Share Investment, Discussion & Tips

[DimPrawn]

It may be a dead cat bounce but up 15% on VW :

Now the really hard question....do you sell up and bag that 15% gain, or wait for 30% gain and possibly see it fall back to zero or below?

[MarillionFan]

Now the really hard question....do you sell up and bag that 15% gain, or wait for 30% gain and possibly see it fall back to zero or below?

Open the box! OPEN THE BOX!!!!!!

[mudskipper]

Sell, sell, sell! Wish I'd sold my Glencore when it was 10% up.

[SimonMac]

Sell, sell, sell! Wish I'd sold my Glencore when it was 10% up.

Its only ever a paper profit until you press sell, think long term!

[SimonMac]

The CEO has gone, will have to wait to see how it effects the share price in the morning, but markets never like change

[BlasterBates]

Sell, sell, sell! Wish I'd sold my Glencore when it was 10% up.

No and I hope you have't sold, because Glencore is a f***great investment.

It is not going to go bankrupt, it is not Lehman Brothers who had worthless paper in their vaults, no Glencore has entire mountain ranges on it's balance sheet stuffed full of valuable ore. If Glencore did have to sell a mine or two is a mountain full of iron ore worthless ? I think not

Having said that....

It should be balanced by other stuff in your portfolio so even in the unlikely event it gets wiped out it's just a small dent in your profits, rather than a loss.

For example your portfolio is 100K, and Glencore is 10k

On current valuations 10% is a conservative estimate for capital growth right, lets say worst case Glencore goes bankrupt (and it won't, not next year) so 90 grand is now worth 99 grand from healthy stocks and you have 10 grand loss from Glencore, and you get 2-3 grand in divis. So even worst case you're still up.


There will be volatility on Glencore no doubt, but for those who dare, there are also siginificant profits to be made.

After I invested in Glencore, I put double the amount in the Pru and Dow chemical, any losses should be more than offset by the other two who stand to gain from low commodity prices.

Anything even big famous companies can and will be wiped out, but provided you're diversified this will not even dent your profits.

[SimonMac]

No and I hope you have't sold, because Glencore is a f***great investment.

It is not going to go bankrupt, it is not Lehman Brothers who had worthless paper in their vaults, no Glencore has entire mountain ranges on it's balance sheet stuffed full of valuable ore. If Glencore did have to sell a mine or two is a mountain full of iron ore worthless ? I think not

Having said that....

It should be balanced by other stuff in your portfolio so even in the unlikely event it gets wiped out it's just a small dent in your profits, rather than a loss.

For example your portfolio is 100K, and Glencore is 10k

On current valuations 10% is a conservative estimate for capital growth right, lets say worst case Glencore goes bankrupt (and it won't, not next year) so 90 grand is now worth 99 grand from healthy stocks and you have 10 grand loss from Glencore, and you get 2-3 grand in divis. So even worst case you're still up.


There will be volatility on Glencore no doubt, but for those who dare, there are also siginificant profits to be made.

After I invested in Glencore, I put double the amount in the Pru and Dow chemical, any losses should be more than offset by the other two who stand to gain from low commodity prices.

Anything even big famous companies can and will be wiped out, but provided you're diversified this will not even dent your profits.

TL;DR

But yes diversification is the key, my pot is split between 28 different shares at the moment, so if one tanks it won't take the whole pot with it, but those 28 are giving me a yield of 6.2% for 2015, its why I never really care about share price, up and down is irrelevant as that only comes into play when you sell the share

[AtW]

Sell, sell, sell! Wish I'd sold my Glencore when it was 10% up.

If you pile in again and buy 10 times more shares (at cheaper price!), then your average holdings cost would go down massively and the upside will be so much bigger...

[AtW]

It is not going to go bankrupt, it is not Lehman Brothers who had worthless paper in their vaults, no Glencore has entire mountain ranges on it's balance sheet stuffed full of valuable ore. If Glencore did have to sell a mine or two is a mountain full of iron ore worthless ? I think not

Yes, if only those coal miners were up to date on how really kapitalism works

[DimPrawn]

VW share price collapse: History offers lessons for investors on blue chip failures - Telegraph

Lots to think about there.

Beware just buying for income

Many DIY investors buy FTSE 100 stocks for income. They go for a handful of high-yielding shares. However, the yield can't always be trusted. Some companies can't afford to pay the dividends that they have promised to pay. "Dividend cover" captures this. A figure of more than two suggests that a company can safely afford to keep paying. A number below one suggests a problem.

As Questor pointed out last week, many of the income stalwarts are not well covered. GlaxoSmithKline’s forecast dividend cover is 0.8 and HSBC's is 1.6, while Vodafone is at 0.5 times. Royal Dutch Shell has a score of 1.06 and BP is at 0.9.