Portfolio advise

[Hobo]

I want to put 20k into shares in the next week, and then regularly invest 1k per month thereafter.

I want a relatively 'safe' basis for the portfolio, and will then look to possibly diversify as things progress. Got to be better, and more fun, that a bank account which pays near nothing after fees.

The stocks I am looking at for the intial 20k are;

Lloyds (LLOY) - 5k
Barclays (BARC) - 2.5k
Vodafone (VOD) - 2.5k
WPP plc (WPP) - 2.5k
Aldermore (ALD) - 2.5k
Redrow (RDW) - 1k
Berkeley Group (BRK) - 1k
Paddy Power Betfair (PPB) - 1k
BA Systems (BA.) - 1k
Whitbread (WTB) - 1k

Any thoughts on these selections ?

[Craikeybaby]

I'd go with a passive managed fund, for less fees and a more diverse portfolio.

If you haven't used up your ISA limit, you could split it over this year and next year in an S&S ISA.

[Ozzie Osmond]

Ozzie's thoughts

• If you want "safe" you want a good spread of risk
• Your list is hugely slanted towards the banking sector
• I'd prefer to buy a mainstream stocks and shares fund, preferably within an ISA, and then keep topping up each month.

But there's more than one way to skin a cat!

[Ozzie Osmond]

Craikeybaby said:

If you haven't used up your ISA limit, you could split it over this year and next year in an S&S ISA.

Yes. i.e. invest some before 5 April 2016 and some after 6 April 2016. Annual limit is currently £15,240 for the year to 5 April.

[Roger Irrelevant]

Unless you get a buzz out of actively picking/managing your own shares, and are prepared to lose a decent amount in transaction costs and diversification benefit to be able to do that, then it really, really does make sense to do as the two posters above have suggested and go for some kind of off-the-shelf fund in a S&S ISA. Something like a Blackrock FTSE all-share tracker would be my choice - there's so much money invested in it that they can afford to take a tiny slice as their charge (7bps or something like that), and you'll be far, far better diversified.

[Hobo]

Changed my plans slightly and invested in the following;

Aldermore
Amazon
Barxlays
Disney
Domino's pizza
Facebook
Google
Coca cola
Legal & general
Lloyds
McDonald's
Microsoft
Nike
Paddy power bet fair
Persimmon
Taylor wimpy
Vodafone
WPP

Went over the initial investment amount slightly.

Looking at the following also;

Apple
VALEANT pharmaceutical
TEVA pharmaceutical
Allergen
Pfizer
Visa

I appreciate the comments about using an investment fund, but like the idea of choosing my own if I'm honest.

[MisterJD]

Craikeybaby said:

I'd go with a passive managed fund

Craikeybaby said:

passive fund

or

Craikeybaby said:

managed fund

but

Craikeybaby said:

passive managed fund

Possible?

[Craikeybaby]

I think I missed a slash there, but the main point is a fund will waste a lot less money on fees.

[Jon39]

Craikeybaby said:

... but the main point is a fund will waste a lot less money on fees.

You state 'will', but you should have said might.

As individual purchases are made for your own equity fund, then there will obviously be costs involved.
Trading would continue those costs, but if your own portfolio then settles into long-term, your only cost is for an ISA 'wrapper'.

You made me wonder about this aspect, so I have just checked my costs for the whole of 2015.
I see that I paid 0.00478% of the end of year equities value in costs for the whole year.
Seems extremely fair to me.

How much would you have paid for a sizeable tracker fund?
Now add on the 2015 value loss of 4.93%

Remember that the fund industry have fees, initial fees, charges, hidden costs, admin charges, commissions, transaction costs, ...
Customers of course pay, but do not always realise because some of it is within the fund.

[Hobo]

Well, my first week as a rookie investor is up. First weeks profits of £527.

Allergan, Aviva, Domino's pizza, Barclays, Lloyds and Paddy Power Betfair have not been the best choices to date.

[Simpo Two]

Hobo said:

Well, my first week as a rookie investor is up. First weeks profits of £527.

Noe you have to decide whether to take the profit and spend it, take it and reinvest it and hope you're lucky again, or leave it going and hope...

[Hobo]

At the moment it's leave it as it is. Planning a couple more purchases next week but that's it for now.

[Mr Cod]

If you are evaluating an investment decision based on one week's performance - that is not investing.

[Simpo Two]

Mr Cod said:

If you are evaluating an investment decision based on one week's performance - that is not investing.

That's right, you have to leave it invested until it goes down again

Investment is about making profit; the timeframe is unimportant IMHO (subject to tax constraints of course).

[Hobo]

Mr Cod said:

If you are evaluating an investment decision based on one week's performance - that is not investing.

So how many weeks is it before it is classed as investing ?

[LeoSayer]

Unrealised gains aren't profit.

[caymanbill]

Some interesting choices there. May I ask why you chose to invest in Cola and Microsoft?

[23rdian]

I think timeframe is important

[Hobo]

Well, after 2 1/2 months I've invested just over 30k & the return to date is just under 3%, so doing ok, but not quite retirement level yet.

Best investment (to date) is Amazon, returning some 27% since purchase. On the flip side, I bought Allergan hoping the Pfizer merger would bring some positives (and free shares) but to date has lost me 18&. Dominos has also dropped 10%.

The ones that currently keep my interest are Sirius Mining (up 3%), Aureus Mining (down 31%) & 88 Energy (up 2%). They are up & down like the preverbial, however am hoping for good things from at least two of them.

Overall, beating the banks currently offerings, and having far more fun doing so. Learning loads. Onwards & upwards (hopefully).

[bmwmike]

BAE and BP are worth a look too
Latter bought during the GoM accident. I like BAE as it pays a decent div.

Currently waiting to get into amazon sub 700 though.. for no other reason than AWS.