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Post by martin44 on Aug 25, 2016 20:06:48 GMT
I have posted here because the vast majority of my p2p is with Savingstream.
I am a tad short of six figures invested over 29 loans, one high (45k) and 28 low (c2k..ish) The 28 are taking up more time than i care to lose, and becoming increasingly more difficult to sell down and re-invest to long dated.
I am thinking of averaging out my total investment to a more manageable 5 loans of 20k, this will i know take some time, i am thinking 2 or 3 months, i follow the excellent Due Diligence on the forum , so hopefully i will pick solid loans.
Does anyone else follow this strategy for the same (or other) reasons, and how has it gone so far?.
TIA.
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Post by brokenbiscuits on Aug 25, 2016 20:16:30 GMT
The amounts are less important, it's the percentages that count.
It seems excluding the big chunk you have at about 45% the rest are around 2%.
I would think 2% loans are about right for a diverse portfolio.
The majority of mine are 2% or less.
I Do have a 5% as my biggest holding though.
Splitting into 5 20% loans would be a bit scary! How would you feel if 2 were going through the default process?
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Post by martin44 on Aug 25, 2016 20:33:01 GMT
Splitting into 5 20% loans would be a bit scary! How would you feel if 2 were going through the default process? I tend to follow the same strategy as most on here and move a loan on when down to roughly 50 days, although i have just changed that to 75 days, and if i do indeed change my strategy i will probably go to 100 days, so hopefully, SM permitting, i will not have to enter a default process, but i definitely take your view on board, i may well find myself in a defaulted loan, like it or not, but i am comfortable with the individual loan amounts.
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Post by GSV3MIaC on Aug 25, 2016 21:46:21 GMT
I think finding 5 loans you can reliably stick £20k in, with >75 days to run, is going to be an ongoing challenge, even before we get into whether you like them or not. Personally I wouldn't get that concentrated .. eggs, baskets, etc. 20 @ £5k, maybe, but even then I'd want quite a bit of my pot outside of SS completely (depending on what else you have tucked away .. if the £100k is a completely negligible portion of your total net worth, then you can stick it all on #13 and sleep easy).
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Aug 25, 2016 22:11:57 GMT
After nearly 50 years of investing in a variety of different things I only have one strategy and that is to keep moving my money around. About six months ago I became very concerned about the consequences of a possible Brexit vote and I posted about it on this forum somewhere. I was particularly concerned about property prices possibly sliding so I sold out of SS, AC, and a few others where property was dominant. Then put my money in US stocks and dollars. Right now four months later I am sitting on a profit of around 20%. Today I sold about a third of my US shares and after the long weekend ahead the money will be in my account and I will have to consider where I put it. Some will go into property but at this stage I have no idea in what form. However by next week I might have come up with a new strategy. If not I can still sit on my extra dollars a bit longer on the other hand metal may be a better long term bet.
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Post by Deleted on Aug 26, 2016 7:29:04 GMT
I think the strategy of 45% in one loan would have me awake all night. I'd rather invest the time to spread at 2% than the time staring at the ceiling.
Certainly the Brexit £ crash of 15% has helped the US markets jump by .... 17.6%/ The only question is Yellen at 10ET today, I'm holding until after then.
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Post by hazzo on Aug 26, 2016 9:07:34 GMT
I wouldn't be comfortable with +40%. My strategy is v basic....1 to 2.5% (one loan of 5%) I used to bail at 30 days but now just reduce holding on a loan by loan basis. Not rocket science.....but then I do that for a living  |
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boundah
Member of DD Central
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Post by boundah on Aug 26, 2016 9:13:01 GMT
I don't think there's one 'right' strategy. Surely it depends on the proportion of your total savings is in SS, how closely correlated other investments are to the UK property market, how secure your other sources of income are, what financial commitments you have, what life stage you're at?
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locutus
Member of DD Central
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Post by locutus on Aug 26, 2016 9:14:42 GMT
<snip> Not rocket science.....but then I do that for a living
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dan83
Posts: 243
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Post by dan83 on Aug 26, 2016 10:38:31 GMT
I'm no expert on this.
How often do loans come up that for you get a £20k chunk?
I'd of thought it's far easier to have smaller loans then waiting for 1 (or 5) big loans?
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Jeepers
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Post by Jeepers on Aug 26, 2016 10:45:04 GMT
I'm no expert on this. How often do loans come up that for you get a £20k chunk? I'd of thought it's far easier to have smaller loans then waiting for 1 (or 5) big loans? If you're a newbie, you've got no chance. I've got over £20k in Huddersfield as it's probably the best loan on SS.
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hazellend
Member of DD Central
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Post by hazellend on Aug 26, 2016 11:27:34 GMT
After nearly 50 years of investing in a variety of different things I only have one strategy and that is to keep moving my money around. About six months ago I became very concerned about the consequences of a possible Brexit vote and I posted about it on this forum somewhere. I was particularly concerned about property prices possibly sliding so I sold out of SS, AC, and a few others where property was dominant. Then put my money in US stocks and dollars. Right now four months later I am sitting on a profit of around 20%. Today I sold about a third of my US shares and after the long weekend ahead the money will be in my account and I will have to consider where I put it. Some will go into property but at this stage I have no idea in what form. However by next week I might have come up with a new strategy. If not I can still sit on my extra dollars a bit longer on the other hand metal may be a better long term bet. 50 years hasn't taught you much obviously lol.
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
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Post by gibmike on Aug 29, 2016 20:35:04 GMT
I would never put that amount into one loan unless my total investment was 30x that amount.
Total Investment /30 or in some cases /40 depending on the amount of loans available.
This gives you a nice split of 30-40 loans so should 1-2 default you lose only a small amount.
I had a loan which was upwards of 8% of the investment which I am reducing to 6%. Eventually once more loans become available it will come down to 3% like the rest.
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Post by martin44 on Aug 29, 2016 21:33:43 GMT
how do you get 40 loans? on SS
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Post by brokenbiscuits on Aug 29, 2016 21:41:05 GMT
how do you get 40 loans? on SS By investing in less than half the live loans at this time. So fairly easily.
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