The FTSE

[worsleyweb]

I once ran a seminar for Lloyds Bank staff. I spoke to one lady who had worked for the bank all her life, as had her husband. They had paid their £250 a month into sharesave accounts for around 10 years or so and the shares they held at one point were worth £250k with a 5% dividend. As the price fell, they held tight as they always had the “it cant fall any further it’s a blue chip bank” - they lost £225k of value during the banking crisis. It was a heartbreaking story as this was a couple who were not managers or anything, just savers who believed in their employer.

ouch. I spread my shares across 5 holdings for that reason.

 

[Jordie]

I thought the same when I bought RBS after it had fallen by more than 60%.
That didn't end well for me!

I would only advocate investing in individual shares if you are happy to accept lots of volatility and possible loss. The upside may be great but strap yourself in, as logging on and seeing your investment down 10% in a day isn’t for the faint hearted unless it’s money you can afford to write off if the worst comes to the worst.

That reminds me of the old saying "never try and catch a falling knife".

 

[worsleyweb]

Rolls Royce roller coaster has started down 10% today - i have just gone in double my original stake!

 

[west didsblue]

I thought the same when I bought RBS after it had fallen by more than 60%.
That didn't end well for me!

I would only advocate investing in individual shares if you are happy to accept lots of volatility and possible loss. The upside may be great but strap yourself in, as logging on and seeing your investment down 10% in a day isn’t for the faint hearted unless it’s money you can afford to write off if the worst comes to the worst.

As you've said, there's no companies that are too big to fail. About 20 years ago I bought into Marconi after it had dropped by 90% thinking that it couldn't go any further. It then dropped another 99% and I lost the lot. Marconi was the successor company to GEC after the defence electronics business was split off and at one point GEC was the biggest company in the UK. Hopefully R-R won't go the same way.
Another horror story was M&S which I bought into around 2005. I'm probably still 75% down on my investment although the dividends were good for many years which probably covers about half of that.
That's why I keep about three quarters of my investments in funds which are spread geographically and in different classes of investments on the basis that the fund managers should have a better idea than me. Of the remaining quarter invested in individual shares I've had some good successes as well as a few nightmares, but I've got those spread round different sectors as well so it's not too much of a roller coaster - unless there's a pandemic of course!

 

[Millwallawayveteran1988]

As you've said, there's no companies that are too big to fail. About 20 years ago I bought into Marconi after it had dropped by 90% thinking that it couldn't go any further. It then dropped another 99% and I lost the lot. Marconi was the successor company to GEC after the defence electronics business was split off and at one point GEC was the biggest company in the UK. Hopefully R-R won't go the same way.
Another horror story was M&S which I bought into around 2005. I'm probably still 75% down on my investment although the dividends were good for many years which probably covers about half of that.
That's why I keep about three quarters of my investments in funds which are spread geographically and in different classes of investments on the basis that the fund managers should have a better idea than me. Of the remaining quarter invested in individual shares I've had some good successes as well as a few nightmares, but I've got those spread round different sectors as well so it's not too much of a roller coaster - unless there's a pandemic of course!

Yes I remember it well. Sounds sensible. I prefer funds now to individual shares. Mainly because I am getting older and not as much time to make it back. I have the odd dabble now and again but only for a very small % of pension fund.

 

[nellyonthewing]

I have Vanguard ISA ETF's & done pretty well last 12 months.. Tempted to increase in new ISA year but that would take me over £85K protection.....Is that risky?

 

[hampshireblue]

One word-diversification!

 

[west didsblue]

I have Vanguard ISA ETF's & done pretty well last 12 months.. Tempted to increase in new ISA year but that would take me over £85K protection.....Is that risky?

If I were you I'd go for something different to spread it around a bit. Someone mentioned Baillie Gifford funds on here which seem to be a good bet.

Thinking about it, Vanguard funds are primarily index trackers. I would definitely diversify to some actively managed funds as well. You're relying more on the skill of the fund manager but there's a better chance of doing well when the markets as a whole are doing badly.

 

[journolud]

I have Vanguard ISA ETF's & done pretty well last 12 months.. Tempted to increase in new ISA year but that would take me over £85K protection.....Is that risky?

I thought the £85k protection was for bank accounts or what have you, it wouldn’t protect against a stock market crash?

 

[Tommy_Catons_Perm]

As you've said, there's no companies that are too big to fail. About 20 years ago I bought into Marconi after it had dropped by 90% thinking that it couldn't go any further. It then dropped another 99% and I lost the lot. Marconi was the successor company to GEC after the defence electronics business was split off and at one point GEC was the biggest company in the UK. Hopefully R-R won't go the same way.
Another horror story was M&S which I bought into around 2005. I'm probably still 75% down on my investment although the dividends were good for many years which probably covers about half of that.
That's why I keep about three quarters of my investments in funds which are spread geographically and in different classes of investments on the basis that the fund managers should have a better idea than me. Of the remaining quarter invested in individual shares I've had some good successes as well as a few nightmares, but I've got those spread round different sectors as well so it's not too much of a roller coaster - unless there's a pandemic of course!

Ha. I did the same with marconi and also lost it all. But it was only about £100.

Also vaguely recall I had shares in GEC at that time and it was acquired by British Aerospace to become BAE Systems. I was given 1 BAE share for every 4 GEC share I owned. The price went up too so it was a nice little earner.