Reply to: Buying Shares - first time, advice needed

[vetran]

Its on Amazon Prime now.

[pjclarke]

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.

Can anything stop the FTSE defying gravity? That sample portfolio is up 15.5% in just under 2 years, my real life pension portfolio is up 11% since November

[AtW]

[DimPrawn]

Looks like a sound portfolio for generating an income.

10 investment trusts to give you a £10,000 annual income | Interactive Investor

The majority of the trusts in the portfolio are trading at a premium to their net asset value (NAV) at present. In the past we would not normally have recommended buying at a premium, because if the premium disappears it can reduce your gains or increase your losses.

Buy on the big dips, when they are trading on a discount to NAV.

[pjclarke]

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%

You're welcome.

Time for a 1 year check. 10K invested in the above portfolio would now be worth .....

£10,026.13

Tesco, BP and HSBC all show double-digit losses, while Berkeley soared on the election result. Overall share capital is down 5.4% - the portfolio is dragged into miniscule profit by £547 of dividends. In reality you'd reinvest those and take advantage of depressed prices.

My real world portfolio fared a little better as I swerved TSCO (good luck, not judgement) and there are a few corporate bonds in the mix, and the dividend stream was used to buy some cheap BP amongst others.

Basically flat lined over the year, the graphs shows a steady rise to a peak of £10,600 in July, followed by the Great Fall of China in August.

Not a stellar performance, however note that the FTSE is down around 10% over the same period, which shows the importance of a long term viewpoint, and reinvesting those dividends.

[pjclarke]

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.

Just short of 6 months later, 10K invested equally in that portfolio would today be worth around 10,440, after stamp duty etc, an annualised return of over 8%, though 6 months is too short a period to draw any firm conclusions. Over half the increase is from dividends, with a couple of chunky ones due in August and September. The market liked the election result and property company Berkeley is up 32% driven up by bouyant valuations and the removal of the threat of the 'mansion tax'. BP, Tesco show double-digit losses; which is why we diversify.

[ChimpMaster]

Really? Good time to be moving out of equities I'd've thought. Crispin Odey might suggest that this is a bit of an interesting juncture. But as ever , DYOR.

Exactly.

Buy when others are fearful, sell when others are greedy. The time to buy was in the aftermath of the 'credit crunch' crisis, when interest rates were slashed and QE was proposed.

[mudskipper]

Saw this coming up in May on futurelearn.

https://www.futurelearn.com/courses/...my-investments

Might be worth looking at for those of us who don't know what we're doing (if we haven't already lost all our dosh by then).

[zemoxyl]

Good time to be in shares.

Really? Good time to be moving out of equities I'd've thought. Crispin Odey might suggest that this is a bit of an interesting juncture. But as ever , DYOR.

[tomtomagain]

Course, your horizon needs to be years, not weeks ….)

Unless of course you are a day-trader or running a HFT hedge fund. Then seconds will do.

[pjclarke]

Good time to be in shares.

U.K.'s FTSE 100 Closes at Record High - Bloomberg Business


(After a week my 'sample' 10K portfolio has covered its trading costs, stamp duty and spreads and is £40 in profit :


Course, your horizon needs to be years, not weeks ….)

[DimPrawn]

I've always found this useful for UK investors looking to build a low cost investment portfolio.

Low cost index trackers that will save you money

[tomtomagain]

because the banks are full (in terms of protection)

I don't have anywhere rock solid to put it.

If that is your motivation then just leave it in the bank. There's no point worrying about whether a major UK high street bank is going to go under because if one does then the effect on the economy will be so great that the fact that you where only protected up to £170k will be irrelevant.

If an entity like Barclays, for example, ceased operations then - in my view - that could only really be caused by an existential threat to the country. Ruskies in the home-counties, and not the house-buying ones either.

The UK government and Bank of England will not let a high street bank fail, they would always be lender of last resort and would simply print money to keep it afloat. The ramifications of letting one fail are just too huge.

If you have an joint-accounts at Lloyds, Barclays, Santander & HSBC then you aren't you protected to the tune of 170k * 4?

[DimPrawn]

because the banks are full (in terms of protection)

I don't have anywhere rock solid to put it. I have relatives with 'sure-fire' investment plans , and I have other relatives who need a 'kick-start'
If I don't find a safe haven, I will end up giving it away

Wow if all the banks are full at £85K in the UK, you must have a lot of cash sloshing about.

Savings compensation and protection: Bank ownership and licences | This is Money

[EternalOptimist]

And that's a good place to be. So why are you suddenly contemplating shares?

because the banks are full (in terms of protection)

I don't have anywhere rock solid to put it. I have relatives with 'sure-fire' investment plans , and I have other relatives who need a 'kick-start'
If I don't find a safe haven, I will end up giving it away