Happy Saturday! Here is your weekly dose of reading!
Invest Wisely: Millionaire Expat: How To Build Wealth Overseas BlackRock launches Fixed Maturity Bond ETFs in Europe Wall Street Thinks Youâre Dumb: The Rise Of Wise Money How To Determine Your Investment Risk Tolerance 7 Things I Donât Own in My Portfolio Vanguardâs perspective on the U.S. credit downgrade Why does the BlackRock MSCI World ETF exist?
Factor & Active Investing: Will Todayâs Behemoths Rule Tomorrow? The evolution of value investing Is EBITDA Really Bullsh*t? Are buybacks good or bad for investors? Putting the low volatility factor on the map The Quality Factor and the Low-Beta Anomaly
Wealth & Lifestyle: Ben Felix - Will more money make you happier? 12 things that look less attractive as you grow older Average Monthly Salary (after tax) country comparison Deciphering Timâs lower back issues - like for real! Who Gains From AI? Retirement in America: Were We Better Off 50 Years Ago?
Anyone buying today I done another 3 month save and decided bleh I just wanted to buy something or a few stocks in my case. Seems anytime since 2021 I have bought it dips right after even thought you tell yourself right before you hit buy âBet this just nose dives the second I buyâ and truth be told it does and always does lol.
As everyone says though you canât time the market, and so with that in mind it really doesnât matter when I buy in if the saying goes long holds reap rewards I should see some rewards in 10 years because so far I have seen nothing from any big names etc, have seen some green from s n p 500 etc and I got in Rolls Royce way before the massive jump sadly though not withh tons of shares but still currently my best is 62% positive and worst negative 94%.
I think its sods law that I was learning stocks in 2018 off and on, watched close in 2019 and had zero funds to put down as it was rainy day funds I wonât use for stocks. Sadly 2019 is the time I should of went in though as I got in near the top of the big 2021 boom. I just didnât want to blindly start stocks with zero idea of how it works and what it does and that down time learning cost me.
Again though I have learned a lot since then yet I even know that I shouldnât be putting money into any company unless I know exactly how their doing etc yet I still do it. Lazy? Just going Yolo? Feel like if I donât Iâll miss out who knows.
I think anyone like me whoâs not researching the nuts off any company they invest in should probably just stick to EFTs? Would I be correct in saying that like the all world low returns but stable enough and seems to be thatâs what weâre always trying to beat. I sometimes do but over the long run I always seem to lose out to the all world so far anyways until the world goes back to normal.
Sorry for the big rant but in my real life I have no friends or work people I can talk about stocks shares, financials, engineering, science or anything interesting it seems lo letc they all seem to have 3 topics they talk about girls, football, drugs and drink.
So where better than get chit chat than on the form.
I think you really need to look longer term with stocks, I think the market is also a bit all over the place recently. Weâre coming from the perspective of never ending massive growth and cheap debt the last decade or so which maybe warps our perspective. since maybe 2021 stocks have been on a rollercoaster up and down up and down
The debt is also something to consider I think. I know companies who are technically doing well, profitable companies with good products, but theyâre cutting back because of the increase in interest payments on the massive lending they took out
I think for most people, realistically we should probably invest on only a small number of individual companies, if any at all.
im moving towards a more core - satellite approach with the aim of likely getting the majority of my investments in an ETF like LGGG, maybe 40% initially or so. The rest im looking to have larger positions in some trusts, some dividend paying, some growth focused, and a few individual companies. I want to reduce the number of individual companies I have, but mainly because as you mentioned, tracking them is time consuming.
I do think over time you can gain a better idea of a company that makes keeping up to date on them less time consuming in the long run, but doing that for a lot of companies is probably unrealistic.
Past few months everything I have bought has gone lower, not good for the ego but on the flip side it means more shares at lower multiples and every buy is technically a pay rise (dividends). As long as the fundamentals are still sound. Trying to block out the noise and stay consistent.
Only one ETF out of 30 here. I can see VHYL becoming one of my core holdings eventually as I rebalance and consolidate a few positions but too much opportunity cost to go all in to funds. Quite like researching individual companies. Buying with a âmargin of safetyâ has mostly worked.
Yes I think itâs because when I got in everything changed and when I was watching the markets and learning ore covid etc everything seemed to have a said pattern of sorts. My plan it pretty much to hold to retirement although what I actully want to do is sell up everything I own and rebuy in an isa, so will just need to wait until I see green and go for it I guess.
Yeah I think from now on I will just ride the market out Iâm the boat, the fuel for the boat is the cash, the waves crashing, rippling or being steady vs the boat is the market.
Yes I like that little way of thinking, I shall pat myself on the back now
Yeah and about the less stocks it would be good to pick a few single stocks you can get to know the the rest in ETFs, etc
No need to wait for green to do that, as long as you buy in the ISA for the same price as you sell in the GIA it doesnât make any difference. In fact if you are close to hitting the ISA limit for the year you can get more shares moved across while using less of your ISA allowance by doing it at a lower price
So I can sell at a loss? Then what do u do tell hmrc about the loss and they give me back the difference in Allowence on the isa? I wouldnât ever be close to hitting 20k a year because I just make a few thousand above that so no worries there unless there are any other little tricks?
If you are buying back the exact same shares that you have sold, it doesnât even matter.
If the market continues to go down you may find you have bought back in at a lower cost bases and get more of the stock for the same price you sold at.
Yeah thatâs what I was trying to say. it wouldnât affect the allowance on the ISA, but if you buy back at the same price youâll have the same number of shares. itâs irrelevant whether they were up or down at the time.
Since you are using your GIA (taxable) If you are filling out a Self Assessment you could report your losses against the gains you have made to reduce your tax bill.
I did this last year and as already advised it doesnât matter when you follow the process. One thing to be mindful of is the period it takes for the sale to settle in your GIA and then be transferred to your ISA. In a downward market that might work in your favour, but the opposite would be true in an upward trend and you could end up paying more for your stocks.
If you have the funds available you could deposit the amount needed to buy in your ISA and then trigger the sale / buy process at the same time. Then when your GIA sales clear you can either transfer the proceeds back to your current account or request a transfer to your ISA and boost that if youâre within your limit.
Not financial advice but that is what I did and it worked well.
As usual the articles published in the past few days:
Invest Wisely With High Bond Yields How To Pick a Bond ETF? Why Arenât Investors Selling Stocks to Buy Bonds? Market Cap (Weighted) Hated Indexes Does Adding Dividend Stocks Improve Portfolio Performance? One of the best ways to build and maintain an investment portfolio is by stress testing different scenarios Is Britain really as poor as Mississippi? Visualising the $105 trillion World economy in one chart
Factor & Active Investing 7 key valuation lessons from Aswath Damodaran A quant & a financial planner discuss factor investing Value and Profitability/Quality: Complementary Factors Seth Klarman on What Makes a Value Investor Committing âSacrilegeâ How to Invest Like Warren Buffett - the library Is David Solomon Too Big a Jerk to Run Goldman Sachs? Inside a banking mutiny.
Wealth & Lifestyle 9 Biggest Mistakes High Income/High Net Worth Millennials Make How can you cycle the world? - A practical guide Charted - Gen Z job attitudes compared with other generations 5 big lessons popular personal finance advice gets wrong The secret to happiness - how to let go & stop worrying Tim Ferriss Is Changing His Mind
One question when you said I could sell in the red and rebuy in an isa from a gia. Will I not lose pit on stamp duty both selling at a loss then having to rebuy again or?
Millionaire Expat: How To Build Wealth Overseas
articles published in the past few days:
With High Bond Yields How To Pick a Bond ETF?
