Investment management - Christmas Edition

csgohan4

RobHT said:

csgohan4 said:

40 indiv stocks, is too many,  spreading yourself thin potentially. 

Why those 40 stocks, just because they are 'penny'stocks doesn't mean they are good value. Look at BT, Lloyds e.t.c. 

Quality not quantity. But personally an index tracker would be the best way forward. BTW why do you think funds are bad? I hold a variety of funds, ETF's and a few stocks. My return to date excluding stock is a modest 10% which is far more interest I am getting paid or paying on my mortgage interest

Others may hold more stocks, but their research far transcends mine and they have had large Profits, 400-500%+, but it is risky investing in stocks. 

Wait , just few for the moment are penny stocks , the others are major companies of the SPY500 or NASDAQ, when I said to allocate 125 pounds per month it means that after I've reached something like 300-500 pounds in investment of penny stocks, I stop there on them and I move on on the next ones, even though this may not happen every month.
Let's say that now 36 are not penny stocks, majority of them are exponential growth stocks like AMD, NIO, XPEV, PLTR, and many others.

shotgun approach then?

Old_Lifer

You seem to be assuming that all or most  small companies will grow into big companies but this is rarely the case.

If you are  proposing to invest in a range of small companies without really knowing much about any of them your risk of loss will be increased  and with lots of small trades,   the costs will eat into any profit you make.   Of course you may not make a profit at all. The price of the shares may fall, or they may trade within a narrow range for months or even years before any significant  upward movement happens,   if it happens at all.

csgohan4

Old_Lifer said:

You seem to be assuming that all or most  small companies will grow into big companies but this is rarely the case.

If you are  proposing to invest in a range of small companies without really knowing much about any of them your risk of loss will be increased  and with lots of small trades,   the costs will eat into any profit you make.   Of course you may not make a profit at all. The price of the shares may fall, or they may trade within a narrow range for months or even years before any significant  upward movement happens,   if it happens at all.

Do what Old lifer and others do, that is good research and targeted approach, rather than shot gun approach. 
Also not sure about PLTR, very risky imo. 

instead of 40 stocks, and put that money into  a few quality ones instead, say SBE or EQT as an example before their sky rocket surge, you would be far better in profit margins than hit and hope approach, especially SPACS which are high risk and pump and dump is rampant

Thrugelmir

RobHT said:

Voyager2002 said:

Some points that strike me:

Firstly, what makes you believe that BABA will just jump back? If you mean the Chinese firm Ali Baba, the fall reflects tough regulatory action (probably prompted by political factors) that will seriously reduce its profitability. While it is possible that the political conflict might be settled smoothly and the action withdrawn, no one in the western world could possibly have any information suggesting that this is likely to happen. It is more reasonable to believe that the current market price of BABA reflects its value.

Secondly, if you are going to achieve reasonable diversification with penny stocks then you will face some pretty hefty dealing costs. Unless you are able to go into this with some serious money (six figures, preferably seven figures) those dealing costs will represent an unacceptable proportion of your budget and will eat up any possible profits. This is a game that is best left to those with serious budgets.

Thirdly, while dividend stocks are great for people who need an income, growth stocks are more likely to provide growth and hence total return. Do you have any good reasons for believing that dividend stocks are safer than others?

Divident stocks don't grow much, the fluctation is very little compared to growth stocks, if you consider funds/ETFs is even more visible.

Dividends get reinvested that's where real growth in the portfolio value is generated from.

Growth is finite. Markets are only of a certain size. Likewise competition for consumers and end users is a good thing from a political perspective. 

barnstar2077

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

csgohan4

barnstar2077 said:

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

I would have rather invested in Nvidia or SSD manufacturers , the former has done very well over the last 12 m

barnstar2077

csgohan4 said:

barnstar2077 said:

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

I would have rather invested in Nvidia or SSD manufacturers , the former has done very well over the last 12 m

I agree that I would feel better owning Nvidia, their products have been very consistent in my opinion (I have bought many of their cards.)  Still though, when you look at their share price, just like AMD they have had an incredible rise in the last three and a half years.  Which is what made me think of Bitcoin as being a possible reason.  But as with AMD I couldn't tell you why they have done so well, or why the price is set to continue.  So again, I wouldn't be very comfortable buying in today.

