Whats been your biggest financial blunder

gadgetmind

AlwaysLearnin wrote: »

Surely a house that's going to be your home has room for a bit of heart purchase...?

I will grudgingly accept "a bit".

YoungBusinessman

Gambling. Got on a run and upto £5,000 in betting account at 18. Lost that and then some. Bet in moderation now though, lesson learned.

gadgetmind

OK, here's a blunder from me, but it was also a constructive experience.

Back in the early 80s, myself and a couple of mates developed a software product while at uni that sold like hot cakes. We cleared £250k profit rather quickly, which was a fair bit of money back then!

A year later, we had close to zero to show for it because we assumed we could just do the same again and make loads more money on demand. Let's just say that it wasn't that easy!

JohnnyJet

My worst financial decisions in order from not so bad to disaster -

1. Missing out on RAC shares because I cancelled my subscription shortly before they gave them out. Was with them for over 10 years.
2. Chelsea village shares.
3. Bradford and Bingley shares.
4. Icesave account.
5. Paying a builder too much up front then watching him gut the place and do a runner. Lost over 75k plus had to pay for all materials again and spent 4 years repairing the damage.

itsanne

Having children!

Not selling Northern Rock shares before they were stolen - I still don't understand why it was acceptable for just those ones to be rendered totally valueless for ever yet Northern Rock continue :mad:

sabretoothtigger

Debt ranks over shares. Gov covered the debt so they own it. Shares are always more risky like that, when it rains it pours.

It was the management who stole it by investing capital badly, when the bill came they werent paying.

More 'worst' mistakes by me, not realising banks were so leveraged to asset worth.
Not taking Apple despite realising fully USA was lagging in mobiles and that gap was highly profitable in future. Voda at 110p would have made up for it as thats benefitted but I wasnt 'sure'
Similarly not taking Google IPO because the share was a high price it was cheap.
Using windows in 1990 and knowing it was a quantum leap for the masses but not buying microsoft then or later on various successes, despite recommending others do so.
13k --> 1m

Signing up to the Bombay Sensex trust in 2000 but taking FTSE instead because it had lower fees. Its quadrupled

Glen_Clark

If you include things we have not done we must all have made blunders because we have all missed some good investments.
Mine would be leaving 50% in instant access cash accounts over the last year waiting for some bad news from Europe etc to create a buying opportunity

JohnRo

Glen_Clark wrote: »

Mine would be leaving 50% in instant access cash accounts over the last year waiting for some bad news from Europe etc to create a buying opportunity

Very sensible too i'd say, sure, it's like bloody toothache waiting for the correction but look at the indices for all major economies over the last 20+ years. Is it really different this time?

You want to be in the market but it's better to have a plan B. Other than a QE fuelled feeding frenzy there is nothing I can see supporting this rally. That fraction of a % or so lost each year to inflation in a savings account might well look like money very well spent when the current euphoria evaporates.

I've chosen high yielding corporate bond collectives as a backstop for my investments so whether that itself ends up being a financial blunder only time will tell. The equity positions I control are all index linked collectives and i'll be looking to take profits from them over the next year or two if they increase substantially.

Glen_Clark

JohnRo wrote: »

Very sensible too i'd say, sure, it's like bloody toothache waiting for the correction but look at the indices for all major economies over the last 20+ years. Is it really different this time?

You want to be in the market but it's better to have a plan B. Other than a QE fuelled feeding frenzy there is nothing I can see supporting this rally. That fraction of a % or so lost each year to inflation in a savings account might well look like money very well spent when the current euphoria evaporates.

I've chosen high yielding corporate bond collectives as a backstop for my investments so whether that itself ends up being a financial blunder only time will tell. The equity positions I control are all index linked collectives and i'll be looking to take profits from them over the next year or two if they increase substantially.

Yes I think its only held up by money printing too. Cheap money is boosting company profits and making them look even more attractive than cash - for as long as the cheap money lasts.
Meanwhile my 3+% instant access accounts are running out and I am putting it into 2% accounts opened last month - even that is above whats on offer now. But I'm thinking of the classic mistake of sitting on the sidelines then finally piling in - right at the top of the market.:o

JohnRo

Should have added, I too have a big chunk of cash sat twiddling it's thumbs waiting...