Taste the difference

jimjames

bowlhead99 wrote: »

There are literally hundreds such examples of private equity adding value.

Some of my best investments have been in private equity. I'd much prefer to put money into them than Sainsburys and still hold ICGT and PIN shares.

letspretendforaminute

bowlhead99

How did you work out I’m in a low tax band? FYI. In the top 2% of earners with two children at a top private school. The fees alone would make the 40% bracket. Why make this personal?

letspretendforaminute

bowlhead99 just to mention that you made a pretty dumb statement earlier with regards to technology being intergrated into their business. I didn’t bite and to put this into perspective £50,000 represents ~18months of our disposable income so as a contrarian investor it’s an acceptable risk for me. My car cost that - chump change

bowlhead99

letspretendforaminute wrote: »

bowlhead99

How did you work out I’m in a low tax band? FYI. In the top 2% of earners with two children at a top private school. The fees alone would make the 40% bracket. Why make this personal?

In post #1 at 9pm you say that 20% of your £113k pension is in Sainsburys (i.e. £22.6k or approx 10,000 shares) and you are asking for our thoughts on your future plans.

By post #7 just after 10pm the same night you currently hold 12500 Sainsburys shares or approx £28.5k

By post #14 after the stockmarket has been open for 70 minutes you have spent about £21k on a whim, adding the 9423 shares to the 12047 that you apparently now decided you had, so now you have 25000 shares or £49k worth, seemingly for no other reason than £49k was the value of your pension when you looked at it in 2012.

In post #7 you work for a private equity company, but in 26 you are referring to private equity as touching companies with a 'poo stick'; in 34 you know of 200 people that you could list that have wound up companies while trousering tens of millions via private equity and in 36 you are happily talking about companies going bad because of private equity. You clearly have some sort of axe to grind there.

In post #1 you plan to add to your pension with contributions of £250 a month which will give you £312 of investment with the tax relief. However, in post #43 you are in the top two percent of earners which implies comfortably over £80k a year income. So, your marginal tax rate would be 40%, 60% or 45% depending where exactly your salary is between £80k and £150k+; meaning £250 gets you £417, £456 or £625 of Sainsbury shares rather than merely £312.

In post #5 you have modest expenditure and a simple lifestyle. In post #43 your spending on your kids' education alone would make 40% tax bracket i.e. in excess of £45,000 a year and you spent £50,000 on your car.

In post #1 you were looking to go all in with 100% of your £113k pension plus your new £250 a month all going into Sainsburys and hope to turn it all into £300k, which would be 'not bad for what is beer money'. I pointed out that £300k in twenty years typically takes £70k+ to be invested and it's clearly not beer money - as did others. You agreed in post #5 that £49k wasn't beer money and you were a man of modest spending ; but by post #44 you mention that £50k is chump change.

While you were busy tying yourself up in the above knots of inconsistency you put forward an overly simplistic view of what Sainsbury's business is and how it's robust and will always be here (and the implication was it's a better way of getting your pension to £300k than technology firms...) because 'you can't eat silicon'. I put forward some quite obvious counterpoints to that and you clicked 'thanks' on the post that I made. But by post #44 you are saying you 'didn't bite' on my 'pretty dumb statement', perhaps because you want to reassert your dominance as the smart one here despite your somewhat Walter Mitty-alike narrative.

When we look at your username letspretendforaminute - everything becomes much clearer, thanks.

brasso

letspretendforaminute wrote: »

bowlhead99 just to mention that you made a pretty dumb statement earlier with regards to technology being intergrated into their business. I didn’t bite and to put this into perspective £50,000 represents ~18months of our disposable income so as a contrarian investor it’s an acceptable risk for me. My car cost that - chump change

letspretendforaminute wrote: »

bowlhead99

How did you work out I’m in a low tax band? FYI. In the top 2% of earners with two children at a top private school. The fees alone would make the 40% bracket. Why make this personal?

I'll make it even more personal. You sound like an arrogant chump who won't accept that his glib, 'beer money', investment idea is idiotic.


You know what? I've changed my view. Go ahead. Put every last penny you have into one single mediocre retailer, and keep sending monthly deposits their way. Ignore all the advice you've been given. Ignore the investment books you'll have read. Ignore the trends you've seen in retailing over the last few years. It will never happen to Sainsbury's!

We said the same thing about the banks.

letspretendforaminute

Bowlhead99

Yes, comfortably over £80k per annum.

Modest lifestyle for income, yes that’s true.

The higher rate relief is reclaimed via a tax return and is paid automatically to my bank account and thereafter an adjustment to my tax code, so the sums are correct. Last year I received £300 back for tax relief on professional memberships and donated that to the air ambulance so my integrity is intact.

You are splitting hairs over my position here and my numbers do stack up. My largest holding is within a SIPP plus I have a few hundred shares in a stocks and shares isa. I said I’ll increase the stake here by 3,500 to 25,000 in time and am more than able too.

redux

letspretendforaminute wrote: »

bowlhead99 just to mention that you made a pretty dumb statement earlier with regards to technology being intergrated into their business. I didn’t bite and to put this into perspective £50,000 represents ~18months of our disposable income so as a contrarian investor it’s an acceptable risk for me. My car cost that - chump change

Which would have been a better investment over the last 5 years, £50,000 of Sainburys shares or £50,000 of car?

As for the amount of personal wealth and what it's spent on, a retired airline pilot friend of mine (probably £70 to 100k a year) surprised me recently by saying he'd sold something (my guess, for £20 to 25,000) and possibly might not afford to replace it with something slightly more expensive.

2 sons at private schools then university ...

I'd say cheaper car and invest the difference. Spending £10k or more a year on car depreciation isn't constructive, and might indeed be chump money as you call it. The phrase disposable income is an odd one; don't get too close to thinking of it as disposable.

Froggitt

When I worked at JS, a colleague had looooads of shares. He had a sell order with his broker for the lot at £6.00. They reached £5.94 and he's still sitting on them.

letspretendforaminute

Redux.

Sadly, my role requires me to drive a nicer car. The company will provide one for me except it’s no longer the tax perk of old. A handful of times both the CEO and owner (PE) of the business have parachuted in and I’ve been tasked assisting with site visits chauffeuring, airport pickups, eyebrows would be raised in anything less. There’s also a hierarchy at work and I have to be seen to drive a better car than the sales team (all in A5s) again a cheap car would standout like a sore thumb in the parking lot. It’ll be paid off within 3 years of ownership and run for a further 3 (company policy dictates maximum age of car here).

I work with a fair few high earners and concur that money issues are rife, divorce and child maintenance, school fees and mega mortgages.

Froggitt. It’s not easy to pick bottoms (or tops) but what about the dividends received over the past decade I’m sure they were welcome

IanManc

letspretendforaminute wrote: »

Sadly, my role requires me to drive a nicer car.

My heart breaks for you.