashed.
Using equity release is an interesting and brave strategy. I'm not sure I would have the guts to do that. From my reading of the market and books on the subject over the last 10 years the basic investor wins 5% a year even if they are an idiot (up to a certain level of idiot of course). A good player can win about 11%. So logically you should look at a budget between 5 and 11 for your calculations and do some risk analysis (maybe you have done that all ready)
My view about dividends is that you need to take advantage of all the tax opportunities you have so divis have their place in the portfolio.
Legal and general meets the definition of success and stable profits but not necessarily share price! Which of course is a plus ...at times! Equity release 2.36% Pay interest every year from dividends. After 10 years pay it back no fees. Dont pay anything then after 21 years I would owe 50,600 including fees (rough can't find paperwork) Interest rate is based on a property value of £180,000. We are not in Japan ie grossly overvalued and about to start the "lost ten years" (some say 20 years). So I would feel confident in saying that after 10 years of lower risk investment trusts (mainly international) I will be in profit both on the value of the investments and the dividends. I should in fact be able to take some profits from the dividends at the end of year one. The first £20,000 goes into a Hargreaves Lansdown ISA cost £45 per year. Its unlikely I will have to pay tax even when I get my state pension so I am using it more as insurance in case things go to well!!
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sd2
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Dec 9, 2020 12:15:45 GMT
Post by sd2 on Dec 9, 2020 12:15:45 GMT
How have you come to that conclusion? With no information? Your not superior you just think you are.
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Dec 9, 2020 12:23:00 GMT
Post by Deleted on Dec 9, 2020 12:23:00 GMT
Legal and general meets the definition of success and stable profits but not necessarily share price! Which of course is a plus ...at times! But, you are not buying the company you are buying the share price. There is a significant difference between the two. The share price of L&G is not a sucess in my strategy. If you have the skills to time the market and you are making money with it then fine.
Timing; I took early retirment 11 years ago and studied all the timing mechanisms I could find including going on the Naked Trader training courses, reading many books and I concluded that 1) share price movements are not logical and 2) no one I ever met could time the market. Good luck to all with your strategies and tactics, I hope they work for you all.
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hazellend
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Dec 9, 2020 12:28:09 GMT
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Post by hazellend on Dec 9, 2020 12:28:09 GMT
We are all jumped up nobodies on the internet ;-) coming on this site and sharing is really about meeting nobodies and being a nobody.
My strategy is to only buy assets that have a history of success and stable success at that. I like assets that grow by 20% every year and who only have variability of about 10% but I have to choose some that do less well so I understand some of your thinking. By history I mean at least 5 years, though I see SSON as having a Fundsmith track record.
LGEN wouldn't fall into my area of interest as the SP is all over the place with no trackrecord of success. But if you like noisy assets with short term wins then why not. Remember British Steel paid a good dividend until it crashed.
Using equity release is an interesting and brave strategy. I'm not sure I would have the guts to do that. From my reading of the market and books on the subject over the last 10 years the basic investor wins 5% a year even if they are an idiot (up to a certain level of idiot of course). A good player can win about 11%. So logically you should look at a budget between 5 and 11 for your calculations and do some risk analysis (maybe you have done that all ready)
My view about dividends is that you need to take advantage of all the tax opportunities you have so divis have their place in the portfolio.
Legal and general meets the definition of success and stable profits but not necessarily share price! Which of course is a plus ...at times! Equity release 2.36% Pay interest every year from dividends. After 10 years pay it back no fees. Dont pay anything then after 21 years I would owe 50,600 including fees (rough can't find paperwork) Interest rate is based on a property value of £180,000. We are not in Japan ie grossly overvalued and about to start the "lost ten years" (some say 20 years). So I would feel confident in saying that after 10 years of lower risk investment trusts (mainly international) I will be in profit both on the value of the investments and the dividends. I should in fact be able to take some profits from the dividends at the end of year one. The first £20,000 goes into a Hargreaves Lansdown ISA cost £45 per year. Its unlikely I will have to pay tax even when I get my state pension so I am using it more as insurance in case things go to well!! What will you do if equities don’t go up more than 2.36% a year for 10 years (based on total return)? DOI my portfolio is 100% equities (apart from legacy holdings in p2p which will also go into equities) 1 ETF Vanguard all world total holding 1.2million. So I am a big fan of equities as you can see. However, 10 years is a very short time frame, literally anything could happen. This year my equities dropped to around 800k in March/April. 20 - 30 years is much more likely to give a high chance of success.
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macq
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Dec 9, 2020 16:38:57 GMT
Post by macq on Dec 9, 2020 16:38:57 GMT
for anybody with a Kindle - the Investment Trusts Handbook released yesterday is available for free (Most years its more then just puff pieces even if it does obviously big up IT's and the hardback goes for about £20 - 25 on W H Smiths etc)
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sd2
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Dec 9, 2020 17:40:37 GMT
Post by sd2 on Dec 9, 2020 17:40:37 GMT
Legal and general meets the definition of success and stable profits but not necessarily share price! Which of course is a plus ...at times! But, you are not buying the company you are buying the share price. There is a significant difference between the two. The share price of L&G is not a sucess in my strategy. If you have the skills to time the market and you are making money with it then fine.
