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Looking to start investing £3000 a month
Mr Gold
Posted: 04 January 2018 08:26:12(UTC)
#1

Joined: 02/01/2018(UTC)
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Looking for some advice and opinions. I have around £3000 per month to invest started 5months ago and now have 15k worth of physical gold. Now looking at other options like a rental house or else stocks. Stocks im looking at are amazon, google, Facebook and Netflix if i go the stocks route ill be playing it safe if these stocks. Just looking for opinions what others would do in my position ?
wydffart
Posted: 04 January 2018 17:17:33(UTC)
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If are looking at particular themes eg tech then I suggest you consider a tech heavy or tech focused Investment Trust like Scottish Mortgage or Allianz Technology.
Tech is expensive to buy so it may not be the best time to dive in, but it has been expensive for a long time and is still going up.
Many people would suggest you have a core of more general companies, UK and/or global. Again I would suggest a collective vehicle
colin overton
Posted: 04 January 2018 17:38:51(UTC)
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Given your conservative nature and all that gold, perhaps consider Fundsmith UT? This mutual basically invests in enormous, successful global companies, so much of Terry Smith's trust is invested in the US. Picking individual stocks is difficult and £3000 is a minimum to make such an investment worth while (costs). Also buying individual overseas stocks mean buying/trading in foreign currency which is expensive and adds a further factor as you hold these for months/years.
One exception to this idea would be buying over-sold stocks. In recent years examples would be Shell, RTZ, Lloyds, Tullow Oil, etc. This type of investment requires judgment, bottle and patience but can be very rewarding. As to which stock will be over-sold in 2018 .......................?
If I was picking a part of the world to invest in 2018 it would be Japan. NB I am currently a net seller of shares/UTs and ITs. PS You'll need a platform/stockbroker for this type of investment.
kWIKSAVE
Posted: 04 January 2018 17:58:34(UTC)
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Not overly keen on FANG stocks at present.

Consider 6 funds £500 each

Liontrust Special Situations

GAM Star Credit Opportunities

Old Mutual UK Smaller Companies

M&G Europe Select

Rathbone Global Opportunities

Invesco Perpetual Asian


3 users thanked kWIKSAVE for this post.
gillyann on 06/01/2018(UTC), C Blockley on 08/01/2018(UTC), dlp6666 on 08/01/2018(UTC)
King Lodos
Posted: 04 January 2018 18:00:33(UTC)
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Always difficult to know whether Amazon, Google, Facebook, etc. are what you should be buying now, or what you should've been buying 5 years ago.

Buy stocks, but read some decent books on investing first .. Not that you can't do perfectly well letting a monkey pick your stocks/funds, but if you don't know what you're doing, you're very likely to do silly things at the wrong moments
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Tim D on 04/01/2018(UTC)
Mr Helpful
Posted: 04 January 2018 18:43:04(UTC)
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Mr Gold;54948 wrote:
Looking for some advice and opinions. I have around £3000 per month to invest started 5months ago and now have 15k worth of physical gold. Now looking at other options like a rental house or else stocks. Stocks im looking at are amazon, google, Facebook and Netflix if i go the stocks route ill be playing it safe if these stocks. Just looking for opinions what others would do in my position ?


With the 'Bull Market in Everything' nothing today shouts out "BUY ME !!!"

Residential Real Estate (RRE) : Expensive albeit yields are improving with rental increases coming through, but tenants are struggling to meet those increased rents. Yields circa 5% real before debt on lower cost properties (varies of course with geographical area), and can be leveraged.

Bonds : Expensive, -ve real yields
Stocks : Mostly expensive, circa 1.8% to 3.5% real yields

Because Asset Classes are expensive doesn't mean they cannot get more expensive !!!
And real yields can be misleading (overlooking growth disparities) when comparing.

If Stocks are chosen then in your shoes would 'time-diversify' by £Cost Averaging, thus keeping 'dry-powder' always at the ready for any price slump.
If taking the RRE route then very thorough research needed, getting to know local real-estate agents and the hidden costs, double-checking all the headline figures using Rightmove or similar.
Tim D
Posted: 04 January 2018 21:46:42(UTC)
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Mr Gold;54948 wrote:
Looking for some advice and opinions. I have around £3000 per month to invest started 5months ago and now have 15k worth of physical gold. Now looking at other options like a rental house or else stocks. Stocks im looking at are amazon, google, Facebook and Netflix if i go the stocks route ill be playing it safe if these stocks. Just looking for opinions what others would do in my position ?


