Beginner - how to invest 10k?

DaveTheMus

Drp8713 wrote: »

If you bought Unilever or Centrica this year you could be more than 15% down depending when you bought. How is that capital safe? And even some experienced investors don't touch AIM, the volatility and even bid/offer spreads due to lack on liquidity could cause anybody who wants their money out at a specific times big problems

The OP needs his money in '3-5 years'

3 years ago Unilever was 1900p per share today 2445p per share.....

3 years ago Centrica was 344p per share today 344p per share......

If you include the 5% dividends the performance over 3 has been better than an ISA.......


He obviously could have sold any time between then and now when the prices were much higher....

DaveTheMus

ColdIron wrote: »

And down how much in the OPs time-frame of 3-5 years?

No responsible Financial Advisor would recommend anything other than a deposit account for the OPs circumstances and requirement

I'm not a financial adviser, the guy asked for advice on a public forum, I gave him advise based on what worked for me....he can decided whether it suits him or not I'm sure

innovate

DaveTheMus, you gambled, and you were lucky. You could have equally been completely unlucky, or something in between.

Your recommendations are irresponsible, but hopefully the OP will see right through your half-baked suggestions, and instead opt for the much more informed suggestions by other posters.

OP, search the forum for books and Internet sites to read about investments before you commit any of your money. There's a bit of a science to it, and it's certainly not to blindly jump on shares others have made a profit from in the past. In fact, as any good literature will explain in great detail, buying shares as a newbie with £10K at your disposition would be just about the worst thing you could do.

A_Flock_Of_Sheep

If you need the money short term deposit accounts are the way to go.

ULVR suck. They were the dud in my portfolio when I was tinkering. Granted I didn't hold them long but offloaded them and the declined even more.

DaveTheMus

innovate wrote: »

DaveTheMus, you gambled, and you were lucky. You could have equally been completely unlucky, or something in between.

Your recommendations are irresponsible, but hopefully the OP will see right through your half-baked suggestions, and instead opt for the much more informed suggestions by other posters.

OP, search the forum for books and Internet sites to read about investments before you commit any of your money. There's a bit of a science to it, and it's certainly not to blindly jump on shares others have made a profit from in the past. In fact, as any good literature will explain in great detail, buying shares as a newbie with £10K at your disposition would be just about the worst thing you could do.

It's a fair point.....never invest what you're not willing to lose and all that, and AIM companies are probably a bridge too far for an inexperienced investor.....

Too clarify I wasn't telling him to invest in Unilever and Centrica specifically, I was using them as an example of the types of companies to invest in.

Both companies are market leaders, both companies sell basic necessities, be it soap and toothpaste or gas and electricity and both companies offer good dividends.

I wasn't trying too cause the guy any problems, just giving an alternative approach that he can research in his own time. That's the key, doing as much research as you can from as many different sources as you can.

jimjames

DaveTheMus wrote: »

I'm not a financial adviser, the guy asked for advice on a public forum, I gave him advise based on what worked for me....he can decided whether it suits him or not I'm sure

I've had some similar gambles pay off too - but others that have not. Difficult for them to make a decision based on untrue statements from you though.

DaveTheMus wrote: »

Not true at all....

If you put £4000 in Unilever and £4000 in Centrica and reinvested the dividends your capital would safe and you'd be getting a 4% and 5% dividend respectively..

I think the main issue I would have with your "advice" is the statement that capital is safe. This is totally and utterly untrue and gives a highly skewed and false impression to someone who has admitted they are inexperienced with shares. As such it is very dangerous to make as a suggestion and is on par with the gold bugs last year claiming that gold was the safest place to keep any savings - funnily they aren't saying that anymore. Based on your following responses you don't seem to have grasped that what you are claiming is untrue.

A_Flock_Of_Sheep

DaveTheMus wrote: »

It's a fair point.....never invest what you're not willing to lose and all that, and AIM companies are probably a bridge too far for an inexperienced investor.....

You don't sound very experienced to me. Experienced investors wouldn't gob off the way you have coercing people into investments way beyond their risk profile.

People *may* think their risk tolerance is high but when it comes to the crunch they fill their pants when the chips are down and then slag off investing as being "gambling" and would never touch it again.

swingy

Thank you all for your points of view - it's all valid. I'd very much NOT invest my money myself - I don't have the knowledge, and building up the knowledge is something I think could easily take the 3-5 years I'll need it back within!

What I really want is to hire an informed professional to invest this amount for me, managing it themselves, knowing when to sell etc. I was under the impression FAs provided this service, but I may have misunderstood - if so, can you point me toward the service providers I'm looking for, assuming they exist?

I won't do anything rash, I'm just gathering information from more experienced investors. By all means if doing something completely different than stocks/shares/bonds has worked for you tell me about it.

A_Flock_Of_Sheep

swingy wrote: »

Thank you all for your points of view - it's all valid. I'd very much NOT invest my money myself - I don't have the knowledge, and building up the knowledge is something I think could easily take the 3-5 years I'll need it back within!

What I really want is to hire an informed professional to invest this amount for me, managing it themselves, knowing when to sell etc. I was under the impression FAs provided this service, but I may have misunderstood - if so, can you point me toward the service providers I'm looking for, assuming they exist?

I won't do anything rash, I'm just gathering information from more experienced investors. By all means if doing something completely different than stocks/shares/bonds has worked for you tell me about it.

It does not take long to grasp some of the rudimentary elements. I started reading up about July time but had already been "gambling" with a S&S ISA but as innovate said - I just got lucky. In May things fell down but I had sole everything before then to start again being more informed.

I think the general rule of thumb is to begin with a diversified fund as a core of you portfolio. May go with the Vanguard LifeStrategy system. I think there is also a Fidelity diversified package too? Can someone confirm this and the name as I am interested in looking into that one.

After establishing a "core" people then take out more riskier funds and trusts such a small companies and natural resources.

There was a thread on here about natural resources which are falling. People seem sketchy if they will fall further. I am tempted to try a Resources Investment trust as a diversification but feel reticent.

Wilkins

DaveTheMus wrote: »

I think it's a bit offensive you think I would offer this advice with something sinister in mind...says more about you than me IMO.....

That was a silly thing to say and I apologise. I accept that you have done well in your investments (as have I), but we have been in a bull market for the last few years when almost anyone could have made money. This is not necessarily going to continue.


If the OP ventured into equities s/he could easily be sitting on 30% losses in 3 years as opposed to just preserving real value in cash.