How would you invest £25k

buy OcUK... LOL

you could always get us all new PCs :) hehe


i would personally put it into setting up an online business.. im 16 and am earning £££ (well, $$$ actually) from advertising etc
 
oneilldo said:
Deadle ferret I am interested in your experience with the stock market (am about to have a dabble myself) I have emailed and would appreciate any advice you can give. I don't want to detrack from the thread by asking questions here.
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Reply sent, a part of which I'm pasting here as a basic guide for anyone who wants to do a bit of investing. I don't mind your questions, but I would appreciate it if anyone else could just read this instead of sending me their own questions. If anything isn't answered here, afraid you'll have to use a search engine...

~~~~~

There are four basic types of stock for long-term investment. Value, momentum, growth, and income. The small company I've invested in is primarily classed as growth. This means I hope I am catching a future giant while it is in nappies. But it is also backed up with some value. Value stocks are those that have solid sheets. They own assets, their debt is well managed; essentially, it means they are well-run. I have supreme confidence in the management team of this company. They are experts in their respective fields, and the company has very promising prospects over the next four years. The classic example of value stocks are banks.

Momentum stocks are those which have been doing well for some time, and which would appear likely to continue like that for some time to come, so the investor jumps on board for a piece of the action. A good example is Marks & Spencer (MKS). It goes from strength to strength. Another is Mitchells & Butlers (MAB)

Income stocks provide long-term holders a respectable amount of recurring income. They pay higher than usual dividends. A good example is Communisis (CMS), although the share price is volatile so don't just rush out and buy some! Woolworths (WLW) doesn't pay quite as much, but is more stable and there is a possibility of a takeover soon which would give a rapid, temporary rise in share price so possibility of a quick quid in other words. Income stocks are usually boring, and tend to suit old people more than those looking to make significant gains.

If I were a long-term investor, I would steer clear of income and momentum altogether. Income stocks just don't yield enough gain for my liking, and momentum stocks are risky in my opinion...the well dries up eventually, and if you haven't got your eyes and ears on the case every day you might get caught out and suddenly find you've lost 25% while you were napping. Growth is by far the best for big money, but it's difficult to get it right. Value is safe and steady, and usually provides a bit more than income stocks. You said high risk, so I recommend 50% growth, 50% momentum. That way, you're almost certain to perform above the FTSE, and you'll stand a good chance of making a packet if you get the right growth stock or hop on board the right momentum one for a good while and get out at the right time. Whatever you do, as a minimum update yourself on all of your stocks once per week. I do it every day, but then I'm fortunate enough to have a job where out of my eight hours in the workplace I spend two to four working.

As regards companies to invest in, I am not going to make any recommendations. What I will do is provide a small list of companies you might want to investigate, but any decisions you make are 100% your own, based on your own research, and have nothing to do with me. I suggest that before you do anything else, you read up on the basics. Learn how to read balance sheets, P&L sheets, and the meaning of earnings per share, EPS growth rate, market capitalisation, dividend yield, return on equity, gearing, net asset value, cash flow PS.

The two most important pieces of advice I can give you are:
Ignore tips! There is always an agenda, and it's not yours. There might also be lawbreaking going on.
Ignore comments/speculation in the media. You need to know what's going on, but just get the facts and block out the waffle that goes with the news. Listening to those bozos is the major cause of panic selling (taking losses) amongst novices.

Centamin Egypt (CEY)
Titanium Resources (TXR)
Fortune Oil (FTO)
Central China (GGG)
 
RandomTom said:
Sensible but maybe not what you want: high ISA
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Can only invest £3,000 cash each year in ISAs. He could invest a further £4,000 a year in a stock ISA, but it's still nowhere near his full £25,000.
 
Deadly Ferret said:
Reply sent, a part of which I'm pasting here as a basic guide for anyone who wants to do a bit of investing.....
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Thank you very much for posting. I have read and reseached as much as I can and now I just want to start trying my luck. I fuly appreciate that I might make a loss on the first few investments but I will learn from my mistakes. Can anyone recommend good websites for
1.ISAs for Shares - 4k max if poss as mini cash isa is full.
2. Execution only brokers, ideally want one whose charges are minimal but who act quickly interms of stock purchase and support.

NB: Investing can be gambling if you don;t know what you are doing so make sure you can afford to lose what you are playing with.
 
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robmiller said:
Can only invest £3,000 cash each year in ISAs. He could invest a further £4,000 a year in a stock ISA, but it's still nowhere near his full £25,000.
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What about that and opening an abby and barclays 10% account and put the max allowed per month. stick as much into isas.
then look for banks in europe and transfer your money to their high interest accounts.
 
sven256 said:
Just ask to see your banks financial advisor should be free to do so.
They usuly come into each branch 1 day a week.


he should be able to provide the best advice
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The thing which bothers me with the financial advisors in banks is that although knowledgable usually they have little experience in actual running of business.

I use mine now and again to find out legal mumbo-jumbo or the like but I think they can only ever advise so much.

25K, I imagine you could easily start up your own business with that- best thing I have ever done, I'm never working for anybody, ever again!
 
id take a little of it for spending, then just save the rest for a rainy day. you never know what nay happen down the line, with you, or famuily, or friends etc
 
Something like a uk is trust fund for relativley safe savings.

Or upcoming market(russia, thialand ect) truct fund for the more risky but lucrative saver
 
some great replies, especially ferret man.

Thing is ive already doubled this money from trading online and Its risky and I just have hunch atm of not to plough it all back in...

omeilldo i used these guys, £7 per trade, http://www.hoodlessbrennan.com/

what I would really like to do is startup some business but I dnt have nothing concrete that I think I could sustain...

or:

2. property

I've been researching a lot into Bulgarian apartments lately, seeing how Poland was affected via my contacts, but Im scared to go through with it because of corruption...but this "feels" the best option atm

Local property is an option, but I think return is gonna be poorish now :confused:

3. Try the Forex, dont know nothing abt it yet really.

4. Plough it all back into FTSE
 
all share FTSE tracker, stick 7k of it thru an ISA (Cash & Shares) for tax free, and drop the rest on the all share tracker (tracks the market, not companies, so will NORMALLY always end up doing brilliantly over say 10 years (allows for dips to be evened out by bigger growth.
 
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