10k Gbp Investment For 2008

[chiang mai]

One of my best friends and myself are going to compete against each other in 2008 to see which of us can make the most profit out of a £10,000 investment. There are no rules other than any investment must be legal and the loser buys dinner in twelve months time but we are both obliged to share thoughts, tactics and progress in a blog and all progress must be verifiable. We're doing this for fun and to see what we can learn both from each other and from the process.

I'm starting to formulate my strategy for this and will happily share progress with the forum but wonder what strategy you would deploy to maximize a one year investment amount of 10k GBP - the fund can be split into as many individual investments as required?

[PCA]

One of my best friends and myself are going to compete against each other in 2008 to see which of us can make the most profit out of a £10,000 investment. There are no rules other than any investment must be legal and the loser buys dinner in twelve months time but we are both obliged to share thoughts, tactics and progress in a blog and all progress must be verifiable. We're doing this for fun and to see what we can learn both from each other and from the process.

I'm starting to formulate my strategy for this and will happily share progress with the forum but wonder what strategy you would deploy to maximize a one year investment amount of 10k GBP - the fund can be split into as many individual investments as required?

First I would deduct 100 quid for the dinner . Good luck and happy new year.

[Irene]

I have refined my strategy into four area.

First to pick the right stocks. Right stocks mean stocks of companies that are not easily penetrable by competitors, i.e. having monopolistic position.

Second, timing to buy and to sell. I will buy only when there are temporary bad news affecting stocks that I have focused on and sell when I feel enough is enough. I have never sold my stocks at the highest point.

Third, I will diversify my investment on types of stocks and bonds. There is always an element of compensatory factors.

Finally, I will improve my knowledge on economics and financial matters to guide me to the right path in following the above principles.

[chiang mai]

I have refined my strategy into four area.

First to pick the right stocks. Right stocks mean stocks of companies that are not easily penetrable by competitors, i.e. having monopolistic position.

Second, timing to buy and to sell. I will buy only when there are temporary bad news affecting stocks that I have focused on and sell when I feel enough is enough. I have never sold my stocks at the highest point.

Third, I will diversify my investment on types of stocks and bonds. There is always an element of compensatory factors.

Finally, I will improve my knowledge on economics and financial matters to guide me to the right path in following the above principles.

It sounds like you're further ahead on the thinking part of this than me, however, my framework strategy includes diversifying out of Sterling for the majority of the investment period, probably into RMB or similar. Secondly, from all I have read there seems to be more resilience built into the Indian markets and prospects for growth are better than the UK or US ones for 2008, so say the experts! Only one third of my investments will be in equities, the remainder will probably be split between two other asset classes and as yet I am unsure what these will be although some form of small investment in land might be sensible. Oh yes, and I am also allocating 1% of the investment total into the UK lottery system on the basis that if you don't play you can't win and that can be fun also.

[kennkate]

Chiang Mai

Why not put your 1% into Premium Bonds You CANT LOSE money, and you never know

£1 Milion every month plus lots of smaller prizes

[apetley]

I would reply to all those nice Nigerian emails.

They can't all be scams right?

[chiang mai]

I would reply to all those nice Nigerian emails.

They can't all be scams right?

You would!

[JSixpack]

we are both obliged to share thoughts, tactics and progress in a blog and all progress must be verifiable.

So what's the URL of the blog?

[chiang mai]

Chiang Mai

Why not put your 1% into Premium Bonds You CANT LOSE money, and you never know

£1 Milion every month plus lots of smaller prizes

Excellent idea, done.

[chiang mai]

we are both obliged to share thoughts, tactics and progress in a blog and all progress must be verifiable.

So what's the URL of the blog?

My friend is setting it up over the holidays whilst back in the West and will let you know the URL as soon as he's done.

[naka]

A well presented Ponzi scheme might work for you.

Try targetting the time share sellers in Patong. Oh, and the buyers too.

Naka.

Edited January 2, 2008 by naka

[Naam]

i am selling shares of my non existing silver mine located in the Rocky Mountains. please PM me if interested.

[lannarebirth]

Invest the 10k GBP in some nice website, stationary, and business cards, identifying yourself as an "Investment Advisor". The ones I've talked to rec3ently want 3% of your networth for touching the "client's" money and an additional 30% of any gains they may or may not produce. Loses of course are the client's alone. If one has the chutzpah, it could be a real earner.

