Near the Bottom...Time to Buy!

master_ian
master_ian Posts: 153 Forumite
in Savings & investments
I'm one of the ones who will be buying a small amount of shares, £300 worth, within the next week if there's another dip because I'm taking a punt (and can afford to lose it).

Instead of going out this weekend in London to a show, nice dinner for 2, and clubbing with drinks after, ie £300, I'm willing to invest that money into a FTSE 100 co (maybe 2) and a small company. Yes, £300 is a tiny investment -however, as has been posted numerous times, now can be a good time to buy.
71.70p/share RBS at close today?

As a first-time stockmarket investor, it'll be good to hear opinions on this!

Cheers...
«1

Comments

  • Aegis
    Aegis Posts: 5,688 Forumite
    Name Dropper First Post First Anniversary
    Is it going to be worth the transaction charges? Buy at £12.50 or so per stock and sell at the same and you're looking at £25 that you have to make per company with your investments before you break even.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • master_ian
    master_ian Posts: 153 Forumite
    Hi Aegis,

    I'm looking at long-term on this one. At least 5 years. With my bank, I buy at £10/transaction.
  • Day_Trader
    Day_Trader Posts: 52 Forumite
    Good luck!

    It is as you say a 'punt' which is a strategy I try to avoid....
    Presuming you have no ideas about investments then you are in as good a position as going to a casino and putting it on red or black.
    What are your aims for the money? If it is a serious investment it may be better diversifying it out across several asset classes (start a pension and your £300 is bumped up to £375 instantly) and take advantage of a lot of perceived value out there right now.
    On the other hand all the best.;)
    I work for an IFA and can provide guidance on pensions, savings, protection and investments. What guidance I do provide should not be taken as advice. If you are in any doubt I suggest you speak to your financial advisor or, if tax related, a qualified accountant.
  • Caudle
    Caudle Posts: 92 Forumite
    300 quid??? I really wouln't bother investing a paltry amount like that in anything if I were you, let alone shares. Spend and enjoy!

    Even a decade or so ago, I was told that anything less than about £2000 in an individual company share was not worthwhile. I would say maybe around £5000 now... and only as part of a balanced portfolio.
  • master_ian
    master_ian Posts: 153 Forumite
    Where are all the cheerleaders that I saw on some other boards:j

    OK, guys - here's the thing:

    1) I have a few other investments:
    Savings in an ISA
    BTL condo abroad
    Savings account

    2) Fun - is something I always engage in, therefore I'm not that liquid, therefore but have enough to invest £300 in the stockmarket.
    It's my first dip in the waters and its a good time to dip isn't it?
  • Nick_C
    Nick_C Posts: 7,454 Forumite
    Name Dropper First Anniversary First Post Home Insurance Hacker!
    I've made a few quid lately buying and selling volatile shares, but I find with dealing charges you need to play with at least £1000 to make it worthwhile. I've done several deals where I've made 10% within a short period. Of course, this is not investing - its gambling.
  • Caudle
    Caudle Posts: 92 Forumite
    master_ian wrote: »
    Fun - is something I always engage in

    Excellent, but you may have even more fun putting some of the £300 on a few horses, and spending an enjoyable day at the races! :D

    Seriously, unless you've got a couple of grand I wouldn't bother.

    Also, the stock market may not have bottomed out yet.......... not by a long way!
  • master_ian
    master_ian Posts: 153 Forumite
    There is always a risk in any investment.

    One transaction for £300 invested in a company's shares will cost me a £10 one-off transaction fee at my e-bank.

    If the said company has lost 70% of its share price value in the last year due to the crisis, and I believe it will recover within the next 5 years due to its Market Capitalization, Dividend Yield, and Nat Assets---with good investment advice during this time, how can buying low be a bad move for a first time investor (with money he CAN afford to lose)...?
  • Caudle
    Caudle Posts: 92 Forumite
    Waiting 5 years doesn't sound like much fun to me! :p

    But whatever floats your boat I guess............! ;)
  • master_ian
    master_ian Posts: 153 Forumite
    Really Caudle - Who knows when the market bottoms...
    If I did I'd be charging people and I'd definately be quids in :beer:

    Horseracing only lasts 2 minutes...nearly as bad as Boris Becker in the Nobu Cupboard - when you can ride the waves of the market? :cool:

    Oh yeah - I don't stress out too much about investments either, its a choice and you deal with it.
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