Investing

I invest in fixed income, shares, crypto and property. I have different pots for different asset classes with the majority in fixed income.

If you go down a crypto route, only invest what you can afford to lose.

I always spread my risk as much as possible
 
toms said:
I invest in fixed income, shares, crypto and property. I have different pots for different asset classes with the majority in fixed income.

If you go down a crypto route, only invest what you can afford to lose.

I always spread my risk as much as possible
Click to expand...

It's an interesting topic I find.

Fixed income to sleep well at night.

I read alot about buffett and the other great investors. His group recently invested alot in dominos pizza shares.

Day trading is another area.
 
the jock said:
It's an interesting topic I find.

Fixed income to sleep well at night.

I read alot about buffett and the other great investors. His group recently invested alot in dominos pizza shares.

Day trading is another area.
Click to expand...
Trading is an unvbelievably interesting subject, but is fraught with danger if you do not know what you are doing.

My advice would be to read up as much as you can before starting.

When you do start, make sure you spread your investments over a number of asset catagories so as to minimise your risk - for example, I have investments in equity which I have edged against precious metals, namely Gold.

I have ETFs in physical Gold, which are effectively a benign asset - this means there are no dividend payments - you have a purchase price and a selling price with no income inbetween.

The main advantage is you have an investment in a physical asset, which is as safe as any asset can be and you do not have to pay massive storage costs, just a small yearly management fee.

I have also purchased shares in Gold Miners where you do get an income in the form of dividends.

Do not invest in any asset classes were you have no knowledge whatsoever; I have made mistakes doing that and had my fingers burnt.

There are also some interesting angles to get into the property market without actually buying bricks and morter.

I wanted to buy a buy to let property and place it into my Pension so as to minimise my Tax liability; unfortunately it is not legal to put residential property into Tax wrappers like a Pension.

After considerable reading, I came across an asset called a REIT - A Real Estate Investment Trust.

These come in many forms, some of which are far far better than buying a buy to let - the arse has dropped out of that market now.

There are a number of REITs which pay a 9% dividend four times a year, which is a better yield than you would get on a typical buy to let.

Shares in REITs only cost £15 when you buy them and the same when you sell them, which is considerably less than conveyancing costs and you can offload them in minutes if need be, there are no lengthy waits for a Solicitor to get his arse in gear, and there are no fees to pay an agency or worries about problematic residents

I ran spreadsheet comparison between a REIT and a Buy To Let over a ten year period and the typical REIT came out well on top.

I cannot strees how important it is to do your homework; I have a seperate laptop with contains one spreadsheet which tracks the fundamentals of my shareholdings and any prospective buys - this includes data extrapolated from the annual accounts, which you find on line, and formulas to calculate indicators like Return On Equity, Free Cash Flow per share, Free Cash Flow Yield, Dividend Cover, Payout Ratio's, Revenue as a percentage of EBIT and so on.

Even with all of the information you can lay your hands on you will still be subject to issues like profit warnings, from time to time, which have a negative impact on share prices; the thing is, if you have the fundamental data around you, you can make a judgement call on whether to off load or actually buy more.

I would stay well clear of day trading; its nothing more than finacial roulette and not for the faint hearted.

Read as much as you can about Warren Buffet; the man is a genius and his strategies for investing are very sound; having said that, even he makes mistakes from time to time.
 
mao tse tung said:
Trading is an unvbelievably interesting subject, but is fraught with danger if you do not know what you are doing.

My advice would be to read up as much as you can before starting.

When you do start, make sure you spread your investments over a number of asset catagories so as to minimise your risk - for example, I have investments in equity which I have edged against precious metals, namely Gold.

I have ETFs in physical Gold, which are effectively a benign asset - this means there are no dividend payments - you have a purchase price and a selling price with no income inbetween.

The main advantage is you have an investment in a physical asset, which is as safe as any asset can be and you do not have to pay massive storage costs, just a small yearly management fee.

