@andykirk that all sounds like the kind of approach I favour, and have already been doing. Could you clarify:
Make a list of say 6 companies you are interested in and admire and also that YOU have confidence in. Add these to a share 'watch list' on your phone. This will also give you access to news relative to each company. Spend a small bit of time each day reading this news so you become more familiar with the companies and watch the share prices. Watch these companies for a while before you buy. There is nothing wrong with buying in at high level prices if you have confidence in the company and feel business will expand sending the price up further.
Do you mean a 'fantasy' share trading app, or just keep an eye on news, stock price etc? If there is an app that consolidates it all that would be great.
Also I do a bit on in-and-out trading, looking to buy stocks showing weakness and make a quick buck on the bounce. I wouldn't recommend this for a beginner though.
I've thought about this, but I think the level of attention needed must be difficult to achieve when you're at work, etc?
darranps - No I just mean a stock app on your phone. I use an Android one called 'Stocks' which is free. The logo is a green background with a jagged white graph with a straight line underneath. You pick the stocks you want to watch and add to your list and it then links to latest news for each stock. I don't know if it offers paper 'fantasy' trading. I have never done this as I am too [s]stupid[/s] hardcore. Of course when you do paper trading you will probably make loads, as soon as you change it for money you will lose. I think spending time getting familiar with the companies is more important to be honest, you will only be distracted by fantasy gains/ losses. And let's face it actually buying stock is a piece of cake. There is no black art to it, unlike say suspension setup. If you are going to buy and hold long term then paper trading is pretty pointless anyway. Good luck. And buy Apple.
Ian Cowie has a good column in the Sunday Times Money section, which details his share dealing that week. He's managing his own 'Forever Fund' as his pension.
Anyone here dabble in NASDAQ stocks?
I have:
3d Systems
Netflix
Apple
Google
FireEye
Illumina
Paypal
Would be keen to hear any views/ postulating....
Timely thread, I've just been putting some of my 4yo's JISA into the Vanguard FTSE All-World UCITS ETF (VWRL) (based on advice in [url= http://singletrackworld.com/forum/topic/financial-advice-child-savings-accountbondtrust-thing ]this thread[/url] four months ago).
It all felt a bit:
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Anyone here dabble in NASDAQ stocks?
Only contained in funds.
Interestingly, I hold two tech funds, Polar Capital Global Tech , which has gained 117% over 3 years , and Henderson Global Tech which has gained 99% over the same period. A Nasdaq tracker, iShares Global tech, IXN, has gained just 55% over the same period. This is heavily weighted towards the FANGS, while the polar Capital has a max holding of just 4% in Facebook and 3% in the other usual suspects.
Not meant to be a top trumps game, just random fund holdings against a random tracker...
HL shows the top ten holdings of each fund so you could just pick some of them from various funds and miss out on the fees.
I found myself watching share prices too much and thought it better to just leave it in the hands of someone else. If you've got the time then go for it!
Graham,I wouldn't just invest in trackers if I was you.
Reuben,you've got alot of duplication in those plays,I think you should diversify a bit.I think you should also have a look at the P/E ratios of those big tech stocks.Eye wateringly high with little or no yield.A little bit like 1999,which was followed by a three year bear market.When prices have gone up alot and fallen alot some caution is needed.All the best,Neil.
ctk,studies show individual retail investors do not have a great record in holding individual stocks.If you must own the fangs I suggest you hold it through Scottish Mortgage.That also contains the Chinese equivalents as a bit of a hedge .
I heard the other day Warren Buffett has sold out some positions to create a 100bn USD cash pile. Sounds to me like he feels the markets topped out and awaits a downturn.
Tbh some of my stocks have had a stellar run this year and are looking a bit overvalued...ulvr for one. I 've been thinking of selling a few.
Graham,I wouldn't just invest in trackers if I was you.
We're looking for an investment that we can make a regular payment (say ~£100 a month) that'll give a decent return after ~14 years so we have something to match her sisters Child Trust Fund.
I have zero financial/shares knowledge. That Vanguard ETF was just what was recommended on the previous thread. I'd welcome other ideas.
We're looking for an investment that we can make a regular payment (say ~£100 a month) that'll give a decent return after ~14 years so we have something to match her sisters Child Trust Fund.I have zero financial/shares knowledge. That Vanguard ETF was just what was recommended on the previous thread. I'd welcome other ideas.
Do what you're doing.
Reuben,you've got alot of duplication in those plays,I think you should diversify a bit.I think you should also have a look at the P/E ratios of those big tech stocks.Eye wateringly high with little or no yield.
I know, but try finding a Global Tech fund that doesn't hold them. The point I was making is that the polar fund has a lot less weihghting towards the big boys and more emphasis on interesting smaller cap companies, while trackers, by necessity, are overweight in the FANGS. Not a good place to be.
They're not my only holdings. Just 2 funds of about 20...
:-)Fairy snuff.
Graham S-Not sure its a good idea to invest in things you don't understand.How will you react if your money goes down 50% in a short period.
IHN-Why should Graham keep doing what's he's doing.H,e's already told us he doesn't know what he's doing!
Do you think Graham and others would be entering the market if it wasn't at record highs?There's a reason why Warren Buffet piles in during record lows.Its to build up a good margin of safety.Bravery in a bear market and a large pile of cash are how to make a killing in the stock market.In fact the stock market is one of the few areas in life where people buy high and sell low.
.In fact the stock market is one of the few areas in life where people buy high and sell low.[/quote
Including tracker fund managers
Graham S-Not sure its a good idea to invest in things you don't understand.How will you react if your money goes down 50% in a short period.
Well like I said it's a 14 year investment of monthly deposits. I expect it'll fall and rise a fair bit over that time but if it's down then my next monthly deposit just buys more doesn't it?
I expect, barring complete global economic collapse, that it'll still make more than a savings account over that time.
Monkeys spot on, sadly the mkt has record inflows when at all time highs, and record outflows post crash....i know q intelligent people who have lost loads. I suspect the mktg has something to do with it, those charts with selective start and end points showing big returns.
Fwiw im following warren buffet and may sit on a pile of cash.
[quote=GrahamS said]
Well like I said it's a 14 year investment of monthly deposits. I expect it'll fall and rise a fair bit over that time but if it's down then my next monthly deposit just buys more doesn't it?
I expect, barring complete global economic collapse, that it'll still make more than a savings account over that time.
With such a long term investment you're following the right approach IMO.
Buffet himself has specified that his fortune should be invested in a Vanguard tracker once he's gone 🙂
https://www.fool.com/investing/general/2016/01/06/warren-buffetts-15-minute-retirement-plan.aspx
Strange he didn't practice it in life whilst becoming the richest guy on earth.
Avoid anyone who claims to make sense of the current environment.
The official policy of central bank stealing from savers has deliberately mispriced risk in order, wait for it, to make people take on more of it. It's beyond parody.
If you think you are smart enough to make rational investments in a rigged and artificial market, then good luck to you.
Avoid anyone who claims to make sense of the current environment.The official policy of central bank stealing from savers has deliberately mispriced risk in order, wait for it, to make people take on more of it. It's beyond parody.
If you think you are smart enough to make rational investments in a rigged and artificial market, then good luck to you.
+1
Strange he didn't practice it in life whilst becoming the richest guy on earth.
Well I suspect Mrs Buffet's talents lie elsewhere.
Interesting sustained drop in the Dow and FTSE over the past few days - have we seen the top? (I personally don't think so).
The official policy of central bank stealing from savers
Odd choice of language. To steal implies that savers already had something which was then taken away. However, with low interest rates they never had the gains to be taken, nor are they fundamentally entitled to them....
Central banks merely rely on fancy terminology to hide what they are doing - a massive, hidden transfer from savers to debtors - one reason not to beat up the elderly (despite their pro Brexshit stance!)
