diversifying

[HawkHybrid]

I'm only good at a very limited number of

things. every time I diversify it means I'm

making a choice on a topic that I'm not

good at at all and it usually end up with me

losing money. maybe diversifying is

overrated? surely competing on ones turf

gives better chances?

 

what are peoples opinions?

 

HH

[KDave]

When to it comes to savings/investment everything is risky. I have also lost money diversifying for diversities sake, or on the advice of others, but I have learned from that mistake. I am still a firm believer of not having all of ones eggs in one basket. I now try my very best not to invest in things I don't understand and most of the time I stick to it. I also don't invest purely because everyone else is doing it and no longer invest for diversifications sake. For example, my portfolio does not contain any property (no shares, funds or real buildings) despite many people insisting it should be part of a diversified portfolio. I know many people who take the same approach to gold and hold none, despite many people insisting it should be part of a diversified portfolio. It is personal and it is based on research, or lack thereof, that leads people to their own conclusions. 

 

I know people who have nothing but cash/currency in the bank and believe they are taking a safe/no risk position. To me that is incredibly risky, as they are all in on one investment. Currency is also one of the worst performing investments in the history of mankind, but in my experience people don't seem too bothered when presented with that information. With that said, about 30% of my own wealth is currently in cash for the short term. 

 

Regarding 'playing on ones own turf', I believe there comes a point where this has a diminishing risk/reward. Sticking to one asset that you know inside out is comfortable, but if I had to, I would rather be at least 10% in something that I don't know much about than 100% in something that I knew a lot about. its just a personal thing. Right now my allocation limit depends on my understanding of the asset class and the risk I associate with it, based on drawing my own conclusion from as much information I can find. As I learn more I can justify more risk on the asset and do so if I think the outlook is good over the timeline I am investing for. I am not saying this approach will stop me losing money - all it does is give me justification for making the initial investment.  

[Keithoil]

As most know my money is in property, I have silver and gold, but also some shares. Don't put all your eggs in one basket, as to what the baskets are well that is ultimately your choice.

 

I have turned £500 into £965 in around 4 months. But if you are not prepared to lose it then don't invest it!!!!

 

The shares are REM (rare earth minerals). Just keep buying on the low then sell on the high. I am currently waiting for them to drop and have a buy order set at 0.875p.

[DRooster]

The way I see it a diversified portfolio of investments is always going to approach a mean return ... simple statistics.

With your investment pot split into 1000 items your average is going to be ... middling.

 

With a single investment you are going to win or lose but the result will be more extreme than 1000 different ones.

 

With three, or ten ... it seems very sensible but also low-risk.

 

So buy a cow, get shares in properties, buy some gold and get some stocks.

And a vietnamese bride.

And a classic car.

And plant some trees.

Sperm donation.

Horse racing.

Bank robbery.

 

All good.

[Pipers]

Its not to hard, keep things simple. 

 

you already have Gold Silver 

 

So you need  an ISA every year 

 

Do you get a Pension from work? if not look at a SIPP 

 

What I do at the moment though I am looking to move is use Hargreaves and Lansdown and use their supermarket. 

 

So lets say you want to invest for 25 years 

 

you choose

 

1Gold silver

2Bonds

3Stocks

4Cash

5Commodities 

6 Cash float (for instant investments)

 

I tend to use defensive stocks, though i pulled all my stocks last year and am primed to put back in.

 

If you go into commodities you will have to short, a way around this is to buy mining or agricultural stocks again you may have to short or leave commodities out.

 

The % is up to you if you want buy a fund instead watch out for charges they will hurt.  Look to make 5% a year   

[Pipers]

Think what you know, what you do for a living, this will give you an idea of the industry 

 

EG the automobile industry this year has had a good year if you were a car sales man or mechanic you would know this before figures came out.  

[HighlandTiger]

The % is up to you if you want buy a fund instead watch out for charges they will hurt.  Look to make 5% a year   

 

I've been looking at these guys for a while. Not going to do anything at the moment, and finances wont allow me to do anything till this time next year, but I could be tempted putting a bit in with these. After fees, 5% should be do-able

 

https://www.nutmeg.com/

[Cornishfarmer]

Update on premium bonds got another £25 yesterday, so in a year now and got 1% on investment. Not great but worth more than the gold and silver I bought at the same time. Mrs put a chunk in Santander 1,2,3 account last year and think she gets 3% between 3 and 20k. So that's the best returns for us

[Paul]

A stock i would see as reasonably safe for a few years would be boeing or airbus

 

The total orders placed for commercial jets between Boeing BA -and Airbus at this years show in Paris 2015 stood at an impressive $107 billion in orders and commitments, though it remained under the $134 billion threshold set at the previous Paris Air Show held two years ago.

 

Airbus and Boeing’s backlog stood at over 6,300 and 5,700 commercial jets, respectively. So are not short of work

 

Not like a single plane can be put together overnight