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Equities Strategy

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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    ValiantSon wrote: »
    Perhaps wrongly, I assumed that he wasn't recommending investing in individual companies as that would be crazily high risk for a small investor (and especially one new to investing), so I took all comments to be about funds.
    The questions were about people's strategies for investing into equities and the comments in his reply were were about what types of shares / companies he would aim to invest in and some approaches he would take.

    Sometimes you just have to read the questions and the answers as written rather than read into them what you think the questions and answers should be. :)
  • rathernot
    rathernot Posts: 339 Forumite
    There seems to be a fair number of intelligent investors on here that have turned there hand to equities

    How do you invest in equities and what strategies do you use?

    Use funds or investment trusts so you get the benefits of diversity.

    Don't try to pick individual stocks yourself IMHO.
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    bowlhead99 wrote: »
    The questions were about people's strategies for investing into equities and the comments in his reply were were about what types of shares / companies he would aim to invest in and some approaches he would take.

    Sometimes you just have to read the questions and the answers as written rather than read into them what you think the questions and answers should be. :)

    I think that for most of us, the essential strategy for equity investing is to use an equity-based collective vehicle (OIEC; Investment Trust; ETF) to spread the risk. That is of course just the starting point...
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thrugelmir wrote: »
    This applies to funds not directly investing into equities. Totally different scenarios.

    Well, maybe...

    I wonder how many of us could have distinguished between BP and RBS. And if such a distinction is not possible, then a 'buy and hold' strategy is going to make sense, obviously with sufficient diversification so that an individual company failing is not going to result in disaster for the portfolio.
  • BLB53
    BLB53 Posts: 1,583 Forumite
    Keep it simple...a multi asset low cost global fund like Vanguard Lifestrategy will get the job done for many. Be sure to match you level of equities with your appetite for risk/volatility.
  • LHW99
    LHW99 Posts: 5,564 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    And if you do decide to look into individual shares, learn about stop losses
  • John-K_3
    John-K_3 Posts: 681 Forumite
    There seems to be a fair number of intelligent investors on here that have turned there hand to equities

    How do you invest in equities and what strategies do you use?

    I put about half of my gross income into broad-based trackers, then avoid looking at it.
  • TBC15
    TBC15 Posts: 1,517 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I don't invest in individual equites as I neither have the time or the skill to do a good job of it.

    That's why I prefer leaving it to someone who does have the time and the skill, a good fund manager.

    It works for me.
  • inflationbuster
    inflationbuster Posts: 254 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 10 March 2018 at 5:48PM
    Honestly no one can teach you how to pick and choose equities on a bulletin board. I learnt it all the hard way when l started investing late 2008 during one of the worst recessions in our lifetime.

    I was perhaps very lucky to miss allot of the carnage of companies going bust and put most of my offset mortgage into a plethora of FTSE 100 and FTSE 250 stocks that l felt would survive the recession. l used Wikipedia (the full list of company members are there) and FT stock filter to help me build a portfolio.

    It was a baptism of fire l can tell you that!

    I made plenty of mistakes along the way with one company going bust and numerous companies raising cash via rights issues and open offers. But l learnt a heck of allot as well it was probably for me the best time to learn the markets and made my best returns to date during 2009.

    To this date l still find it fun hunting out companies from the two main markets. But it's handwork researching. Think of it as another hobby as it will consume your time.

    Check out the Naked Trader book on investing if you're serious.

    If you're only after safe and paltry returns invest in a fund.
  • ChesterDog
    ChesterDog Posts: 1,146 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic

    If you're only after safe and paltry returns invest in a fund.

    I manage about 20% a year, almost entirely from funds.
    I am one of the Dogs of the Index.
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