Investing In Shares

bear66 said:
Or a stocks and shares ISA and pick a fund which can manage shares better than most individuals (sometimes).
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2nd that. I’ve lost so much money in shares over the years, mainly listed on Aim (Stay clear of aim shares). Now I stick to funds only. I’m already 17% up on my isa since April. I usually read up and research on the likes of Trustnet, iii, Hargreaves Lansdown etc.
 
Not sure if others have recommended but Vanguard have super low rates and funds you can just buy without all the hassle.

Vanguard stocks and share ISA is what I have for me and my two kids. Monthly top up and look at the long term 👍🏻
 
Redwurzel said:
The three biggest UK platforms are probably AJ Bell and Hargreaves Lansdown and Interactive Investor. They will allow you to set up an ISA account. You can put in up to £20k every tax year and manage the account online.

Personally I would only buy Investment Trusts or Open ended Funds if you are investing less than £100k overall. They are managed by professional managers so consist of many individual shares both factors which reduces risk.

Firstly buy tech related trust/fund, then green trust/fund, then a medical/pharm/biotech trust/fund - those themes will be around and popular for many years to come. Say this year put £6,666 in each area. The platforms will provide background to all trusts and funds, so do some research say on past performance. Compare funds/trusts performance over 1, 3 and 7 years. Measure like with like i.e. trusts/funds in same sector. Look for better than average performance over longer term say 3 to 7 years. The best time to buy is when everyone else is selling i.e. end of March 2020 and others think you have lost your marbles, but don't worry drip feed each month say £555 a month instead of £6.666 is usually a sound strategy as another poster suggested.
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Hargreaves backed a guy called Woodford to the hilt, big fees the lot. Read up on it.
 
Every penny counts, so make sure you understand the charges to be applied your account.

If you buy a fund you can get charged a multitude of fees - fund manager fee (with potentially performance fees), dealing charge, platform fee (by the broker).

Can actively managed funds beat the market consistently despite the fees? Do passive trackers with ultra low fees provide a better overall return.

Hidden stuff - when dealing in equities what's the execution policy? Do firms funnel all trades through the same market counterparty, or do they have a polling mechanism where multiple counterparties compete for orders - and if so is this best price wins?

International shares - what's the fx rate. Each time you trade, or separate currency accounts for each?

Do plenty of research on the costs. Costs reduce return for the investor. Think about what you are willing to risk - if you don't want to lose any capital then investing in shares isn't for you.

Finally - do not invest in any shares recommended on forums. Sirius Minerals being a prime example.
 
what about SIPs? I am a high rate taxpayer and people I know say I should drip money into a managed sip, need to do my research though
 
Citiwire
HundredRoom said:
you think so?
you not heard about monkeys and dartboards - they will happily take a percentage of money as well
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I use a website that rates fund managers by quarter so you can see the ones that consistently perform well. Then do some research on individual funds. I only started about 4 years ago, but even with the slump earlier this year and one real dud I have got an average of about 12% return per year across 10 funds.
 
pretty good , but sounds like you could have done even better yourself. You also need to take into account withdrawal penalties and all the other hiddens
 
HundredRoom said:
pretty good , but sounds like you could have done even better yourself. You also need to take into account withdrawal penalties and all the other hiddens
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Not really. I went for a mix of mixed assets, US equity, European, Far East and UK small businesses, as well as worldwide.

The US stock market has been very beneficial, but I even got 6% a year on European shares which fared poorly for two years. I don't think I would have had much knowledge on the individual shares; also one fund trade is cheaper than a dozen individual share trades
 
I’m hoping to start trading soon myself but based on what your saying buying an S &P tracker could be your best move .

It wouldn’t harm understanding the process so take a look on youtube search for Anton Kreil 10 secrets it mightbopen your eyes a bit about the whole process.

Look up “The Scruffy Trader” as well a lad from Durham trades forex and indices
 
Middlesbrough123 said:
I’m hoping to start trading soon myself but based on what your saying buying an S &P tracker could be your best move .

It wouldn’t harm understanding the process so take a look on youtube search for Anton Kreil 10 secrets it mightbopen your eyes a bit about the whole process.

Look up “The Scruffy Trader” as well a lad from Durham trades forex and indices
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Cheers mate, yeah completely new to all of it so will be doing masses of research before using any of the money.
 
