Bargain Shares?

B.E.N

Hi there,

Just a quick question - am looking to invest for the long-term (25+ years) and am just wondering if anyone has any informal suggestions (not advice.. ), as to any bargain shares that might be worth investing in?

Any suggestions would be greatfully recieved. Thanks
Ben

opinions4u

I decided to buy HBOS shares at 520p, believing them to be a bargain!

Spread the risk and find a low charge fund somewhere.

B.E.N

Righto, has anyone got any opinion on whether I'd be wiser to pick up some Managed Fund Units while they're down, or go directly into shares?

jon3001

B.E.N wrote: »

Righto, has anyone got any opinion on whether I'd be wiser to pick up some Managed Fund Units while they're down, or go directly into shares?

Funds are generally much less risky than single shares (because you can get better diversification) and you're not necessarily sacrificing perfomance. You can further reduce risk and increase performance by creating a portfolio of funds that are annually rebalanced.

See here for the basics:
http://www.investorsolutions.com/v2content/book/index.cfm
Site can be bit flaky buy hopefully it'll be up again soon.

If you want a strategy for the long term, 25+ years as you say, I think this is the way to go. I welcome correction but I think with single shares you're trying to buy them with a mind to price speculation (i.e. sell at some target profit) unless maybe you're building a high-yield portfolio or a DIY specialist fund that you can't buy (e.g. silver miners).

fatpig_2

opinions4u wrote: »

I decided to buy HBOS shares at 520p, believing them to be a bargain!

Spread the risk and find a low charge fund somewhere.

Alot of people did likewise with Northern Crock and A&L with similar results. :rolleyes:

gettingbetter

i was always told to invest in hongkong shares
not that i have any money to invest

kas x

coolagarry

I put my money in an M & G tracker (the only charge .5 management fees) some years ago when the stock market was much lower and am well pleased. The stock market is quite low at the moment and historically will rise so a tracker seems to make good sense.

B.E.N

Ok, thanks for the suggestions

cheerfulcat

Hi, Ben,

You have two options - pick and hold your own portfolio of shares, which requires a fair bit of time and dedication, or go for a collective investment such as a unit trust or investment trust. Choosing a UT or IT also requires a certain amount of initial research ( ITs in particular ) but after that you can more or less leave the fund manager to it, with perhaps an annual overview/rebalance.

If you want to look into doing your own research on individual shares, the TMF Value Shares board is a good place to start. There is also a board for investment trusts and unit trusts. Probably best to read both from the very first posts.

There are certain funds which are run on a value basis - Temple Bar, for a random example. There is more information on investment trusts on the AIC website.