A newbie question - UK Stocks

[johnberma]

Hi

I have been comparing Barrats and Taylor Wimpey, both seem to have a similiar Market Value, number of employees and over the years have had the same rise and fall

So 2 questions

1 - why are barrat shares almost 4 times that of Wimpey
2 - If im looking at a long term investement how do i pick between the two ?

Thanks in advance

John B

 

[bangkoker]

Do you mean the same rise and fall in percentage of price? I know nothing about the issue but surely the perceived perception in the market,future plans, dividends, takeover propositions, management, assets owed (such as land awaiting development), strategy, global recognition etcetera etc must come into it.

 

[johnberma]

Do you mean the same rise and fall in percentage of price? I know nothing about the issue but surely the perceived perception in the market,future plans, dividends, takeover propositions, management, assets owed (such as land awaiting development), strategy, global recognition etcetera etc must come into it.

Yes the same rise and fall in %

So if I bought a share in barrat and it increased over time by 100% then my original stake of 96 would be worth 2 x 96 ie 192 and if invested in Wimpey and they increased by 100% then my stake of 25 would be worth 2 x 25 ie 50 but in both cases I would have doubled my money so how do I know which to invest in - hope im making sense ?



John B

 

[bangkoker]

By learning I suppose. They can't have exactly the same charts? Is one more volatile? They can't have the exact same business models? etc

Have you read Naked Trader? he does a good book on shares, just keep reading and keep learning, I'm not a sharey person, so not best to ask but you looked lonely, so thought I'd chip in

 

[tomorton]

Hi John - In a case like this, the price per share in pence has nothing much to do with one being a better investment than the other. Do not think that if a price has a smaller number, i.e. 25p as per Tatlor Wimpey, that it will be easier for it to double than one at 96p. Likewise, just because you can afford more shares per thousand pounds of one than the other don't think that is a better thing.

You have much research to do so I suggest starting with The Zulu Principle by Jim Slater, then Beyond the Zulu Principle. A great trader.