Critique my Investment plan

donniej

It looks like you want to invest in 33 individual stocks. Have you taken the trading costs into account?

Looking at x-o.co.uk (one of the cheapest brokers in the UK) - they charge £5.95/trade. So if you invest £1k at a time, you'll be spending 0.6% on dealing.

As others have mentioned, it's worth looking at collectives (particularly funds and/or ETFs) for this type of thing. They offer lower risk through diversification (i.e. you can invest in many more shares at a much cheaper price than doing it yourself), and the running costs are often lower (a FTSE tracking fund would cost around 0.27% a year for the HSBC FTSE 100 tracker, and the equivalent ETF would cost something similar plus a £6-£15 dealing fee.)

Trackers in particular are very efficient for highly developed markets such as the UK. I'd say that the convenience, lower risk and flexibility outweighs shares for all but the most high net worth investors and traders.

Another advantage of collectives is that the ease with which they're managed would mean you could start considering investing outside the UK - which could be a big boost to your portfolio (both increasing diversification, and potential returns.)

Bazofts_Revenge

As I have stated before trading costs don't worry me. Thursday saw some good news from Aviva they had been one of my foundation stocks, as they fell I had topped up on them. The news pushed them up as such they became 8% of my portfolio and as such I sold stock which had cost me £1500 for approx £1750. I invested the proceeds in Greggs which had previously fallen a lot. Today Aviva have fallen and Greggs have gone up. Charges came to about £20 including Stamp duty but I am happy with the profit and the balancing of my investments.

grey_gym_sock

well, your earlier estimate of 0.08% average costs per year doesn't include the effects of this trimming of some holdings and buying something else instead. if you can estimate how often this will happen, then you could work out a more accurate average.

whether this additional activity will boost returns is hard to say without knowing more about your strategy.

Bazofts_Revenge

Well it has been a bit of a turbulent month so far. All of the capital gains had disappeared so breaking even. I'd held some cash back as there wasn't enough to cover a reasonable investment. Intermediate capital went ex-dividend today and hadn't dropped much so I've taken a gamble and sold half of my original investment and pumped it into Man which I feel has had a much bigger fall than the paying off of Bond holders deserved. Maybe I missed something. Time will tell.

brasso

I don't have a view on those companies in particular, but I do think it's odd that you've chosen to invest all your cash in pretty much one type of investment in one market over such a long period.

Why wouldn't you want to diversify?

A_Flock_Of_Sheep

I am not sure if my approach is passive or aggressive.

I am an income seeker and am searching out income generation some being from shares in companies that are likely to remain paying dividends and that the dividends will grow over time. This is also coupled with some capital growth through investing in the companies. This is mainly via a collective investment vehicle not individual shares.

I am unsure if I would choose Halfords as part of an income generating portfolio.

Straying away from collective instruments; a company I am particularly interested in and am doing quite a lot of research on is Unilever. It appears they have the capacity to pay and grow dividends over time and also it seem that the share price has potential to grow. Another tick in the box (although going on past performance) is that their shares seemed fairly resilient during the 08/09 financial crisis. They are also investing in the emerging markets.

What are the views on Unilever as a single share investment (but included in a broader portfolio) from more experienced investors here? It is interesting to me that Neil Woodford seems to favour Reckitt Benckiser and seems to have sold Unilever.

A_Flock_Of_Sheep

Bazofts_Revenge wrote: »

Well it has been a bit of a turbulent month so far. All of the capital gains had disappeared so breaking even. I'd held some cash back as there wasn't enough to cover a reasonable investment. Intermediate capital went ex-dividend today and hadn't dropped much so I've taken a gamble and sold half of my original investment and pumped it into Man which I feel has had a much bigger fall than the paying off of Bond holders deserved. Maybe I missed something. Time will tell.

This does not sound like "smart investing". It seems like a list of FTSE companies. It does not seem like a very balanced portfolio. Where are your bonds or infrastructure and commercial property etc?

Smith & Nephew are a dividend payer and you don't hold them. How about anything from overseas. Roche for example? How about PayPoint or Provident Financial?

And I would wager you have lost on National Grid and Severn Trent

mollycat

A_Flock_Of_Sheep wrote: »

This does not sound like "smart investing". It seems like a list of FTSE companies. It does not seem like a very balanced portfolio. Where are your bonds or infrastructure and commercial property etc?

Smith & Nephew are a dividend payer and you don't hold them. How about anything from overseas. Roche for example? How about PayPoint or Provident Financial?

And I would wager you have lost on National Grid and Severn Trent

You, on the other hand, going by the content of your recent postings are the epitome of "smart investing"....NOT!

The tone and content of this "advice" is completely innapropriate given your inexperience and lack of expertise.

Lots to learn; reading one book does make you an expert.

Of course if you're simply trolling, (as i think you may be), please ignore this mild rebuke. :)

A_Flock_Of_Sheep

mollycat wrote: »

You, on the other hand, going by the content of your recent postings are the epitome of "smart investing"....NOT!

The tone and content of this "advice" is completely innapropriate given your inexperience and lack of expertise.

Lots to learn; reading one book does make you an expert.

Of course if you're simply trolling, (as i think you may be), please ignore this mild rebuke. :)

1. I don't profess to be "smart" but in relation to what I have read and seen on here this does not seem smart. Please tell me where I boast to be "smart"? Perhaps I am wrong? Do you think this is smart?

2. I don't deny I have lots to learn and don't profess to be an expert. Where have I said I am an expert or have expertise here?

3. I have no thoughts of trolling. Simply offering a view like anyone else. Are you saying I am not allowed to do that then? If you don't like what I say please feel free to place me on ignore. I don't care if you do. Honest.

Ohh and sorry I spoke.

Bazofts_Revenge

A_Flock_Of_Sheep wrote: »

This does not sound like "smart investing". It seems like a list of FTSE companies. It does not seem like a very balanced portfolio. Where are your bonds or infrastructure and commercial property etc?

Smith & Nephew are a dividend payer and you don't hold them. How about anything from overseas. Roche for example? How about PayPoint or Provident Financial?

And I would wager you have lost on National Grid and Severn Trent

Maybe not smart investing but its a game... I like Man as a company from what I have read. Provident Financial are on my list I have about 2.5% of my portfolio in them. As for Roche and Smith and Nephew I don't really know them but I'll check them out. As for property and infrastructure well Segro do that, British land own a lot of property. Overseas well National grid, vodafone, Astra Zeneca, Glaxosmith Kline, Segro again, Inmarsat, Unilever, Nestle and First Group all have overseas as a major part of their Business.

As for your wager well you would have lost. National Grid I am still up by 10.15% and Severn Trent up by 8.97% and those don't figures don't include dividends.

Where I have lost so far is First Group, Carillion, Man, Catlin, and Balfour Beatty. Of those I think Catlin is my next target to invest in. I have on paper lost some capital but in my view these horses are still running so I haven't lost yet.