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    (Original post by Sternumator)
    You'd expect an average stock to double over 10 years. It doesn't mean they are good picks.
    Safe picks. Therefore good for the risk averse investor.
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    (Original post by Sternumator)
    You'd expect an average stock to double over 10 years. It doesn't mean they are good picks.
    The stocks I listed are excellent picks.

    Especially for the defensive investor.
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    I don't have access to my long term savings because it's all owned by my parents, even though most people get theirs at 18 apparently I'm not to be trusted

    but in my personal savings I have £600… decent considering I haven't had a job since November and my only job lasted 2 months.
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    (Original post by zayn008)
    I don't have access to my long term savings because it's all owned by my parents, even though most people get theirs at 18 apparently I'm not to be trusted

    but in my personal savings I have £600… decent considering I haven't had a job since November and my only job lasted 2 months.
    That's expected since you wouldn't have worked full time. Focus on your education, then worry about earning money.

    The best investment you can make is in yourself, these are the words of Warren Buffett, legendary investor.

    Once you get the education and have a stable job, then you can save and invest.
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    (Original post by MrMarket)
    Those stocks are good for the buy and hold defensive investor, this is not me. The only ones I want to own from those are Reckitt Benckiser and British American Tobacco.

    I am waiting on a good price for British American Tobacco to jump in. Reckitt I use as a portfolio balance, to lessen volatility. Reckitt works a bit like gold, when the markets panic, people jump to consumer defensives such as Reckitt.

    I am willing to take more risk, you can see I invest in India and the FTSE 250.
    I like dividends and consistent dividends, my portfolio has a lot of stocks like that. I like growing dividends as well, we can see that again with Paragon Group of Companies and Galliford Try.
    I started with some safer funds. Then added several small/mid caps of my country. I recently added a commodities fund. But my shares did well in the last year, has given me motivation to be more active and move from the funds to selected shares.
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    (Original post by MrMarket)
    The stocks I listed are excellent picks.

    Especially for the defensive investor.
    I go for a passive strategy. To me it's no different from trying to pick a horse out from the form book. There may be some people who can do it successfully but they are few and far between. And tips are as reliable in both.
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    (Original post by yudothis)
    I started with some safer funds. Then added several small/mid caps of my country. I recently added a commodities fund. But my shares did well in the last year, has given me motivation to be more active and move from the funds to selected shares.
    The biggest obstacle is education, you need training in investing and finance. Either you play the market and learn (and get burnt, but you will learn faster, haha) or you do a Msc in finance etc.

    I stock pick because I can, it amplifies my returns. I can only do this because I have an Msc in finance and econometrics, I'm doing a PhD in finance and I've spent 1-1.5 years in the market being burnt and learning from my mistakes.

    If you want to stock pick, you have to be very careful. The first goal is to pick businesses which are exceptional, great management, great cash flow, low debt and a strong competitive advantage over rivals. The next goal is to buy them at sensible prices. I can't stress this enough. Price is what you pay, value is what you get, remember those words.

    Never and I repeat Never, overpay for a business, no matter how good it is. You need to learn to use P/B ratio and P/E ratio as metrics to help you. Buy when the market is depressed. Be fearful when others are greedy, be greedy when others are fearful, you will rob wall street then.
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    I've figured it out.

    I'm gonna just lay bricks like my dad, not have children while I'm broke unlike my dad, save up, and start my own business

    sorted. **** all this sharing **** cba.
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    (Original post by Sternumator)
    I go for a passive strategy. To me it's no different from trying to pick a horse out from the form book. There may be some people who can do it successfully but they are few and far between. And tips are as reliable in both.
    My job is to beat the market, this is what fund managers are paid to do. Granted I'm not a fund manager, but I have enough training in finance to be able to use the techniques they employ to do this.

    If you can't be bothered, fair enough, stick to the S&P 500 tracker. 90% in the S&P 500 tracker and 10% in cash.
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    About £10k (S&S ISA, Premium Bonds, 1oz Gold, 25oz Silver).
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    (Original post by MrMarket)
    My job is to beat the market, this is what fund managers are paid to do. Granted I'm not a fund manager, but I have enough training in finance to be able to use the techniques they employ to do this.

