House ownership - Selling yourself into a lifetime of servitude

twadge_face

chucky wrote: »

who died and left you in charge !!!!! face?

do you need a cuddle?

Cleaver

PasturesNew wrote: »

You can see why people buy houses as 'investments' - all that shares stuff's right over the heads of ordinary people.

I never understand all this stuff about shares being complicated.

1) Take a company
2) Split it in to loads of fractions called shares
3) The public can then buy these shares
4) These shares go up and down generally in line with the success of the company
5) A lot of companies give you a 'share' of the profit once or twice a year in the form of a dividend

That isn't really complicated is it? I would suggest that buying a property and renting it out probably has more steps and complications that buying some shares. I can choose a company and buy shares in it in around 10 minutes with a few clicks of a mouse.

IveSeenTheLight

lisyloo wrote: »

Yes, certain individual shares can.
But what most if not all advisors would advise you to do would be to have a diversified portfolio.
If you take the idea of a "fund" then the idea is that if one or two shares do badly (as inevitaby some businesses will), the other 98 do ok or well, so OVERALL you do alright.
If you want to invest in individual shares rather than funds then you can still diversify.

Investing in a single share has always been very risky, but most people would not do that.
It's a risk/return trade-off.

Totally understand that, but then again to do so , you'd need additional funds to diversify with.

It's just a personal thing, I've seen too many examples of where shares have done badly that I go for a safer return.

Thrugelmir

IveSeenTheLight wrote: »

Shares can be volitile and can never recover.

Nothing lasts for ever. Spread the risk. So that the correlation between asset classes means you are at least hedging a profit at any time. Rather than trying to back an outright winner at the expense of all else.

Though even the rocket scientists got it wrong in their investment models. As they overlooked one important fact. On occasions all asset classes can move in the same direction .......downwards.

sabretoothtigger

the humour of 'Murdock'

Dont forget he flew the heli, dude had skills


STing you stole my av man, I will have to change mine now :mad: