Which shares are you buying in 2016 and why?

Linton

I may buy a few cheap Shell shares as a small rebalance of my income portfolio. The bulk of my investments will remain unchanged as I am fairly happy with their current allocations.

enthusiasticsaver

I only invest in funds as I think individual shares are too risky. I concentrate on just investing in a multi asset, global fund at a level of risk I feel comfortable with which is well diversified. I also don't think I know enough about investing to select individual company shares. How do you know these companies won't go out of business if they have a bad few years?

Thrugelmir

Marine_life wrote: »

Its certainly not a slam dunk ...but...a few people are backing a bounce back and dividends are guaranteed for the next two years.

Time will tell.

Going to take something stellar with both revenue and profitability in decline. Forecast dividends exceed expected free cash flow. So GSK currently will be taking on more debt to fund the dividend over the next 2 years.

george4064

Expect some sort of corporate action activity in one form or another regarding GSK, potentially a break-up of the giant pharmaceutical company.

Bazofts_Revenge

Royal Mail as the price is well below where I last sold them and the dividend looks to be holding up.

Rio Tinto Zinc just a punt...

Diagio - Topping up portfolio

Sainsbury - Topping up portfolio but the Argos bid has put me off a bit so will wait a while.

Tungsten PLC - I like their product/service but I have been burnt with a 50% loss on my first £1k investment but hey its only money.

Flobberchops

If you're not adverse to a bit of a gamble, Anglo American (LON: AAL) are selling at an all-time low and have (somehow) maintained a decent dividend post-2009. Mining stocks have to recover at some point... right?

Glen_Clark

Thrugelmir wrote: »

Going to take something stellar with both revenue and profitability in decline. Forecast dividends exceed expected free cash flow. So GSK currently will be taking on more debt to fund the dividend over the next 2 years.

There may be something stellar in GSK new drugs pipeline. But I don't know what, and I probably wouldn't understand it if I did - or wheher their competitors will have something better. And I don't like borrowing to fund dividends - I think it typifies the short termism of English management. So I won't be buying GSK shares.

Sam_J12

I am considering two individual shares this year:

Lloyds, due to the government discount

Berkshire Hathaway, due to it being traded at a substantial discount to intrinsic value at the moment and as an alternative to the seemingly overvalued S&P500.

crux

Sam_J12 wrote: »

Berkshire Hathaway, due to it being traded at a substantial discount to intrinsic value at the moment and as an alternative to the seemingly overvalued S&P500.

I'm Interested in why it's lost share value this year, I don't follow BH closely but looking forward to reading Warren's letter this year.

Sam_J12

crux wrote: »

I'm Interested in why it's lost share value this year, I don't follow BH closely but looking forward to reading Warren's letter this year.

I think it is probably due to nervousness in the market in general, and not due to underlying factors which all seem fine. I believe they managed to grow their earnings (again) over the previous year, so it really does look like a bargain. I expect them to buyback significant numbers of shares some time soon.

I too am looking forward to the shareholder letter