10k (Medium Risk - Best options)

sleepyheadh

Hi guys,

I have 10k lying around basically doing nothing. I have no foreseeable plans for it, and was wondering what you guys think would be the best thing to do with it.

I am quite naive to investing, so I was thinking of splitting into 5k and 5k, putting 5k into a fixed term account, and the other 5k in a fund with Davy.

Love to hear what you guys think!

Any help appreciated.

hfallada

British American Tobacco. Solid return over the last few years. It hasnt skyrocked with the ridiculous effect QE has had on shares in the UK and eurozone. Although the exchange rate makes UK shares less desirable.

Use a regular saver like Nationwide Uk IRL, as they offer 4% on it. The best by far

sleepyheadh

hfallada wrote: »

British American Tobacco. Solid return over the last few years. It hasnt skyrocked with the ridiculous effect QE has had on shares in the UK and eurozone. Although the exchange rate makes UK shares less desirable.

Use a regular saver like Nationwide Uk IRL, as they offer 4% on it. The best by far

Regular saver account for a lump sum?

So what exactly is your suggestion, 2 shares of BATS @ $3,690, and the rest in saving account?

Ace2007

hfallada wrote: »

British American Tobacco. Solid return over the last few years. It hasnt skyrocked with the ridiculous effect QE has had on shares in the UK and eurozone. Although the exchange rate makes UK shares less desirable.

Use a regular saver like Nationwide Uk IRL, as they offer 4% on it. The best by far

Just to point out it's a variable interest rate and it's for 15 months term, there is nothing stopping you from them dropping the interest rate to 3% or less in 9 months time per se.

Said poster also has a lump and doesn't appear to be looking for a regular deposit savings vehcile

Also to add, not sure if Tobacco companies are the best place to be putting money given how plain packaging is being introduce in a lot of countries. There are plenty of shares on the ISEQ that are relative safe in the short term, but it all depends on your risk appetite and what you want to actually achieve - the likes of say Ryanair, Paddy Power, CRH etc would be all safe-ish investments, (growth may not be great, but better than banks).

Most important thing is to Do your own research.

sleepyheadh

Ace2007 wrote: »

Just to point out it's a variable interest rate and it's for 15 months term, there is nothing stopping you from them dropping the interest rate to 3% or less in 9 months time per se.

Said poster also has a lump and doesn't appear to be looking for a regular deposit savings vehcile

Also to add, not sure if Tobacco companies are the best place to be putting money given how plain packaging is being introduce in a lot of countries. There are plenty of shares on the ISEQ that are relative safe in the short term, but it all depends on your risk appetite and what you want to actually achieve - the likes of say Ryanair, Paddy Power, CRH etc would be all safe-ish investments, (growth may not be great, but better than banks).

Most important thing is to Do your own research.

ill be doing my own research don't worry, a fool and his money are easily parted!

Do you suggest putting it into one company?

RobertKK

sleepyheadh wrote: »

Regular saver account for a lump sum?

So what exactly is your suggestion, 2 shares of BATS @ $3,690, and the rest in saving account?

That is 3,690 pence so £36.90.

I don't know about you, but I would never invest in cancer sticks.
If it was my 5k, it would go into biotech as it will continue to outperform as it marches on with major advancements.
You could put the 5k into 4 companies to have it diversified so you don't have all your eggs in one basket as that is just too risky.
I know in the other thread about 10k some think you need large amounts, you don't, you need the right investments and not all in one share unless you want to sweat on that one company.
You simply need companies that will give growth to your money, while knowing the risks.

sleepyheadh

RobertKK wrote: »

That is 3,690 pence so £36.90.

I don't know about you, but I would never invest in cancer sticks.
If it was my 5k, it would go into biotech as it will continue to outperform as it marches on with major advancements.
You could put the 5k into 4 companies to have it diversified so you don't have all your eggs in one basket as that is just too risky.
I know in the other thread about 10k some think you need large amounts, you don't, you need the right investments and not all in one share unless you want to sweat on that one company.
You simply need companies that will give growth to your money, while knowing the risks.

