Stocks to Hold for Next Ten Years.

Old_Lifer

In my own mind, I don't really think of a tracker as investing    but thats just the way  I think of it.       I suppose I have  an above average tollerance of risk.        I would agree with  C_M 's cautious approach to  individual shares.    I started investing in unit trusts and it was probably around ten years before I bought my first individual shares.      Now fifty years later,  I hold only ITs and individual shares.     

I would agree with V2002's  comment regarding the  'fun' aspect.    I have several percent of my portfolio in AIM shares nowadays.   Now,  they really are fun    but  very high risk.

Thrugelmir

Old_Lifer said:

  I have several percent of my portfolio in AIM shares nowadays.   Now,  they really are fun    but  very high risk.

Largest cap AIM companies could be included in the FTSE100. Not all are high risk. 

adindas

C_Mababejive said:

My personal advice is that i would never now hold individual stocks. I'd rather buy a diversified low cost tracker

Just my personal opinion please feel free to criticize it. If you are doing both e.g. Index fund for you main holding say 80% of your investment)  and you pick up individual stock based on you own due diligence for the rest 20%, you might get the best of both worlds. But of course it could turn bad, but keep in mind you already set up your expectation that profit is not guranteed. But You do this of course with calcualted risk where the reward is far more than the risk you are taking.

Keep in mind with index fund, the fund is already set up and you do not have any influence the individual stock invested and their weighting.

A good example is Facebook stock for instance. Every investor knows that Facebook is a quality stock because it is almost in every global index fund portfolio. Recently there is dip because of recent bad publication but you know it is just a time before it will be back again to the previous price level. When you bought Facebook during this short dip, you took advantage of this. With index fund you do not have any control of this.

Another examples are taking advantage of COVID-19 working from home, Cloudbase, Online shopping stock. It is higly unlikely the funds you are holding have working the stock like , Zoom, Shopify, Crowdstrike or Cloudbase softwares. Depending on your Index fund you wil not be able to take advantage the sudden the massive price increase on this stocks.

Another example is the emerging of electric vehicle (EV), many fund managers who are not aware about technology are treating Electric Vehicle like Tesla, Nio, etc stock like traditional car makers. So, they start using the traditional EPS, P/E ratio etc and compare to the car makers benchmark and thefore and up with conclusion bad investment. For that reason these stock is not included in their index funds that you might own.

A few analysists fund managers with good knowledge of technology and forward looking are treating Tesla, Nio stock as growth companies with disruptive technology so profitability  during the infancy of these comanies are not expected. If you buy this stock during their infancy you would have profited it massvely.

In the past the barrier of investing in individual stock is the cost of trading but nowadays there are already some free trade platfom available. You could do as many trading you want to without a trading fee.

coachman12

C_Mababejive said:

My personal advice is that i would never now hold individual stocks. I'd rather buy a diversified low cost tracker

You surely jest. Where is the fun and the ability to study, learn and follow the cry of the chase?

coachman12

Lakita said:

I recently invest the small amounts into twoo companies.

Can you tell us the 2 companies please----if it is not MSE insider trading 

Filo25

If I was going to cheat a bit I would make one of my companies Scottish Mortgage investment trust

coachman12

I'd really been looking forward to hearing everybody's Top 10 and wildcards, and yet we got so very few. Pity, because I think it was a good fun thread-----as well as being useful. Perhaps there aren't as many MSE members who have a shares portfolio than we are led to believe ????

Thrugelmir

Not in vogue at the moment.  A decade of "easy" money has created complacency. Though has to be said that there's far more accessibilty for investors than ever before to diversify with funds. Recall when Japanese stocks were first traded on a nominee basis through Extel and only institutions could access them. One wonders if Wirecard is going to be the first of a number of high profile collapses where market listing was obtained by reversing into a shell company. Thereby negating scutiny. 

Alz1986

I started of with Trusts and funds but now buy into shares aswell. Their returns can far outweigh anything a Trust/fund can do. Though Trusts/funds provide a bit of assurance.

Kainos Group and Taylor Whimpey are my long term plays. WH Smiths and IAG are for recovery. Digital Cliq, Opiant Pharma are my wild cards.

adindas

Thrugelmir said:

Not in vogue at the moment.  A decade of "easy" money has created complacency. Though has to be said that there's far more accessibilty for investors than ever before to diversify with funds. Recall when Japanese stocks were first traded on a nominee basis through Extel and only institutions could access them. One wonders if Wirecard is going to be the first of a number of high profile collapses where market listing was obtained by reversing into a shell company. Thereby negating scutiny. 

Other examples are Car rental Herzt (HZT),  Genius Brand (GNUS),  J.C. Penney (JCP).  A lof of people are losing money investing on these stocks.

If no institutional investor want to touch those stocks than one needs to find a very good reasons to invest in those stocks otherwise it is better stay away if the intention is to invest instead of to speculate,