Critique my Investment plan

Rob_192

BR, a sound strategy in my opinion. You are effectively seting up a high yield portfolio. My only concern would be your choice of companies. Certainly you need diversification but you need a clear stategy to choose approriate robust companies with a history of divident payments etc. Some of those on your list are suspect to say the least. If you're not already familiar with it have a look in The Motley Fool forum on the High Yield - HYP Practical board - you should find all the answers there that you require.

R

racing_blue

I count 33 UK blue chip shares there. I'd anticipate that your portfolio will track very closely the FTSE. Which begs the questions:

is your strategy cheaper than a FTSE tracker?

and

is a FTSE tracker the best way to invest for growth now and income in 20 years time?

Froggitt

racing_blue wrote: »

is your strategy cheaper than a FTSE tracker?

Yes, as no-one is skimming their share from the top.

racing_blue

Froggitt wrote: »

Yes, as no-one is skimming their share from the top.

It might still be worth weighing up dealing fees, stamp duty etc vs the cost of drip feeding into a very low cost index tracker?

geoffken

Well you can invest with Halifax sharebuilder on a monthly basis for £2 per purchase and dividends reinvested for 2% of dividend then that could be a cheap way of managing these shares.
With capital gains only being over £10000 per year I really wonder sometimes why people have Self invested ISAs although Halifax again is only £12.50 per year.
No relationship with Halifax other than happy customer.
Will also accept transfers of shares held elsewhere for free!

saintalan

geoffken wrote: »

...Self invested ISAs although Halifax again is only £12.50 per year.
No relationship with Halifax other than happy customer.
Will also accept transfers of shares held elsewhere for free!

Well that £12.50 has only just kicked in last month.

Previously it was .05% per month, through my bad management I paid over £100 last year on 4 stocks plus don't forget the still £11.95 per trade.

Much better annual charge but I am looking around too.

grey_gym_sock

racing_blue wrote: »

is your strategy cheaper than a FTSE tracker?

Froggitt wrote: »

Yes, as no-one is skimming their share from the top.

what are your average annual costs as a %?

they may be less than a tracker. it depends whether your investments are big enough - there's no chance if they're too small. also on how low-cost your provider(s) are. also on how often you buy and sell.

Bazofts_Revenge

Hi, Thanks for all the comments, The only regular costs are my ISA management charges which came through as £6 for the last month. I have 2 years worth of full ISAs in amongst them. I've only been invested since mid Feb and so far things are going OK, Yes Balfour Beatty is a disappointment right now. But one or two others in that time have climbed by over 20%. I didn't invest for capital growth but any growth is welcome. Dividends are just about to come on line and start paying out regularly. Man has been fantastic but it has been a bumpy ride. I bought £2000 worth at £1.08 when they dropped to £1 I bought £2000 more. They then dropped down to roughly £0.80 but I held my nerve and when they bounced suddenly to £1.04 I sold enough to balance my exposure to £2000 again but with more shares. I wish I had held on as they are now at £1.25 but never mind.

Halfords has been a big surprise giving me a gain of 28.1%

As for investing in a fund there would be no fun having someone else do it. Any special dividends would be spread out among others. If someone bought out one of my companies in a fund my reward would be heavily diluted. I believe running a fund like this isn't time consuming I believe I have carefully chosen them and as such don't need to micro manage it.

Greggs has fallen quite dramatically. My next investment is likely to be in them or Balfour as they are minority investments less than 2% of the total.

grey_gym_sock

Bazofts_Revenge wrote: »

The only regular costs are my ISA management charges which came through as £6 for the last month.

but i also mean irregular costs - i.e. what will total costs be in an average year, as a % of the value of investments.

for buying and selling costs, you can calculate that by first working out the total costs to buy and then sell, as a % (stamp duty at 0.5%, + dealing commissions to buy and sell, + bid-offer spread); and then dividing by the number of years you expect to hold a share before selling.

e.g if buying and selling costs 2%, and you hold shares for 2 years on average, then that's 1% per year.

(to compare: a tracker should cost 0.5% per year at most.)

Bazofts_Revenge

0.08% annual charge.

11.95 commission and £5 vat the investments are to be held for 20 years+