Buying Shares

[SpokeyDokey]

I am a complete newbie and I’ve just opened an online share dealing account, transferred money and bought my first lot of shares. Do any of you financial wizards have any recommendations of what companies I should be looking into with a view to investing in?

Not being rude but that's an odd way to go about things - usually you'd gain some knowledge of different markets etc and then start to deal yourself.

However:

Google 'Share Investing Forums'.

Subscribe to the FT online.

Have a look at this - https://www.hl.co.uk/free-guides/ho...MItJHYqpC76AIVDbDtCh3ARQWnEAAYAiAAEgKvFvD_BwE

We invest with Hagreaves Lansdown but tbh I've never had the confidence or time to get involved in any way than other via a Fund Manager.

 

[lane]

Not being rude but that's an odd way to go about things - usually you'd gain some knowledge of different markets etc and then start to deal yourself.

However:

Google 'Share Investing Forums'.

Subscribe to the FT online.

Have a look at this - https://www.hl.co.uk/free-guides/ho...MItJHYqpC76AIVDbDtCh3ARQWnEAAYAiAAEgKvFvD_BwE

We invest with Hagreaves Lansdown but tbh I've never had the confidence or time to get involved in any way than other via a Fund Manager.

Hagreaves Lansdown's favourate Fund Manager (until recently) was Neil Woodford!

 

[SpokeyDokey]

Hagreaves Lansdown's favourate Fund Manager (until recently) was Neil Woodford!

I know!

We had nothing invested in the 'Woodford' funds so were unscathed.

 

[Tenkaykev]

I wouldn't buy individual shares especially if I were asking for tips on which to buy. Have a look at a fund like Vantage Lifestrategy 60. At your own risk. All usual disclaimers apply!

^^^^^^^^^^^^^^^
This, a thousand times this.

I've been travelling along this road for many years, and I've read around the subject a fair bit. A low cost passively managed fund will outperform the vast majority of Active fund managers.

When I was working I saved into a Cash ISA and built up a "retirement fund". I'd invested in a variety of shares as well over the years, not great amounts but enough to get a feeling for the ins and outs of share trading and some of the pitfalls thereof.

When I did retire I switched the cash ISA into a Self Select Stocks and Shares ISA ( you choose your own shares and how many of each)
The (15 or so) Companies that I invested in were all FTSE 100 , and spread across various sectors so as to spread the risk of any one sector falling out of favour.
I left the Portfolio alone wherever possible, and let the dividends build up before taking lump sums from the dividend "kitty" as and when I wanted to pay for a Holiday etc.

I also invested £1000 into a Vanguard Life Strategy Fund, as mentioned above by @alicat , but in my case a Lifestrategy 80 ( the numbers on the end refer to the ratio of shares to Bonds, so, for example the 80 Fund invests 80% in Stocks and Shares and 20% in Bonds, Bonds being seen as as safe and secure as it is possible to get)

The Lifestrategy Fund was chosen to act as a benchmark against my own share picking strategy and over the years it has outperformed almost all the shares that I chose. ( Unilever being one off the few notable exceptions)

Hindsight is wonderful, even after the recent crash I'm still less than 1% down on my original investments overall, but if I'd just chucked the lot into the Vanguard Fund I'd still be ahead, and with non of the work in analysing and choosing individual shares.

 

[SpokeyDokey]

^^^^^^^^^^^^^^^
This, a thousand times this.

I've been travelling along this road for many years, and I've read around the subject a fair bit. A low cost passively managed fund will outperform the vast majority of Active fund managers.

When I was working I saved into a Cash ISA and built up a "retirement fund". I'd invested in a variety of shares as well over the years, not great amounts but enough to get a feeling for the ins and outs of share trading and some of the pitfalls thereof.

When I did retire I switched the cash ISA into a Self Select Stocks and Shares ISA ( you choose your own shares and how many of each)
The (15 or so) Companies that I invested in were all FTSE 100 , and spread across various sectors so as to spread the risk of any one sector falling out of favour.
I left the Portfolio alone wherever possible, and let the dividends build up before taking lump sums from the dividend "kitty" as and when I wanted to pay for a Holiday etc.

I also invested £1000 into a Vanguard Life Strategy Fund, as mentioned above by @alicat , but in my case a Lifestrategy 80 ( the numbers on the end refer to the ratio of shares to Bonds, so, for example the 80 Fund invests 80% in Stocks and Shares and 20% in Bonds, Bonds being seen as as safe and secure as it is possible to get)

The Lifestrategy Fund was chosen to act as a benchmark against my own share picking strategy and over the years it has outperformed almost all the shares that I chose. ( Unilever being one off the few notable exceptions)

Hindsight is wonderful, even after the recent crash I'm still less than 1% down on my original investments overall, but if I'd just chucked the lot into the Vanguard Fund I'd still be ahead, and with non of the work in analysing and choosing individual shares.

