where do you keep yours
I have £9,000 in stocks/shares
that is 5k with BA
that is 1k (each) with mab, ihg, bp, bt
I have 10 gold Krugerrands (i had more gold like bars, full and half sovereigns, Britannias, maples, eagles, self-refined buttons and some fractionals but Brexit was worthwhile profits)

Reply 4

Abstract_Prism

Do you have any low risk investments?

If not why not?

Reply 5

Abstract_Prism

Where should I go to learn about how to invest in the stock market?

Reply 6

jamesthehustler

Original post by Abstract_Prism

Do you have any low risk investments?

If not why not?

all of mine is low risk as for learning go to Hargreaves Lansdowne get an information pack that where I keep my cash
but for gold only buy it if you can hold it physically

Reply 7

fg45344

Original post by jamesthehustler

Starbucks (SBUX)
Apple (AAPL)
Walt Disney Group (DIS)
Legal and General (LGN)
BP (BP.)
Eros International 6.5% bonds (bought way under par, so I get 9.5%)
Barclays (BARC.L)
Greggs (GRG)

^^ The 14k is split among those, some have more, some have less, but it's more or less even.

Reply 8

fg45344

Original post by Abstract_Prism

Do you have any low risk investments?

If not why not?

I have Eros International bonds, which are lower risk than shares, though they are slightly on the junk side.

If you are planning to hold these investments for more than 5 years, you can hold higher risk shares. If you need the money sooner, better to hold bonds.

I keep the bonds because I get something if the whole market decides to crash, it's like a hedge in a way.

Reply 9

fg45344

Original post by Abstract_Prism

Where should I go to learn about how to invest in the stock market?

http://www.investopedia.com/

And read everything you can on Warren Buffett.

I like this website as well....
http://www.thisismoney.co.uk/money/investing/index.html

I know learning to invest can be hard when you have never studied Finance, I suggest maybe you find some youtube videos on the basics of investing. What is a portfolio? What is market risk? What is diversification? What are dividends? What is compounding? Etc Etc

(edited 7 years ago)

Reply 10

SalazarSlytherin

Do you enjoy being a compulsive liar?

Reply 11

fg45344

Original post by SalazarSlytherin

Do you enjoy being a compulsive liar?

Lol, it's not a large amount. People put £100,000 + in well diversified funds/shares.
For example my dad has £120,000 in the stock market, it's good dividend income for him.

I want to max it out to like £25-30K, so I fill up 2 ISAs. I'm investing aggressively because I am young and don't need the money right now. As you get older, you need to move more towards bonds as you need the money more instantly.

Reply 12

SalazarSlytherin

Original post by fg45344

I'll take that as a yes

Reply 13

Abstract_Prism

Original post by fg45344

I started reading investopedia a couple days ago and I learnt about all the basic stuff that you mentioned, but then I realised that it was an American website so I wasn't sure if it was still 100% relevant, and if all the names for things were still the same over here.

I'll check out the thisismoney one as well.

So aside from learning all the basic and intermediate investing stuff, what made you invest in those companies specifically? Why Apple, Starbucks, and so on?

Reply 14

fg45344

Original post by Abstract_Prism

I like to invest in companies for several reasons.....

1) growth stocks (like Apple, Starbucks)
They don't pay much dividend but they are great companies, they have a potential for a lot of growth. Apple is the world leader in computers and phones, it's almost cool to own a mac. The same goes for starbucks, the brand loyalty is so strong with them. All the cool people have to own a mac and drink starbucks unfortunately, it's this mentality that leads to great brand loyalty and profits. Starbucks could create their own water and people would buy it to look cool.

2) dividend stocks (like legal and general, BP)
These stocks don't have too much potential for growth because they pay out on average 7/7.5% of their earnings in dividends. I can use the dividend money to buy more stocks when the price is right...you have to buy at a good price, no point overpaying for a stock. Dividend stocks are usually less glamorous, they don't have the cool factor of starbucks or apple. They provide usually essential services and are solid as a rock. When you buy a stock like BP, you are planning to hold it forever, as like most dividend stocks.

The bottom line is those companies are all immensely profitable, and I have (I hope) paid a fair price for them. You want your portfolio to balance dividend and growth stocks and also have some bonds (as a hedge against market downturns).

As you age you want to allocate more of your portfolio towards bonds, as you can't afford wild market swings. Imagine the day before you retire, the stock market crashes, so before retirement you want to be mostly holding bonds.

You can take risk when you are young, as the market will correct itself over time, when you get old, you are running out of time.

If you want finance lessons, I can more than happily answer your questions on here. My masters degree was based in finance.

Reply 15

jamesthehustler

Original post by fg45344

nice mainly safe investments what was you reasoning on purchases if any (most of mine other than bp came with shareholder perks that make them worth holding) but I'd get some solid gold to keep personally as a second hedge as gold performs well (best places to buy are independent jewellers and pawn store or from online groups like 'english coins for sale and wanted' on facebook- the title is a little elusive as a lot of international gold comes through I bought my Krugs there)

Reply 16

Cobalt_

Original post by SalazarSlytherin

Do you enjoy being a compulsive liar?

Why did you make the chamber of secrets so easy to find?

Reply 17

fg45344

Original post by jamesthehustler

To be honest for the last 3 years of my life, this is all I have learnt to do. I've been good at stock picking essentially, buying stuff on the dip. Then once the price is good, you just hold forever.

I bought BP shares at 361p and Legal and General shares at 175p, both on the dip, though for Legal and General I should have waited one more day.

But those are good dividends, you can sit on 7.5% (increasing dividend as well mind you) and hold forever. That's the name of the game.

Reply 18

jamesthehustler

Original post by fg45344

you're lucky i bought most of my shares high but i keep them more for the perks than anything else

Reply 19

fg45344

Original post by jamesthehustler

you're lucky i bought most of my shares high but i keep them more for the perks than anything else

I do what Warren Buffett does, wait for the right moment to buy. If it's too expensive (the stock) I won't touch it.

The Brexit crash was a perfect moment to buy the housebuilders, Persimmon etc. They became so cheap relative to the market.

There are a few stocks I missed though, I was eyeing up Shell, but it's too expensive now. You have to pay a fair price for it, or the market will burn you in the short term. If you are holding forever it's still better to pay a fair price than to buy on impulse.