Oh sorry, I am really showing my naivety! Don't worry though, what I am really looking for here is a few options that I can go off and research further before making a decision.

I am actually doing medicine at the moment, so probably shouldn't be investing in BATS

Thats one thing that I wasn't sure about, what are your opinions on say either; a) dividing between 4 or 5 companies, or b) putting everything into a mutual fund?

The reason why I am tending to lean towards mutual is that I am really not looking for crazy returns here. Basically if I can get a better return than the banks Id be very happy.

I have actually just seen that other thread, and yes it appears we are in quite similar situations.

MfMan

Tullow? Up from a recent low £2.80 to £4.00+ in a matter of weeks. Probably oversold, a possible T/O target (see Indo.) and a fair bet on price-of-oil recovery.

FBD? Hammered in recent months, due mainly to early-2014 storm claims. This year hasn't been nearly as bad weather-wise and they're rationalising (and increasing) their motor-insurance premiums section. Seems to be a greater emphasis on road safety this year, (today particularly!). Could be had at a low of c. €9 few weeks back, have recovered, to c. €10.30ish. One of those SPs that seem to improve with the weather.

If you are buying, buy in tranches of say, €1k - €1.5k over a few days or weeks - helps average it out a bit.

Ace2007

MfMan wrote: »

If you are buying, buy in tranches of say, €1k - €1.5k over a few days or weeks - helps average it out a bit.

I don't really see the logic behind this, there is no point making 4 buys and costing you four times as much as one buy.

Blacktie.

Ace2007 wrote:

I don't really see the logic behind this, there is no point making 4 buys and costing you four times as much as one buy.

Dollar cost averaging

hfallada

RobertKK wrote: »

That is 3,690 pence so £36.90.

I don't know about you, but I would never invest in cancer sticks.
If it was my 5k, it would go into biotech as it will continue to outperform as it marches on with major advancements.
You could put the 5k into 4 companies to have it diversified so you don't have all your eggs in one basket as that is just too risky.
I know in the other thread about 10k some think you need large amounts, you don't, you need the right investments and not all in one share unless you want to sweat on that one company.
You simply need companies that will give growth to your money, while knowing the risks.

Why? Because they kill people? Some people dont invest in Tobacco, as its seen as wrong. But have no problem investing in alcohol companies and pharmaceutical company that also produce addictive goods too. One of the most abused drugs in the US, is prescription meds.

BATS doing well in the third world. There is tons of potential smokers in these countries such as Indonesia. These countries will compesate for declining sales in the developed world. Also most tobacco companies have E-Cigarettes too. BATs is pretty low risk and very solid returns.

Biotech is too risky. The only one I would invest in is Gilead Scienses. They have the patents for the Hep C treatment. But is it morally right to sell it for $96k a patient? Probably not, but a companies only loyalty is to its shareholders according to most.

Im aware regular saver account could cut their interest in a few months. But they offer the best interest by far. I hold my lump sums in KBC on demand account at 1.5%. Then transfer the money to my nationwide for the regular saver account at 4%. KBC also have a 3.5% regular saver.

sleepyheadh

hfallada wrote: »

Why? Because they kill people? Some people dont invest in Tobacco, as its seen as wrong. But have no problem investing in alcohol companies and pharmaceutical company that also produce addictive goods too. One of the most abused drugs in the US, is prescription meds.

BATS doing well in the third world. There is tons of potential smokers in these countries such as Indonesia. These countries will compesate for declining sales in the developed world. Also most tobacco companies have E-Cigarettes too. BATs is pretty low risk and very solid returns.

Biotech is too risky. The only one I would invest in is Gilead Scienses. They have the patents for the Hep C treatment. But is it morally right to sell it for $96k a patient? Probably not, but a companies only loyalty is to its shareholders according to most.

Im aware regular saver account could cut their interest in a few months. But they offer the best interest by far. I hold my lump sums in KBC on demand account at 1.5%. Then transfer the money to my nationwide for the regular saver account at 4%. KBC also have a 3.5% regular saver.