In a similar vein - I've never tried the self select/self managed route as the time involved can be high and you need to be very knowledgeable about the sectors you are investing in - or very, very lucky!

On the other hand we have some of our investments in passive funds which are doing fine but our biggest gains have come from actively managed funds.

In 2003 we had a 'spare' £25000 (unexpectedly decent company dividend) to invest and we (Lovely Wife and I) put £12500 each into an actively managed fund (now held by Aviva) - one we closed 3 years ago at £46000 value to reinvest elsewhere (lower risk fund) and the other we left to see how it got along and up to the end of 2019 was valued at £51000 although this has now dropped a tad for obvious reasons.

Not a bad return at all and no credit is claimed at this end for its performance,

The above is the only time we have ever adopted a high risk investment strategy and tbh we are too scared to commit any of our other savings (Isa's, FRB's and NI Bonds) to the fluctuations of the markets - we're too old & too conservative to take the risk.

 

[Moodyman]

There's an old saying: "get out of the market when the taxi driver is telling you to get in".

No disrespect to the OP, but if you're looking for tips, then you'll be better off with the 3.40 at Kempton, or find an independent financial adviser.

 

[Drago]

I'm wary of independent financial advisers. If they're so good, why are they working for pittance as financial advisers?

I use an app to fiddle, and have the advantage of lots of free time to react instantly to a tv newsflash, or check the trends every 10 minutes on my tablet, and I've made about 15% on my original stake in a year. The markets are depressed at the moment, not much activity of any kind, so I've put most of it back into commodities that will recover well...eventually. That ought to bring some significant gains...eventually

 

[Archie_tect]

I prefer people who do stuff rather than living off the hard work of others... but then I've never understood bankers.

 

[Tenkaykev]

I'm wary of independent financial advisers. If they're so good, why are they working for pittance as financial advisers?

I use an app to fiddle, and have the advantage of lots of free time to react instantly to a tv newsflash, or check the trends every 10 minutes on my tablet, and I've made about 15% on my original stake in a year. The markets are depressed at the moment, not much activity of any kind, so I've put most of it back into commodities that will recover well...eventually. That ought to bring some significant gains...eventually

After my work pension went down the tubes in the Equitable Life debacle I went to college part time. I took and passed all the exams and qualified to be a Financial advisor.
I only did it to gain a better understanding of the Finance "industry"
I carried on with my job as an Electrical Engineer as I like the challenge of fixing stuff, plus you get to have a go on Lathes and Milling machines and you're allowed to hit things with lump hammers when they get stuck 😁

 

[Drago]

I prefer people who do stuff rather than living off the hard work of others... but then I've never understood bankers.

Over 90% of the world wealth is made through speculation - the buying and selling of currency for profit - and commodities and share trading. The only thing being taken advantage of is market conditions,

I imagine a world 90% or more poorer. No NHS, no internet, no medicines being developed, mass starvation...

Getty once opined that people were too busy working to earn money and he's right.

 

[Archie_tect]

There you see... the world's 'wealth'... it's all imaginary money- it doesn't actually exist, it's all locked down by the richest 5% and hoarded- so it doesn't 'do' anything.

 

[MarkF]

Over 90% of the world wealth is made through speculation - the buying and selling of currency for profit - and commodities and share trading. The only thing being taken advantage of is market conditions,

I imagine a world 90% or more poorer. No NHS, no internet, no medicines being developed, mass starvation...

Getty once opined that people were too busy working to earn money and he's right.

My late father was a builder and my mum used to look after all the finances after she retired early, she's accumulated a lot of money via share trading and it's a total mystery to me how she has done so as she asks me the daftest questions.

 

[Moodyman]

I'm wary of independent financial advisers. If they're so good, why are they working for pittance as financial advisers?

I use an app to fiddle, and have the advantage of lots of free time to react instantly to a tv newsflash, or check the trends every 10 minutes on my tablet, and I've made about 15% on my original stake in a year. The markets are depressed at the moment, not much activity of any kind, so I've put most of it back into commodities that will recover well...eventually. That ought to bring some significant gains...eventually

Agree. If one has the knowledge or is prepared to spend a lot of time understanding the various options, DIY is the best approach.

But I don't think the OP fits this description. Asking a group of strangers on the web or mates down the pub for major investment decisions is not a wise move.

 

[Eziemnaik]

Just buy something like vanguard lifestrategy 60/40
Cheaper and more effective than anything unless you are Buffet

 

[Drago]

There you see... the world's 'wealth'... it's all imaginary money- it doesn't actually exist, it's all locked down by the richest 5% and hoarded- so it doesn't 'do' anything.

That's largely true, but it doesn't alter the reality of the source of wealth.