Looking for help with Financial Planning? I am a Chartered Wealth Manager and Partner in a financial planning practice based in …
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Today's News for Tomorrow's Brew
Today's News for Tomorrow's Brew
Looking for help with Financial Planning? I am a Chartered Wealth Manager and Partner in a financial planning practice based in …
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It's only a loss if you sell. If it's down and you do nothing, you have lost nothing.
I wish, I could give it an upvote. But it is four lies. By repeating that the stock market is a highly efficient machine you are lying to yourself and all the viewers.
Its been proven to not be efficient and is obvious. Efficiency would equate extremely low volatility. The stock market is real companies with a nonstop leveraged casino on top. It's as human as it gets. And many times during bull market it quickly shifts towards last fool standing mode.
Lie 2 has me confused now – can you confirm you are referring to holding on to individual stocks that aren't particularly strategic, as opposed to say a global index? I fully intend to hold onto my index fund when it is down in the 'hope' that it comes back!
There is still no harm trying to avoid the larger downturns in global funds (DotCom/GFC). The downturns can then actually be opportunities for significant financial gain. Passive only investors will never achieve this.
Currently, hiring an investment advisor is the best way to invest in the stock market. I invested in stocks on my own without much success until my wife introduced me to an advisor. This year, I have increased my capital by more than 50%
Was that company BT group
I do well just buying index trackers and blow away any managed fund returns.
Hi James, great channel very informative. Quick question, I have 3 personal pensions in the UK one is with Zurich that is actually a money purchase scheme where I either take all of the fund or none of the fund. My intention is to convert the Zurich fund into an International SIPP and commence drawing down on this fund in 3 to 5 years, I am currently 58 years old. Can I take the 25% tax free allowance from all 3 of my pensions or am I allowed only one tax free lump sum no matter how many pension plans I have?
Just buy VOO and QQQ and your done.
Great video, keep up the great work bud
99.9% of the time, 99.9% of facts are are made up to justify an argument. in this case, its probably closer to 70%. I just made that up!
…and another remark. At around 15:00, you talk about if a company is not already priced for what people think of it to perform.
Well, I do agree with you, what you say is true. But,…. this would be true for the first year of investing in the company. If you buy a great company, it will continue to do better and your investment will continue to outperform. This will maybe be disappointing in the first year as expectations are baked in. But you will start to see the results in year 2 and later.
I think this is what Warren Buffett meant with, comparing companies with finding a cigarette butt. You might find Stock that are undervalued, but that does not mean they will continue to outperform. You just gain that little difference between what is is fair and actual valued at.
He said: If you buy a stock just because it's cheap, you don't have to worry about it being a good company. It's like picking up a used cigarette butt on the street: you get a few free puffs before you have to throw it away.
This metaphor captured his approach of finding undervalued stocks that still had some potential for profit, even if they were not high-quality companies. However, Buffett eventually shifted away from this strategy, focusing instead on acquiring shares in high-quality businesses with strong long-term prospects. So, better pay a bit more for a quality stock, then less for a bad company.
I am confused.
What you say in the second part of the video i completely the opposite of what you said in the beginning.
Just don't look at the stock you bought with 20.000 and don't sell it at all
How someone with little knowledge of stocks (as you say is not needed) can know that this stock worth later a 10.000 will continue to do bad? He doesn't. So, he should just hold it. Unless you need the money.
The way Halifax displays stuff on their share trading platform is annoying. If a companies share price drops 10p but they have paid out 20p in dividends it is actually a good investment.
OK like many people here I've got some BG funds that have tanked and I'm looking at a 50% loss. So the wisdom is I should sell and re-invest. BUT there are 2 problems. Firstly – I might just end up buying another bad fund – another BG – and face more loss. Secondly – at this time nearly everything seems very frothly / overpriced …. Oh and thirdly… looking at the price graph of my poor BG fund…. it went up from a low price over several years – so what's to stop that happening again in the future and I get back to break-even or better ?
I agree …. The more trade the higher the margin of error and higher brokerage fees
Love your content. Would love to see you weigh up the pros and cons of IFAs that charge a % versus those that charge a fixed fee.
This one has really resonated with me. As a purchaser of several 'popular' things from BG a few years back, most sitting on 30-60% losses! Thankfully that lesson was learnt right at the start of my investing journey, with the bulk still invested in Index funds at the same time, and pretty much just that since. I haven't sold them to crystallize a loss – they might turn good – and if they don't – the awful performance serves as an etching on my brain to think before doing something similar again!
Wow, James really knows his stuff and he's great at explaining it to others. Another fantastic video James, always look forward to learning from you. Thanks.
Not costing me anything. All mine's in property 😊.
Hi James,
Love the videos, you've taught me so much and I'm very grateful!
Regards this video – some really interesting, thought provoking points. I might be wrong but I'm sure I've read elsewhere that sometimes its bad to crystalise losses and its wise to keep the 'losers' while selling the 'winners' – I did have a lot of single company shares until I saw your videos and have changed this, but still hold onto VOD and LLOY as they are down so far; very much like your example in the video. I shall be thinking more about what to do now.
