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| Going2fast |
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Going2fast
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Joined: 30 Jun 2004
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 Posted: 13:27 - 15 Feb 2006  Post subject: Shares |
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Hey all,
Just sitting here at work and as i believe we all do thinking of ways to invest and create some money for ourselves.
So Shares?
Anyone do this themselves, or use a stockbroker?
Just started looking into this.
Or is there any other good money investment ways out there?
Cheers,
Andy
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| RiderOfTheSto... |
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RiderOfTheSto...
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| innominate |
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innominate
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| RiderOfTheSto... |
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RiderOfTheSto...
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| getyerkneedow... |
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getyerkneedow...
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Joined: 25 Aug 2004
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| Posted: 14:01 - 15 Feb 2006 Post subject: Re: Shares |
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| Going2fast wrote: | Hey all,
Just sitting here at work and as i believe we all do thinking of ways to invest and create some money for ourselves.
So Shares?
Anyone do this themselves, or use a stockbroker?
Just started looking into this.
Or is there any other good money investment ways out there?
Cheers,
Andy |
They are a good way to make money, its also a brilliant way to lose even more.
Shares are a medium to long term investment. by which, i mean 25-30 years before you can expect to see any real return on the investment.
You have two ways in which to go about it, you touched on them already.
These are to buy your own and manage your own portfolio, for this you need to go through a stock broker, who can buy the shares, and give you the share certificates etc. You then manage your own portfolio based on your interpritation of the financial markets, and what information you can glean from the FTSE and Financial Times.
Unless you are very well versed at this, its a big big gamble, and will most likely end in you losing most, if not all, of your investments. Also, remember, each time you buy and sell shares, there is a %age which goes to your broker as a handling fee.
The second option is to look at investment products which are available from most high street banks. ISA's, OEICs (Open Ended Investment Companies) which replaced the old Unit Trusts etc.
Most of these are "unit linked" which means that your money forms part of a mass managed portfolio, which is handled by experts from the banks. Minimum investments start from £50 per month and go up to £thousands. I can not advise you on the most suitable for your situation - the best thing to do is to consult a Financial Advisor - either a PFA (from a bank) or IFA (take a look in yellow pages for your local one).
It should be noted though, that either which way you go about investing in stocks, shares, secuities etc - the small print will always read:
"your investment can fluctuate in value, it can go up as well as down - you are not guarenteed to get back what you put in".
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| Annabella |
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Annabella
Like a person, only smaller
Joined: 03 Feb 2002
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| Posted: 14:04 - 15 Feb 2006 Post subject: |
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I did fairly well from tax free ISAs (you can buy a maximum of £3000 worth a year) and Goverment savings bonds (which are also tax free).
Looked into stocks at the time of investment but generally found them to be too risky.
The larger the risk you take the higher the possible returns will be - HOWEVER you have got the risk of loosing everything.
The safer the option - like the government bonds, the lower the return, but it is guarenteed that you will make money on your investment and that you will not lose your initial investment.
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| getyerkneedow... |
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getyerkneedow...
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Joined: 25 Aug 2004
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| Posted: 14:08 - 15 Feb 2006 Post subject: |
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| Annabella wrote: | I did fairly well from tax free ISAs (you can buy a maximum of £3000 worth a year) and Goverment savings bonds (which are also tax free).
Looked into stocks at the time of investment but generally found them to be too risky.
The larger the risk you take the higher the possible returns will be - HOWEVER you have got the risk of loosing everything.
The safer the option - like the government bonds, the lower the return, but it is guarenteed that you will make money on your investment and that you will not lose your initial investment. |
Not always the case on lower risk investments. UNLESS it specifically states that your initial investment is secured, you can ALWAYS lose your investment.
Also, ISA's come in two forms. Mini and Maxi ISAs.
The ISA you refer to above is the Mini ISA. Probably a Mini CASH ISA. This is where you can pay up to £3000 per fiscal year tax free. If you pay in 3000, pull out 2000, you cant then re-invest that 2000 until the next fiscal year.
Maxi ISAs allow you to have up to £3000 cash tax free, then a mixture of stocks and shares making up the remaining 4000, or you can have up to 7000 in tax free cash.
Again though, once you've reached the subscription level, you are unable to pull money out and then re-invest it in any one fiscal year.
Fiscal years fun from 5th April to 4th April. |
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| Annabella |
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Annabella
Like a person, only smaller
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| Posted: 14:30 - 15 Feb 2006 Post subject: |
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The ISAs were mini cash ISAs, but fixed for three years.