I have also purchased shares in Gold Miners where you do get an income in the form of dividends.

Do not invest in any asset classes were you have no knowledge whatsoever; I have made mistakes doing that and had my fingers burnt.

There are also some interesting angles to get into the property market without actually buying bricks and morter.

I wanted to buy a buy to let property and place it into my Pension so as to minimise my Tax liability; unfortunately it is not legal to put residential property into Tax wrappers like a Pension.

After considerable reading, I came across an asset called a REIT - A Real Estate Investment Trust.

These come in many forms, some of which are far far better than buying a buy to let - the arse has dropped out of that market now.

There are a number of REITs which pay a 9% dividend four times a year, which is a better yield than you would get on a typical buy to let.

Shares in REITs only cost £15 when you buy them and the same when you sell them, which is considerably less than conveyancing costs and you can offload them in minutes if need be, there are no lengthy waits for a Solicitor to get his arse in gear, and there are no fees to pay an agency or worries about problematic residents

I ran spreadsheet comparison between a REIT and a Buy To Let over a ten year period and the typical REIT came out well on top.

I cannot strees how important it is to do your homework; I have a seperate laptop with contains one spreadsheet which tracks the fundamentals of my shareholdings and any prospective buys - this includes data extrapolated from the annual accounts, which you find on line, and formulas to calculate indicators like Return On Equity, Free Cash Flow per share, Free Cash Flow Yield, Dividend Cover, Payout Ratio's, Revenue as a percentage of EBIT and so on.

Even with all of the information you can lay your hands on you will still be subject to issues like profit warnings, from time to time, which have a negative impact on share prices; the thing is, if you have the fundamental data around you, you can make a judgement call on whether to off load or actually buy more.

I would stay well clear of day trading; its nothing more than finacial roulette and not for the faint hearted.

Read as much as you can about Warren Buffet; the man is a genius and his strategies for investing are very sound; having said that, even he makes mistakes from time to time.
Click to expand...
Good post Mao-only thing I would add is that it better to buy physical gold coins. No CGT on sale which offsets storage costs (at least hopefully). I am suspicious of ETF's when it comes to commodities. Id rather own the asset direct
 
toms said:
Good post Mao-only thing I would add is that it better to buy physical gold coins. No CGT on sale which offsets storage costs (at least hopefully). I am suspicious of ETF's when it comes to commodities. Id rather own the asset direct
Click to expand...
Yes...I have read where it's better to have the actual physical gold in your possession.

Silver has risen too.

The so called experts think bitcoin is going to double in 2025 as trump is a fan.

Buffett believed in analysing the companies financials and investing from there. Make your own decisions and don't listen to the so called experts. Alot of his early success was "cigarette butt" stocks. He is fascinating. Didn't invest in any area he didn't understand .

Some believe a portfolio of 50% bonds and 50% stocks is good to manage the risks.

Personally I have stocks. Crypto and bonds. Looking at commodities now. I Invested in the s&p index...last time I checked the average return was 7% per year since the 50s.
 
mao tse tung said:
Trading is an unvbelievably interesting subject, but is fraught with danger if you do not know what you are doing.

My advice would be to read up as much as you can before starting.

When you do start, make sure you spread your investments over a number of asset catagories so as to minimise your risk - for example, I have investments in equity which I have edged against precious metals, namely Gold.

I have ETFs in physical Gold, which are effectively a benign asset - this means there are no dividend payments - you have a purchase price and a selling price with no income inbetween.

The main advantage is you have an investment in a physical asset, which is as safe as any asset can be and you do not have to pay massive storage costs, just a small yearly management fee.

I have also purchased shares in Gold Miners where you do get an income in the form of dividends.

Do not invest in any asset classes were you have no knowledge whatsoever; I have made mistakes doing that and had my fingers burnt.

There are also some interesting angles to get into the property market without actually buying bricks and morter.