In so doing, they are deliberately stealing from the returns that savers should be/would be making in non-distorted markets to cover their past mistakes
This is centrally planned theft - that they get away with it suggests that (1) people simply do not understand what is going and (2) we have forgotten that high levels of debt are the very thing that caused the crisis and continue to depress growth
The market is officially rigged - we have no reference rate to measure investment returns accurately and little visibility of what will happen as this reference rate is finally allowed to be re-established
In the meantime, caveat emptor....
Teamhurtmore, I try and avoid tin-foil hat conspiracy theories, but in this, I am inclined to agree. Encouraging debt is such a cornerstone of public policy now: help to buy, massive increase in the diversity and size of student loan products, unregulated car finance market... I can't figure out what the endgame is though.
In fact the stock market is one of the few areas in life where people buy high and sell low.
That is one of the reasons I invest a large part of my "portfolio" in Fundsmith, it is as much about Terry Smiths attitude as anything. Basically dont try to predict the market as its impossible. Just select companies "that have already won" the gains are smaller but you are buying into established brands who have proved their ability to ride out turbulent times. They have solid management teams in place etc and they are largely based around repeat purchase items. Once you have bought dont sell! Funds haemorrhage money through buying and selling stocks and fund fees. The latter is lowish with Fundsmith when done through a platform (III) and Smith buys and holds rather than trying to latch onto the next big thing.
Lots of funds outperform Fundsmith (and its not for me to convince anyone) but my investments are for 10-15 years plus so I am happy to make steady gains without the heart attack ups and downs that can go with trying to make quick gains.
Graham S-Not sure its a good idea to invest in things you don't understand.How will you react if your money goes down 50% in a short period.
As he's said, he's in for the long term, and understands that short-term fluctuations will happen
IHN-Why should Graham keep doing what's he's doing. He's already told us he doesn't know what he's doing!
For exactly that reason; he's not an 'active' investor, he's not got the time or knowledge to research more detailed investment strategies and to amend the strategy as time and market conditions progress. He wants to put a regular amount in, forget about it and come back in fifteen years' time and see a reasonable return.
A low-cost tracker, like the one he's in, is perfect for this.
In so doing, they are deliberately stealing from the returns that savers should be/would be making in non-distorted markets to cover their past mistakes
It's still not stealing as a) the interest wasn't already theirs and then taken and b) there is no fundamental entitlement to it.
And the alternative is far more unpleasant, without QE and dropping interest rates, we'd have had a much deeper recession, higher unemployment, etc. As it is we got away very lightly from the 2007/8 crash...
Just select companies "that have already won" the gains are smaller but you are buying into established brands who have proved their ability to ride out turbulent times. They have solid management teams in place etc and they are largely based around repeat purchase items. Once you have bought dont sell! Funds haemorrhage money through buying and selling stocks and fund fees. The latter is lowish with Fundsmith when done through a platform (III) and Smith buys and holds rather than trying to latch onto the next big thing.Lots of funds outperform Fundsmith (and its not for me to convince anyone) but my investments are for 10-15 years plus so I am happy to make steady gains without the heart attack ups and downs that can go with trying to make quick gains.
That's really interesting surfer, given our earlier discussions. You could change the word 'Fundsmith' in that quote for 'FTSE100 Tracker' and the same principles would pretty much apply.
You could change the word 'Fundsmith' in that quote for 'FTSE100 Tracker' and the same principles would pretty much apply.
I didnt say they didnt I questioned your comments about managed funds. I dont have time to reread the thread but you infered Trackers provided better long term returns than managed funds. I argued that is not true of all funds and your remarks were too sweeping. I also asked what tracker funds had returned the same as Fundsmith over the last 5 years? You also hinted that the FTSE will certainly grow which I challenged. It may not, it may fall but like all of these things it depends on your timeframe, its almost all "timing" in the end.
