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  • FIRST POST
    • aroominyork
    • By aroominyork 14th Feb 18, 1:18 PM
    • 389Posts
    • 104Thanks
    aroominyork
    Silly question time: one investment to buy NOW
    • #1
    • 14th Feb 18, 1:18 PM
    Silly question time: one investment to buy NOW 14th Feb 18 at 1:18 PM
    You have to buy one investment using 50% of your investment wealth to hold for ten years. You have to buy it in the next ten minutes which rules out OEICs but allows shares, ETFs, investment trusts, individual bonds etc. What would it be?

    I would go for Monks.

    (They’ll be waking up on the East coast where bostonerimus will presumably choose Vanguard S&P 500 ETF.)
Page 1
    • Glen Clark
    • By Glen Clark 14th Feb 18, 1:45 PM
    • 4,067 Posts
    • 3,097 Thanks
    Glen Clark
    • #2
    • 14th Feb 18, 1:45 PM
    • #2
    • 14th Feb 18, 1:45 PM
    If I was going for S&P 500 I would go for an accumulator like CSP1 to make reinvesting the dividends more efficient.
    But I would prefer more diversity - best value is probably HMWO. Not widely traded so you have to watch the spreads when trading. But even if the spread is a bit more than the bigger ETFs you have 10 years to absorb it.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • Sally57
    • By Sally57 14th Feb 18, 1:49 PM
    • 101 Posts
    • 21 Thanks
    Sally57
    • #3
    • 14th Feb 18, 1:49 PM
    • #3
    • 14th Feb 18, 1:49 PM
    I would also go for a global investment trust, however one that is more diversified in both regions and sectors so F&C (FRCL) or Bankers (BNKR) would fit the bill.
    • aroominyork
    • By aroominyork 14th Feb 18, 3:08 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    • #4
    • 14th Feb 18, 3:08 PM
    • #4
    • 14th Feb 18, 3:08 PM
    I would also go for a global investment trust, however one that is more diversified in both regions and sectors so F&C (FRCL) or Bankers (BNKR) would fit the bill.
    Originally posted by Sally57
    Regionally, FRCL and MNKS are ciggy-paper close. But it does make me laugh that one of FRCL's top ten holdings is 0.82% in an emerging market investment fund. There's diversification, and then there's d---i---v---e---r---s---i---f---i---c---a---t---i---o---n.
    • ArchBair
    • By ArchBair 14th Feb 18, 4:41 PM
    • 70 Posts
    • 19 Thanks
    ArchBair
    • #5
    • 14th Feb 18, 4:41 PM
    • #5
    • 14th Feb 18, 4:41 PM
    Regionally, FRCL and MNKS are ciggy-paper close. But it does make me laugh that one of FRCL's top ten holdings is 0.82% in an emerging market investment fund. There's diversification, and then there's d---i---v---e---r---s---i---f---i---c---a---t---i---o---n.
    Originally posted by aroominyork
    The other difference is that FRCL invests in over 500 companies whereas MNKS is much more concentrated at around a 100.
    • aroominyork
    • By aroominyork 14th Feb 18, 5:04 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    • #6
    • 14th Feb 18, 5:04 PM
    • #6
    • 14th Feb 18, 5:04 PM
    The other difference is that FRCL invests in over 500 companies whereas MNKS is much more concentrated at around a 100.
    Originally posted by ArchBair
    Yup, but I was reflecting on holding FRCL as say 10% of your portfolio, and the Utilico EM IT comprises 0.82% of FRCL, and Utilico has 92 holdings, so the average Utilico holding is 0.0008913% of your portfolio.
    • Prism
    • By Prism 14th Feb 18, 5:30 PM
    • 181 Posts
    • 127 Thanks
    Prism
    • #7
    • 14th Feb 18, 5:30 PM
    • #7
    • 14th Feb 18, 5:30 PM
    Scottish Mortgage
    • Thrugelmir
    • By Thrugelmir 14th Feb 18, 5:47 PM
    • 57,412 Posts
    • 50,705 Thanks
    Thrugelmir
    • #8
    • 14th Feb 18, 5:47 PM
    • #8
    • 14th Feb 18, 5:47 PM
    B P Marsh.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • planteria
    • By planteria 14th Feb 18, 5:48 PM
    • 4,964 Posts
    • 1,098 Thanks
    planteria
    • #9
    • 14th Feb 18, 5:48 PM
    • #9
    • 14th Feb 18, 5:48 PM
    having to hold for 10 years points towards a fund of some kind, but my initial thought is still Amazon.
    • grey gym sock
    • By grey gym sock 14th Feb 18, 6:18 PM
    • 4,178 Posts
    • 3,686 Thanks
    grey gym sock
    But I would prefer more diversity - best value is probably HMWO.
    Originally posted by Glen Clark
    a solid idea, but i might prefer VEVE. see the other thread: http://forums.moneysavingexpert.com/showthread.php?t=5794476
    • aroominyork
    • By aroominyork 14th Feb 18, 7:01 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    B P Marsh.
    Originally posted by Thrugelmir
    Now surely you're just showing off. 60% of holdings in five companies (and 25% in one), nearly all in insurance and 3.15% annual charge. But it rode out 2008 well and if you rode the discount shrinking from 65% to 15% you'd be laughing. Anyway, please explain.
    • capital0ne
    • By capital0ne 14th Feb 18, 7:01 PM
    • 323 Posts
    • 158 Thanks
    capital0ne
    You have to buy it in the next ten minutes which rules out OEICs
    Originally posted by aroominyork
    Why are OEICs' ruled out?
    • Alexland
    • By Alexland 14th Feb 18, 8:12 PM
    • 1,592 Posts
    • 1,094 Thanks
    Alexland
    Why are OEICs' ruled out?
    Originally posted by capital0ne
    Because of the 10 minute rule. Personally I would never be pressured into an investment decision so would decline this opportunity.