[cmsally]

Invest the 10k GBP in some nice website, stationary, and business cards, identifying yourself as an "Investment Advisor". The ones I've talked to rec3ently want 3% of your networth for touching the "client's" money and an additional 30% of any gains they may or may not produce. Loses of course are the client's alone. If one has the chutzpah, it could be a real earner.

Crikey, Lannarebirth, who have you been talking to? I didn't realise Nick Leeson had moved to Chiang Mai.

[lannarebirth]

Invest the 10k GBP in some nice website, stationary, and business cards, identifying yourself as an "Investment Advisor". The ones I've talked to rec3ently want 3% of your networth for touching the "client's" money and an additional 30% of any gains they may or may not produce. Loses of course are the client's alone. If one has the chutzpah, it could be a real earner.

Crikey, Lannarebirth, who have you been talking to? I didn't realise Nick Leeson had moved to Chiang Mai.

Hi Sally,

Investment advisor may have been a misnomer. Actually the rates I quoted were for an active money manager. I already got him to cut the 3% of funds under mangement to zero. Now if I can get him to cut the 30% of gains to 20% I might give him some money to work with.

[MrSquigle]

i am selling shares of my non existing silver mine located in the Rocky Mountains. please PM me if interested.

As if anyone is going to invest in it when you already said it is 'non existing'....sheesh.

The investment advisor below sounds good....cutting his initial charges to get your custom, hang out a little longer and you should be able to squeeze him down to 10% and then hand over your cash to him for 'investment'.....this'll show him that you are a real tough negotiator and it will make him respect you all the more.....and this is a good thing before he 'invests' your money.

[chiang mai]

Invest the 10k GBP in some nice website, stationary, and business cards, identifying yourself as an "Investment Advisor". The ones I've talked to rec3ently want 3% of your networth for touching the "client's" money and an additional 30% of any gains they may or may not produce. Loses of course are the client's alone. If one has the chutzpah, it could be a real earner.

Crikey, Lannarebirth, who have you been talking to? I didn't realise Nick Leeson had moved to Chiang Mai.

Hi Sally,

Investment advisor may have been a misnomer. Actually the rates I quoted were for an active money manager. I already got him to cut the 3% of funds under mangement to zero. Now if I can get him to cut the 30% of gains to 20% I might give him some money to work with.

OK, I'll do it for 0% and 19%. I'll PM you with my account details.

[lannarebirth]

Invest the 10k GBP in some nice website, stationary, and business cards, identifying yourself as an "Investment Advisor". The ones I've talked to rec3ently want 3% of your networth for touching the "client's" money and an additional 30% of any gains they may or may not produce. Loses of course are the client's alone. If one has the chutzpah, it could be a real earner.

Crikey, Lannarebirth, who have you been talking to? I didn't realise Nick Leeson had moved to Chiang Mai.

Hi Sally,

Investment advisor may have been a misnomer. Actually the rates I quoted were for an active money manager. I already got him to cut the 3% of funds under mangement to zero. Now if I can get him to cut the 30% of gains to 20% I might give him some money to work with.

OK, I'll do it for 0% and 19%. I'll PM you with my account details.

Actually, this guy is pretty good. Averaged almost 40% returns for each of the past 10 years. Still, the fee seems excessive to me.

[lannarebirth]

Anyway, to answer the OP. If I had 10k GBP to take a flyer with, I'd buy June September Crude Oil Futures. Might be a blowoff coming there.

Edited January 2, 2008 by lannarebirth

[PCA]

Actually, this guy is pretty good. Averaged almost 40% returns for each of the past 10 years. Still, the fee seems excessive to me.

paying 25% of profits is quite common for managed futures funds. The problem with those kind of funds is that their real performance is not easy retraceable. They work together with brokers and enjoy commission payments on rt fees per trade and cash in regardless if win or loss while charging you the full lot. So what they get is the management fee plus commissions on trades and - the least important thing for them - 25 % of your profits (if any). 99% of them are suckers and the remaining dont trade with peanuts.

If you think the guy is good then ask him for satisfied customers (he should have plenty when claiming 40% performance a year in average) to get in touch with and find out about reality.