Personally, I wouldn't consider having all my equity exposure being FANG stocks as "safe".

If you like gold and "playing it safe" then the Harry Browne "Permanent Portfolio" could be for you. Spend the next 15 months feeding £1K/month into each of a global equity tracker, a long dated bond fund and cash (or short-dated bonds). Then once all holdings are around the same size, use new money to keep the holdings equal. When you stop funding it, switch to yearly rebalancing.

There's an interesting variant called the "Golden Butterfly" which adds a tilt to small caps. (That site's PP page is here).
4 users thanked Tim D for this post.
Jim S on 04/01/2018(UTC), Mickey on 04/01/2018(UTC), Guest on 05/01/2018(UTC), dlp6666 on 08/01/2018(UTC)
Mr Gold
Posted: 04 January 2018 21:49:50(UTC)
#8

Joined: 02/01/2018(UTC)
Posts: 7

Guys i thank you all for the comments but i think i might be a bit out my depth. I literally dont know what anyone is talking about 🙁 whats the best and simplest way to fast track a little stocks knowledge?
Tim D
Posted: 04 January 2018 21:53:11(UTC)
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Mr Gold;55003 wrote:
Guys i thank you all for the comments but i think i might be a bit out my depth. I literally dont know what anyone is talking about 🙁 whats the best and simplest way to fast track a little stocks knowledge?


Stocks knowledge, or investing knowledge? For the latter give http://www.kroijer.com/ a try, and if you like the videos get his book.

AJW
Posted: 05 January 2018 12:29:32(UTC)
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How long are you investing for and when will you require access to your funds?
King Lodos
Posted: 05 January 2018 12:54:47(UTC)
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Mr Gold;55003 wrote:
Guys i thank you all for the comments but i think i might be a bit out my depth. I literally dont know what anyone is talking about 🙁 whats the best and simplest way to fast track a little stocks knowledge?


There isn't one really .. For the first 5 years you'll probably make every mistake possible.

What you can do however is just buy the stock market – in the same way you buy gold – and that really doesn't require any knowledge, and there are very good arguments for doing just that (you'll beat most investors).

– The book to read on this (known as passive) investing is The Little Common Sense Book of Investing.

– And the fund I'd buy would be Vanguard Life Strategy 80.


The key is: invest your money, then don't touch it .. Keep investing; keep reading; and as you acquire knowledge and experience, you may choose to start buying individuals stocks and funds too

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Harry Trout on 05/01/2018(UTC)
Sara G
Posted: 05 January 2018 13:24:38(UTC)
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Mr Gold;55003 wrote:
Guys i thank you all for the comments but i think i might be a bit out my depth. I literally dont know what anyone is talking about 🙁 whats the best and simplest way to fast track a little stocks knowledge?


I would advise visiting the Monevator website - excellent articles and beginner-friendly. Also has examples of simple passive portfolios.

http://monevator.com/

Also, a good book to start with is 'The DIY Investor' by Andy Bell.

Good luck

3 users thanked Sara G for this post.
Harry Trout on 05/01/2018(UTC), dlp6666 on 08/01/2018(UTC), MJPM on 12/01/2018(UTC)
andy mac
Posted: 05 January 2018 14:08:17(UTC)
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HNY My advice would be to set up a virtual portfolio with HL (Hargeaves Lawnsdown) and start getting a feel for the different options while you build the knowledge

Look at costs and trading etc

Sort out your platform make sure you uses Isas

Look at HL starter pages some good advice on risk etc
You also need good luck

so good luck
Harry Trout
Posted: 05 January 2018 15:20:33(UTC)
#15

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Mr Gold, welcome on board

All good tips on this thread. I think a passive core such as Vanguard is a good option in the early days.

Down the line you may well find yourself looking to add investments around the core that you think could do a bit better.

My experience so far has been that it is ok to jump onto things that have already done well even though it feels a bit boring to do so. Noteworthy examples for me are Amazon, Diageo, Fundsmith Equity, Lindsell Train UK Equity and Scottish Mortgage Trust. All have done well, but in truth I thought I was too late when I invested.

It doesn't always work. Blackrock Gold & General (sold at a loss) and Woodford Equity (still hold a smaller amount on a tiny profit) were part of the learning curve.

What I'm trying to say is that I am learning by doing. I think it is helpful to make good notes of why you invested / divested. Those notes can be very illuminating later on !!

