ISA Millionaires .... and multi-millionaires!

Wobblydeb

I stumbled across this today, and thought I just had to share it.....

http://www.ft.com/cms/s/2/836a4c76-d309-11df-9ae9-00144feabdc0.html

There are some very good points (certainly for me, anyway ) from the interview with Balbir Bagria. He took a 20% hit when the tech market started to crash in 2000 .... but saved his hide by not hanging on waiting for things to get better.

Stop losses are clearly the way forward!

dunstonh

Stop losses are clearly the way forward!

Not necessarily as you dont know where the bottom is or when to re-buy. You could come out where there are still 20% gains possible and miss the bottom by another 20% Rebalancing is typically the better option but that requires diversification. So, someone too heavy in techs (or any other bubble investment) would have had problems without a stop gap but they are taking a big risk to begin with.

Jonbvn

Shows what can be accomplished with good stock picking.

This is the main reason we have stopped paying into cash ISA's all together and will transfer them over to S&S ASAP.

Biggles

Wobblydeb wrote: »

Stop losses are clearly the way forward!

They are if you are a trader, that guy only holds for six months to a year.

They're a lot more problematical if you are (like the majority, I would think) someone who buys with the aim of holding a share for the mid- to long-term.

Whilst they can still be useful then to lock in big gains, they can also throw you out of a share in a period of weakness that later comes good.

cashbackproblems

These kinds of money are only available to those who take risks and invest in exploration companies in oil/gas/mining, buying 10k in Vodafone shares wont make you rich!! Iv invested in a couple of these firms and have generally chosen the right firms just bought in at the wrong time, which means you have to wait 2yrs+ for it to pay off.

As im not a high earner i fill up my cash isa first then usually have max 5k to put into the S+S ISA, but as you cant put AIM stocks in here i go with ftse 100 companies.

Wobblydeb

cashbackproblems wrote: »

As im not a high earner i fill up my cash isa first then usually have max 5k to put into the S+S ISA, but as you cant put AIM stocks in here i go with ftse 100 companies.

What about some FTSE Smallcap if you fancy some excitement? They can be held in S&S ISA....

rockitup

Reading through the FT article brought me back to my first serious investments in 1998 and 1999. Warrants giving right to buy Capital shares on the Fleming Income & Growth Split Capital Trust and then the same on the Fleming Asian Trust. £3k grew into £29,900 in less than 2 years. Would like to get returns like that again for next couple of years, gearing is great if the markets head in the right direction.... but not so good for the old BP (hypertension type) lol

Sauveur

cashbackproblems wrote: »

buying 10k in Vodafone shares wont make you rich!!

Don't knock Blue Chips. I bought Vodafone at low 120s earlier this year and they are currently 166ish. Including dividends that's around a 40% return.