i spent the last yr building my portfolio and buying individual stocks (i own about 25) for long term growth (20-30 yr) and now all my gains have been erased and my losses have gone down even more. i plan to buy more shares in some of top stocks and ride this wave out but i still feel terrified.
Maybe not such a disaster. Over such a long term period you'll probably do OK. The fall in the FTSE100 has taken us back 31 months, but that's only a fraction of your planned investment duration.
it could be that building a long-term portfolio quickly is not the best entry technique - feeding money in each year with an annual cap might ensure you don't jump in all at once at what turns out to be bad timing. Also, when we get a fall like we're now seeing, you'll usually still have cash left so you can go in bigger when shares are "cheap".
Being a 100% shareholder may also not be a great plan. So often, when shares go down, even "good" shares go down. But at times like these, the big players haven't usually just taken money out of shares, they usually rotate it into other investment areas - currencies, bonds, gold, commodities, property etc. You might think about some long-term exposure to these too, or keep cash aside to buy it when needed as a short-term hedge.
Don't forget, if you own your home, you're already heavily long on the UK residential property market.
it could be that building a long-term portfolio quickly is not the best entry technique - feeding money in each year with an annual cap might ensure you don't jump in all at once at what turns out to be bad timing. Also, when we get a fall like we're now seeing, you'll usually still have cash left so you can go in bigger when shares are "cheap".
Being a 100% shareholder may also not be a great plan. So often, when shares go down, even "good" shares go down. But at times like these, the big players haven't usually just taken money out of shares, they usually rotate it into other investment areas - currencies, bonds, gold, commodities, property etc. You might think about some long-term exposure to these too, or keep cash aside to buy it when needed as a short-term hedge.
Don't forget, if you own your home, you're already heavily long on the UK residential property market.
darktone
Veteren member
- Messages
- 4,019
- Likes
- 1,086
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
I used to say blue chip companies like banks but in recent years they have not done well. Maybe essential commodities like metals are better. Oil looks bad with Iran entering an already weak market. Even precious coins are subject to the whims of fashion.
Essential services like power and water may have some zip.
Essential services like power and water may have some zip.
So Pat, what's a blue chip?
Though Stoney_21 sees his positions as long-term, 30 years is potentially too short for share holding. I see them more and more as something to will to children who will them to the grand-children. By the 4th generation's retirement, after re-investment of all dividends and no selling, the family should be comfortable.
Though Stoney_21 sees his positions as long-term, 30 years is potentially too short for share holding. I see them more and more as something to will to children who will them to the grand-children. By the 4th generation's retirement, after re-investment of all dividends and no selling, the family should be comfortable.
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
Blue chip was the term used for dependable company investments. My point is that they are no longer sure bets.
The European markets have bounced this morning even with more falls in China stocks, so can't be that bad.
Stocks do pay steady dividends regardless of share price on the markets, which is surely what long term investment is all about.
M
malaguti
funny, my inlaws had shares in RBS leaving them to their children..very bad idea
even long term, there has to be an element of timing
Pat494
Legendary member
- Messages
- 14,614
- Likes
- 1,588
I inherited some pre WW2 South African gold shares. They are worth a lot less in capital than when bought. Besides the dividends are so small I don't even bother to pay in the cheque. So politics and crummy politicians take a cut for themselves on the way through too.