    Still it's interesting people are picking ETFs with 50% to 60% US exposure - that's not where my thinking is leading me.

    Alex
    Last edited by Alexland; 14-02-2018 at 8:15 PM.
    • economic
    • By economic 14th Feb 18, 8:18 PM
    • 2,675 Posts
    • 1,421 Thanks
    economic
    It would be scottish mortgage inv trust for me

    Also amazon as well - but thats included in scottish mortgage. maybe both.
    • Thrugelmir
    • By Thrugelmir 14th Feb 18, 8:19 PM
    • 57,412 Posts
    • 50,705 Thanks
    Thrugelmir
    Now surely you're just showing off. 60% of holdings in five companies (and 25% in one), nearly all in insurance and 3.15% annual charge. But it rode out 2008 well and if you rode the discount shrinking from 65% to 15% you'd be laughing. Anyway, please explain.
    Originally posted by aroominyork
    One of the shares I've followed for some time. Very small capitalisation (sub £200m) so doesn't register on fund managers radars. Too small for them to buy a substantive enough stake.

    Investments are all in early stage insurance start ups, via equity and debt finance.

    If you followed the insurance sub sector over the years. Then you'd have noticed that UK listed companies have been bought up by US operations (only one still remains now). That's where my initial interest was generated from.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • aroominyork
    • By aroominyork 14th Feb 18, 8:21 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    Because of the 10 minute rule. Personally I would never be pressured into an investment decision so would decline this opportunity.

    Still it's interesting people are picking ETFs with 50% to 60% US exposure - that's not where my thinking is leading me.

    Alex
    Originally posted by Alexland
    Oh come on, Alex. I was counting on you to have a punt.
    • aroominyork
    • By aroominyork 14th Feb 18, 8:25 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    If you followed the insurance sub sector over the years. Then you'd have noticed that UK listed companies have been bought up by US operations (only one still remains now). That's where my initial interest was generated from.
    Originally posted by Thrugelmir
    Then if only one remains isn't this the time to take your profit and get out?
    • aroominyork
    • By aroominyork 14th Feb 18, 8:27 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    Scottish Mortgage
    Originally posted by Prism
    Monks with balls (so to speak).
    • grey gym sock
    • By grey gym sock 14th Feb 18, 8:34 PM
    • 4,178 Posts
    • 3,686 Thanks
    grey gym sock
    Still it's interesting people are picking ETFs with 50% to 60% US exposure - that's not where my thinking is leading me.
    Originally posted by Alexland
    my actual portfolio has much less US exposure.

    however, this is only for 50% of my investment wealth, so i can have little or no US in the other 50% to compensate.

    i do also wonder whether scaling back the US allocation was such a good idea after all. but i reckon that, even if it won't do much good, it won't do much harm, either, so (in my real portfolio) i stick with it. in investing, changes of strategy should always be minimized.
    • aroominyork
    • By aroominyork 14th Feb 18, 8:40 PM
    • 389 Posts
    • 104 Thanks
    aroominyork
    however, this is only for 50% of my investment wealth, so i can have little or no US in the other 50% to compensate
    Originally posted by grey gym sock
    Bear in mind the other 50% has to include your non-equity allocation as well as your non-US.
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