——-
General point not related to this video, but some of your others:
Quite a few of your pension case studies use the guyton klinger guardrails. I've read that these can result in very large reductions in income over time, if historical modelling is done, and a worst case event from the past occurs.
I was wondering if you have ever modelled what the variable income would look like? Perhaps an idea for a future video?
Buy high sell low. Best advice I ever heard.
I just ignored it and buy all the time. Every week I buy whether its up down or sidways.
I see the logic. I just manage my own SIPP, ISA and my wife's and my son's (hes 11) simply because I enjoy it. I don't stress out about it and i don't get emotional. I treat it like a hobby. 9:26
Ex proprietary trader and investment banker: mainly ETFs in SIPPs, mainly single stocks in ISAs, other investments aside.
I feel so seen by point 2. Oh dear
Good video. My own example of lie 2. Bought Cineworld and held it until it went bust, emotion juts did not allow me to sell at a loss. Learn form my mistake!
To let fund or investment fall 55% is just stupid. Hedge funds would be bust!
Hey James. Really enjoying your content. Can you point me at anything you’ve done relating to a couple of different subjects: 1) what order to draw from different investments in retirement, and 2) impacts of the relatively recent removal of the pensions LTA and any concerns with piling in cash over the previous LTA now? Many thanks!
Very good video, made me rethink my individual stock investments
Another great video James, I'm in the position of holding on to half a dozen actively managed funds in a SIPP that are down. One Ballie Gifford fund is currently over 60% down, I do have another SIPP with one passive index fund that is doing well but often think that I should cut my losses with the actively managed ones.
hey James I would really appreciate a video on factor investing. this is the way I invest my own money after a lot of research and reading on rational reminder community. have decided to be ok with slightly higher fees and a bit more of work when I invest (spreading my money trough 5 etfs instead of 1 (vwce as I was doing before). but the principle is the same, set an allocation and just stick to it.
you are one of my favorite YouTuber, cheers
It's a lie!
Another great video, James with some key messages – mandatory viewing for all investors. As someone who has been investing for 30+ years in various forms I can attest to all three of these lies and have certainly been guilty of No 2 myself – many times. Crystallising a loss is easy to say, rather more difficult to do. Like most things, having a plan (written down) helps with difficult decisions. There is a good book called the Idle Investor by Edmund Shing that talks to the idea of less is more.
Another very common yet little discussed 'lie' is calling yourself passive investor while making irregular (by choice) purchases of global fund. Every payment becomes a mini market timing event.
Solution: buy as soon as you get paid and don't worry you just made another purchase at all time highs.
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to larysa Caba, my portolio is doing really great and im proud of the decisions i made last year.
Hey James, I’ve been a watcher for a while. Great video but there was one scenario you didn’t cover. If you bought those 25 index funds as you said in your example, what if they’re up? Should you still sell and consolidate?
Too much of generalisation. There are people who make money trading.
* unsuccessful spelling 🙂
Can you talk about risk please – funds folding, or platforms folding etc?
Not the investment risk – the middle man risk especially with a long term investment like saving for retirement or drawdown.
The question is why. What is this going to achieve? Why does this building really matter it'll be another soulless lump of glass shot ever higher into the sky… 🤔
Hi James, very good content. Here's my issue though, I'm 60 and hope to retire in 7 – 10 years. I don't think index fund (s) is going to get me there in that time frame, with an investment of approx. £500/month across SIPP and ISA. My workplace pension/SIPP/ISA etc pots currently are only approx £165K. I need to get to approximately £500K+ in my estimation to invest that in dividend stocks at retirement to live off the dividends or at least supplement my pension pot drawdown/state pension with a greater chunk being dividend income, if possible. What would you suggest?
Brilliant and spot on James, pls can you do more videos on selecting Pension investments, you would imagine big pension companies are good at this but they don’t seem to be. Can anyone explain what is going on with UK 15 gilts, these are at -40% shouldn’t things improve now inflation is allegedly reducing? Is it reasonable to expect things to improve or like you say James do you just look at the current value when deciding what to do.
Im investing for the long term, and my advice to those that havent experienced a crash or a slight drop (including myself) dont make emotional driven decisions that could cost more in the long run, decent index funds always recover, best to stick with your long term goals no matter the state of the market, remain consistent with your investments.
James – The 'Basic Risk Paradigm' touched on throughout this video.
hey James, thanks for this one, its answered a question I've been thinking about lately….. but here's a question for maybe a future video that relates to what you're talking about here….
I have a SIPP with a bunch of investments, but I'm wondering what to do with my savings…. I'm trying to achieve better returns than high street 5%, but I want to keep the cash available for a potential house move in 1-3 years….. At the moment, some is in a stocks ISA (S&P 500) and the rest is in a 5% savings account….
Are there any other options that would perform better?