2k investment

rockchick113

I’m looking to maybe start a stock and share savings. But unsure on where to start, how do people make money in shares? Or is it just another form of gambling ? I’m looking for long term investment 

zagfles

Investing in stocks for beginners: How to get started – MSE (moneysavingexpert.com)

tacpot12

It's not gambling if you invest sensibly.

One of the best ways to invest is to buy Funds or Trusts. These are collections of investments either that have been selected by a professional investment manager or that replicate a recognisable market (If you buy into that fund, your investment will rise and fall in line with that market). If you buy into a large Fund/Trust, you can be sure that you are putting your money where lots of other people also think there is the likelihood that the investment will be a good one. 

Low charges for the Fund/Trust can also indicate good value.

The way to make money is to buy sensibly and then to wait for a good time to sell (assuming you want to withdraw the money).

UKX69

rockchick113 said:

I’m looking to maybe start a stock and share savings. But unsure on where to start, how do people make money in shares? Or is it just another form of gambling ? I’m looking for long term investment 

As zagfles said, it’s best to try to educate yourself or at least get an understand of how the market works before committing. I’ve been investing for 30 years and still learning! I first got interested in share dealing because of our company share scheme and some of us formed a share dealing club - that is a good way of getting a feeling of what is going on. In those days, you had to phone up a broker to place an order as trading platforms were only just emerging.

Nowadays, I use online dealing via iWeb at £5 a throw. I still sometimes buy and sell, but have in recent times become more interested in regular savings accounts as my time horizon is getting shorter. 

But for what it’s worth- and you shouldn’t take this as a recommendation- I used to use the O’ Higgins system mostly. Buying the top ten shares in the FTSE, holding for a year, collecting the dividends as they came along and after the twelve months, reviewing which shares had dropped out of the top ten and then the new ones that had entered. As ever, there is still a danger that a company can go bust!

Edit to above: Over 35 years. Time does fly 😁
Edit to the edit: I should have said: Highest yielding dividend shares in the ftse. 🫣

El_Torro

One important thing to remember is that it’s best to invest in an ISA or pension. That way you don’t get taxed on any gains and you don’t need to keep track of your capital gains and dividends. 

Albermarle

If you are saving for retirement, then a pension is the way to go due to the tax benefits. The simplest thing is just to add more monthly to your workplace pension ( if you have one).
If you are not thinking about retirement savings then investing within a S&S ISA is the easiest way . However with all investments you should think long term. 
How to invest in a stocks and shares Isa: The quick and easy guide | This is Money

Billxx

You could also consider a robo platform such as Nutmeg (Chase).  They have various portfolios of funds which you can choose from based on your attitude to risk.  Clearly the opportunity for returns is decreased as opposed to doing your own research and trading yourself.

eskbanker

DasTechniker said:

But for what it’s worth- and you shouldn’t take this as a recommendation- I used to use the O’ Higgins system mostly. Buying the top ten shares in the FTSE, holding for a year, collecting the dividends as they came along and after the twelve months, reviewing which shares had dropped out of the top ten and then the new ones that had entered. As ever, there is still a danger that a company can go bust!

Except for those with the time, capacity and willingness to conduct detailed due diligence on individual companies, diversification has to be the best approach for investors, especially inexperienced ones.  It's often pointed out on here that the FTSE100 itself isn't particularly well diversified, and obviously that's even more true for a small subset of it, so, while ten equities are likely to be better than one, and a hundred better than ten, the usual recommendation is to diversify globally, to minimise risks from underperforming sectors or markets.

There are many options, including global equity funds and multi-asset funds, available to today's investor (far more so than 35 years ago!), so OP is likely to be better served by using such collective products rather than individual shares.

