Investment blog

Sabre Man

I've decided to start a blog about investing. Like many of you, I am an amateur but I am eager to learn and hopefully earn some money in the process.

You can read it at http://theupsanddownsofanamateurinvestor.blogspot.ie/.

I hope you enjoy it. Advice and topics for discussion are always welcome.

rain_soaked

investing in ten different funds with a pawltry sum of 1400 euro is a sure way to burn money on investment charges

you could have put it all in one broad based global fund , i wouldnt go near rabbo for investing unless i could afford to only put money in on a monthly basis and a small amount at that , would be a lot cheaper to open an account with a broker and buy the S+P once per year , charges with vanguard are .05% per anum ( a global index fund costs about .20 % ) and the transaction itself will cost no more than fifteen quid with an account managment fee of about fifty euro per anum

Sabre Man

rain_soaked wrote: »

investing in ten different funds with a pawltry sum of 1400 euro is a sure way to burn money on investment charges

you could have put it all in one broad based global fund , i wouldnt go near rabbo for investing unless i could afford to only put money in on a monthly basis and a small amount at that , would be a lot cheaper to open an account with a broker and buy the S+P once per year , charges with vanguard are .05% per anum ( a global index fund costs about .20 % ) and the transaction itself will cost no more than fifteen quid with an account managment fee of about fifty euro per anum

Rabo's charges are the same whether you're buying one fund or ten. Having said that, after reading up on ETFs (exchange traded funds), I won't be buying any more funds from RaboDirect.

rain_soaked

Sabre Man wrote: »

Rabo's charges are the same whether you're buying one fund or ten. Having said that, after reading up on ETFs (exchange traded funds), I won't be buying any more funds from RaboDirect.

if someone can only afford to put in two hundred per month , rabbo is a better bet than doing it through a broker as fifteen euro per execution is at least 7% of 200

Sabre Man

rain_soaked wrote: »

if someone can only afford to put in two hundred per month , rabbo is a better bet than doing it through a broker as fifteen euro per execution is at least 7% of 200

Which broker are you using? Have you looked at DeGiro's fees? I'm paying €2 for ETFs and €0.50 for shares (plus 0.02-0.04% per share/ETF).

€15 per transaction is a rip-off.

rain_soaked

Sabre Man wrote: »

Which broker are you using? Have you looked at DeGiro's fees? I'm paying €2 for ETFs and €0.50 for shares (plus 0.02-0.04% per share/ETF).

€15 per transaction is a rip-off.

compared to what goodbodies and davy charge , its for nothing , im with saxo

were you to buy 10,000 worth of shares with goodbody , they themselves would pocket at last 100 euro

lucky john

Sabre Man wrote: »

I've decided to start a blog about investing. Like many of you, I am an amateur but I am eager to learn and hopefully earn some money in the process.

You can read it at http://theupsanddownsofanamateurinvestor.blogspot.ie/.

I hope you enjoy it. Advice and topics for discussion are always welcome.

Its probably a bit unfair to comment on your blog after 1 post but you might need to post something more interesting to have return followers. Name the funds or at least pick one or two of them and tell us why you invested in them and what the make up of them is. Stick in a few figures or run a table on progress. As it is now there isn't much more there than an average post in this forum.

Sabre Man

lucky john wrote: »

Its probably a bit unfair to comment on your blog after 1 post but you might need to post something more interesting to have return followers. Name the funds or at least pick one or two of them and tell us why you invested in them and what the make up of them is. Stick in a few figures or run a table on progress. As it is now there isn't much more there than an average post in this forum.

Thanks for your feedback.

My first post was just meant as a backdrop to the more interesting (to me) stuff to follow (share trading), as I now consider investing in those funds (as opposed to ETFs) a mistake. Of course, only time will tell if that was the case.

However, I can come back to the funds in later posts and provide more detailed information if anyone is interested.

Sabre Man

My second post is out, where I talk about my first ETF. Please let me know what you think.

ulinbac

Hi Sabre,

Why did you buy that ETF? Yiu dint nentiin any reason in your blog. Do you realise you are exposed to FX risk now as well because of buying a dollar denominated ETF?

Thanks,

UL

Sabre Man

ulinbac wrote: »

Hi Sabre,

Why did you buy that ETF? Yiu dint nentiin any reason in your blog. Do you realise you are exposed to FX risk now as well because of buying a dollar denominated ETF? UL

I chose QQQ as it has done consistently well over several years. It's overweight in tech stocks (about 54%), which I believe will continue to do well over the coming years as well.

I don't mind the FX risk as I think the dollar will strengthen versus euros for the foreseeable future as the US economy seems stronger than the euro zone. Buying in dollars also means I may be able to get more for my money on days when the euro is up.

lcwill

ulinbac wrote: »

Hi Sabre,

Why did you buy that ETF? Yiu dint nentiin any reason in your blog. Do you realise you are exposed to FX risk now as well because of buying a dollar denominated ETF?