I wanted to buy a buy to let property and place it into my Pension so as to minimise my Tax liability; unfortunately it is not legal to put residential property into Tax wrappers like a Pension.

After considerable reading, I came across an asset called a REIT - A Real Estate Investment Trust.

These come in many forms, some of which are far far better than buying a buy to let - the arse has dropped out of that market now.

There are a number of REITs which pay a 9% dividend four times a year, which is a better yield than you would get on a typical buy to let.

Shares in REITs only cost £15 when you buy them and the same when you sell them, which is considerably less than conveyancing costs and you can offload them in minutes if need be, there are no lengthy waits for a Solicitor to get his arse in gear, and there are no fees to pay an agency or worries about problematic residents

I ran spreadsheet comparison between a REIT and a Buy To Let over a ten year period and the typical REIT came out well on top.

I cannot strees how important it is to do your homework; I have a seperate laptop with contains one spreadsheet which tracks the fundamentals of my shareholdings and any prospective buys - this includes data extrapolated from the annual accounts, which you find on line, and formulas to calculate indicators like Return On Equity, Free Cash Flow per share, Free Cash Flow Yield, Dividend Cover, Payout Ratio's, Revenue as a percentage of EBIT and so on.

Even with all of the information you can lay your hands on you will still be subject to issues like profit warnings, from time to time, which have a negative impact on share prices; the thing is, if you have the fundamental data around you, you can make a judgement call on whether to off load or actually buy more.

I would stay well clear of day trading; its nothing more than finacial roulette and not for the faint hearted.

Read as much as you can about Warren Buffet; the man is a genius and his strategies for investing are very sound; having said that, even he makes mistakes from time to time.
Click to expand...
Very interesting Mao. Thanks for sharing!

Reading into the REIT. Is there any particular website you recommend for these ?
 
the jock said:
Yes...I have read where it's better to have the actual physical gold in your possession.

Silver has risen too.

The so called experts think bitcoin is going to double in 2025 as trump is a fan.

Buffett believed in analysing the companies financials and investing from there. Make your own decisions and don't listen to the so called experts. Alot of his early success was "cigarette butt" stocks. He is fascinating. Didn't invest in any area he didn't understand .

Some believe a portfolio of 50% bonds and 50% stocks is good to manage the risks.

Personally I have stocks. Crypto and bonds. Looking at commodities now. I Invested in the s&p index...last time I checked the average return was 7% per year since the 50s.
Click to expand...
Jock I believe there is VAT on silver coin acquisition but no CGT on silver coins sale. Its different with bars. Please do check that though

I would always recommend pound (dollar) cost averaging your chosen "poison" and to invest in stocks and other non fixed income assets with money that you don't immediately need and closely look at historical trends aswell as current performance. I would always have cash (if you can) in the bank. Finally taking a profit is never a bad thing (albeit you could lose out like I did with Rolls Royce. I took a 40% profit on that but then it skyrocketed further). You can also find yourself in a very difficult position with stocks and I'm in one such position on one turnaround stock at the moment. Because I dont need the money immediately, I dont get too upset but looking at a reduced paper loss portfolio is never pleasant. If the company in question goes bankrupt, I will lose bigly
 
the jock said:
Very interesting Mao. Thanks for sharing!

Reading into the REIT. Is there any particular website you recommend for these ?
Click to expand...
I subscribe to Investors Chronicle which is published by the Financial Times.

It is very good; it gives all of the latest news and explains what is happening and why.

There are very good articles for novices and other articles on how to invest
 
toms said:
Good post Mao-only thing I would add is that it better to buy physical gold coins. No CGT on sale which offsets storage costs (at least hopefully). I am suspicious of ETF's when it comes to commodities. Id rather own the asset direct
Click to expand...
Yes, it is right to be wary of ETFs as most are virtual in nature.

The Physical ETFs are different - they invest in Physical Gold which is sat in a vault - you effectively buy shares in that holding.

The movement in prices actaully reflect the daily movement in the price on the Commodity markets
 
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