Investments.....on the rise finally????

[JohnfromUK]

The problem I have with a physical commodity such as gold is that it doesnt return you anything while sitting in a vault. Other assets do.

 

My balanced portfolio returns me about 3.5% pa yield and over the past 5 years has grown about 10% pa. so fairly conservative but consistent.

 

It is hedged across currencies and regions and is about 60% bonds, 30% equities, 10% cash.

 

I am a firm believer in balanced investments.

 

 

I have exactly the same feelings and have done similarly - with income (approx 4% tax free from ISA) and capital growth - also about 10% p.a. in recent years. This is spread across most of UK, Europe and North America, with some small amounts in the Far East and South America. It is (by and large) in major companies across a wide range of fields with a sensible price to earnings ratio. I agree that many 'high profile' stocks are all 'hot air', but there are plenty of sound companies that earn money as well.

The majority of mine is now through funds/unit trusts so I pay for (and benefit(?) from) management. I know it is an extra cost, but I don't have the will to do it all myself.

Edited October 19, 2017 by JohnfromUK

[RockySpears]

The problem I have with a physical commodity such as gold is that it doesnt return you anything while sitting in a vault. Other assets do.

 

My balanced portfolio returns me about 3.5% pa yield and over the past 5 years has grown about 10% pa. so fairly conservative but consistent.

 

It is hedged across currencies and regions and is about 60% bonds, 30% equities, 10% cash.

 

I am a firm believer in balanced investments.

 

Out of interest why did you let your pension lose you money? Assuming it was a DC scheme surely you had options as to where it was invested .

 

This was the days before you could do anything about it other than move it and take the loss on fees.

 

Those increases will not even cover your losses to inflation and fees I would hazard.

 

Remember they are NOT profits until you take them out as £, they are just losses waiting to happen,

 

RS

Edited October 19, 2017 by RockySpears

[AVB]

 

 

 

Those increases will not even cover your losses to inflation and fees I would hazard.

 

 

 

 

the 3.5% is yield so it is money in hand via dividends.

 

The growth is ex. fees and easily outstrips inflation.

[JohnfromUK]

 

 

the 3.5% is yield so it is money in hand via dividends.

 

The growth is ex. fees and easily outstrips inflation.

+1

[yod dropper]

 

 

..... How the hell is this possible, a company with a revenue of less than 5% of its rivals has a greater or equivalent "market" capitalisation.

 

Please, any one, tell me where these investors see their returns coming from?.....

 

 

 

RS

 

It's all about potential. I recall a radio article where I think it was Tesla that's worth way more than Ford. I can only guess whose turnover and profit it is that outstrips the other but I bet it's Ford.

 

I gather that for a good while it's been about growth shares and not value ones. It also appears that some valuations are stretched and sustainable profitability is becoming an issue. I'm looking into the specifics of how I can profit from this situation.

[evolution380]

Theres always going to be plays, not just the big boys on the stock market, it's more exciting to me than locking something up in a cupboard or letting cash sit in a bank and practically lose money over the years.

 

With TESLA the share price factors in certain potential etc. however whilst there the leader in electric cars other manufactures are increasingly encroaching on their territory which will only get worse with government incentives & environment targets etc. Bad press on Tesla too with certain malfunctions but that can happen to other manufacturers too.

 

Personally I'd rather try invest in the Nickel/Lithium/Graphite sectors for the batteries which is what i'm doing currently.. may regret it, may be fruitful but nothing currently is invested that i'm not prepared to lose.

 

It's down to personal preference, I wouldn't myself dare to invest in Amazon or Alphabet at 1000 dollars a share especially with some acquisitions like amazon did with Whole Foods recently but it's not to say money can't won't be made despite the SP...

 

A lot of very wealthy and successful investors have one or the other in their portfolio.

 

I'm thinking investing in shotgun cartridges may have been about as good an investment as any.

[JohnfromUK]

The potential with Tesla lies in the energy storage (i.e. battery) technology. If (and its a BIG if) Tesla can make a really good energy storage system, then apply it to solar and wind power, they are on to a huge market, because all of a sudden the major power problem of the unreliability of wind and solar power is mitigated.

 

Whether Elon Musk can achieve the potential of this (and he has so many other 'projects') seems to me doubtful, but he has got a long way ...... and is still there and going, so maybe he can?

 

Too risky for me though.

[AVB]

The potential with Tesla lies in the energy storage (i.e. battery) technology. If (and its a BIG if) Tesla can make a really good energy storage system, then apply it to solar and wind power, they are on to a huge market, because all of a sudden the major power problem of the unreliability of wind and solar power is mitigated.