I've taken control of al my finances since retiring year. Some good tips already on this thread, and hopefully I can add some thoughts. Of course, this is not advice, so please feel free to take with a pinch of salt.
SIPP- it's highly efficient, from a tax perspective, to pay as much as you can into your pension, up to your annual limit of £40k. If you've got a good employer, they may be happy to pay the money gross into you chosen plan, which saves both you and them on National Insurance contributions. In the last few years of my employment, I had them pay directly into my SIPP and they kindly added another 10% (their saving from not paying NI). Your income tax also comes down this way. I use Interactive Investor for this SIPP and pay £20 a month.

ISA -As stated above you get £20k allowance per person which shelters you from tax on any profits, dividends earned etc.

Tracker funds tend to charge very low annual fees (typically under 0.2%pa) and you can get them for just about any type or group of shares (eg FTSE 100, S&P etc). Managed funds tend to cost more (up to 1%+ pa) and have greater or lesser levels of success. Good to do lots of research on these.

I use AJ Bell for my ISAs and Dealing accounts, and their fees are reasonable, but add up quickly if you buy and sell a lot. You'll also pay stamp duty on most shares purchased.

Some people enjoy trading, I'm a long term investor. Investing is more about patience and belief. If you're invested in good companies (or funds) then don't worry too much about their share price, simply keep an eye on the performance of those companies. If you lose belief, sell, even at a loss. If you continue to believe, then continue to add to those positions, ideally through your tax wrappers (SIPP/ISA).

Markets are cyclical, so today's performers (NASDAQ, tech, gold) may well be tomorrow's underperformers (Oil, Banks, FTSE, Brewers, travel) so a good level of diversification is recommended. A solid group of defensive income stocks can always help when the global markets are depressed (like now). Food & Drink, pharma companies fit the bill)

Finally, look for real innovators and those companies who grow to giant status. Investments in the likes of Amazon, Apple, Microsoft, a Visa never stop growing, subject to the odd dip here and there. Finding the next monster is more tricky, but if you researching enough, you'll become aware of the (potentially) next big thing, and you can get in relatively cheaply, and actually take your money out and let your profits ride. I've now got reasonable share holdings in a number of companies which haven't cost me a penny Tesla, Square, Amazon, Beyond Meat etc. On the downside, however, I've totally blown my investments in a few too, but you learn as you go along.

The stock market is a vehicle for transferring wealth from the impatient to the patient.

Good luck
 
Ref SIPPS - remember they are primarily designed for retirement income. You can invest into trusts/funds into them but they are much more rules around them than ISAs. For example taking money out is not simple unlike ISAs.

For a beginner I would start with ISAs. For a beginner or even moderate investor I would avoid Forexs and other such stuff, even with videos on You Tube.

Ref Hargreaves Lansdown - they did make a mistake recommending Woodford Equity for his last 2 to 3 years when his performance was clearly very poor. For 20 years he made money year after year when at Invesco turning £1k into £15k. No one can buy something and not check its performance say once a month. Also do you your checking don't rely on someone else's Wealth 50 etc. To be fair to HL they recommend 50 funds, Woodford Equity was 1 of 50.

Ref Vanguard funds - there is no harm in investing in them (at present) - they are tracker funds which means they invest in everything that is in an exchange (the Good, the Bad and the Ugly). Its a mathematical programme that does the picking with no value judgements which keep their costs down and so helps performance. They are massive funds too which keeps costs down. They are for people that want to invest and not check on performance very often. Because they invest in everything performance should follow the general index, no better, no worse.

I ran an Investment Club for a lot of years, but I don't invest in individual shares, but did for the club. It was partly fun, partly interest, partly social, partly to make money. Over 15 years (2001-2016) we had a return of about 8% per year against 1% for the FTSE 100. By grouping together and paying £50 per month per member we could buy a share every 8 weeks. I would bring 3 or 4 shares for consideration and the club said yes or no.

At the end we decided to close it down after our IT Excel expert said he had to leave to develop his own website (selling Split rail tickets) which had taken off. A lot of clubs started up around Dotcom years but folded within 5 years.

Shares we owned near the end were:

that were Bad for making us money - Vodafone, RBS, Oxford Biotech (now excellent after CV19), Lloyds

Good - Astrazeneca, ARM Holdings, JPM Russian Securities Trust, Legal and General, Greggs, Renishaw, Fresnillo, Berkeley Group.

