Buying shares for the first time into BP

jellybean09

I am looking to purchase £3000 in BP shares maybe tomorrow.

I am a first time share buyer and pretty clueless. I have been looking into the interactive investor website but not sure if this is the best way to purchase them.

I am looking to hold them for 12 months and then depending on the worth decide whether to sell or hold longer.

I don't really understand the cost side of things and whether there are fees and to whom?

Can anyone give me a basic run down on things?

RayWolfe

jellybean09 wrote: »

I am looking to purchase £3000 in BP shares maybe tomorrow.
I am a first time share buyer and pretty clueless.

Now there's a statement of the bleedin' obvious!

welshmoneylover

jellybean09 wrote: »

I am looking to purchase £3000 in BP shares maybe tomorrow.

I am a first time share buyer and pretty clueless. I have been looking into the interactive investor website but not sure if this is the best way to purchase them.

I am looking to hold them for 12 months and then depending on the worth decide whether to sell or hold longer.

I don't really understand the cost side of things and whether there are fees and to whom?

Can anyone give me a basic run down on things?

Although BP are a massive company they still haven't capped the bl00dy well off yet.

If you still want to go ahead I wouldn't spend quite so much, perhaps go about 250-300 shares to start off with. There are alternative shares out there that aren't so risky.

Sceptic001

Are you prepared to lose your £3000? If not, do something else with it.

jellybean09

Sceptic001 wrote: »

Are you prepared to lose your £3000? If not, do something else with it.

I am obviously following the issues surrounding them at the moment, but didn't think that an investment would be a complete waste of time. why would you say not to go for it?

lvader

It might be worth a punt but I think it's a gamble rather than an investment. Shell would be much less risky.

leahciM

to OP, you need to think seriously about what you are trying to achieve through your investments.

The extent of the BP disaster is not yet known, there's still lawsuits, clean up, compensation to pay and that's not even including the fact that the well has not been plugged yet.

In reality, I do not think that BP shares will not 'bounce' back to anywhere near where they were pre-crisis for another 3-5 years as there is just too much direct and collateral damage from the spill.

With all this is mind, BP's shares are,as Ivader put it so well, a gamble rather than an investment, and I can't imagine that you're running down to the local bookies to whack three grand on who's going to win the world cup?


My main advice is don't be so quick to risk your money. You say you are clueless to investing, but there has never been a better time to be an investor- the internet has opened up companies' annual reports to anyone who knows how to use Google, and you should use that fact.

If you don't know what to look for in company reports then I'm sure typing "Investing basics" into Google will also grant you a world of help.

Hope this helped.

Sceptic001

jellybean09 wrote: »

I am obviously following the issues surrounding them at the moment, but didn't think that an investment would be a complete waste of time. why would you say not to go for it?

I didn't say don't go for it, I said don't go for it if you are not prepared to lose your money. I suspect that it is the FTSE 100 (or even FTSE 350?) company most likely to go bust. As Ivader says, it is more a gamble than an investment.

jellybean09

leahciM wrote: »

The extent of the BP disaster is not yet known, there's still lawsuits, clean up, compensation to pay and that's not even including the fact that the well has not been plugged yet.

In reality, I do not think that BP shares will not 'bounce' back to anywhere near where they were pre-crisis for another 3-5 years as there is just too much direct and collateral damage from the spill.

With all this is mind, BP's shares are,as Ivader put it so well, a gamble rather than an investment.

.

It has helped greatly thanks. I know it all sounds a bit gung ho just running to the first thing and putting a load of money into it. Which is why I came here I suppose. I have some money aside and would really like to make a return of some form next year. Obviously investing it will be a gamble in many respects, which I am willing to take, but not a massive gamble. My lack of financial knowledge is obviously putting me at risk of losing out.

stormy_2

Hi,
I have just purchased in the last week a small amount of shares in BP (not enough to worry about) and will hold long term if need be.

The next economic boom whenever it comes will drag pretty much all stocks up, even this one assuming it's still around.
This coupled with the scarcity of oil and recent 50% drop in share price has prompted my purchase.

It's only my opinion but anyone purchasing a small amount of stock with a long term view will be simply taking a calculated risk.

To the original poster: online trading should cost you around 10-15 pounds per transaction in my experience, I use Halifax sharedealing but there are lots of alternatives.
Best of luck with whatever you decide to do and although the figure you mention seems a lot I guess it depends on your financial situation, just be prepared for any losses if it goes down.

stormy_2

Hi Jellybean09,
Sorry I've just seen your last message and you mention just wanting to make a return next year, I do too and have put money in NS&I Index linked savings certificates (my money is safe).
Make no mistake share investing can be very risky hence my modest purchase of BP shares, I write this because it sounds like you need to have a good think and realise what a high risk you would be taking.
I understand fully the risks and have invested in companies that have gone bust before (losing my money).

Have a think mate and I hope this has helped.