The thing with Pharma companies is that they do offer a benefit. People do get better because of their product, there is no benefit of tobacco.

With regards to the 96k, when you consider the cost of developing that product and the cost-savings that will benefit the HSE, I think its a very fair price.

MfMan

Ace2007 wrote: »

I don't really see the logic behind this, there is no point making 4 buys and costing you four times as much as one buy.

If you average it out, may save yourself in the longer term. E.g. imagine you spend €5k on a share costing €10 all at once. 2 weeks later the SP drops to €9.70. If you'd waited you could have saved 500 (shares purchased) x 30c = €150. Then again, the SP could have moved the other way also.

Averaging out is one of the fundamentals of stock market investing for retail investors.

RobertKK

hfallada wrote: »

Why? Because they kill people? Some people dont invest in Tobacco, as its seen as wrong. But have no problem investing in alcohol companies and pharmaceutical company that also produce addictive goods too. One of the most abused drugs in the US, is prescription meds.

BATS doing well in the third world. There is tons of potential smokers in these countries such as Indonesia. These countries will compesate for declining sales in the developed world. Also most tobacco companies have E-Cigarettes too. BATs is pretty low risk and very solid returns.

Biotech is too risky. The only one I would invest in is Gilead Scienses. They have the patents for the Hep C treatment. But is it morally right to sell it for $96k a patient? Probably not, but a companies only loyalty is to its shareholders according to most.

Im aware regular saver account could cut their interest in a few months. But they offer the best interest by far. I hold my lump sums in KBC on demand account at 1.5%. Then transfer the money to my nationwide for the regular saver account at 4%. KBC also have a 3.5% regular saver.

A lot of people have issues with certain companies or sectors. I don't want to make money on the back of a product that is known to kill people/cause unnecessary health problems.

I have been a shareholder in Gilead in the past, they paid €11 billion for Pharmasset to get access to and to develop Sovaldi, and it took three years after spending all that money before it passed trials and went to market.
Yes it turned out a great investment by GILD, but when they bought the company it was a risk.
That risk is now saving lives, saving the cost of a liver transplant which would cost far far more than the Sovaldi/Harvoni pill.

Ace2007

MfMan wrote: »

If you average it out, may save yourself in the longer term. E.g. imagine you spend €5k on a share costing €10 all at once. 2 weeks later the SP drops to €9.70. If you'd waited you could have saved 500 (shares purchased) x 30c = €150. Then again, the SP could have moved the other way also.

Averaging out is one of the fundamentals of stock market investing for retail investors.

But if your paying say 30 quid for a trade, 5 trades is costing you 150, one trade is 30 quid, given the amount being invested i really don't see the advantage of doing multiple trades.

robp

Regarding investing in biotech, its a sector with a specific set of characteristics. Every sector has its own volatility and risks. The returns of each vary hugely. Learn as much as you can about specific sectors and go for what appeals to you. Just because a sector for example like biotech uses cutting edge science to makes its products doesn't mean it is going to produce higher returns than a humdrum business.

Sonnenblumen

Look at major FTSE Energy & Utility cos, good divis, steady (almost guaranteed income streams etc). Some like National Grid are well diversified across more than one geographic market etc. Some recent volatility in SP but otherwise consistently good growth.

Why buy a dog if you can bark? Cut out unnecessary fees and fund admin charges, manage your own investments.

arrowloopboy

Just a word of warning if your studying medicine ,in a study conducted in the U.S,guess who the least successful investors are by profession ,Doctors ,something to do with ego and the inability to accept that they could possibly be wrong ,which can turn small losses into massive ones,mind how ya go .

sleepyheadh

arrowloopboy wrote: »

Just a word of warning if your studying medicine ,in a study conducted in the U.S,guess who the least successful investors are by profession ,Doctors ,something to do with ego and the inability to accept that they could possibly be wrong ,which can turn small losses into massive ones,mind how ya go .

Any source, had a quick look on the google but couldn't see anything.

Yeah I understand cause nothing in medicine every goes wrong! haha,

Most likely reason is that they don't have time to worry about the growth of their investment. Ego's can be pretty massive though.

arrowloopboy

sleepyheadh wrote: »

Any source, had a quick look on the google but couldn't see anything.