Trackers [b]generally[/b] provided better long term returns than [b]most[/b] managed funds.
Important caveats (which I think I made, and if I didn't I should have), as it's all gambling... It's just a bigger gamble picking a managed fund that will out-perform the market.
I also asked what tracker funds had returned the same as Fundsmith over the last 5 years?
I can't find one. However, 5 years is not long term, 15-20 years is long term.
Fundsmith has only been around for 5 years. 5 years is a reasonable timeframe. The scope of your argument is meaningless, "generally", "most"....
I've been investing in active funds since starting work 20 years ago and generally buy and hold however I do identify poor performing ones from time to time to sell then to invest elsewhere. A tip here is to sell in the morning as you should get the current price rather than tomorrow's price - do when the market has fallen that morning and can be worth a few quid - I just sold 3 UK ones a few days ago as I saw the FTSE starting to fall. I am now buying in emerging markets to spread my risk away from the UK/EU/US where most my investments are.
BTW, I use Interactive Investor as a low cost platform for larger portfolios and also use the this is money portfolio tracker as easy to see performance over time of all funds in one quick hit so identify the bad ones. I also have a tracker in there so I can see how I'm doing compared to that.
Oh and Woodford's Equity Income fund performance is dire over the last 12 months!
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=KEFAZ
The scope of your argument is meaningless, "generally", "most"....
It's really not, but I may be expressing it poorly.
We have to talk in terms of 'generally' and 'most', because none of this is a certainty. However, most managed funds do not beat the index:
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That's taken from this article, where Jack Bogle, founder of Vanguard, explains it better than I do:
http://time.com/money/3956351/jack-bogle-index-fund/
I think a key point of this though, as in GrahamS's example above, is the to differentiate the type of investor. Active investors, who enjoy and have the time to read around the financial press, investigate market trends, reassess investment strategies etc. can, sure, select managed funds that they think will do well and move in and out of them if they start to go stale. There are obviously a few of those on this thread, and I'm not going to tell them what they should and shouldn't do.
However, there are many more investors who are passive; they'll pick some funds and forget about them. These people are better off (generally) in a low-cost tracker and gaining the index increase over time.
That's, no doubt,what people with trackers in the Japanese markets thought in 1989.Look what happened next.
Like I said:
We have to talk in terms of 'generally' and 'most', because none of this is a certainty.
Mudshark-Just because the the FTSE had a bad patch you sold three funds.This makes no sense to me at all.The FTSE is always rising and falling.If your picks were good to start with why sell?How are you going to deal with the extreme volatility of emerging market investments?Sell every time there's a few difficult periods?Your going to be paying alot in charges.
IHN,the large influx of rookie investors into ETFs,how do you think they'll react when prices fall by 40/50%?
Mudshark-Just because the the FTSE had a bad patch you sold three funds.This makes no sense to me at all.
I had already identified them as poor performers, just like to time my selling.
It is stealing and investors are entitled to an appropriate level of return for taking on risk. This has been artificially taken away/stolen from them. More stupidly, this is also forcing them to taken in mis-priced risk. That is ultimate folly that always ends in tears.
CB pretend that they found a golden bullet, They didn't. They found smokes and mirrors. The eventual tapering will expose juts how naked they are/are not. We shall see. As I said - caveat emptor
IHN, the large influx of rookie investors into ETFs,how do you think they'll react when prices fall by 40/50%?
Some will panic and take their money out, which is generally (that word again) the wrong thing to do. However, the people that do this would very likely have done the same if they were in a managed fund and the market was falling.
Some, the savvier ones, will ride it out if they can, knowing that markets fluctuate.
The remainder, the truly passive investors that I think are the majority, will do nothing, the same as they would do if they were in an under-performing managed fund, because they won't even know about it. This defacto inaction is actually the right thing to be doing.
gillain tett in today's FT is worth a read
As is Miles Johnson in last weekends FT money, on the subject of fiddling...
