When would you cash in?

When would you cash in?

Author
Discussion

LoonR1

Original Poster:

26,988 posts

178 months

Thursday 9th January 2014
quotequote all
I've got a sharedealing account where I stuck a few quid in 2011 on some shares that I saw as a reasonable gamble with little potential of losing it all as a "test" to see how well I could do based on gut feel.

I've had a look at how these shares are doing and I'm up by just under 45% in just over three years.

The stake was a fair chunk, so I'm well into CGT paying range. which makes that a moot part of the discussion. I don't need the cash, have no debt and plenty of disposable income, so none of that is a consideration either in terms of helping with the decision.

What level or when would you cash in?

Shares are Barclays (I bought the extra ones at £1.85 last year in full) up 19.11% , Barratt up 255% , BP up 30% , Tesco down 20% and Lloyds up 37%

Steffan

10,362 posts

229 months

Thursday 9th January 2014
quotequote all
LoonR1 said:
I've got a sharedealing account where I stuck a few quid in 2011 on some shares that I saw as a reasonable gamble with little potential of losing it all as a "test" to see how well I could do based on gut feel.

I've had a look at how these shares are doing and I'm up by just under 45% in just over three years.

The stake was a fair chunk, so I'm well into CGT paying range. which makes that a moot part of the discussion. I don't need the cash, have no debt and plenty of disposable income, so none of that is a consideration either in terms of helping with the decision.

What level or when would you cash in?

Shares are Barclays (I bought the extra ones at £1.85 last year in full) up 19.11% , Barratt up 255% , BP up 30% , Tesco down 20% and Lloyds up 37%
With a growth rate like that perhaps you should be an investment manager rather than in insurance? Excellent results. Timing as we all know only too well is the real art in investment. Given your success in this I would strongly advise following your own instinct, which looks pretty good to me.

LoonR1

Original Poster:

26,988 posts

178 months

Thursday 9th January 2014
quotequote all
Steffan said:
With a growth rate like that perhaps you should be an investment manager rather than in insurance? Excellent results. Timing as we all know only too well is the real art in investment. Given your success in this I would strongly advise following your own instinct, which looks pretty good to me.
Thanks

I did very well with the bank shares back in 2009 (?) when all hell broke loose, so that piqued my interest and is where this money to "play with" came from.

Part of me thinks to just hold on, but then being the greedy git that I am, I had a look back at the peaks and troughs of the past 3 years and did a Jim Bowen "look what you could've won" and thought a minor bit of active management could've been a much better result.

I'm currently pissing on my brother, the stockbroker, and he's more than a bit pissed off. biggrin

Terminator X

15,118 posts

205 months

Thursday 9th January 2014
quotequote all
Just as well you didn't buy Barratt in early 2007 eek

TX.

LoonR1

Original Poster:

26,988 posts

178 months

Thursday 9th January 2014
quotequote all
Terminator X said:
Just as well you didn't buy Barratt in early 2007 eek

TX.
That value is what prompted me to buy it at the price I did.

bogie

16,400 posts

273 months

Thursday 9th January 2014
quotequote all
well thats a nice gain. Can you think of a reason any of them will go significantly higher in the next year or two

or more importantly, if you sell them and lock the profit in. What else do you think is a good price now to put your money into

and 3rd, can you get £11k of it into a stocks n shares ISA each year so you dont pay tax next time smile

LoonR1

Original Poster:

26,988 posts

178 months

Thursday 9th January 2014
quotequote all
bogie said:
well thats a nice gain. Can you think of a reason any of them will go significantly higher in the next year or two

or more importantly, if you sell them and lock the profit in. What else do you think is a good price now to put your money into

and 3rd, can you get £11k of it into a stocks n shares ISA each year so you dont pay tax next time smile
Banks, more to come I reckon, Barratt has m ore to come plus dividends for a change, BP and Tesco are dividends only now but they do lik to splash the cash.

No idea what to buy now if I sold

ISAs are always filled up with other money.