Yeah I understand cause nothing in medicine every goes wrong! haha,

Most likely reason is that they don't have time to worry about the growth of their investment. Ego's can be pretty massive though.

It was in a book I read ,I think it was in Trading in the Zone if not Trade your way to financial freedom ,one or the other.

N.B ,their is zero corilation between time spent on an investment and profitability .

sleepyheadh

arrowloopboy wrote:

N.B ,their is zero corilation between time spent on an investment and profitability .

Hard to believe

sleepyheadh

arrowloopboy wrote: »

It was in a book I read ,I think it was in Trading in the Zone if not Trade your way to financial freedom ,one or the other.

N.B ,their is zero corilation between time spent on an investment and profitability .

Found the quote its from Trading in the zone.

Doesn't exactly blow me away as a credible source. In the quote https://books.google.ie/books?id=8SL6VVMa9AcC&pg=PT18&lpg=PT18&dq=trading+in+the+zone+doctors&source=bl&ots=uFhcrhqEiU&sig=XlVimOnXOkTEeShxgsEK5AgLmVo&hl=en&sa=X&ei=Sx08Vb-DCoPqapzpgJAO&ved=0CCwQ6AEwAg#v=onepage&q=trading%20in%20the%20zone%20doctors&f=false

He includes; doctors, lawyers, engineers, scientists, CEO's wealthy retirees and entrepreneurs.

Kinda covers all the bases there..haha, I think i'll be ok thanks.

arrowloopboy

sleepyheadh wrote: »

Found the quote its from Trading in the zone.

Doesn't exactly blow me away as a credible source. In the quote https://books.google.ie/books?id=8SL6VVMa9AcC&pg=PT18&lpg=PT18&dq=trading+in+the+zone+doctors&source=bl&ots=uFhcrhqEiU&sig=XlVimOnXOkTEeShxgsEK5AgLmVo&hl=en&sa=X&ei=Sx08Vb-DCoPqapzpgJAO&ved=0CCwQ6AEwAg#v=onepage&q=trading%20in%20the%20zone%20doctors&f=false

He includes; doctors, lawyers, engineers, scientists, CEO's wealthy retirees and entrepreneurs.

Kinda covers all the bases there..haha, I think i'll be ok thanks.

Do yourself a favour,have a read of the book,it will change the way you think about trading/investing ,its one of the best books written on the subject.

sleepyheadh

arrowloopboy wrote: »

Do yourself a favour,have a read of the book,it will change the way you think about trading/investing ,its one of the best books written on the subject.

From what I can see, he just makes wild-blanket statements without any proof to back it up.

arrowloopboy

sleepyheadh wrote: »

From what I can see, he just makes wild-blanket statements without any proof to back it up.

Read the book ,it'll only take an evening ,see if you think the same ,I've read a lot of books relating to trading , this one was head and shoulders above the rest ,it will sort the most important part of it out .

sleepyheadh

arrowloopboy wrote: »

Read the book ,it'll only take an evening ,see if you think the same ,I've read a lot of books relating to trading , this one was head and shoulders above the rest ,it will sort the most important part of it out .

I think the best investment for my 10k would be hiring a ghost writer in India, to right a book were I lay down the easy way to trading. Its amazing how all these people who are so successful, keep taking time out of there lives to write books explaining their process. Very kind of them.

arrowloopboy

sleepyheadh wrote: »

I think the best investment for my 10k would be hiring a ghost writer in India, to right a book were I lay down the easy way to trading. Its amazing how all these people who are so successful, keep taking time out of there lives to write books explaining their process. Very kind of them.

O.k ,maybe your well suited to medicine after all , the book isn't about investing ,doctor heal thy self !(or p1ss off in laymans terms:rolleyes:)

sleepyheadh

arrowloopboy wrote: »

O.k ,maybe your well suited to medicine after all , the book isn't about investing ,doctor heal thy self !(or p1ss off in laymans terms:rolleyes:)

Well suited for medicine, however so?