Beyond that after reading some of your posts I doubt that you need any of them though your CL trade is not really apropriate for a small account like the OP intends to start with nor do I think he might want to be confronted with a nice margin call to inject some more quid.

[Naam]

i am selling shares of my non existing silver mine located in the Rocky Mountains. please PM me if interested.

As if anyone is going to invest in it when you already said it is 'non existing'....sheesh.

a sucker is born every minute

[lannarebirth]

Anyway, to answer the OP. If I had 10k GBP to take a flyer with, I'd buy June September Crude Oil Futures. Might be a blowoff coming there.

Which I sold today.

[PattayaParent]

Is this a theoretical 10k you're playing with or real money?

If theoretical how do you calculate the costs / penalties of switching money / funds? And how do you konw what numbers your Premium Bonds are?

[PCA]

Anyway, to answer the OP. If I had 10k GBP to take a flyer with, I'd buy June September Crude Oil Futures. Might be a blowoff coming there.

Which I sold today.

lets say you bought 2 contracts on that date you posted the trade, your account (10k GBP) would have been blown out 20 days later, before you'd have got a hefty margin call from your broker to inject more or get positions liquidated. I doubt you would sit out a drawdown of 10 full points (10k US per contract) in Crude.

[GuestHouse]

I think this would be a great 'competition to play run on TV.

We could have a similar thing running with 'imaginary ivestments' (or real if people want to put their money).

Sort of anounce initial investments at the beggining of the competion and then perhaps a 1 monthy chance to change investment.

Then see who made the most at the end of the year.

It would be interesting to see if the 'gurus' did better than the 'blind fold and pin' investors.

---

And a nice change from posts from guys telling us they bought Google way back then...

Edited May 7, 2008 by GuestHouse

[BEENTHEREDONETHAT]

Being basicly lazy I would put mine in a twelve month term deposit returning 9% and not worry about it.

Question does it matter what currency we play with?

Do we have to worry about currency exchange rates?

At what date does this become active?

In addition to the above how about having a five year one?

[thaiclan]

Id stick with an ETF rather than trying to pick stocks that will gain in a 12 month period.

BTW 30% comm for futures fund is lean in the industry.

Premium Bonds...??? HAHAHAHAHHAHA

[lannarebirth]

Anyway, to answer the OP. If I had 10k GBP to take a flyer with, I'd buy June September Crude Oil Futures. Might be a blowoff coming there.

Which I sold today.

lets say you bought 2 contracts on that date you posted the trade, your account (10k GBP) would have been blown out 20 days later, before you'd have got a hefty margin call from your broker to inject more or get positions liquidated. I doubt you would sit out a drawdown of 10 full points (10k US per contract) in Crude.

You're right, I would not have sat through that drawdown, nor do I have a 10k account size. I purchased Feb 11th. The OP never said what he planned to do. My post was only an illustration of what I thought might be a trade that was likely to produce good returns. In my case it did, but had I bought on that day I posted , I most certainly would have been stopped out. I didn't buy the low, nor will I have sold the high.

[samran]

I think this would be a great 'competition to play run on TV.

We could have a similar thing running with 'imaginary ivestments' (or real if people want to put their money).

Sort of anounce initial investments at the beggining of the competion and then perhaps a 1 monthy chance to change investment.

Then see who made the most at the end of the year.

It would be interesting to see if the 'gurus' did better than the 'blind fold and pin' investors.

---

And a nice change from posts from guys telling us they bought Google way back then...

could you put together some basic rules, guidelines, what the base currency is (baht, USD, GBP?) and I'll pass it by the admins to make it an ongoing sticky!

[PattayaParent]

I think this would be a great 'competition to play run on TV.

It would be interesting to see if the 'gurus' did better than the 'blind fold and pin' investors.

I remember many years ago an article appeared in Money Magazine (a FT publication) regarding a test done comparing the stock picks of financial gurus and a one eyed monkey with a dart board.

Their conclusion was that the financial gurus need to eat more bananaas and close one eye when throwing the dart as the monkey made more money than them!!

I always wonder why if these financial gurus are so good they don't borrow money and invest it and make themselves millionaires instead of taking MY money and trying to make ME a millionaire?