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First time market investor

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    #32
    Dual wheels
    Registered Users Posts: 711 ✭✭✭Dual wheels


    Ron86r wrote: »
    No, Digero avoids this

    Are digero not a broker?
    So it’s fully down to the individual themselves to pay cgt taxes etc?


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    #33
    Ron86r
    Registered Users Posts: 19 ✭Ron86r


    Dual wheels wrote: »
    Are digero not a broker?
    So it’s fully down to the individual themselves to pay cgt taxes etc?

    Unfortunately it is. My plan is low frequency purchases e.g. monthly. Fixed amounts and keep track of everything. Still a pain but better than giving somebody else my money.


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    #34
    PHG
    Registered Users Posts: 475 ✭✭PHG


    Ron86r wrote: »
    What I am now struggling with is how on earth you remain tax compliant if buying shares yourself. Anybody any experience with this. Seems like a total pain.

    I use spread betting to avoid a lot of this but it takes a bit of getting used to and knowing how much the spread costs. Spread betting can be dangerous too and have been burned due to stupidity but have the hang of it now.

    FWIW, I only do it on UK shares, Dax and Dow. Again, this took years, the Dax and Dow can move rapid quick!! A stop loss has saved me too many times!!


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    #35
    The Tetrarch
    Registered Users Posts: 2,092 ✭✭✭The Tetrarch


    Wait for the crash. It should happen in the next 4/5 years.
    Then invest.


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    #36
    Supercell
    Registered Users Posts: 15,326 ✭✭✭✭Supercell


    I would suggest BRK.B shares, closest thing to an ETF we can buy for the US stock market and as safe as it gets for a single share, though Buffet's age is also a concern of course. Longer term i believe you'll beat most "retail" investors with this.
    https://www.loughlinstown.ie

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



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    #37
    The Tetrarch
    Registered Users Posts: 2,092 ✭✭✭The Tetrarch


    ^ That is what I did in November 2008, buying Berkshire Hathaway B shares, selling four or five years later for double.

    I have kept a newspaper cutting since 29/07/02
    "Bubbles, crashes and merciless markets"
    ... quoting Lord Overstone, he said the stages in a market cycle were: "Quiescence, improvement, confidence, excitement, overtrading, convulsion, pressure, stagnation, ending again in quiescence."

    ... Charles Kindleberger in his book Manias, Panics and Crashes
    1) the first stage is displacement ... the end of a war, a technical innovation (railways, wireless, internet)
    2) displacement must be followed by second stage credit creation. Only money moves markets, and a boom needs plenty: easy credit, cheap interest rates.
    3) third stage, euphoria. Investors buy not for intrinsic worth, but in the hope they will be able to sell to another, greater fool.
    4) stage four, the bust. Panic selling possibly due to a bank failure, a firm stretched too tight, revelation of a swindle.
    5) stage five, revulsion. Negative euphoria, investors can no longer bring themselves to participate in the market at all.
    When investors finally turn their backs on the market activity will decline. For the canny few who have saved cash is a buying opportunity.

    I sold my house today. The money will be held for a number of years until the crash. When things are good people think things are normal.

    The market is high at present. It is on a ten year run up.
    If you do not believe the market is high these are the percentage increases for the lows to the highs in the DJIA from 08/08/1896 to 29/04/2019
    +135%, +257%, +497%, +372%, +129%, +222%, +75%, +86%, +67%, +76%, +38%, +250%, +73%, +295%, +55%, +94%, +406%

    The 406% Dow Jones increase from 6,547.05 on 09/03/2009 to 26,559.56 this afternoon is the second highest in the above list of seventeen highs.
    Fwiw the 497% increase ended on 3rd September 1929.

    Another good way to assess the market level is to look at statistics on the World Bank website.
    Find the total value of the USA economy. Find the total value of the USA stock markets. Compare.


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    #38
    Supercell
    Registered Users Posts: 15,326 ✭✭✭✭Supercell


    Actually today I was researching just this topic as I spend too much time looking at charts and want to just set and forget mostly (maybe just review once a week/month)
    The thing about BRK.B , the elephant in the room, is Buffet's age. I do think, rightly or wrongly, that BRK.B stock will plunge briefly when the inevitable happens - which will be a buying opportunity.

    There are however a bunch of other stocks that have performed or outperformed the market over the last 5, etc years which would make up a good beginners safe (ish) portfolio , I'll share a fuller screenshot tomorrow, here's a few to show what I mean from memory (have a file in work with a fuller list of these).

    Would love to hear some comments on this from some of our more experienced investors here.

    SPY for reference is dark blue, current price indicated by dotted line, prices to the left.

    Year to date:

    478998.png

    Last Year:

    478997.png

    Last 5 years:

    478996.png

    I'd like to build in an element of dividend return as well, if anyone has done something like this already, please do share, comment etc
    https://www.loughlinstown.ie

    Have a weather station?, why not join the Ireland Weather Network - http://irelandweather.eu/



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