Buying shares question from novice investor
Comments
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As the cost of placing trades is quite high it is usually not considered efficient to buy less than at least about £500 worth of shares at once.
If you pay £11.95 per trade as per your HL example and are investing £300 each time as it sounds like you plan to then the cost is about 4% of the value of the shares you buy. The share price then has to rise/pay dividends of 4% before you break even. You then have to pay again to sell the shares so actually you need an 8% rise to break even at this point. This doesn't include stamp duty or capital gains tax you may have to pay. Compare those percentages to a fund.
Personally I would not buy less than about £1000 of shares in one trade and then only with the intention of holding them for many years and with money I wasn't bothered about losing. Hence I don't have any individual shares!0 -
You're not that much of a novice investor then if you already max out an S&S ISA every year, even although you use an FA. It does seem costly to invest in a number of individual shares for less than £1k in total value. How many different shares are you thinking of? Are you planning to hold them for the long term?novice_investor wrote: »I probably shouldn't have worded it that way. I already use a Financial Advisor and have a stocks and shares ISA which I invest in every year, however, I want to buy some individual shares in a few different companies, less than £1k altogether and just thought it might be cheaper and quicker to do it myself rather than pay my FA to do it.0 -
You're not that much of a novice investor then if you already max out an S&S ISA every year, even although you use an FA. It does seem costly to invest in a number of individual shares for less than £1k in total value. How many different shares are you thinking of? Are you planning to hold them for the long term?
I like it when people admit being novices, and request help. Maybe the tone wasn't intentional, but your questions come across as a bit hostile, or at least terse. Questions like "How many different shares are you thinking of? Are you planning to hold them for the long term?" are not easy to answer, even by seasoned investors. I change my mind all the time, and I've been investing for years!"I don't mind if a chap talks rot. But I really must draw the line at utter rot." - PG Wodehouse0 -
[FONT=Verdana, sans-serif]One of the cheapest ways would be to use Halifax as the platform then use a one off regular investment which is £2 a deal. The downside is its not a live deal you place the order at least one day in advance.[/FONT]
[FONT=Verdana, sans-serif]They also have once a month 2 hour buy/sell dealing widow at £3.95 a deal which is live.[/FONT]0 -
HL is cheaper at £1.50
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It's not hostile at all - just questions out of interest as he advised he already invests full ISA allowances each year in an ISA through a FA, which is presumably invested in diversified funds rather than individual shares.I like it when people admit being novices, and request help. Maybe the tone wasn't intentional, but your questions come across as a bit hostile, or at least terse. Questions like "How many different shares are you thinking of? Are you planning to hold them for the long term?" are not easy to answer, even by seasoned investors. I change my mind all the time, and I've been investing for years!0 -
You're not that much of a novice investor then if you already max out an S&S ISA every year, even although you use an FA. It does seem costly to invest in a number of individual shares for less than £1k in total value. How many different shares are you thinking of? Are you planning to hold them for the long term?
Possibly 5-10 different shares. I would hold them longterm 10-20 years if possible. Most of them are precious metal miners and industrial/technology/energy companies. I'm in the process of compiling a list.
I am already invested in a Gold ETF and a Palladium one via my ISA but am interested in specific mining companies and I'm not sure if there is an ETF that covers different metals (they all seem to cover one type of metal) or perhaps I am just reading the information incorrectly?0 -
novice_investor wrote: »Possibly 5-10 different shares. I would hold them longterm 10-20 years if possible. Most of them are precious metal miners and industrial/technology/energy companies. I'm in the process of compiling a list.
Seems like a lot of effort to go to just to invest £1,000, but it's your money.am already invested in a Gold ETF and a Palladium one via my ISA but am interested in specific mining companies and I'm not sure if there is an ETF that covers different metals (they all seem to cover one type of metal) or perhaps I am just reading the information incorrectly?
ETFS Physical PM Basket?0 -
Malthusian wrote: »Seems like a lot of effort to go to just to invest £1,000, but it's your money.
ETFS Physical PM Basket?
Yes, I think I might need to rethink the £1000 thanks to the advice on here and up it to perhaps £1k per investment. Thanks for the Fund recommendation, will look into it.0 -
Interesting article here
http://monevator.com/the-permanent-portfolio/0
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