Buying Shares - first time, advice needed

[SimonMac]

That's what I wanted to hear.

My problem is that all the banks are full up to the 70k protection. my ISA is full and I need somewhere as close to rock solid as I can.
So I was looking at a share that paid 4%, that would therefor pay for itself in 25 years (if it bombed) and would probably not bomb , because its a strategic commodity.
One that's also under the cosh right now due to a rare glut

One sharing paying 4%



I think you want to pick a fund rather than an individual share

[EternalOptimist]

One sharing paying 4%



I think you want to pick a fund rather than an individual share

that's the lowest its been in a couple of decades. I was thinking of getting more than one, maybe 10k's worth

[SimonMac]

that's the lowest its been in a couple of decades. I was thinking of getting more than one, maybe 10k's worth

I don't know if you are being serious or not!

Your entire stake in one stock will end in a disaster, if you are after low to no risk (which doesn't exist) you'll be better putting the money in a fund but 4% will be ambitious

[Zero Liability]

Cheap markets about to engage in QE look pretty good, e.g. some Eurozone countries, and Japan has yet to peak. I wouldn't bother with US stocks, they're expensive and I am not at all convinced the US is experiencing a "recovery", as opposed to a collection of highly massaged statistics, so when the QE is withdrawn, down it may go.

P2P lending can also offer fairly decent returns, albeit with some risk attached to it.

The LifeStrategy fund looks interesting.

[mudskipper]

Cheap markets about to engage in QE look pretty good, e.g. some Eurozone countries, and Japan has yet to peak. I wouldn't bother with US stocks, they're expensive and I am not at all convinced the US is experiencing a "recovery", as opposed to a collection of highly massaged statistics, so when the QE is withdrawn, down it may go.

P2P lending can also offer fairly decent returns, albeit with some risk attached to it.

The LifeStrategy fund looks interesting.

HL pushing their new Euro fund

New HL Multi-Manager European Fund | Invest at launch

[tomtomagain]

What surprises me is that people believe that leaving cash in the bank equates to "No Risk" whilst forgetting that interest rates have been near zero and until recently inflation above 2%

I've just done a quick calculation using the historic inflation rates for the past 7 years ( 2007 - 2014 )

And it shows that £10 reduces to £7.89 in relative terms over the period.

So an investment strategy of being "All in cash" since the Great-Financial-Crash has lead to loss of around 21% in real-terms.

The absolute number may be the same. £10 is still £10. But you can buy a lot less with it.

The investment strategy I am following ( a conventional passive investment strategy, using ETF's and bond funds etc ) has returned on average 5.2% a year over same period.

[SimonMac]

What surprises me is that people believe that leaving cash in the bank equates to "No Risk" whilst forgetting that interest rates have been near zero and until recently inflation above 2%

I've just done a quick calculation using the historic inflation rates for the past 7 years ( 2007 - 2014 )

And it shows that £10 reduces to £7.89 in relative terms over the period.

So an investment strategy of being "All in cash" since the Great-Financial-Crash has lead to loss of around 21% in real-terms.

The absolute number may be the same. £10 is still £10. But you can buy a lot less with it.

The investment strategy I am following ( a conventional passive investment strategy, using ETF's and bond funds etc ) has returned on average 5.2% a year over same period.

Cash in the bank does equate to no risk, as worse comes to worse it will always be there (subject to the £85k cap) because of this no risk you get no return, risk and return are related, but not the same thing

[fullyautomatix]

What surprises me is that people believe that leaving cash in the bank equates to "No Risk" whilst forgetting that interest rates have been near zero and until recently inflation above 2%

I've just done a quick calculation using the historic inflation rates for the past 7 years ( 2007 - 2014 )

And it shows that £10 reduces to £7.89 in relative terms over the period.

So an investment strategy of being "All in cash" since the Great-Financial-Crash has lead to loss of around 21% in real-terms.

The absolute number may be the same. £10 is still £10. But you can buy a lot less with it.

The investment strategy I am following ( a conventional passive investment strategy, using ETF's and bond funds etc ) has returned on average 5.2% a year over same period.

Its definitely no risk compared to any of the investment strategies you are trying to peddle. If you do not know what you are talking about then shut up. With a bank account you are guaranteed to get at least the same amount of cash that you put in and you will get "cash" when you want it.

With your "strategy" you trying to peddle as "no risk", tell me how all that is possible ?

[tomtomagain]

Its definitely no risk compared to any of the investment strategies you are trying to peddle. If you do not know what you are talking about then shut up. With a bank account you are guaranteed to get at least the same amount of cash that you put in and you will get "cash" when you want it.

With your "strategy" you trying to peddle as "no risk", tell me how all that is possible ?

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.

[tomtomagain]

Cash in the bank does equate to no risk, as worse comes to worse it will always be there (subject to the £85k cap) because of this no risk you get no return, risk and return are related, but not the same thing

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.