Good luck with your choices

Harry
Steve U
Posted: 05 January 2018 15:44:15(UTC)
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Mr Gold;55003 wrote:
Guys i thank you all for the comments but i think i might be a bit out my depth. I literally dont know what anyone is talking about 🙁 whats the best and simplest way to fast track a little stocks knowledge?



I do not wish to patronise but for a starter this guy's videos on youtube - there are literally hundreds - is a good place to start.


https://www.youtube.com/watch?v=iGP_KS6UIyY

Jim Thompson
Posted: 05 January 2018 15:51:02(UTC)
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Hi Mr G

Good advice from The King and Andy, invest in a tracker like Vanguard Lifestrategy, and also while away the hours setting up a pretend portfolio on the Trustnet web site.

The first gives you a feel for how it feels doing it for real, the second lets you see if your judgement is good without committing anything except time.

Do you know how funds (pooled money) work? A better place to start rather than individual stocks perhaps.
1 user thanked Jim Thompson for this post.
King Lodos on 05/01/2018(UTC)
Harry Trout
Posted: 05 January 2018 16:54:37(UTC)
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Old Mutual UK Mid Cap may be worth considering for a real or test portfolio

Managed by Richard Watts since December 2008 it has beaten the FTSE 250 every year since he started with the exception of 2009, his first year.

Performance has been top quartile for as long as I can remember, very consistent.
2 users thanked Harry Trout for this post.
Luca Brasi on 05/01/2018(UTC), dlp6666 on 08/01/2018(UTC)
Alan Selwood
Posted: 06 January 2018 01:04:41(UTC)
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With the proviso that the period in question (2008 - 2018) has been a very strange one compared with the rest of investing history over the last 50 years.

I would certainly look seriously at the 4-way spread idea (gold, shares, bonds, cash) to spread your risk, and rebalance (as mentioned) periodically so that as performance over various periods leaves the proportions out of step with each other, you move them gradually back to the original proportions.

I would also, at the moment, favour gradual input into the holdings, so that if we have a major upset, you retain cash with which to buy at cheaper levels. In fairness, in most periods, things seem to gradually go up in fits and starts, so staggering the investment often leaves you worse off - though if there is a major upset, you will be glad that you played it carefully and went in gradually!

Gold +
Fundsmith Equity Fund (for strong, global large companies) and a global smaller companies fund +
A global bond tracker +
A pile of cash

would be one way of doing it.

Or as a beginner,
Gold (perhaps 10% of total holdings)
Cash 25%
Vanguard 80/20 mix of global equities and global bonds covering the other 65%
might be a slightly simpler approach initially.

All possible mixes are potentially winners or losers over any one period of measurement, and can be very right, fairly right, so-so, poor or bad until the next time you make the comparison, and then the relative positions may well be somewhat different!

As someone else almost said, suck it and see, either with a virtual portfolio or a real one or both!

You could also glean some ideas from reading John Baron's monthly report in the Investors Chronicle (this weekend's issue should be the one when the latest version comes out).

Welcome to the big Citywire pool of DIY learners (even the oldest of us are still learning!)

7 users thanked Alan Selwood for this post.
Micawber on 06/01/2018(UTC), Mickey on 06/01/2018(UTC), J Thomas on 06/01/2018(UTC), King Lodos on 06/01/2018(UTC), Sara G on 06/01/2018(UTC), gillyann on 07/01/2018(UTC), dlp6666 on 08/01/2018(UTC)
Mr Gold
Posted: 07 January 2018 20:06:50(UTC)
#19

Joined: 02/01/2018(UTC)
Posts: 7

Hi everyone so ive been reading a little and watching some online YouTube videos trying to understand things a little better. Obviously alot of stuff im still struggling to understand but im very interested in the sp 500 where u just invest a certain amount of money each month over a long term period and then the compound interest kicks in and things start to look very good after say 15-20 years. So ive been looking at brokers do people in UK generally use Hargreaves Lansdown?
andy mac
Posted: 07 January 2018 20:25:42(UTC)
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HL ( hargreves Lansdown) is very simple and has good info /research but relative expensive look at fees. I started with HL but now use Iweb for buying selling (£5 v £12 at HL)

Charges for holding accounts vary fixed fees v %

I still use HL for 1st research etc
Pros and cons
Funds are free to buy and sell % to hold while shares are fixed price to buy or sell ( HL)
Iweb fixed price to buy and sell £25 to set up was £200

Do not get conned by HL 150+fund list . Not everyone is included nor are they guaranteed success

HL virtual portfolio will allow you to experiment

Do your own research (DYOR) and good luck



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