Want to buy some shares - where do I start

[richatnort]

I would like to buy some shares in a company but I just don't know where to even begin. I only want to buy in one company at the minute.

How does it all work?

[anonymous-user]

That's a bit like saying, "I want to buy a car.....".

• Listed company? (i.e on a public stock exchange)
• Large public company?
• Small private company?
• UK or different country/jurisdiction?
• Objectives, if any, in terms of controlling the company?
• £10, £100, £1,000, £10,000?
• Dividend income expectations?

By far the easiest way to get an answer is to name the company.

[richatnort]

rockin said:

That's a bit like saying, "I want to buy a car.....".

• Listed company? (i.e on a public stock exchange)
• Large public company?
• Small private company?
• UK or different country/jurisdiction?
• Objectives, if any, in terms of controlling the company?
• £10, £100, £1,000, £10,000?
• Dividend income expectations?

By far the easiest way to get an answer is to name the company. Probably want to put £30 in to start then up it each month. I don't know about dividend income but just want to make any money on it.

Company is sports direct. Been told their shares are going to go up a lot recently.

Edited by richatnort on Monday 20th February 20:52

[Robertj21a]

richatnort said:

Company is sports direct. Been told their shares are going to go up a lot recently.

Edited by richatnort on Monday 20th February 20:52

Only invest what you have as 'spare' money that you can afford to lose.

[richatnort]

Yeh that's why I thought if u put £30 in to start then add a bit at a time it's only like a round of drinks I'm putting in.

[Hi]

richatnort said:

Yeh that's why I thought if u put £30 in to start then add a bit at a time it's only like a round of drinks I'm putting in.

The trouble with doing that is you incur fees each time you put money in. I use Hargreaves Lansdown and pay £12 each time I buy or sell some shares, if you are only investing £30 a time, with a ~£10+ fee each time then you will need the share price to rise by 30%+ just to break even, which is a big ask!

[dogz]

There are lower cost options. Halifax share builder being one

[sidicks]

richatnort said:

Company is sports direct. Been told their shares are going to go up a lot recently.

Who told you that?
Why do you believe them?
Over what period do you expect shares to go up?

[eldar]

richatnort said:

Yeh that's why I thought if u put £30 in to start then add a bit at a time it's only like a round of drinks I'm putting in.

OK, 30£ to start will be swallowed up in charges, so hardly worth doing for one share. Better bet is to stick the money in a low cost index tracker and stick with it for a few years, and in an ISA. You won't get rick quick, but 30 years on you might be OK.

[AJB88]

sidicks said:

Who told you that?
Why do you believe them?
Over what period do you expect shares to go up?

Looking over a year they have gone down a lot.

[sidicks]

AJB88 said:

Looking over a year they have gone down a lot.

And?

Anyone who decides to purchase shares purely on the basis they have recently 'gone down a lot' is asking to lose money very quickly.

Edited by sidicks on Monday 20th February 23:05

[WindyCommon]

sidicks - the OP was just looking for a little help on a topic with which he/she is unfamiliar.

It is unnecessary to respond in such an aggressive and graceless manner.

[Trabi601]

richatnort said:

Company is sports direct. Been told their shares are going to go up a lot recently.

Profits down 57% year on year and future predictions very much going to be based on the value of Sterling in a post-Brexit world. Volatile and largely despised chief executive, increasing scrutiny of riding roughshod over workers' rights, and a labour model that appears to be struggling to match the demands of living wage legislation... and a transient workforce likely to move on and out of the UK as their wages are being eroded by the fall in Sterling.

I honestly can't see any reason to be chucking money at them right now.

But I'm not an expert, so there's a 50/50 chance that I'll be wrong. How lucky do you feel?

[AJB88]

WindyCommon said:

sidicks - the OP was just looking for a little help on a topic with which he/she is unfamiliar.

It is unnecessary to respond in such an aggressive and graceless manner.

Exactly that's what I was saying I wouldn't be gambling on them!

[richatnort]

Thanks for the advice! I think by the sounds of things i'll save up a bit more cash and buy a bug lump sum.

I know profits are down but they're expanding into europe, taken over an american company & seem to be opening more stores in the UK.

Mainly got a good tip from a friend who thinks things will turn round so could make a pretty profit from it all.

Thanks for the advice so far!

[housen]

Eastern Outfitters Signs Deal to Sell Chain to Sportsdirect.com
By Steven Church
(Bloomberg) -- Bankrupt owner of Eastern Mountain Sports and Bob’s Stores signs agreement that makes Sportsdirect lead bidder for court-supervised auction, lawyer tells judge Wednesday.
Sportsdirect will make so-called credit bid as opening offer, offering to swap debt for ownership of Eastern Outfitters.
One week ago, company was hours away from hiring liquidator to help shut retail locations when it got offer from Sportsdirect, company lawyer Jennifer Feldsher says at hearing in Wilmington, Delaware
Wednesday, judge says Eastern can keep operating business, and pay employees and key suppliers
NOTE: Company filed bankruptcy Feb. 5 while still trying to negotiate deal with Sportsdirect; second bankruptcy for company in less than year
CASE: Eastern Outfitters LLC, 17-10243, U.S. Bankruptcy Court, District of Delaware (Delaware)

[sidicks]

richatnort said:

Thanks for the advice! I think by the sounds of things i'll save up a bit more cash and buy a bug lump sum.

I know profits are down but they're expanding into europe, taken over an american company & seem to be opening more stores in the UK.

Mainly got a good tip from a friend who thinks things will turn round so could make a pretty profit from it all.

Thanks for the advice so far!

Remember that there are hundreds of asset managers who have significant resource to analyse different companies and determine what the short-term and long-term prospects for the companies are - if there was a consensus then those managers would already have bought into the stock and it will have risen - the current price reflects the market expectations for the stock.

The news that you've highlighted. - expansion etc - is already known by everyone and hence factored into the market.

Of course you might get lucky (and / or professional fund managers may have underestimated the potential) but putting all your eggs in one basket is a big gamble. And small investment amounts will be hit by significant costs even if your investment view is correct.

Be careful!

[anonymous-user]

To begin investment in a single "bombed out" company is a very, very high risk approach.

There are investment funds which specialise in what's called "value investing". The expert fund manager does lots of research to find companies whose share prices appear to be lower than might be expected - including, for instance, due to recent bad press.

You could open an ISA with Fidelity and buy some of their "Special Situations Fund". The cost of doing it this way would be about 1% p.a. but the combination of (a) manager's skill, and (b) tax relief in the ISA, should make that small cost well worth paying. Fidelity has an excellent website which makes it very easy for a beginner to invest. https://www.fidelity.co.uk/investor/default.page?m...

[sidicks]

rockin said:

To begin investment in a single "bombed out" company is a very, very high risk approach.

There are investment funds which specialise in what's called "value investing". The expert fund manager does lots of research to find companies whose share prices appear to be lower than might be expected - including, for instance, due to recent bad press.

You could open an ISA with Fidelity and buy some of their "Special Situations Fund". The cost of doing it this way would be about 1% p.a. but the combination of (a) manager's skill, and (b) tax relief in the ISA, should make that small cost well worth paying. Fidelity has an excellent website which makes it very easy for a beginner to invest. https://www.fidelity.co.uk/investor/default.page?m...

I definitely agree with your advice, but the minimum contribution into an Issa will be £500 or £1,000 won't it, not £30?

[Alex]

If you think the shares are going to rise in value in the short term, you could consider placing a spread bet.