Investing about £50 per month, is it worth it?


(Alex Warren) #21

why did you chose these stocks? Any kind of thinking behind them? Really want to know the way other investors think when buying stocks


(Simon) #22

Honestly not much thinking behind it just from seeing what others had invested in.
The Vietnam is because I’ve been there recently.

In answer to what I’ve been most surprised about was Debenhams when it went up, but very little gain so I’ll just keep for now.


#23

Given my current personal circumstances I choose to invest in a broad SP 500 tracker in a service provider other than Freetrade.

Relax. I’m Android

As for their performance. I don’t spend much time thinking of it. What I do, since my personal circumstances so advise and dictate, is to apply what may be called a pound cost averaging strategy. I don’t plan to sell during the next couple of decades, hopefully for longer.

The only thing that worries me is is the possibility of a catastrophic event that would cause the bankruptcy of all the companies which comprise the SP 500. At the same time. Or in a limited time frame. How likely is that to happen?

Meanwhile I can only hope their performance is poor. So that I can buy more for less. In the mid 2040s I’ll may change my stance for this. And start hoping for their price’s to skyrocket in a 20 or 30 year’s bull market.

Meanwhile


(Jon Dalton) #24

I find this interesting, as I’m currently investing £45 a month, with only a sum of £180 invested so far since early February (big spender, I know), but my strategy has been entirely different. I’ve got shares in 2 different funds, but the rest are individual stocks, some of which I’ve picked due to being a customer of theirs, others because they offer good dividends that I plan on reinvesting. A couple are long term investments like Vodafone and Centrica, they’re at good prices now, and over the next 10-15 years, I anticipate that they will rise. I too also have Debenhams but I see them as a massive risk, but it’s a small amount that I’m risking, that I can afford to lose. After about 5/6 weeks I’m up by a total of 3.97%, which is in the right direction, but not as high as I’d like. Granted it’s a better return than my savings account. Going forward, I plan to add a few more individual stocks. Then continue to increase holdings of each as I see fit, and clearing out those that are under performing.


#25

Not to pick on you in particular, I know many people do this. But it’s really worth being wary of making emotional investing decisions…

… and being sure you know what good prices are.

This video explains the situation far better than I can. A few minutes of watching could be one of the best investments beginners could make:


(Emma) #26

Is it an emotional decision or just picking based on companies you are familiar with and have confidence in due to experience? It’s a recommended way for beginners to start investing


#27

It’s an emotional decision, yes. Watch the video to understand exactly what I mean by that.

I don’t believe anyone would recommend beginners to invest this way. Experienced investors looking to follow a value-based buy-and-hold approach would want to have an understanding of the company they’re investing in, as well as the sector they operate in, to make sure that the apparent value they calculate today is likely to last (eg. the company hasn’t made all their profits due to a fad that will end in 3 months).

But understanding a company as part of this strategy is not the same as buying it purely because you’re familiar with it.


(Emma) #28

And that doesn’t exactly help first time investors get started. I’m not saying invest £20,000 in McDonalds purely because you like Filet -O- Fish but it’s good for someone new to just have a few pounds invested and learn from there. Or not learn. Up to them


(Jon Dalton) #29

That is exactly what I intend to do. I don’t want to hijack this post so I’ll keep this brief, but I do appreciate all the comments and it’s given me some things to investigate and learn. I would say that I’m more of a half and half, there’s some “emotional” or familiarity in my current investment decisions, however there has also been research (although not to the standards of professional traders), most of my options are still recommended to buy, that said my instincts say not to buy any more Debenhams at this time.


(Parrish Claxton) #30

I’m doing something similar to yourself. Picking companies I know are doing well and looking at what others buy. I also have half an eye open on the financial news. I’ve only invested £120 so far and month by month will add about £50. It would be great to hear what shares etc people are going with and are they getting good gains on their investments. These are mine so far -


(Emma) #31

This was doing better before Friday :cold_sweat:

Words cannot express how much Patient Capital are annoying me



(Parrish Claxton) #32

Your doing a little better than me by the looks of it. Saying before Friday I had gains on all of mine :confounded: