New to Investing

Crashy_Time

waynee wrote: »

Hello everyone I have just joined this forum I have circ 5k to invest, I have shares already in a large FTSE 250 company which I get dividends, and is doing well I am mortgage free and so can make regular monthly top ups. Any financial advice is welcomed.
Thanks in advance.

I`m assuming this is over and above enough savings in a safe place (not shares) to cover your outgoings for six months to a year if you lost your job/income?

This book is a good starting point IMO, and maybe you don`t even need much more?

https://www.amazon.co.uk/Investing-Demystified-Speculation-Sleepless-Financial/dp/0273781340

SonOf

Any financial advice is welcomed.

Nothing on this site is financial advice. It is discussion, comment and opinion. And some of what you read you can file under the BS category.

I have over 1000 shares in Travis Perkins TPK

And the problem with this is that you are risking all your money in a single share.

Your investment value does not fit with single company share dealing. You dont have enough to be able to diversify enough. And you probably lack the knowledge and understanding to be able to make investment decisions involving single company shares. For most consumers, shares are best avoided and funds used instead.

pip895

With regard to the other point that has come up - funds v shares.

A global fund can (and many did this year) go up 25% but can in a bad year drop by 50%
A specialised fund can go up by say 70% and drop by 90%
A single microcap or Aim share can go up by maybe 500% but is probably more likely to loose 100%

How much excitement do you want? For most of us Mainstream equity funds are more than exciting enough!

[Deleted User]

SonOf wrote: »

Nothing on this site is financial advice. It is discussion, comment and opinion. And some of what you read you can file under the BS category.



And the problem with this is that you are risking all your money in a single share.

Your investment value does not fit with single company share dealing. You dont have enough to be able to diversify enough. And you probably lack the knowledge and understanding to be able to make investment decisions involving single company shares. For most consumers, shares are best avoided and funds used instead.

Take a guess and suppose that the shares in Travis Perkins were acquired via a sharesave scheme or inheritance - 25 or 100% discount .
If OP probably lacks the knowledge and understanding to be able to make investment decisions re single company shares, then he is bound to be grateful for the advice of a professional:
Current price is 1629
Should he buy or sell at that price Son Of?

BrockStoker

ZingPowZing wrote: »

What you do then is very important: Like having two children, when you have two investments, the easier strategy is to imagine the weaker will "catch up". Don't succumb to that notion. Back the winner.

How do you know which is going to be the winner?

I'm guessing you're not a fan of "value investing" then?

[Deleted User]

BrockStoker wrote: »

How do you know which is going to be the winner?

I'm guessing you're not a fan of "value investing" then?

Nobody "knows," the mkt is always more accurate than any individual.

But most people like to believe an artificial moderator is balancing the fortunes of all they have and all they see. In the financial services industry, they call it "mean reversion.," by which they bet that an underperforming stock or fund will rebound. Almost all children believe in this concept.

Crashy_Time

SonOf wrote: »

Nothing on this site is financial advice. It is discussion, comment and opinion. And some of what you read you can file under the BS category.



And the problem with this is that you are risking all your money in a single share.

Your investment value does not fit with single company share dealing. You dont have enough to be able to diversify enough. And you probably lack the knowledge and understanding to be able to make investment decisions involving single company shares. For most consumers, shares are best avoided and funds used instead.

Very very good advice IMO.

benbay001

Having had a quick glance at Travis Perkins it seems they are the construction industry company trading with the highest forward P/E.

They made a loss in 2018 and (almost) 2016 with tiny profit margins every other year.

Canaccord Genuity issued a broker note as of 10th December with a target price of 1480p and "hold".

I am very much a believer in buying individual companies rather than an index, but you must learn and you must do in depth research.

Buying shares simply because you have heard of the business with no regard for the current price isnt a recipe for success and can lead to you getting burnt big time.

Just for perspective, i spent almost the whole of yesterday reading annual and half year reports looking for a company to stick my money into. A bit like a second job.

Username999

Just for perspective, i spent almost the whole of yesterday reading annual and half year reports looking for a company to stick my money into. A bit like a second job.

Did you find one?

waynee

Morning All

Wow lots to think about and read about through all the suggestions.
I was planning on diversifying looking to buy shares in Royal Mail and a few others in the FTSE someon also gave me the heads up on Burford Capital....

Also having a buy into Gold as this seems to be on an steady increase.
The TP shares I hold I was going to sell part of and reinvest elswhere also.
Anyway thanks for all your input wasnt expecting so much, great forum and people.