So/So - BP, Balfour Beatty, Caledonia Trust.

We tried buying quality that was out of favour or had been treading water.
 
Redwurzel said:
Ref SIPPS - remember they are primarily designed for retirement income. You can invest into trusts/funds into them but they are much more rules around them than ISAs. For example taking money out is not simple unlike ISAs.

For a beginner I would start with ISAs. For a beginner or even moderate investor I would avoid Forexs and other such stuff, even with videos on You Tube.

Ref Hargreaves Lansdown - they did make a mistake recommending Woodford Equity for his last 2 to 3 years when his performance was clearly very poor. For 20 years he made money year after year when at Invesco turning £1k into £15k. No one can buy something and not check its performance say once a month. Also do you your checking don't rely on someone else's Wealth 50 etc. To be fair to HL they recommend 50 funds, Woodford Equity was 1 of 50.

Ref Vanguard funds - there is no harm in investing in them (at present) - they are tracker funds which means they invest in everything that is in an exchange (the Good, the Bad and the Ugly). Its a mathematical programme that does the picking with no value judgements which keep their costs down and so helps performance. They are massive funds too which keeps costs down. They are for people that want to invest and not check on performance very often. Because they invest in everything performance should follow the general index, no better, no worse.

I ran an Investment Club for a lot of years, but I don't invest in individual shares, but did for the club. It was partly fun, partly interest, partly social, partly to make money. Over 15 years (2001-2016) we had a return of about 8% per year against 1% for the FTSE 100. By grouping together and paying £50 per month per member we could buy a share every 8 weeks. I would bring 3 or 4 shares for consideration and the club said yes or no.

At the end we decided to close it down after our IT Excel expert said he had to leave to develop his own website (selling Split rail tickets) which had taken off. A lot of clubs started up around Dotcom years but folded within 5 years.

Shares we owned near the end were:

that were Bad for making us money - Vodafone, RBS, Oxford Biotech (now excellent after CV19), Lloyds

Good - Astrazeneca, ARM Holdings, JPM Russian Securities Trust, Legal and General, Greggs, Renishaw, Fresnillo, Berkeley Group.

So/So - BP, Balfour Beatty, Caledonia Trust.

We tried buying quality that was out of favour or had been treading water.
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The big issue with Woodford Funds at HL was they also formed a significant proportion of the HL in house multi manager funds. That particular story has a long way to go yet.
 
It would not stop me using H/L, if I was Randy Savage and he is picking his own investments.

Woodford gave H/L a special low charge so they supported him beyond when they should have. I also think he had made them a lot of money in the past and a lot of their clients a lot of money which coloured their opinions.

My financial advice to anyone is pay off all your debts as soon as you can (even mortgage if you are paying over 2%), take out lots of insurance and assurance, put away 12 months of cash (to live on and for emergencies). Take out a private pension or occupational pension. Then start to think about small investments.
 
lostinyorkshire said:
That would depend on your risk levels, if you are interested in dividends etc. At the end of the day it's your money I always think I'd rather research and lose or make my own money than taking advice and losing it then.

Etoro lets you copy other traders picks automatically so that may be one to look at. I like xo as its only £5.95 commision and I do my own research. Don't mind tips but I always look into them, i actually think the research bit is the most fun !
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You’d prefer to make your own choice rather than take advice from people who do it for a living?
 
If anyone feels their capable of making 10% in a month take a look at FTMO .

you pay them to use a demo account if you make 10% within their guide lines you get the use of a £100k account. You then profit split 70/30 in your favour. Each month plus the cost of your application back .
You can get up to £300k plus 25% every 4 month
 
Invest in a fund which holds a range of shares and is managed by a fund manager.
Fundsmith is a top performing fund. Got about 35% return on money I invested a few years ago so far.
Smithson is another fund from the same group to consider.
 
Middlesbrough123 said:
If anyone feels their capable of making 10% in a month take a look at FTMO .

you pay them to use a demo account if you make 10% within their guide lines you get the use of a £100k account. You then profit split 70/30 in your favour. Each month plus the cost of your application back .
You can get up to £300k plus 25% every 4 month
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Do not use this.
 
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