csgohan4

barnstar2077 said:

csgohan4 said:

barnstar2077 said:

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

I would have rather invested in Nvidia or SSD manufacturers , the former has done very well over the last 12 m

I agree that I would feel better owning Nvidia, their products have been very consistent in my opinion (I have bought many of their cards.)  Still though, when you look at their share price, just like AMD they have had an incredible rise in the last three and a half years.  Which is what made me think of Bitcoin as being a possible reason.  But as with AMD I couldn't tell you why they have done so well, or why the price is set to continue.  So again, I wouldn't be very comfortable buying in today.

Of course buying at today's prices would be risky, not knowing how much left for growth, however AMD and Nvidia will be around for sometime and there will be room for growth.

I wouldn't mind holding on to these, however there better more sustainable stocks to hold, such as energy sector ones. 

SBE, EQT being an extreme example. But the key is having the time to research them before they take off. 

But I'm happy with penny stock punt on IAG, I would be happy at 50% gain, but there may be potential to double to triple in the next 10 years potentially

Prism

barnstar2077 said:

csgohan4 said:

barnstar2077 said:

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

I would have rather invested in Nvidia or SSD manufacturers , the former has done very well over the last 12 m

I agree that I would feel better owning Nvidia, their products have been very consistent in my opinion (I have bought many of their cards.)  Still though, when you look at their share price, just like AMD they have had an incredible rise in the last three and a half years.  Which is what made me think of Bitcoin as being a possible reason.  But as with AMD I couldn't tell you why they have done so well, or why the price is set to continue.  So again, I wouldn't be very comfortable buying in today.

Probably a bit off tangent for the thread but one of the reasons that Nvidia and AMD have been doing so well is that their cards have been going into the big Amazon, Microsoft and Google cloud datacenters for server based applications. They are great at high speed video rendering (video streaming), 3D rendering (gaming and simulations) and machine learning (AI applications) - all of which have been very popular over the last few years. You can basically rent these things by the second which makes them very accessible to all.

csgohan4

Prism said:

barnstar2077 said:

csgohan4 said:

barnstar2077 said:

@RobHT You have mentioned AMD.  If you look at their share price over the last 30 years or so you will see that the price has exploded over the last four years.  What do you think has changed to do that?  Yes, they have certainly been doing better at competing against their rivals in recent years, but how likely are they to sustain that? (historically Intel have always made a come back.)  Do they have new management?  Was it Bitcoin that started their good run?  I do not know.  I would be rubbing my hands together if I had bought some shares a few years ago, but buying some now would make me feel very uncomfortable indeed unless I knew exactly why they were doing so much better now, and more importantly why they were set to continue their meteoric rise.  Why do you think they are a good place for your money?  I am very interested to hear how you have carried out your analysis, as I do plan on dabbling a tiny bit in shares at a later date once I have a solid foundation under me that can take care of my expenses.

I would have rather invested in Nvidia or SSD manufacturers , the former has done very well over the last 12 m

I agree that I would feel better owning Nvidia, their products have been very consistent in my opinion (I have bought many of their cards.)  Still though, when you look at their share price, just like AMD they have had an incredible rise in the last three and a half years.  Which is what made me think of Bitcoin as being a possible reason.  But as with AMD I couldn't tell you why they have done so well, or why the price is set to continue.  So again, I wouldn't be very comfortable buying in today.

Probably a bit off tangent for the thread but one of the reasons that Nvidia and AMD have been doing so well is that their cards have been going into the big Amazon, Microsoft and Google cloud datacenters for server based applications. They are great at high speed video rendering (video streaming), 3D rendering (gaming and simulations) and machine learning (AI applications) - all of which have been very popular over the last few years. You can basically rent these things by the second which makes them very accessible to all.

They were also popular for Bit coin mining a few years ago as well if I recall, such a waste of energy imo. 

Nvidia would be  a solid pick, but depends on where it fits in your portfolio. I have enough Tech in my ATT  trust