Eyeful

1. Clear all expensive debt first (except for mortgage)
2. Have a rainy day account for emergencies (6 months of house hold bills, is often quoted).
3. Use tax shelters where ever possible:-
(a) Pensions: You get "free money" & pay no tax ( at least until you draw on it).
(b) ISA's

4. Watch this first: 
.https://www.kroijer.com/
Consider a passive low cost "Global Multi Asset Fund" with a share/bond split you are comfortable with.
Example:  https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced
Read: https://monevator.com/passive-fund-of-funds-the-rivals/
Consider a passive low cost Global Index Fund or ETF that tracks a MAJOR index, if you are adventurous.
Example:  VWRP
Read: https://monevator.com/best-global-tracker-funds/
Consider a target day fund if you want a set & forget option.
Example:  https://www.vanguardinvestor.co.uk/investing-explained/what-are-target-retirement-funds

5, Remember the following:
Money you will need within 5 years should be in a savings account covered by the FSCS.
Investing means putting your money at risk, there are no guarantees, you hope to get more out than you put in.
Invest for the long term (say at least 10 years).
Do not jump ship just because the market falls (classic newbie reaction)

UKX69

eskbanker said:

DasTechniker said:

But for what it’s worth- and you shouldn’t take this as a recommendation- I used to use the O’ Higgins system mostly. Buying the top ten shares in the FTSE, holding for a year, collecting the dividends as they came along and after the twelve months, reviewing which shares had dropped out of the top ten and then the new ones that had entered. As ever, there is still a danger that a company can go bust!

Except for those with the time, capacity and willingness to conduct detailed due diligence on individual companies, diversification has to be the best approach for investors, especially inexperienced ones.  It's often pointed out on here that the FTSE100 itself isn't particularly well diversified, and obviously that's even more true for a small subset of it, so, while ten equities are likely to be better than one, and a hundred better than ten, the usual recommendation is to diversify globally, to minimise risks from underperforming sectors or markets.

There are many options, including global equity funds and multi-asset funds, available to today's investor (far more so than 35 years ago!), so OP is likely to be better served by using such collective products rather than individual shares.

Exactly. My mistake as I should have said Highest Dividend paying shares in the FTSE. In that scenario you tend to get shares that have dropped in price while the dividend yield rises and can lead to a bunching of companies such as the banks in 2007 - 2008. The upshot of all this is how far you want to go when investing. Personally, I enjoyed studying the various companies and could be an anorak when asked to comment by friends. 😁  In my case, I would have found ETF’s or trackers a bit boring. It all depends how deep you want to get with stock market investing. I certainly treated it as a hobby in the hope of making a few bucks and wouldn’t have made my future finances dependent on it as some do. 

eskbanker

DasTechniker said:

eskbanker said:

DasTechniker said:

But for what it’s worth- and you shouldn’t take this as a recommendation- I used to use the O’ Higgins system mostly. Buying the top ten shares in the FTSE, holding for a year, collecting the dividends as they came along and after the twelve months, reviewing which shares had dropped out of the top ten and then the new ones that had entered. As ever, there is still a danger that a company can go bust!

Except for those with the time, capacity and willingness to conduct detailed due diligence on individual companies, diversification has to be the best approach for investors, especially inexperienced ones.  It's often pointed out on here that the FTSE100 itself isn't particularly well diversified, and obviously that's even more true for a small subset of it, so, while ten equities are likely to be better than one, and a hundred better than ten, the usual recommendation is to diversify globally, to minimise risks from underperforming sectors or markets.

There are many options, including global equity funds and multi-asset funds, available to today's investor (far more so than 35 years ago!), so OP is likely to be better served by using such collective products rather than individual shares.

Exactly. My mistake as I should have said Highest Dividend paying shares in the FTSE. In that scenario you tend to get shares that have dropped in price while the dividend yield rises and can lead to a bunching of companies such as the banks in 2007 - 2008. The upshot of all this is how far you want to go when investing. Personally, I enjoyed studying the various companies and could be an anorak when asked to comment by friends. 😁  In my case, I would have found ETF’s or trackers a bit boring. It all depends how deep you want to get with stock market investing. I certainly treated it as a hobby in the hope of making a few bucks and wouldn’t have made my future finances dependent on it as some do. 

Yes, I was careful to carve out "those with the time, capacity and willingness to conduct detailed due diligence on individual companies" from the more typical long-term investor who'd simply be looking for financial growth rather than the 'thrill of the chase' - it's perhaps a generalisation but I'd maintain that those (like OP) who are posting to ask for basic guidance on where to start are less likely to be inquisitive and motivated enough to make a success of investing in individual shares!