60% return in 12 months - can it continue.

intowhere
intowhere Posts: 77 Forumite
in Savings & investments
I've been mucking around investing small amounts in small cap shares. Doing nothing other than just following the advice of share tippers in the press and on various websites. Not doing any research myself just looking up the firm and buying. I purchase smallish amounts (£50 - £200). I've made a 60% return. However because I purchase small amounts of stock the trading expense is very high relative to what I am buying, although the 60% inc the cost of buying selling shres.

A part of me things, why not just ramp it up, just buy as much as I can but I have a feeling this is all just luck; a few of the tips have been dire and I have lost 90% of their value, most havent moved but a few have really flown, but there is no logic of this; i am just dependant on how accurate the tippers are being.

Are these people who are proving the tips doing some research or are they just pulling things out of the air for that people like me fall for them?
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Comments

  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
    First Anniversary Photogenic Name Dropper First Post
    If they really knew, they'd invest their own money and not bother writing tipster sheets. The markets have been good lately and you have been lucky; small caps may well fair worse than large caps in a downturn.

    People writing tips are just doing their job; you have to do your own research. Not so long ago Simon Thomson in the Investor's Chronicle was tipping Naibu Global and Camkids; neither of which actually even existed in reality except on paper. Followers lost a lot of money on that scam (foreign company listed on AIM). All he was doing was relying on reported figures and running a slide rule over them; never researched that they actually sold anything.
  • fiisch
    fiisch Posts: 509 Forumite
    First Anniversary Name Dropper First Post
    Where do you get the tips and where do I sign up?


    In all seriousness, I think you've answered your own question.... the answer, sadly, is probably not. If it were that easy to get year on year 60% returns, I'd be typing this from my yacht moored in Monaco.
  • ColdIron
    ColdIron Posts: 9,016 Forumite
    First Anniversary Name Dropper Photogenic First Post
    You've done no research and been doing nothing except following tips in the press with no logic, made 60% and you think this is luck? You're a natural. Go for it :)
  • LHW99
    LHW99 Posts: 4,203 Forumite
    First Anniversary Name Dropper First Post
    From experience I have found I have done best when buying anything OTHER than the press tips!
  • ChesterDog
    ChesterDog Posts: 1,112 Forumite
    First Anniversary First Post Name Dropper Photogenic
    You are certainly in dangerous territory.

    Can it continue like this? Of course, anything is possible.

    Will it continue like this? No.

    :-)
    I am one of the Dogs of the Index.
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    First Post First Anniversary Combo Breaker
    I bought into the Motley Fool's "inner circle" four years back and put their recommendations into my Pension. I put my own choices into my ISA.
    ISA + 67%
    Pension - 1%
    They sacked the people responsible and sold off the losing shares so that the Portfolio looked "respectable" again to boost new membership. In the meantime they diluted the losses by doubling the size of their investment portfolio so that new investors could be duped.
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    First Post First Anniversary Combo Breaker
    "Tip sheets" tend to attract customers at the end of bull markets as they can sell their product on "past performance".
  • Malthusian
    Malthusian Posts: 10,931 Forumite
    First Anniversary First Post Name Dropper Photogenic
    You are correct, it's luck. If you want to make it last, the answer is easy - become one of the share tipsters. Write a book on your amazing system that made 60% in a year and flog it to people looking to get rich quick. (Doesn't matter that you didn't have one. Make one up and apply it retrospectively.) Rent some fancy cars and take photos of yourself next to them, do the same with other luxury items, and scatter them liberally throughout the book. Then you'll never need to gamble on small caps again.
  • thegrind
    thegrind Posts: 58 Forumite
    HSBC has today signalled a higher chance of a correction in the markets at the end of the year,

    Could this correction if it happens this year be the start of a recession next year? Who knows
  • talexuser
    talexuser Posts: 3,498 Forumite
    Name Dropper First Post First Anniversary
    You've managed 60% in 1 year. Lets put in £1000 and assume 60% for 5 years in a row, adding the dividends average 4 times a year. Compounded you would end up with over £16,000. Now just how likely do you think that is and why isn't everybody doing it?
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