Advice on Stockbrokers...Help!

tyrell_2

I used some of my savings to buy some shares through a stockbroker - the company is Rathbones. In 8 years my shares are worth £5,000 less with an initial investment of £25,000 Their attitude is I am a small time investor so maybe I should go elsewhere.although they did agree that the results were 'probably' less than satisfactory!!!..Not sure what I can do next but I do think in any other business this would not be acceptable and it does make me think who else are they conning? Any comments would be appreciated

fatpig_2

Lucky you never bought shares in housebuilders or you'd be really fooked now.

Microstar_2

It goes with the territory I'm afraid. I too have lost money on investments in the past.
As they say....

"The value of investments, and any income from them, can go down as well as up and you may not get back the amount you originally invested if there is a sufficiently large fall in the value of the investment. Past performance is not a guide to future performance."

Generali

tyrell wrote: »

I used some of my savings to buy some shares through a stockbroker - the company is Rathbones. In 8 years my shares are worth £5,000 less with an initial investment of £25,000 Their attitude is I am a small time investor so maybe I should go elsewhere.although they did agree that the results were 'probably' less than satisfactory!!!..Not sure what I can do next but I do think in any other business this would not be acceptable and it does make me think who else are they conning? Any comments would be appreciated

Unfortunately, this happens with equity investments. You take on some extra risk in the hope that you make an extra return.

Why do you feel that you've been conned?

mewbie_2

tyrell wrote: »

tale of woe...

On the positive side you used savings, real money, not geared. To draw a slightly dodgy parallel with house 'investing' you could have taken your 25,000, borrowed a further 225,000 and made a loss of 50,000.

Thank goodness gearing is not so popular (for ordinary folk) outside the housing market.

turbobob

If the stockbroker acted on your instructions to buy shares and did just that then I can't see what the issue is? Or was there some element of advice you are unhappy with?

tyrell_2

Thank you for all the replies. I think my concern is it was a discretionary account (ie they had control) of medium risk. I advised them I wanted to go for capital growth and would not need income for it. I am paying a management fee for this service on a monthly basis. I have been advised that the performance 8 years investment with a £5000 loss on a capital of £25000 is bordering on mismanagement compared to other investment houses. I know some people punt on shares but I did not feel I had the experience of knowledge to do this - hence I went to Rathbones! I guess I am also sharing my experience with everyone also - as I feel they sold me a great story of capital growth and the reverse has happened!

Generali

tyrell wrote: »

Thank you for all the replies. I think my concern is it was a discretionary account (ie they had control) of medium risk. I advised them I wanted to go for capital growth and would not need income for it. I am paying a management fee for this service on a monthly basis. I have been advised that the performance 8 years investment with a £5000 loss on a capital of £25000 is bordering on mismanagement compared to other investment houses. I know some people punt on shares but I did not feel I had the experience of knowledge to do this - hence I went to Rathbones! I guess I am also sharing my experience with everyone also - as I feel they sold me a great story of capital growth and the reverse has happened!

It's not great performance but it's very hard to be able to prove anything fraudulent (like churning for example - carrying out uneccessary trades to raise commissions).

Try posting on the Savings and Investments Board though - this is the House Prices board so you're quite off topic!!!

http://forums.moneysavingexpert.com/forumdisplay.html?f=17

chewmylegoff

tyrell wrote: »

Thank you for all the replies. I think my concern is it was a discretionary account (ie they had control) of medium risk. I advised them I wanted to go for capital growth and would not need income for it. I am paying a management fee for this service on a monthly basis. I have been advised that the performance 8 years investment with a £5000 loss on a capital of £25000 is bordering on mismanagement compared to other investment houses. I know some people punt on shares but I did not feel I had the experience of knowledge to do this - hence I went to Rathbones! I guess I am also sharing my experience with everyone also - as I feel they sold me a great story of capital growth and the reverse has happened!

investments can go down as well as up...

Trollfever

Have a look at the 10 year share price graph for Lloyds TSB!

Cranston_2

Stop them trading on your behalf immediately.

Such accounts are designed to put money in the brokers pockets not the clients.

2 suggestions:

(1) Check out this site for info on building diversified portfolios.
http://www.fundadvice.com/

(2) Buy Warren Buffets Berkshire Hathaway stock (which I did and still do)