Timing; I took early retirment 11 years ago and studied all the timing mechanisms I could find including going on the Naked Trader training courses, reading many books and I concluded that 1) share price movements are not logical and 2) no one I ever met could time the market. Good luck to all with your strategies and tactics, I hope they work for you all.
As I am already up 54% on Legal and general and down 3% on the other purchase with 10.5% and 6.6% dividend then both the share price and the dividend are already a success. My strategy is only relevant to the £30,000 equity release. Investment Trust only, 4% dividend, 25% plus 5 year share price gain and 1 year dividend reserve. And I never suggested I could time the market where have I written that?
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sd2
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Dec 9, 2020 17:44:16 GMT
Post by sd2 on Dec 9, 2020 17:44:16 GMT
Legal and general meets the definition of success and stable profits but not necessarily share price! Which of course is a plus ...at times! Equity release 2.36% Pay interest every year from dividends. After 10 years pay it back no fees. Dont pay anything then after 21 years I would owe 50,600 including fees (rough can't find paperwork) Interest rate is based on a property value of £180,000. We are not in Japan ie grossly overvalued and about to start the "lost ten years" (some say 20 years). So I would feel confident in saying that after 10 years of lower risk investment trusts (mainly international) I will be in profit both on the value of the investments and the dividends. I should in fact be able to take some profits from the dividends at the end of year one. The first £20,000 goes into a Hargreaves Lansdown ISA cost £45 per year. Its unlikely I will have to pay tax even when I get my state pension so I am using it more as insurance in case things go to well!! What will you do if equities don’t go up more than 2.36% a year for 10 years (based on total return)? DOI my portfolio is 100% equities (apart from legacy holdings in p2p which will also go into equities) 1 ETF Vanguard all world total holding 1.2million. So I am a big fan of equities as you can see. However, 10 years is a very short time frame, literally anything could happen. This year my equities dropped to around 800k in March/April. 20 - 30 years is much more likely to give a high chance of success. Where have I written that I have to pay back the money after 10 years?
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hazellend
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Dec 9, 2020 18:02:23 GMT
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Post by hazellend on Dec 9, 2020 18:02:23 GMT
What will you do if equities don’t go up more than 2.36% a year for 10 years (based on total return)? DOI my portfolio is 100% equities (apart from legacy holdings in p2p which will also go into equities) 1 ETF Vanguard all world total holding 1.2million. So I am a big fan of equities as you can see. However, 10 years is a very short time frame, literally anything could happen. This year my equities dropped to around 800k in March/April. 20 - 30 years is much more likely to give a high chance of success. Where have I written that I have to pay back the money after 10 years? You literally said “ Pay interest every year from dividends. After 10 years pay it back no fees.”
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Post by Harland Kearney on Dec 9, 2020 18:30:08 GMT
For my equity currently I just invest £100 a day into Fundsmith, and buy more during market corrections. I hold some bonds too and ofc some P2P. I have around 150k now in this fund, since 2017.
I see people talking about "past-performance". Past performance is actually quite critical recently, as you can see how "safe" assets perform during a dooms day crash scenerio in the modern world of Q/E. Some funds have completely platoed whilst others beat the index in voltaility downwards, and recovery upwards.
Smithson has performed exceptionally in both areas. Both Fundsmith and Smithson share very similar mantras of "buy, and do nothing" which of course is the best way to be. I don't buy fund managers, I buy fund principles and past-performance being anchored to the same principles of today. (No drift)
Follow the money, as long as the FED keeps rates depressed stocks will continue this upwards trend.
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sd2
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Dec 10, 2020 11:28:16 GMT
Post by sd2 on Dec 10, 2020 11:28:16 GMT
Where have I written that I have to pay back the money after 10 years? You literally said “ Pay interest every year from dividends. After 10 years pay it back no fees.” Its an equity release you don't ever have to pay it back as your well aware
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sd2
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Dec 10, 2020 11:33:56 GMT
Post by sd2 on Dec 10, 2020 11:33:56 GMT
There are a few shares I hold at present that I really like: Saga Naked Wine Motorpoint Chemours Co (US) Ally Financial (US) Belvoir Lettings Legal & General I am not trying to convert anyone. Just sharing some ideas. If anyone would like to know more please shout.
Strikes me as a bit random that list.
As an example, would be curious to hear the extent of your homework on L&G. 90% of revenue UK-domestic and a shitload (£30bn AUM) in real estate, you must have dug up some real gems on the positive side to justify that one.
(Not saying you should sell L&G. Your Money. Your Portfolio. Your appetite for risk. Do your own homework, make your own decisions. ).
Maybe you have a penchant for special sits... who knows ... only you do !
Ignore him camraid <unnecessary insult removed by mod>. His tag says all you need to know about him.
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