Hi Guys & Girls

My name is sam i have just inherited little bit & have about 100K to invest in stock Market.
Please help me with what shares to buy?
What Stock Broker?
I dont mind high Risk shares.

Many Thanks

Sam

Moneyangel,
Investing is an art, acquired through studying, experience, listening to people, and most importantly, being patient. There is no get rich quick system, unless you are extremely lucky, like some people are at playing cards. I would impress on you to have the moral principle in remembering that the money you inherited was most likely earnt and saved by person who gifted it to you, who would be bitterly disappointed if you frittered it away on the stock market in a irresponsible manner. You would not strip down and rebuild a racing car engine unless you are skilled mechanic, in the believe that servicing your old banger qualifys you. You only have to look at the views of financial "experts"? in the monday papers to realise how hit and miss it can be, picking companies to invest hard earnt money in. Some will advise buying a share, another hold existing shares and onother may suggest you sell. If they can have such a varied opinion, what chance do you have as a novice?. I feel you have a cavalier attitude, you may strike lucky on initial investments, get over confident, keep buying, have small losses, keep buying, have further losses, and gamble on hitting the winning streak again. If you do, you will likely lose heavyly. Remember that most successfull investors, usually, invest their own hard earnt money and slowly build up their holdings over a number of years. they read about companies, study trends, formulate what companies might benefit from changes that are ocurring by having the foresight to invest in these changes. There are so many factors to consider, experienced investors work hard researcing, waiting for opportunies to buy, watch director's buying, not small buys to bump up price, but genuine buys. These and many other facets are used by investors, and still they make some bad buys and lose money in a share, sometimes all of it. So the gist of this information is, we invest to make money, it is home to our savings. It is an art with attached risks. No matter how big the company, how good the management, companies can lose money, even go bust. Even though you may study the market dilligently, very professionally, have lots of accumen and your gut feelings are usually spot on, you are never privy to all of that companies business, you are not a fly on the wall in the boardroom, listening to workers are the shop floor etc, so there is always a risk attached to any share no matter how good the company. What you do not want to do is start off by investing in high risk investments. If that is how you dip your toe in the water, you should get on a plane and go to Las Vegas. My intention is not to belittle you or to cause ill feeling. I am not jealous of your inheritance. I am concerned that you may well lose a lot of your money, gifted to you by someone who has worked hard and saved this, possibly by carefull and patient investing, and it would be a terrible shame to reward the memory of the largesse of that person by investing it unwisely. If you have a Wife and children, think about them if anything should happen to you. Would your other funds be adequate for them?. Lastly, investing this money wisely may well provide an income in your old age and the residual passed on to person or persons one day who can fondly remember your generosity as you now remember your benefactor.

Good luck with your money, use it wisely.

knol

I am finding this totally amazing that someone who has just received a reasonable sum of money,and with no experiance in the stockmarket or investments,have approached a bullitin board asking for advice !!!!!
My advice is,are you use to large sums of money like that because some people its just burning a hole in there pocket and want to spend it quickly.
Put it into a high interest account and dont hurry,just take your time and sort help from people who can guide you and spread it around.If it was me i would put some of it down as deposits on Buy to let properties and other investments,so if some go tits up you aint got all your eggs in one basket etc.

Hope it goes well for you,and may your final chosen investments flourish.

Rick.....

Good points, Mega Bucks. But is the buy-to-let market not somewhat inflated at the moment?

moneyangel,

once you've done your research, you'll probably come across the tern 'Value Share', suggest you persue your understanding of this and contrast that to a 'speculative share'.

Remember, it is easy to lose 100k or any part of it, and doubly hard to make a 100k.

Happy research, and do use a paper (dummy) portfolio, over at least a whole year, with all its vagaries of the Financial Markets.

It is interesting so Good Luck.

Also first visit an Independent Financial Adviser, unless you are one of course. In which case my apologies.

silvermede,if you shop around and buy off plan you can straight away go into profit,and if you take out a interest only mortgage,all you then do is pay the minimum amount out each month and still charge maximum rent,as long as the rent covers your out going you are fine.Your property as a general rule will double ever 7 years,so on a 20 year mortgage you flip it just before the 20 years are up,you pay off the amount you borrowed say 100k and then take the profit.
I am a member of a property club and every week get lots of new property details emailed to me,all off plan and all with major costs covered ie legal fees and deposits payed for.

Property over the years will never go down,some years there are correction,but it never goes down for long.

Rick....

Interesting stuff Rick - nice to have a comprehensive answer from someone with experience - thanks!

Ref post 26
Can someone kindly let me know what the icon means (if this is correct description), that is attached to my post.

Thanks in anticipation
knol

knol,

It allows you to edit your own posts.

ian

Ian,

Thank you for your swift response. As you are no doubt aware, I am not very
knowledgeable in posting. Think I ought to change my username.

Regards

knol

I'm a bit inspired by all the comment on this thread. It's nice to see so many people care


Moneyangel -- I have little to add to the above comments apart from the point that has pretty much been made all over -- Capital Preservation should be the first rule of equity investing -- believe you me !!

As for books my favs are two slightly off the wall ones

1. Trader Vic - Methods of a Wall Street Master -- in my opinion almost head and shoulders above the normal books mentioned

2. The Future of Money --- read the back section about what money really is. This is the real eye -opener. Then read Trader Vic and you will see the light


p.s. I don't like Peter Lynch although his bit about categorising stocks is Ok. I think his book --- I think "One up on Wall St" -- hurts rather than helps the investor

Confidant - interesting view on Peter Lynch. I have to say that what I most benefited from in "One up on Wall St" was his memorable sayings.

I think one should in all cases read a variety of books and sources and make up one's own mind. I'm doing the same regarding dietary issues at the moment and it's amzing how different people have differing views, even if they agree on certain fundamental principles. No less so with finance.

Hi Mega Bucks

I already have 4 Buy-to Lets & dont want any more.

ERX.. its going to explode

potatohead,

Why do you think ERX is going to explode?

potatohead,

Why do you think ERX is going to explode?

soul traders

my point on Peter Lynch really is that its not that easy just seeing what new shop is round the corner and buying it --- a bit simplistic I know

I think his approach really was buy everything and just close your eyes and wait. This is great policy if you can buy a 1,000 stocks and wait. The law of maths -- stocks can go down only 100% but rise an unlimited amount basically saw him through as a winner (a little more refinement than this simple strategy but not much)

Me I prefer the "put all your eggs in one basket, and watch the basket" mentality. While perhaps not quite 1 basket

Totally agree -- read as many books as possible even "One Up on Wall St" ;-)

Confidant - LOL! The funny thing is that while i think some of Lynch's stuff is brilliant (and let's face it, the man has generated a hell of a lot of wealth), my own strategy - if I can dignify my haphazard investment record with such a title - is completely different.