If I withdrew funds before the end of the three years I wouldn't gain any interest on the investment.
However, because I left them for four years I was guarenteed base rate + a fixed percentage (and I can't remember what it was!)
I spent a long time researching the different products available and went for the safest options purely for personal reasons I couldn't have risked the funds.
They were through the Staffordshire Building Society (as it was then).
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| RiderOfTheSto... |
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| getyerkneedow... |
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getyerkneedow...
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| Sparky |
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| greatmoorred |
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greatmoorred
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| Posted: 15:09 - 15 Feb 2006 Post subject: |
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i stuck a load in a share isa and its doing alright. |
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| Ste |
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Ste
Not Work Safe
Joined: 01 Sep 2002
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| Posted: 15:18 - 15 Feb 2006 Post subject: |
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I do it all through my bank, well okay I let my bank do it all for me. 
Far easier than having to manage it all out myself, they do charge a 1% PA management fee but thats money well spent IMO. |
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| Going2fast |
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Going2fast
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Joined: 30 Jun 2004
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| Posted: 18:14 - 15 Feb 2006 Post subject: |
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Thanks for all the useful information guys n gals.
Guess really its a case of looking into things.
I just (like many) want to put some money aside and make something from it. Pref big but more money is more than u started with.
Forget where, or ive dreamt it a place/person who you give your money to and they do all the shares etc, buying selling each day. Obv they get there cut u get yours. Thought about this, if im not talking from dreams.
Andy
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| colin1 |
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colin1
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| Paivi |
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Paivi
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Posted: 23:29 - 15 Feb 2006  Post subject: Re: Shares |
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| getyerkneedown wrote: | They are a good way to make money, its also a brilliant way to lose even more. |
Generally speaking, share markets in the UK and the US tend to be fairly steady. As long as you do your homework and don't put all your eggs in the same basket, a civilian could make small to medium gains, not so much from divis but from capital gains. The motto should be 'icecreams and umbrellas', i.e., get shares in various sectors so when one goes down, the other would go up: ice cream sales go up in the summer and umbrella sales down, but come winter, it's the opposite.
| getyerkneedown wrote: | Shares are a medium to long term investment. by which, i mean 25-30 years before you can expect to see any real return on the investment. |
No, they're not. If you're after a long term investment, you go for entirely different schemes. Most people today use shares for 'educated speculation', i.e., buy a basket of shares (perhaps tracking the FTSE) and sell once the value rises by more than the commission payable or if the dynamics of the index change. You can even automate this by authorising the broker to do this on your behalf (effectively, your version of program trading).
| getyerkneedown wrote: | You then manage your own portfolio based on your interpritation of the financial markets, and what information you can glean from the FTSE and Financial Times. |
It's already too late, as any info you read in the FT would have filtered into the markets already and prices would reflect this. You'll need access to Reuters and Bloomberg for realtime info, although again, the traders might have anticipated the event already. If an announcement is due, the traders would have made a very educated guess on the contents/figures given therein and have reflected this in the price. Once the results are out, the price is then adjusted. This is why, sometimes when a company makes record profits, the share price actually goes down: traders expected even higher profits and raised the price accordingly. As the results were, for them disappointing, they duly reduced their quotes.
To a certain extent, there's little point in reading company financial statements, as they're published several months after the year-end and the gearing and any other relevant ratios would have changed. There's still some scope for manipulation of figures in the financial statements, so they should be taken with a big pinch of salt. Any accountant worth his/her qualification will answer 'how much do you want it to be' when asked how much 1+1 is. I fudge figures daily and can easily hide any such fudges from any auditor. I used to be one so I know exactly how to do it, and not get caught.
If you're after a safe investment, go for gilts (UK treasury bonds), as they're as safe as houses. UK govt cannot default on a bond, as it would lead to a credit rating cut. There's no need to default either, as all the Treasury would have to do is print more money to pay the bond holders. OK, so it'd lead to inflation, but I'll cover that in Economics 101, not in Investment Banking 101. All other bonds (apart from those issued by other major & Western governments) carry some level of risk. If, however, you want a high return and don't mind a bit of risk, go for Emerging Markets bonds & shares.
I need to get out more... |
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| Going2fast |
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Going2fast
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| Posted: 13:04 - 16 Feb 2006 Post subject: Re: Shares |
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| kal9001 |
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kal9001
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Old Thread Alert!
The last post was made 19 years, 95 days ago. Instead of replying here, would creating a new thread be more useful? |
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