Any Tips Anyone ?

[Troubleatmill]

Am making my first tentative steps back into share buying (outside of the equities ISA I have). Anyone got any pointers for me ? I don't want to put too much into any one particular area. I recently bought a small amount of shares in Barrick Gold, but the high PE ratio is putting me off buying more. Does a high PE ratio mean the shares are very expensive ?

[50:50]

Am making my first tentative steps back into share buying (outside of the equities ISA I have). Anyone got any pointers for me ? I don't want to put too much into any one particular area. I recently bought a small amount of shares in Barrick Gold, but the high PE ratio is putting me off buying more. Does a high PE ratio mean the shares are very expensive ?

Well, my first tip is dont listen to anyone on internet message boards Re. share tips, especially if you are investing real money.

I would advise doing lots of research. There are lots of different strategies for investing in shares so you need to find out will suit you best then pick some companies that will suit your strategy. There is no easy way really, you just need to do loads of reaading up, there are loads of good books around on investing in shares, I'd advise getting a couple.

Edited November 13, 2005 by 50:50

[aclwalker]

Am making my first tentative steps back into share buying (outside of the equities ISA I have). Anyone got any pointers for me ? I don't want to put too much into any one particular area. I recently bought a small amount of shares in Barrick Gold, but the high PE ratio is putting me off buying more. Does a high PE ratio mean the shares are very expensive ?

Bolivian trouser bonds.

[Guest muttley]

Your first share buy should be something local or something you know.That way you can keep an eye on any developments.You can see if the company is hiring or firing,whether their product/service is selling etc.

Can you buy shares in the place where you work?

My first share ownership came from a demutualisation of my main wholesaler.Most of my friends who also got the shares sold out immediately at £1.15.I decided to hold as I believed the wholesaler were a good company.The hunch proved to be correct and I sold out at more than double 2 years later (To purchase a house,btw.The shares are now at £6.40)

Do your own research.Taking tips off internet forums is not investing,it is gambling! I have experience of this too!

By all means look at some of the websites available.I like www.iii.co.uk and I look at www.sharesforum.co.uk from time to time.

Good luck!

[urban_hymn]

Picking individual stocks is immensely difficult. I think it makes more sense for small investors to invest in the right sector than to stock pick.

Sectors worth considering are oil, energy, gold mining, commodities, Japan....

If you invest in a fund there is less chance of being taken out by one single event that might befall your chosen stock.

If you buy funds through a fund supermarket you will generally pay very little initial fee plus the annual charges are much lower.

[aclwalker]

You could do worse than spread your risk with some collective investments (unit trusts or investment trusts for example).

A good site for both general information and detailed information on specific funds is www.trustnet.com.

Collective investments give you diversity with small sums of money, but also allow you to concentrate on specific sectors like another poster suggested.

[thomasthetanker]

Don't move your money around just because its not going up

New to the game myself and keep checking prices with fingers hovering over ALT + TAB so the missus doesn't see that I've lost 600 quid - ouch. Have made back 100 since but...