Thanks,

UL

Currency risk comes from currency of underlying assets, not the currency of the ETF - though in this case it is all dollar. Monevator has a good post on this: http://monevator.com/currency-risk-fund-denomination/

ulinbac

lcwill wrote: »

Currency risk comes from currency of underlying assets, not the currency of the ETF - though in this case it is all dollar. Monevator has a good post on this: http://monevator.com/currency-risk-fund-denomination/

I'm talking about the returns from dividend are in dollar and when Sabre cashs out. Sabre will have to convert from dollar to euro, hence FX risk.

Sabre Man

I just posted my third update, where I am a bit too enthusiastic.

lcwill

ulinbac wrote: »

I'm talking about the returns from dividend are in dollar and when Sabre cashs out. Sabre will have to convert from dollar to euro, hence FX risk.

I own an ETF denominated in dollars and traded in New York which is wholly invested in the Eurozone. As I am also based in the Eurozone the EUR USD exchange rate is irrelevant - the only currency related risk is the margin the banks take on currency conversion, not the Euro value of the assets or the dividends in.

Sabre Man

lcwill wrote: »

I own an ETF denominated in dollars and traded in New York which is wholly invested in the Eurozone. As I am also based in the Eurozone the EUR USD exchange rate is irrelevant - the only currency related risk is the margin the banks take on currency conversion, not the Euro value of the assets or the dividends in.

As my ETF is in dollars and the underlying assets are also in dollars there is a currency risk in my case but not in yours.

By the way, I just posted a blog update.

Frogdog

You seem to own one share in multiple companies - are your transaction costs, despite buying through Degiro, not putting you at a disadvantage from the start? You mention receiving a dividend from some of these shares when your costs to buy are likely a multiple of these.

Sabre Man

Frogdog wrote: »

You seem to own one share in multiple companies - are your transaction costs, despite buying through Degiro, not putting you at a disadvantage from the start? You mention receiving a dividend from some of these shares when your costs to buy are likely a multiple of these.

Good point. It should not make much of a difference in the long run I think, but I am certainly guilty of trading too little too often.

geared_up

Sabre Man wrote: »

As my ETF is in dollars and the underlying assets are also in dollars there is a currency risk in my case but not in yours.

By the way, I just posted a blog update.

unless the american dollar turns into zimbabwean currency long term , i really think this currency risk is over stated , a weak ( ish ) dollar is good for american corporations so if there share prices rises as a result , it will cancel out any dollar v euro weakness

its a non issue in my opinion , any global etf fund will be close to 50% usa and no more than 30% eurozone so you have currency risk in terms of british pound , japanese yen and emerging markets currency

sticking everything in the eurozone is much riskier in my opinion

Sabre Man

It's been a busy week but I have finally published another post, if anyone is still reading. Investing isn't easy but at least I'm having fun.

arrowloopboy

Sabre Man wrote: »

It's been a busy week but I have finally published another post, if anyone is still reading. Investing isn't easy but at least I'm having fun.

Fair play Sabre,I haven't read any of your stuff,but its a good idea for noobs.
Just be aware,their are a good few ''investors/traders'' on here that will poke holes in no matter what you put up ,and most of them wouldn't be able to trade 2 50 pences for a pound .

Good luck

Sabre Man

arrowloopboy wrote: »

Good luck

Thanks!

Despite an early setback with TSLA I have recouped my losses, at least for the time being.

I have just read Millionaire Teacher and in my latest post I have listed the shares I am watching at the moment.

Among the shares on my watch list are two REITs (or one REIT and one that sounds like one). They are:
Green REIT (GRN): http://www.bloomberg.com/quote/GRN:ID
TAG Immobilien AG (TEG): http://www.bloomberg.com/quote/TEG:GR

GRN offers lower dividend (1.05% vs. 4.19%) but also lower P/E (6.47 vs. 16.76). One year return is 23.65% for GRN vs. 36.53% for TEG.

Which of these seems like the better investment?

One More Toy

Hi Sabre,

Good to see your blog. A few (constructive) criticisms if I may.

I dont think buying one share of a company is worth your while, due to fees etc, even with Degiro.

Rabo funds are a waste of time and money, dump them with a lesson learned.

As is profit taking of miniscule amounts eg. 8 euro; thats not a lot of return for the time you have spent on it.

In no way am i trying to discourage you; I think you could do with a bit more reading up is all. Feel free to fire any questions my way

Sabre Man

One More Toy wrote: »

Hi Sabre,

Good to see your blog. A few (constructive) criticisms if I may.

I dont think buying one share of a company is worth your while, due to fees etc, even with Degiro.

Rabo funds are a waste of time and money, dump them with a lesson learned.

