I have 50K and I want to make it grow - help!

egamar

toastcrumb wrote: »

Is it worth hiring an IFA for this sum of money?

I wouldn't necessarily today, as it represents only about 10% of my net total worth (house included) and I've a bit of experience. I'd still want to chat with someone I could trust who knew better than me, though. I did get a £60k chunk some years ago, and my first port-of-call was an IFA.

But, young whipper-snapper, with £50k in your circumstances I would say yes, definitely - talk to an IFA. Not only will you benefit from the experience of hearing what the person has to say - and probe them about why they are saying what they are saying - but you'll end up with a sound strategy and hopefully some sound investments on which you can build as your knowledge and confidence grows too. Choose one carefully, though (I'm sure there's advice on here about that) and DON'T choose the one who thinks your penny share idea or shorting the Yen are good ideas!

It needn't cost the earth either - don't be shy (as we can so often be) to ask up front what their charges would be. Tell them you don't want to get too fancy (some of them come up with left-of-field ideas sometimes).

By taking a modest and diversified risk only you could see your investment easily increase by 50% in 3-4 years. Doubled in 7-8. I think I'm showing about 82% in 3 and a bit years, despite my property investments having lost much of their gains over recent weeks (but they'll come back).

If you ask me, that's good enough - and I can sleep at night!

Here endeth the lecture.

toastcrumb

Thanks for the info. I've had a rummage around and the true ticker is 7974.OS - just shy of £300 at the moment! It jumped 7% this morning off the back of a strong Q4 report.

I will look into hiring an IFA, I think I'm going to need professional advice. In the meantime, what are your thoughts on this one?

http://stocks.us.reuters.com/stocks/overview.asp?symbol=7974.OS

egamar

toastcrumb wrote: »

In the meantime, what are your thoughts on this one?

I didn't look at it? Why not? The clue is in the words "this one".

I can see why such a sum of money at your age* in your circumstances is burning a hole in your pocket (as my dear ol' da' used to say. B*stard).

I can only really reprise what a few of us have said above: in vesting a wodge of money in one of anything is not a good idea: it might work and you'll be as rich as Croesus; it probably won't, and you might just be a tad unhappy that 20% of the price of your first house has disappeared overnight. Or, if you live in London, a month's rent.

If you really want to go this 'stock picking' route put aside say £5k and have a punt on five penny shares or whatever. Or put it on the gee-gees or the dogs: each will be about as likely to come through for you as the other. IMHO you really are talking gambling here, not investing.

But why not? Gambling is a perfectly legitimate pastime - just don't do it with all of this lovely money.

I think I'm about done on this topic now - I wish you the best in whatever you decide.



*No offence intended, it's just we tend to grow perhaps more risk averse and cautious as we grow older. The young are immortal, after all!

MrMicawber_2

I tried penny shares some time ago, but not, Praise the Lord, with 50k. Probably made about 2% in two years. Invested in 4 companies which went down the tubes and one which made a bit. Sutcliffe Speakman was one, Wakebourne was another, Rhino group the third and the fourth I cant remember for the life of me. All guaranteed winners recommended by the best in the industry - broadsheet punts etc. Couldn't lose! Now I look for good funds with good managers in good companies and there's plenty of those that are reasonably exciting. Would thoroughly suggest an IFA as well. 50k at 25 and you should be absolutely laughing if you invest rather than gamble.

egamar

Aegis wrote: »

... I'll have to bear in mind next time!

Next time you're young and single, eh? Can't wait, me .......

purch

According to the experts you need to have somewhere between 30 and 50 ( I did say experts so you can guarantee that they won't agree exactly on the # )individual stock in your portfolio before you become Stock neutral in risk terms , and then only have risk to Equities in general rather than Stock specific.

By holding just this one stock in your portfolio you are open to 3 or 4 (maybe more ) risk factors

Stock specific
Japanese Equities
Equities in General as an Asset class
Currency

Thats a lot of risk factors to cover

IMHO you really are talking gambling here, not investing.

I wouldn't go that far, I wouldn't liken it to having a punt on the horses cos these risk factors can be hedged giving you some control over them, but in Investing terms it is as close as you could get to gambling.

toastcrumb

On the subject of pink sheets, how does one go about purchasing them in the first place? I've looked around and only found pricey brokers.

egamar

Dunelm Mill Shop? They have lots of different colour sheets at all sorts of prices, including those yummy brushed cotton ones.