    If you can't be bothered, fair enough, stick to the S&P 500 tracker. 90% in the S&P 500 tracker and 10% in cash.
    There is little evidence that fund managers are even successful in beating the market.

    There are professionals getting paid huge amounts, with some of the smartest brains in the world, using the best computer programs and even they are hit and miss. If it was as easy as doing an MSc in Finance, everyone would be rich.
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    (Original post by Sternumator)
    There is little evidence that fund managers are even successful in beating the market.

    There are professionals getting paid huge amounts, with some of the smartest brains in the world, using the best computer programs and even they are hit and miss. If it was as easy as doing an MSc in Finance, everyone would be rich.
    http://uk.businessinsider.com/warren...-sp-500-2016-2

    You can beat the market, and I will beat the market. You have to remember my job is to do research in finance, this is my side hobby, messing around with wall street.

    Follow the principles of value investing and you will beat the market.
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    (Original post by Snufkin)
    , 1oz Gold, 25oz Silver).
    No BTC?



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    (Original post by Sternumator)
    There is little evidence that fund managers are even successful in beating the market.

    There are professionals getting paid huge amounts, with some of the smartest brains in the world, using the best computer programs and even they are hit and miss. If it was as easy as doing an MSc in Finance, everyone would be rich.
    I have made £3000 over the last year or so from investing, over which was a pretty damn hard 2016. Imagine if we were in 2013 or 2014, I would have easily made 30% return for the year if not more.

    My best performing stock is BP, which I bought at 361p, now it trades at 470p+
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    No, bitcoins wouldn't look pretty in my moneybox. :hat:
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    (Original post by Sternumator)
    There is little evidence that fund managers are even successful in beating the market.

    There are professionals getting paid huge amounts, with some of the smartest brains in the world, using the best computer programs and even they are hit and miss. If it was as easy as doing an MSc in Finance, everyone would be rich.
    Check out Medallion Fund.
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    (Original post by Snufkin)
    About £10k (S&S ISA, Premium Bonds, 1oz Gold, 25oz Silver).
    Do you pick your own stocks? Or do you use funds?
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    (Original post by MrMarket)
    Do you pick your own stocks? Or do you use funds?
    Goodness, no! I wouldn't know where to begin, I don't trust myself and I don't really trust fund managers either. I just use the same tracker Reue mentioned earlier.
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    (Original post by MrMarket)
    Do you pick your own stocks? Or do you use funds?
    I am new to investing but would like to start in the next year or so. What resources would you recommend? What's the best way to track the markets? Also - are premium bonds worth putting money into?
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    (Original post by MrMarket)
    I have made £3000 over the last year or so from investing, over which was a pretty damn hard 2016. Imagine if we were in 2013 or 2014, I would have easily made 30% return for the year if not more.

    My best performing stock is BP, which I bought at 361p, now it trades at 470p+
    So you've made roughly a 12.5% return over the last year (ignoring fees and commission)? Not bad.

    Brexit and Trump's election have seen the DIA, S&P 500 and Nasdaq all closed at record highs last year, and the FTSE also came close. You could have made a 20-25% return investing passively in cheap index trackers.

    Hard year indeed.

    (Original post by MrMarket)
    Kotak India Mid Cap is superb, the guy running it is a star, trust me. The charge is not excessive. India is the superstar of the 21st century. I have around £2100 in Kotak India Mid Cap, that will stay for the long term.

    The guys running HL Select Shares know what they are doing, this is not Woodford, they employ value investing techniques of Graham and Buffett which I highly admire. They have a mix of defensives and mid caps, they should do well.
    Most "good" fund managers move on after 3 years or so, especially if they deliver consistent results throughout their tenure. History is littered with examples of funds where profits have stalled or even tanked after change of fund manager.

    Equally the vast majority of fund managers do not consistently outperform the market - the longer the timescale you use the fewer you will find.

    FYI fund charges and long term performance are well correlated, more so than Morningstar rating.
 
 
 
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