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House Price Crash Forum

Do You Trust The Stock Markets Anymore?


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I still have shares in my pension fund ( SIPP) that I manage- but I have a completely different approach- I don't trade them frantically and I don't buy looking for growth per se. Because it is my pension fund I spent a lot of time working ot what I would need to buy as an old person then invested accordingly so I have a sort of hedge. If the consumption costs in any of the sectors rise relative to the whole market then so will the portfolio.

Obviously, though, in order for it to work like this I had to have enough in there in the first place and not have to gamble for more so I suppose it wouldn't work for that many.

But it is still hard to get away from the rigged system

The flaw I have found in my approach is that the core companies (e.g. water) get bought by wealth funds and PE and taken out of my reach.

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Even if a corporation does well and it is in a booming industry.. the management might take all the money for themselves. And there is nothing you can do about it.

See Britain's best corporations, the banks, even backed 100% by the government.. they still wiped out their shareholders money, while giving themselves enormous, historic bonuses.

Then there is the small issue of lying about what is on their books..

This is a good point. When shareholders vote against management it is called "a rebellion" but how can the owners of a company rebel against the employees, surely that power dynamic is wrong.

Edited by Britney's Piers
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The only way for individual investors to manage their assets in the stock market is the buy and hold strategy advised by Warren Buffet and others. You only get hit by the transaction costs once when you buy and once when you sell, so if the two are years apart, compared to capital appreciation and dividends, transaction costs are relatively small. If you trade every month, then even the Uk government stamp duty will slowly take away your money.

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How can you not approve of an individualsownership of shares. Personally, it's a good thing that I am allowed to be a stakeholder in the means of production. There are corrupt institutions and companies out there for sure but due diligence means I can avoid them or the malaise as you say.

Good luck to you. In theory, it should be great to be a stakeholder. How much influence you have though, is debateable.

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The only way for individual investors to manage their assets in the stock market is the buy and hold strategy advised by Warren Buffet and others. You only get hit by the transaction costs once when you buy and once when you sell, so if the two are years apart, compared to capital appreciation and dividends, transaction costs are relatively small. If you trade every month, then even the Uk government stamp duty will slowly take away your money.

Warren Buffet and others want you to buy (and not sell) whilst they have gleaned the best of inside information, got in early on priviledged infromation and terms, share issues etc - they need somebody to sell to. If you don't know who the mark is it is most likely you!

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Warren Buffet and others want you to buy (and not sell) whilst they have gleaned the best of inside information, got in early on priviledged infromation and terms, share issues etc - they need somebody to sell to. If you don't know who the mark is it is most likely you!

I'll quote your saying one day! ;)

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Where do you put your savings then , in a bank account where the value of them gets eroded by 10% a year due to inflation?

Everywhere is rigged

Yes i am aware of physical gold and islver i have around 12000 AUD worth stored for me in the perth mint vaults.

Do you?

As an Australian I initially thought of going with these guys, but there have been way to many rumours (for example) concerning how long people have had to wait for allocated pms from them or payouts, let alone unallocated. In a crisis, do you think the WA government won't invoke the force majeur clause with respect to their backing?

At the height of the crisis in 2008 I was going to buy silver through them, but as I was in Europe at the time, I had to go through their Irish dealer. I would have made a killing, but at the risk of losing all if the dealer or their Irish bank had gone under during the (probably extended) transaction period. Not a risk I was willing to take.

In the end I chose to hold my pms as a mixture of bullionvault and "in my hand" physical.

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but due diligence means I can avoid them or the malaise as you say.

My favourite example is Thames Water. I purchased shares in them, good reliable dividends, a long term core holding, one to buy and hold. Until the company was acquired by RWE. Nothing my dissent could do about the sale.

OK I made a profit, but I wanted a dividend stream ( :D ) not a trading profit.

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