Newc

1,872 posts

183 months

Friday 10th January 2014
quotequote all
I would

- hold BARC. That seems like a £4 stock to me long term, and they are capable of generating enormous cash.
- sell LLOY. Don't need two banks in this size of holding.
- take profits at BP. Massive upheaval in the energy world with shale and solar and BP doesn't seem like the best positioned to come out on top at the end of it.
- sell TSCO. The combination of Aldi, Waitrose, and Amazon is going to put the business into managed decline.
- hold BDEV to the election and then see what the next govt's housing policy looks like.

With the released funds I'd either go hands off and buy an S+P tracker, and just sit on it till the Fed takes QE down to $40bn or less, or if I was being more active I'd look at things that will benefit from property transaction numbers increasing: Rightmove/Zoopla look interesting as an example.


ellroy

7,042 posts

226 months

Friday 10th January 2014
quotequote all
If you're married inter specie transfer to the Mrs, effectively doubles your CGT, some of the shares.

If you want to keep exposures she sells you buy back from cash same day, and vice versa, get rid of bed & breakfasting rules to a decent extent.

LoonR1

Original Poster:

26,988 posts

178 months

Friday 10th January 2014
quotequote all
ellroy said:
If you're married inter specie transfer to the Mrs, effectively doubles your CGT, some of the shares.

If you want to keep exposures she sells you buy back from cash same day, and vice versa, get rid of bed & breakfasting rules to a decent extent.
Happily divorced

Newc said:
I would

- hold BARC. That seems like a £4 stock to me long term, and they are capable of generating enormous cash.
- sell LLOY. Don't need two banks in this size of holding.
- take profits at BP. Massive upheaval in the energy world with shale and solar and BP doesn't seem like the best positioned to come out on top at the end of it.
- sell TSCO. The combination of Aldi, Waitrose, and Amazon is going to put the business into managed decline.
- hold BDEV to the election and then see what the next govt's housing policy looks like.

With the released funds I'd either go hands off and buy an S+P tracker, and just sit on it till the Fed takes QE down to $40bn or less, or if I was being more active I'd look at things that will benefit from property transaction numbers increasing: Rightmove/Zoopla look interesting as an example.
Thanks interesting stuff

JamieBeeston

9,294 posts

266 months

Friday 10th January 2014
quotequote all
Assuming we're not talking hundreds of thousands, Given the CGT allowance is annual, cant you sell down over a few years to minimise your exposure?

LoonR1

Original Poster:

26,988 posts

178 months

Friday 10th January 2014
quotequote all
JamieBeeston said:
Assuming we're not talking hundreds of thousands, Given the CGT allowance is annual, cant you sell down over a few years to minimise your exposure?
We are though.

JamieBeeston

9,294 posts

266 months

Friday 10th January 2014
quotequote all
LoonR1 said:
JamieBeeston said:
Assuming we're not talking hundreds of thousands, Given the CGT allowance is annual, cant you sell down over a few years to minimise your exposure?
We are though.
Congrats then smile

Tyy

268 posts

144 months

Friday 10th January 2014
quotequote all
LoonR1 said:
We are though.
Perhaps we should be asking you for advice rather than the other way around!! any tips for 2014?? biggrin

LoonR1

Original Poster:

26,988 posts

178 months

Friday 10th January 2014
quotequote all
Thanks guys. I've no idea what to buy, I just bought some big companies that appeared to be priced low. I don't think there's many obvious ones around nowadays.

ellroy

7,042 posts

226 months

Friday 10th January 2014
quotequote all
What about EIS/VCT can't recall which off hand, but one had holdover relief for CGT, as well as income tax reliefs?

LoonR1

Original Poster:

26,988 posts

178 months

Friday 10th January 2014
quotequote all
ellroy said:
What about EIS/VCT can't recall which off hand, but one had holdover relief for CGT, as well as income tax reliefs?
No idea what that means in all honesty

Steffan

10,362 posts

229 months

Friday 10th January 2014
quotequote all
LoonR1 said:
ellroy said:
What about EIS/VCT can't recall which off hand, but one had holdover relief for CGT, as well as income tax reliefs?
No idea what that means in all honesty
Venture Capital Trusts, the Enterprise Investment Scheme and the and the Seed Enterprise Investment Scheme are similar in many respects, but there are some significant differences.

I think ellroy is suggesting inherent advantages in considering the VCT/EIS scheme with the additional tax relief etc. I am not saying he is right but must be worth a look. The SEIC is my addition.