I'm scared of funds, so which 20 shares to buy?

Conrad

I've looked at some of the index tracker passive funds but the T & C's aren't clear enough to me as to what additional risks might lurk by involving a fund in the chain.

Could a collapse of the group mean my money dissapears along with the rest of the funds assets, OR ARE THEY 100% CAST IRON RING FENCED AND SECURE? The fact they have a good record and are sizeable doesn't cut it with me. AIG, Lehmans, N Rock etc.

I realise shares themsleves can fall, but that's not an issue here, I am merely interested in not adding additional risk to the chain.

Income yield is important, but I will probably still be inclined to include some down at heal Bank shares despite lack of yield, in view of the high capital appreciation potential.

Warren Buffet is saying the spreads have never been this high and they are building cash fast despite thier troubles. He also pointed out very few Banks have ever gone bust

So, your'e top 20 please

[Deleted User]

I have invested my dh`s sipp in 21 shares plus pibs and pref shares. All are solid with good yields but I know what I am doing

I suggest that you start by studying an etf like IUKD. No stamp duty to pay. Yield about 11% and divi paid 4 times a year

I don`t like funds either by the way. Start with the solid companies that won`t blow away in a puff of wind and certainly think of energy, like the major oils. Other than that you need to do your own research

Conrad

Kittie your sig is all about sharing, so c'mon!!

Whats your top 20

Conrad

ANY VIEWS ON THIS (only 17);

Anglo American

Associated British Foods

Aviva

Barclays

BP (peak oil on the horizon, but they will diversify as an energy provider)

BT

Cadbury - for fat Britain

Freinds Prov

Glaxo

Harmony Gold Mining

HSBC

L & G

Lloyds

Morrison

Prudential

RBS

Standard Life

[Deleted User]

pretty good. Make sure you get a good spread over the various sectors. You have several insurers plus banks ie a lot of financials

I have just looked at my pi chart. oil, gas and pharmas about 1/3
food producers 1/6
gas water and multiutilities about 1/5
aerospace and defence and iukd in equal measure
smidgens of media, travel, telecoms, banks and mining

This portfolio has been set up with a pretty cautious view because my dh has already retired and will start drawdown in 3 years or so, so I haven`t invested in anything too risky. Probably very different to your needs

Look in ftse 100 for all the answers

www.moneyam.com for charts and stockwatch etc. Free

Conrad

Cheers Kittie for your thoughts and the link.

Yes, the preponderance of financials has been nagging at me, but I deal with lenders day in day out, and longer term I can well imagine they will fully recover just like insurers always do. If thier profits dip, they simply change the thier business model to revive income streams.

I'm 3 lite, an intend not to add any further financials.

maxi_isa

I'd find it very difficult to recommend 20 shares in the current market, however, I like .........
BP, Shell(B), Glaxo, Vodaphone, National Grid, Br Aerospace.

All solid large-caps paying very good dividends (much better than cash interest rates) and good prospects when the upturn comes.

I'd avoid banks & financials for now or, at least, restrict the exposure to a couple, say .... HSBC and Aviva or Pru.

sabretoothtigger

Avoid financials generally and go with companies with good cashflow and foreign earnings in order to give a good dividend.

The price of scrap metal has fallen greatly, dont buy trash just because its cheap,


Technology could be a good bet but its tricky to know which ones, see above. I have my bets but you mentioned none of them.

Prudential report tomorrow, why do you like harmony especially. Paulson hedge has switched from shorting banks to investing in a gold miner

Blah99

Anglo American - No view

Associated British Foods - YEs

Aviva - Yes

Barclays - No

BP - No

BT - No, no, no.

Cadbury - Yes based on recent results

Freinds Prov - No

Glaxo - Yes

Harmony Gold Mining - No opinion

HSBC - No

L & G - No opinion

Lloyds - No

Morrison - Maybe

Prudential - No opinion

RBS - No

Standard Life - No opinion


Just my view and you'd have to pick your entry point carefully. I also suggest Serco and BAE, and replacing BT with Cable&Wireless. Remember, I'm only an up and coming hip hop artist so don't really know anything, and you should never follow my advice.

chucky

Conrad wrote: »

I've looked at some of the index tracker passive funds but the T & C's aren't clear enough to me as to what additional risks might lurk by involving a fund in the chain.

Could a collapse of the group mean my money dissapears along with the rest of the funds assets, OR ARE THEY 100% CAST IRON RING FENCED AND SECURE? The fact they have a good record and are sizeable doesn't cut it with me. AIG, Lehmans, N Rock etc.

I realise shares themsleves can fall, but that's not an issue here, I am merely interested in not adding additional risk to the chain.

Income yield is important, but I will probably still be inclined to include some down at heal Bank shares despite lack of yield, in view of the high capital appreciation potential.

Warren Buffet is saying the spreads have never been this high and they are building cash fast despite thier troubles. He also pointed out very few Banks have ever gone bust

So, your'e top 20 please

how much are you planning to invest in each company?

sabretoothtigger

Standard Life - No opinion

This is a former mutual with many small investors, its got a thread on this board with lots of opinions but none of them will matter as much as your own.

They just went ex-div, results a week old. This is probably the best website Ive seen for timetables on shares

http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=432962