As is profit taking of miniscule amounts eg. 8 euro; thats not a lot of return for the time you have spent on it.

In no way am i trying to discourage you; I think you could do with a bit more reading up is all. Feel free to fire any questions my way

Thanks for your feedback.

While the small amount trading doesn't give me a lot of return, at this stage it is mostly about gaining confidence and learning with small trades without risking too much.

What would you suggest I read by the way?

One More Toy

Sabre Man wrote: »

Thanks for your feedback.

While the small amount trading doesn't give me a lot of return, at this stage it is mostly about gaining confidence and learning with small trades without risking too much.

What would you suggest I read by the way?

On mobile at the minute, but if you head on over to r/investing on reddit they have a great list of books. I also highly recommend reading boggleheads site

great_at_golf

Sabre Man wrote: »

Thanks for your feedback.

While the small amount trading doesn't give me a lot of return, at this stage it is mostly about gaining confidence and learning with small trades without risking too much.

What would you suggest I read by the way?

maybe im just dumb but i traded on and off for nearly four years and made no more than i would have had i put everything in the s+p on day one , the big guy will either drag down the market or pump it up whenever the mood takes them as they make money doing both , vast majority of traders make nothing as its a full time job in terms of judging technical trends etc , its also incredibly stressful

ulinbac

great_at_golf wrote: »

maybe im just dumb but i traded on and off for nearly four years and made no more than i would have had i put everything in the s+p on day one , the big guy will either drag down the market or pump it up whenever the mood takes them as they make money doing both , vast majority of traders make nothing as its a full time job in terms of judging technical trends etc , its also incredibly stressful

Don't agree with this. Many people trade part time and make good income from. Blaming the big guy is a standard excuse for those who don't make it. I trade myself part time and don't find it stressful at all. It's like a game. Once my risk is controlled and stay with my strategy then great. I enjoy finding stocks that meet my criteria. Placing the trade is just the end result of the chase.

You need to find the type of trading that suits your personality but it takes a lot of work to get there. I put a couple of hundred hours in to find my strategy, when to buy sell etc. Now that it's done I probably only work on my trading about 5-10 hours a week. Could do less if I wanted but enjoy reading stuff about it. It's like a puzzle that needs solving. You cannot blame the market or others for you will always lose on some trades but if you blame the big guy you need to look at yourself. It's not the markets fault you lost, it's your own.

For ever odd

Do any of you guys use Sector Rotation, when picking stocks?

ulinbac

For ever odd wrote: »

Do any of you guys use Sector Rotation, when picking stocks?

One of my criteria is whether it is in a hot industry

arrowloopboy

ulinbac wrote: »

Don't agree with this. Many people trade part time and make good income from. Blaming the big guy is a standard excuse for those who don't make it. I trade myself part time and don't find it stressful at all. It's like a game. Once my risk is controlled and stay with my strategy then great. I enjoy finding stocks that meet my criteria. Placing the trade is just the end result of the chase.

You need to find the type of trading that suits your personality but it takes a lot of work to get there. I put a couple of hundred hours in to find my strategy, when to buy sell etc. Now that it's done I probably only work on my trading about 5-10 hours a week. Could do less if I wanted but enjoy reading stuff about it. It's like a puzzle that needs solving. You cannot blame the market or others for you will always lose on some trades but if you blame the big guy you need to look at yourself. It's not the markets fault you lost, it's your own.

Yip i'll agree with all of this ,blaming others for your lack of success is just b0llox.
I didn't spend 5 minutes on my trading account this week ,even though I've about 15 live positions at the minute,thats just the way I designed it.

Sabre Man

AMBA is up over 15% so far today. Why did I not buy more shares when they were hovering around $50.

http://www.cnbc.com/2015/11/03/this-beaten-stock-is-surging-more-room-to-run-traders.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=103134522

27cyrix

Buy then price goes down

Sabre Man

27cyrix wrote: »

Buy then price goes down

Indeed, or sell and it goes up, as I mention in my latest blog post after selling my NFLX shares.

What do you guys consider too high a P/E ratio?

Nody

Sabre Man wrote: »

What do you guys consider too high a P/E ratio?

How long is a piece of string? The answer is the same to your question which is there is no fixed ratio as it's all down to industry type, quality of the company, historical performance and expected future performance. You can have a P/E ratio of 1 and be to expensive or 20 and be considered cheap and if you're making investments based on P/E only you need to go back to the drawing board asap and read up on investments properly.

Sabre Man

Nody wrote: »

How long is a piece of string? The answer is the same to your question which is there is no fixed ratio as it's all down to industry type, quality of the company, historical performance and expected future performance. You can have a P/E ratio of 1 and be to expensive or 20 and be considered cheap and if you're making investments based on P/E only you need to go back to the drawing board asap and read up on investments properly.

Sure, but when you have companies like Amazon with a P/E close to 1000, isn't that bubble territory?