Stock picking

TheTracker

The only stock I'll ever buy directly is Knorr!

slowpoke_rodriguez

I've made more money on shares beginning with A than any others, and I've never lost money on "A" shares.

LL is a different matter altogether...

Glen_Clark

economic wrote: »

when a stock falls 30% in a short amount of time usually its because of profit warnings and dividends will most of the time get cut.

Its even worse when hubristic management massage the figures and dividends don't get cut, despite plunging profits, because the company will inevitably be forced into a rights issue or worse

Glen_Clark

Linton wrote: »

The trouble is trackers dont give you so much income. If you have retired, extra fairly steady and fairly effort-free income comes in rather handy especially if it is tax-free. .

When Gideon starts double taxing share dividends next year, you might be better selling a few tracker shares for income and using your CGT allowance?

eskbanker

TheTracker wrote: »

The only stock I'll ever buy directly is Knorr!

Don't you find your holding often gets diluted though?

Linton

economic wrote: »

when a stock falls 30% in a short amount of time usually its because of profit warnings and dividends will most of the time get cut.

That is why you diversify. Most stocks dont fall 30% and cut their dividends. I sell when the dividend is less than around 3.5% and reinvest in something with a higher return. The yield can fall because the company cuts the dividend but just as often in my experience it is because the share price has risen more than the dividend. The gains you make in this way more than balance out the losses you make by selling after a fall in share price and a dividend cut.

But whatever happens the income keeps on coming in.

Thrugelmir

bigfreddiel wrote: »

How do you pick individual stocks to invest in?

Might read a piece in say the Investors Chronicle. Track the Company for a while and obtain a copy of annual accounts. Need to understand the business model of the Compmany, it's objectives etc. Transparent balance sheet. Quality management team helps. Buy when consider price is attractive. When Companies hit £50 million capitalisation that sparks more serious interest. Cineworld is a Company that I like the product of for example. That's what triggered my buying of stock. I can actually get a feel for the business hands on.

Do you have an edge over the 'professionals' who have resources and access to information an individual can just not match.

Smaller companies tend to get overlooked. As there's insufficient liquidity for the big boys to buy a stake. Some companies it's hard to trade in 500 to 1,000 share parcels. Sometimes I haven't been able to buy as there's no one selling. With news wires there's no chance of beating anyone to it these days.

Any resource you do have or information you base your decisions on has already been built in to the share price.

I buy long term to hold. So current yield etc play a part. Buying when ex div. There's always a quiet time when a stock drifts if there's no news to focus attention.

So how do you do it?

Drip feed very slowly.

Cheers fj

.................:xmassign:

TheTracker

eskbanker wrote: »

Don't you find your holding often gets diluted though?

Haha indeed!

Actually just realised I invested directly in quite a few companies this year through crowdfunding (exhibit A)

bigfreddiel

Thanks to all that replied, I'm gradually reducing the number of individual shares, and moving to ITs. I already hold a core of four or five ETFs, even that I'm reconsidering.

Cheers everyone, fj

Thrugelmir

bigfreddiel wrote: »

Thanks to all that replied, I'm gradually reducing the number of individual shares, and moving to ITs. I already hold a core of four or five ETFs, even that I'm reconsidering.

Cheers everyone, fj

My core holdings are IT's. Impossible to keep track of that many individual shares at a time.