Reply to: Share Trading...

[sasguru]

You are sounding more and more like Threaded every day.

Can't help it if you're a bit of an unaccomplished dolt.

[MrRobin]

I’m booked on a course that teaches covered calls (selling call options) where you can make 3-6% a month. Quite a good short term way of making money.

Don't short calls have limited gains & unlimited risk??

[DimPrawn]

You are sounding more and more like Threaded every day.

[sasguru]

The P/E ratio is extremely important, but also you need to understand P&L and balance sheets, comparisons with competitors so that you can evaluate the risks and opportunities. The professional analysis will give good pointers.

This is very good advice. I used to write accountancy software so my basic understanding of P&Ls and Balance Sheets has been v. useful.

[Jog On]

I’m booked on a course that teaches covered calls (selling call options) where you can make 3-6% a month. Quite a good short term way of making money.

[BlasterBates]

By acquiring Accountants "W***kers" knowledge you can avoid 2001 style calamities. I know a lot of people who bought CISCO or other shares at p/e ratios of 90, using their "gut feeling" and "perception".

If you were to invest in a property (sensibly) you'd look at its income, its position, potential tenants (i.e. in a business district). The same is true of shares, too many regard it naivley as a gambling casino and then screw up their savings, without any possibility of making in the longrun.

[mrdonuts]

in my experience small and mid cap stock prices dont necessarily correlate with this type of "accountants (are w ankers)" analysis, they tend to be based more on perception and trends

[BlasterBates]

If you buy individual shares which will give you the best return on average, you need to buy investment analysis form somewhere. Standard & Poor for example is of high quality. You also need to understand some basics. The P/E ratio is extremely important, but also you need to understand P&L and balance sheets, comparisons with competitors so that you can evaluate the risks and opportunities. The professional analysis will give good pointers.

[DimPrawn]

You could ofcourse buy a Berkshire share or two and let him do the picking for you... last time I checked they were $100K each

$100,000 ? Wow, that's like 3 Euros isn't it?

[beaker]

You could ofcourse buy a Berkshire share or two and let him do the picking for you... last time I checked they were $100K each

[mrdonuts]

warren buffet tends to buy whole companies or big chunks of them now, so it would be difficult to track

[Andy2]

Why not invest as Warren Buffet does. Create a portfolio replicating his holdings . Does his portfolio beat the market ?

[RightLaugh]

without sounding too much of an idiot, a who there what now?

where would i purchase such a thing?

chef in <feeling very stooopid> mode

read this for info - http://www.ishares.net/index.do
and this - http://www.fool.co.uk/news/Comment/2004/c040310c.htm
some more here - http://www.fool.co.uk/search/Index.a...essageID&q=etf

once happy use this to buy and sell. Either a straight dealing account or a maxi isa.

http://www.selftrade.co.uk/

[beaker]

My advice would be try and learn from the professionals. Read as many Buffet books as you can (there aren't many but some are better than others) and Soros books too. Some of Soros' thinking is way above my head, which is why I prefer the long-term investment route.

Buffet's ideas aren't rocket science - buy good companies with a competitive advantage etc, there are some formulas you can follow in terms of buying companies with high returns on equity, low P/Es and plenty of cash, but he looks at the management as well.

If you are prepared to put in the time you can outperform the index by only buying the strongest companies. Otherwise pick a well managed fund that suits your investment style or just buy an index fund, sit back and relax.

[chef]

without sounding too much of an idiot, a who there what now?

where would i purchase such a thing?

chef in <feeling very stooopid> mode