How do you consolidate your gains?

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  • jamei305
    jamei305 Posts: 635 Forumite
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    aroominyork wrote: »
    So you sell low and buy high?


    As opposed to reallocating money from well-managed funds into badly managed ones? ;)
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    gif1 wrote: »
    Hi,
    hold some cash in your portfolio as a risk free (safe) asset.
    Why do people think sterling cash is risk free?
    Compared to, say,a tracker of 2000 of the world's biggest companies?
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
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    Prism wrote: »
    When (and why) did you move to gold? I ask because over the last 5 years it has dropped in value and over the last 10 its not increased by much. I have never thought it much use as an investment
    Biggest part was bought between 2005 and 2015. My average is shy of £650 an ounce.
    Were are you getting your data? Over 5 years it is much of a sameness, and over 10 years it has more than doubled..._

    https://goldprice.org (Scroll down for historical prices back to 73)
  • C_Mababejive
    C_Mababejive Posts: 11,654 Forumite
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    Thrugelmir wrote: »
    Rebalance by reinvesting income. Only buy what you intend to hold forever.


    You see this is the dilemma i have and it is probably due to a lack of understanding.

    People say time in the market, not timing the market.

    Surely though if you have bought a particular share and the price has gone up dramatically, you look at the historical share price and you realise its at a 5 or 10 year high, surely it is time to sell and crystallize the gain even if its paying a yield of 3/4/5/6% ?

    If you don't then surely its a missed opportunity?

    The price could drop back a fair bit.

    Of course there is also the question of what to buy with the loot,,but then you might decide to invest it in a collective investment for diversification.

    I have these issues at the moment.. Looking at SMT,why would i buy it now? And yet people are buying it?
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • aroominyork
    aroominyork Posts: 2,826 Forumite
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    jamei305 wrote: »
    As opposed to reallocating money from well-managed funds into badly managed ones? ;)
    If a fund lags the market or its peers for a couple of months are you going to decide that makes it a bad fund? One month ago I bought Axa Framlington Japan. In the month since then Lindsell Train Japan has risen by 2% more. Does that mean my decision was wrong - no! - or that Axa is a poorly managed fund - no! - or that I should sell it and buy Lindsell Train - no!
  • StellaN
    StellaN Posts: 354 Forumite
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    aroominyork wrote: »
    If a fund lags the market or its peers for a couple of months are you going to decide that makes it a bad fund? One month ago I bought Axa Framlington Japan. In the month since then Lindsell Train Japan has risen by 2% more. Does that mean my decision was wrong - no! - or that Axa is a poorly managed fund - no! - or that I should sell it and buy Lindsell Train - no!

    I think the implication was for consistently under performing funds over a period of time not the difference between 2% in one sector/region over a few months. As an example, at the moment I'm considering my holding in Fidelity Asian Values in my ISA account and whether I should switch to Invesco Asia Trust or Schroder Asia Pacific Trust. Its done well long term but I'm just not sure about whether its the right investment for me in that region in the future.
  • Prism
    Prism Posts: 3,803 Forumite
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    DiggerUK wrote: »
    Biggest part was bought between 2005 and 2015. My average is shy of £650 an ounce.
    Were are you getting your data? Over 5 years it is much of a sameness, and over 10 years it has more than doubled..._

    https://goldprice.org (Scroll down for historical prices back to 73)
    Ahah, I was using that site but forgot to turn it from dollars to pounds on the chart. I guess that does tell us that to some extent the benefit of gold only comes through while the dollar is strong.

    Saying that, I am glad that I didn't do the same. I'm sure it was the right decision for you but I still need to make better gains than that for the coming years so I still need to be in equities for the long haul, crash or no crash.
  • Prism
    Prism Posts: 3,803 Forumite
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    C_Mababejive wrote: »
    You see this is the dilemma i have and it is probably due to a lack of understanding.

    People say time in the market, not timing the market.

    Surely though if you have bought a particular share and the price has gone up dramatically, you look at the historical share price and you realise its at a 5 or 10 year high, surely it is time to sell and crystallize the gain even if its paying a yield of 3/4/5/6% ?
    Growth companies are at historical highs pretty much all of the time. How do you know when the top is. Then, should you decide to sell and look for another company to buy how can you tell if that one will grow at a greater rate. Its difficult to judge. I leave up up to the fund managers...
    I have these issues at the moment.. Looking at SMT,why would i buy it now? And yet people are buying it?

    ...so if we trust the fund manager we have to assume that they have a better idea of the high point of a growth company and when its best to decrease exposure to it and move on. If you take SMT as an example i think we can safely say that they assume that Amazon, Tencent, Alibaba and Tencent are nowhere close to being finished as high growth companies. To invest in SMT you would have to agree
  • ColdIron
    ColdIron Posts: 9,039 Forumite
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    C_Mababejive wrote: »
    surely it is time to sell and crystallize the gain even if its paying a yield of 3/4/5/6% ?
    Don't confuse yield (the proportion of the share price paid as dividends) with growth (increase in share price) or total return (the product of both). Many companies, or investment companies, with good share price growth pay little or no dividend
  • aroominyork
    aroominyork Posts: 2,826 Forumite
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    StellaN wrote: »
    I think the implication was for consistently under performing funds over a period of time not the difference between 2% in one sector/region over a few months. As an example, at the moment I'm considering my holding in Fidelity Asian Values in my ISA account and whether I should switch to Invesco Asia Trust or Schroder Asia Pacific Trust. Its done well long term but I'm just not sure about whether its the right investment for me in that region in the future.
    It doesn't read like that, Stella. It reads like he takes a call each three months on whether a fund has suddenly turned into a dog.
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