Buying Shares - first time, advice needed

[SimonMac]

But you also lose 2% of your spending power.

Average weekly salary in 1971. £31. Yearly about £1600 per year.

If a contractor in 1971 placed one years salary in his warchest under his bed and left it safe in the knowledge that he had "One Years Money" to fall back on ....... he'd be a bit disappointed when he came to use it today.

Yes but that is the return (albeit it negative) the question was over risk

[fullyautomatix]

No need to be so aggressive. I am not trying to peddle anything. What I do with my finances is my business. You can follow your own path.

I certainly understand the risks I am taking. I also understand that there is no such thing as "No Risk" .... regardless of what you do.

The point I was making is that leaving cash-in-the-bank actually carries risk which most people don't appreciate. The risk is death by a thousand little cuts.

If you don't understand that inflation errodes the spending power of your capital substantially then I suggest that you shut up. And I'll see you in the poor house.

You are certainly trying to peddle a risky" investment strategy as "no risk" citing some inflation trends. You have no idea what you are talking about so STFU.

[tomtomagain]

You are certainly trying to peddle a risky" investment strategy as "no risk" citing some inflation trends.

What's wrong? Lost some money? Pension not delivered?

I haven't said anything is "no risk". Quite the opposite. Everything has a risk.

You have no idea what you are talking about so STFU.

Your response is exactly why this forum is going to the dogs.

[tomtomagain]

Yes but that is the return (albeit it negative) the question was over risk

I'll agree with you on that.

Be all in cash and you are guaranteed a negative return.

[EternalOptimist]

tomtom, I know that there is a risk involved in any form of storing value, banks are very low risk.
my own personal inflation is extremely low and my costs are extremely low.

If my money lost some value for some reason, why, I would work a few extra weeks to get it back.

[pjclarke]

tomtom, I know that there is a risk involved in any form of storing value, banks are very low risk.
my own personal inflation is extremely low and my costs are extremely low.

If my money lost some value for some reason, why, I would work a few extra weeks to get it back.

With 10K, you'll want around 10 shares, Blue Chip, High Yielders.

Ticker Name Bid Div Yield
DLG.L DIRECT LINE INS 322 26.8 8.3%
DLAR.L DE LA RUE 568.5 42.3 7.4%
BKG.L BERKELEY GRP 2547 180.0 7.1%
SSE.L SSE 1543 86.7 5.6%
BP.L BP 451.45 23.8 5.3%
GSK.L GLAXOSMITHKLINE 1553 80.0 5.2%
HSBA.L HSBC HLDG 607.3 29.7 4.9%
VOD.L VODAFONE GROUP 227.55 11.0 4.8%
TSCO.L TESCO PLC 244.6 11.3 4.6%
SVT.L SEVERN TRENT 2002 80.4 4.0%

Avg Yield 5.7%

Though hurry it up, FTSE is soaring ....

You're welcome.

[MarillionFan]

With 10K, you'll want around 10 shares, Blue Chip, High Yielders.

Ticker Name Bid Div Yield
DLG.L DIRECT LINE INS 322 26.8 8.3%
DLAR.L DE LA RUE 568.5 42.3 7.4%
BKG.L BERKELEY GRP 2547 180.0 7.1%
SSE.L SSE 1543 86.7 5.6%
BP.L BP 451.45 23.8 5.3%
GSK.L GLAXOSMITHKLINE 1553 80.0 5.2%
HSBA.L HSBC HLDG 607.3 29.7 4.9%
VOD.L VODAFONE GROUP 227.55 11.0 4.8%
TSCO.L TESCO PLC 244.6 11.3 4.6%
SVT.L SEVERN TRENT 2002 80.4 4.0%

Avg Yield 5.7%

Though hurry it up, FTSE is soaring ....

You're welcome.

And just goes to prove why you shouldn't tKe advice off people on the internet. Some of these are bombed stocks not paying a dividend in the next year. Sheesh.

[pjclarke]

And just goes to prove why you shouldn't tKe advice off people on the internet. Some of these are bombed stocks not paying a dividend in the next year. Sheesh.

One year is a short period for shareholding, and you should certainly DYOR, markets.ft.com is a useful resource:

In 2013, Direct Line Insurance Group PLC reported a dividend of 0.13 GBP, which represents a 57.50% increase over last year. The 13 analysts covering the company expect dividends of 0.23 GBP for the upcoming fiscal year, an increase of 85.71%.
In 2014, De La Rue PLC reported a dividend of 0.42 GBP, equaling last years dividend. The 6 analysts covering the company expect dividends of 0.28 GBP for the upcoming fiscal year
In 2014, Berkeley Group Holdings PLC reported a dividend of 1.80 GBP, which represents a 143.24% increase over last year. The 15 analysts covering the company expect dividends of 1.83 GBP for the upcoming fiscal year, an increase of 1.67%
In 2014, SSE PLC reported a dividend of 0.85 GBP, which represents a 0.97% increase over last year. The 18 analysts covering the company expect dividends of 0.89 GBP for the upcoming fiscal year, an increase of 4.80%
In 2014, BP PLC reported a dividend of 0.40 USD, which represents a 8.22% increase over last year. The 26 analysts covering the company expect dividends of 0.40 USD for the upcoming fiscal year, an increase of 2.03%
In 2014, GlaxoSmithKline PLC reported a dividend of 0.80 GBP, which represents a 2.56% increase over last year. The 16 analysts covering the company expect dividends of 0.81 GBP for the upcoming fiscal year, an increase of 0.88%.
In 2013, HSBC Holdings PLC reported a dividend of 0.49 USD, which represents a 8.89% increase over last year. The 24 analysts covering the company expect dividends of 0.51 USD for the upcoming fiscal year, an increase of 4.08%.
In 2014, Vodafone Group PLC reported a dividend of 0.14 GBP, which represents a 25.37% decrease from last year. The 23 analysts covering the company expect dividends of 0.11 GBP for the upcoming fiscal year, a decrease of 18.95%
In 2014, Tesco PLC reported a dividend of 0.15 GBP, equaling last years dividend. The 19 analysts covering the company expect dividends of 0.02 GBP for the upcoming fiscal year, a decrease of 85.77%
In 2014, Severn Trent PLC reported a dividend of 0.80 GBP, which represents a 6.00% increase over last year. The 15 analysts covering the company expect dividends of 0.85 GBP for the upcoming fiscal year, an increase of 5.60%

HTH

[Lightwave]

And just goes to prove why you shouldn't tKe advice off people on the internet. Some of these are bombed stocks not paying a dividend in the next year. Sheesh.

It might be fun to resurrect this thread in a year's time to see who's right?
If you look at the 'Broker opinion' red/blue graphic on H-L's page for a share, which gives opinion now and 3 months ago, you quite often see that more brokers are saying 'buy' when a share is more expensive.

It sometimes seems that the pro's can't predict the future either.

Some of those shares in that list are a bit (too) familiar.

Sometimes you have to go with what you believe in, for instance I believe that Tesco will make money in the long run, because selling ready-meals to chavs is a valid business model.
I believed Barclays was too cheap when their shares were below a quid.
Dull stuff that I don't really believe in, which I bought because it was a dull reliable blue chip earner, has done me no favours.

The thing to remember IMHO, is that all the obvious factored have been factored in already, by people who've got more time to do the basic research. So people who go against the obvious are not always wrong.
YMMV

[pjclarke]

If you don't like TSCO, just switch in MKS.

Yeah, check back in 6 and 12 months.