 

Whether Elon Musk can achieve the potential of this (and he has so many other 'projects') seems to me doubtful, but he has got a long way ...... and is still there and going, so maybe he can?

 

Too risky for me though.

I happy with owning a Tesla (car) but not the shares!

[RockySpears]

"The problem I have with a physical commodity such as gold is that it doesnt return you anything while sitting in a vault. Other assets do."

 

That's fine, so long as you do not think of Stocks/shares as assets.

 

Gold does not "return" anything, but is wholly inflation proof, and, as the Fiat currencies collapse, it remains solid (so to speak).

 

Stocks and shares are gambling in some one elses casino, I don't gamble. When the rush for the exit comes, you will NOT be at the front of the queue.

 

Best of luck (cos that's what it takes) with your investments,

 

RS

[AVB]

"The problem I have with a physical commodity such as gold is that it doesnt return you anything while sitting in a vault. Other assets do."

 

That's fine, so long as you do not think of Stocks/shares as assets.

 

Gold does not "return" anything, but is wholly inflation proof, and, as the Fiat currencies collapse, it remains solid (so to speak).

 

Stocks and shares are gambling in some one elses casino, I don't gamble. When the rush for the exit comes, you will NOT be at the front of the queue.

 

Best of luck (cos that's what it takes) with your investments,

 

RS

 

 

If you bought gold in 2012 when it was $1,900/oz and had to sell in 2015 when it was close to $1,000/oz you wouldn't be saying it is inflation proof nor solid. Your investment in gold is still a gamble. Investments (of any kind) can go up and down and you may not get back what you have invested!

[Dellbert]

does no one ivest in property to let either comercial or residential ?

[Lloyd90]

does no one ivest in property to let either comercial or residential ?

Lots of people, the government have noticed and are now starting to tax buy to let owners on rental income, rather than profits.

 

Many landlords are being pushed into the 40% tax bracket, and many are losing the higher rate relief on the mortgage payments.

 

I'm not sure about commercial property.

[sandspider]

I'm interested in this, as I have a smallish amount of money to invest. (After paying down mortgage as much as possible etc.)

 

Given the huge variety and complexity of options, I'm thinking of just drip feeding it into a Vanguard Life Strategy fund, probably held with Vanguard themselves, and probably 40% equities to 60% bonds. (Or maybe 60:40). I hope this will give me a bit of diversity and a moderate return without too much effort or expense on my part. Any thoughts? Is there a better / cheaper way to do this? I did consider a bit of gold too...

 

Cheers.

[RockySpears]

does no one ivest in property to let either comercial or residential ?

 

 

Lots of people, the government have noticed and are now starting to tax buy to let owners on rental income, rather than profits.

 

Many landlords are being pushed into the 40% tax bracket, and many are losing the higher rate relief on the mortgage payments.

 

I'm not sure about commercial property.

 

Residential only, the returns on commercial are way lower and the "legal" stuff can be a nightmare. We have all bought or rented property, so there is nothing new.

 

The Tax changes really only affect the higher profit landlords. I do not pay higher rate Income tax, so am mostly unaffected by the changes. I also live in the North East England, my rentals cost me, on average, £35,000 a piece and rental is about £500pm. My mortgages cost me about £8,000pa and there is very little else to pay for. They each get anew kitchen every 10 years or so, the insurance it £1,000 per year for them all and 6 gas safety checks roll in at about £200. I like to keep mine in good repair so spend around £5,000 on building maintenance each year. If you wanted to use an agent, to avoid the hassle, knock 10-15% off the Gross rent, still good returns and not worries.

I work full time, so I do not spend the profits, I buy Sovereigns, no silver, the VAT is silly.

 

As I retire, i will sell one at a time every couple of years to minimise Capital Gains, although, I have had them long enough for CG to taper off.

 

At current Valuations I will get about £50,000 for each as profit. Couple this with the SIPP which I chucked into Gold a few years ago, I should be fine, a lot better than most I would hazard. Certainly enough to see me to my 80's, after which I suspect I will not be too bothered.

 

 

There you go, my entire retirement plan in a Nutshell.

 

RS

[AVB]

This is an interesting article that uses Metcalfe's law (the value of a network is the square of the number of users) to value cryptocurrencies and how you should move out of gold into cryptocurrencies. There was another thread about cryptocurrencies recently.

 

http://uk.businessinsider.com/bitcoin-price-how-to-value-fundstrat-tom-lee-2017-10

 

I don't hold any gold (although I do invest in mining companies) and I am not really up to speed on Metcalfe's law but as one of my concerns over CC's is how you value them I might rebalance my portfolio to include some CC's going forward.