SOD IT!!! I'm giving up and having a damn good holiday instead!!!

Generali

I think banks fall into the 'yield trap' that I found out about this morning. They are yielding a lot but it's misleading because if/when the credit bubble madness ends, the banks will be in trouble so you don't have the cushion you think you have.

I went to Marlborough yesterday which is why I think Tescos is a good buy. There was one shop in the town that was competition for Tescos. Everything else was chi-chi designer clothes shops and hairdressers. The shares are expensive (and not on BOGOF, sadly) but I reckon worth it.

Utilities are usually good IMHO. Lots of risk with Glaxo as their pipeline is looking dodgy I heard. Also something about their #2 drug being pulled in the US? Not sure. Booze and fag companies are good too I think - lots of their customers are addicts so it's not discretionary spending. And companies that specialise in bankrupcy etc.

And if you invest on the basis of the above you're even dumber than me!

fimonkey

Phew, I think I need an A'level to understand the last few (welcome but confusing) posts!

I do realise the difference between long term and short-term gambling. I played a bit with the bull bearings site and pretend money (http://www.bullbearings.co.uk/ but consistently lost the lot! I thought this site would teach me about the stock market, etc etc, but all it did prove my original thoery that I do not have the acumen to be an investor.

I will do some more reading, but I'm not particularly hopeful.. as i said on another thread.. old dog and new tricks!

Thanks though!

Alan_M_2

Generali wrote: »

Anyone with an internet connection can read Wozza's Words of Wisdom.

I'm always interested in the life stories of people like this, mostly in the mechanics of how they got it all off the ground, not how they turned Millions into Billions.

I picked up His Autobiography and after the first few pages I simply wasn't interested.

In the 1950's when He started all this, his friends and family gave him a "seed" to get started in the investment business. That seed was $250,000 (equivalent today to upwards of $5million).

Of course this takes nothing away from the fact the guy excels at what He does, but lets be honest, if you manage to make single figure returns on the equivalent of $5 Million a year you don't really have to work too hard do you.

Nothing to do with the content of the thread of course, and I do understand why people think so highly of Warren Buffet, but I don't think many people realise that He didn't exactly start from the bottom rung. That just took the edge off it for me.

Generali

Alan_M wrote: »

I'm always interested in the life stories of people like this, mostly in the mechanics of how they got it all off the ground, not how they turned Millions into Billions.

I picked up His Autobiography and after the first few pages I simply wasn't interested.

In the 1950's when He started all this, his friends and family gave him a "seed" to get started in the investment business. That seed was $250,000 (equivalent today to upwards of $5million).

Of course this takes nothing away from the fact the guy excels at what He does, but lets be honest, if you manage to make single figure returns on the equivalent of $5 Million a year you don't really have to work too hard do you.

Nothing to do with the content of the thread of course, and I do understand why people think so highly of Warren Buffet, but I don't think many people realise that He didn't exactly start from the bottom rung. That just took the edge off it for me.

Absolutely true. He has managed to make returns of 20% pa for about 40 years which is incredible. That would turn £100 into just shy of £150k. £700 invested in 1967 would have turned you into a millionaire!

A mate of mine works for his syndicate at Lloyds and meets him once a year.

nelly_2

fimonkey wrote: »

Phew, I think I need an A'level to understand the last few (welcome but confusing) posts!

I do realise the difference between long term and short-term gambling. I played a bit with the bull bearings site and pretend money (http://www.bullbearings.co.uk/ but consistently lost the lot! I thought this site would teach me about the stock market, etc etc, but all it did prove my original thoery that I do not have the acumen to be an investor.

I will do some more reading, but I'm not particularly hopeful.. as i said on another thread.. old dog and new tricks!

Thanks though!

I'm crap at gambling too I feel as if ive been mugged when I lose.

Although in Vegas I got leathered on the free cocktails the birds bring round

Which was nice

brasso

fimonkey wrote: »

Phew, I think I need an A'level to understand the last few (welcome but confusing) posts!

I do realise the difference between long term and short-term gambling. I played a bit with the bull bearings site and pretend money (http://www.bullbearings.co.uk/ but consistently lost the lot! I thought this site would teach me about the stock market, etc etc, but all it did prove my original thoery that I do not have the acumen to be an investor.

I will do some more reading, but I'm not particularly hopeful.. as i said on another thread.. old dog and new tricks!

Thanks though!

Ah, but that's why I like the high yield strategy. It's pretty much a 'mechanical' method. You are actually discouraged from trying to understand too much about the world surrounding the business. The idea (roughly) is that if the yield (dividend payout) is high and has a history of increasing, and the business is huge enough (as the FTSE100 companies are), then your investment is pretty safe, and will give you an income. It was precisely because I didn't have the time and spare stress capacity to worry about volatile equity gambles that I'm ending up siding with the 'big caps'. As I said, an hour or two max of reading the HYP FAQ (link posted earlier) may convince you.

Or may not...

brasso

Generali wrote: »

I think banks fall into the 'yield trap' that I found out about this morning. They are yielding a lot but it's misleading because if/when the credit bubble madness ends, the banks will be in trouble so you don't have the cushion you think you have.

I went to Marlborough yesterday which is why I think Tescos is a good buy. There was one shop in the town that was competition for Tescos. Everything else was chi-chi designer clothes shops and hairdressers. The shares are expensive (and not on BOGOF, sadly) but I reckon worth it.

Utilities are usually good IMHO. Lots of risk with Glaxo as their pipeline is looking dodgy I heard. Also something about their #2 drug being pulled in the US? Not sure. Booze and fag companies are good too I think - lots of their customers are addicts so it's not discretionary spending. And companies that specialise in bankrupcy etc.

And if you invest on the basis of the above you're even dumber than me!

The notion of "strategic ignorance" protects you from worrying about all that.

http://boards.fool.co.uk/Message.asp?mid=10554265

Generali

brasso wrote: »

The notion of "strategic ignorance" protects you from worrying about all that.

http://boards.fool.co.uk/Message.asp?mid=10554265

Thanks, excellent article. That's a top website. I lurk on it a lot and post ocassionally.

brasso

Generali wrote: »

Thanks, excellent article. That's a top website. I lurk on it a lot and post ocassionally.

You're right. It took me a long time to take Motley Fool seriously but then I discovered the discussion boards. In fact, I only ever read the High Yield and occasionally the Value Shares one. I'm sure there's a lot of great stuff on the other forums. I don't think I've ever posted but I'm always immensely impressed with the knowledge on display, and the scholarly way things are discussed.

Jim_B_3

Back to the original post, I grew sick of the idea of taking on a six figure debt and started doing all the things I really want. I've got my motorcycle licence (and my shiny bike), my skydiving licence, a handful of yacht skipper qualifications and, interestingly enough, very little time to spend inside the rented flat. I also feel very fulfilled and happy with my life.
You can get a six figure debt for the rest of your working life any time you like, and lots of people are more or less forced to get them for family reasons. If you have the opportunity to do things you've always wanted (diving in the red sea - excellent idea - I thoroughly recommend you also learn to skydive, the similarities and the juxtapositions are awesome), then I say do it. It's not throwing away your money, it's doing what matters to you.