Why does anyone buy individual shares?

MaxiRobriguez

DairyQueen wrote: »

So, you stand to lose a couple of grand at the age of 27. Big deal.

I have a feeling that you may adopt a somewhat less cavalier attitude when you gain 30 years and are managing several hundred thousand.

That's just normal practice of de-risking as you approach crystalisation. Same would apply for the young investor who's overweight EM funds rather than US passive, they'd reallocate over time.

Single stock investing is risky. Once you've got a fat asset pile you don't need to be risky, you need to conserve.

arwain

Alz1986 wrote: »

I feel much happier with my individual shares as opposed to funds. The reason? I dont have to pay a silly fee each year when the fund has been performing poorly.

They mug us off by saying its hard work to keep us all buying into their scheme.

I imagine anyone paying attention to their investments (many people don't) would only be happy to pay the fund manager fees if the manager outperforms their benchmark by a reasonable amount.

How long have you been having the excellent results you have hinted at in this thread?

arwain

DairyQueen wrote: »

So, you stand to lose a couple of grand at the age of 27. Big deal.

I have a feeling that you may adopt a somewhat less cavalier attitude when you gain 30 years and are managing several hundred thousand.

When I was around benbays age over 30 years ago I used to think exactly like that. Benbay may go on to become the next WB, but its much more likely they will be taught some tough lessons by the market.

benbay001

arwain wrote: »

Benbay may go on to become the next WB

Here's hoping :beer: :rotfl:

arwain wrote: »

Can you or anyone recommend a good book on stock picking?

Will you accept a YouTube Channel?
Phil Town Rule #1 https://www.youtube.com/user/ruleoneinvesting

I also have a book of his, but it went over everything already covered in his videos so i lost interest.

DairyQueen

MaxiRobriguez wrote: »

That's just normal practice of de-risking as you approach crystalisation. Same would apply for the young investor who's overweight EM funds rather than US passive, they'd reallocate over time.

Single stock investing is risky. Once you've got a fat asset pile you don't need to be risky, you need to conserve.

True if I was de-risking or needed to conserve. We have already crystallised OH's SIPPs and he remains 70% equities. We don't need to de-risk in drawdown and it's wrong to assume that everyone will. We have perhaps 30 years of investment years to consider, Gone are the days when people converted to bonds in the lead-up to buying an annuity for their retirement.

arwain

benbay001 wrote: »

Here's hoping :beer: :rotfl:


Will you accept a YouTube Channel?
Phil Town Rule #1 https://www.youtube.com/user/ruleoneinvesting

I also have a book of his, but it went over everything already covered in his videos so i lost interest.

Cheers benbay I will check it out later thanks for the link.

kinger101

capital0ne wrote: »

You won't beat the market buying a bunch of shares, the experts can't like Neil Woodford so why do you think you can?

Do you have an edge over the 'professionals'? Do you have insider knowledge?

I doubt it.

You're simply wrong here. If we assume a Gaussian distribution, you're as likely to beat the market as underperform.

EdGasketTheSecond

Curry and beer followed by a few Gaussian distributions; can't beat it.

Thrugelmir

MaxiRobriguez wrote: »

Same would apply for the young investor who's overweight EM funds rather than US passive, they'd reallocate over time.

Why would one be overweight in US passive? Profits are flatlining. Share buybacks disguising true EPS.

Thrugelmir

DairyQueen wrote: »

Gone are the days when people converted to bonds in the lead-up to buying an annuity for their retirement.

Holding of cash deposits has increased markedly to offset the lack of return on bonds.