Posts: 38
New to the forum. Which are the small cap companies to invest can give a good returns.
Thanks.
Posts: 227
Hi Kinmitali22, sadly, you will find that there are many charlatans giving tips so, perhaps the best advice is not to believe anything from anyone you have not actually met, know and trust. I am not qualified to provide financial advice, but I can point you in a broad direction so that you can discover a gem of your own.
First, be honest with yourself and understand what is meant by risk : reward. Then look at the timescale that you have in mind. A timescale under 6 months and the stock market is definitely not the place for your cash. If you are looking at 5 years or longer, then it most definitely is the place for rewards to be made BUT care must be taken at every step along the way. The present has the awkwardness of a pandemic that is gradually coming under control so you could look at sectors for recovery (travel, oil, hotels, leisure, motor etc) or sectors that are needed for raw materials (building materials, mining, container ports and shipping), and don't forget that although many companies involved in administration have discovered the joy of working from home so those will be in demand (IT, cloud computing, cyber-security). Of course it might mean further reduction in office space but increase in warehousing, so don't rule out commercial property.
Politically, the world is gearing towards reduction in carbon and increase in renewables. Batteries, charging infrastructure etc - these need a lot of copper and often rare minerals - other green initiatives for power include hydrogen, nuclear, solar and wind. Businesses need cash from banks sometimes for expansion and other times for survival. The next 12 months may see wholescale closures of industries that are not viable once the storm begins to subside so loans may turn sour despite the attractive rate of borrowing.
There are a few pointers. However, you will not make any money until you actually sell your investment. Buy wisely, always leave something for the next guy, run your winners and sell your losers. You should always accept that you are not going to be right all of the time.
Why are you looking at small cap companies when a large cap might be better to learn about, research and understand? Do you really understand how and where say, Shell makes money? Is it a better managed company than BP? Which is likely to perform better - and over what period - and why? What about geo-politics and exchange rates?
What sort of return do you want from your investment? 5%, 10%, 20%, 100%, 200% more? Tesla (one of the most valuable companies in the world by market capitalisation) rose 700% last year so don't discount the big boys. Good luck - an interesting topic, but few are qualified, myself included to give financial advice. Try and work it out for yourself. Don't try and fight the market, go where the money is going and although you will make mistakes, discover what the mistake was and NEVER repeat them.
Posts: 38
Thank you so much.
Posts: 10
RR and Hammerson Plc. Both still have a way to go for recovery and have had major dilutions so don't expect them to recover to pre COVID prices. As well as this, they have already both increases a lot this past month. Personal PT for RR £2-£3. Personal PT for Hammerson ~ 70pence.
Posts: 227
Kinmitali22, I would be very interested to hear how you are getting on. Don't forget that while there are many thousands of excellent quoted equities from which you can choose buying is the easy bit. The difficulty is always with a selling strategy as, unless you sell you never actually make any money (unless you choose to receive dividends, as cash, of course).
FWIW, this has been an extremely frustrating year so far. My holdings in USA have gone from strength to strength, but those quoted on the Hang Seng or investing in the Asian markets have been flat. UK, has been extremely mixed and very staccato with whopping rises or falls followed by a gradual reversal of whatever occurred.
Back in the 1970's there was on LBC a great presenter, Bob Beckman who gave a 2 minute precis of the major markets. His favourite phrase in those turbulent times mirrored today was "markets are behaving like an elevator..... with a lunatic at the controls". I started building my portfolio at that time with a modest £500 to which I added £15 monthly. It was all I could afford on my salary of £3,600. I have increased my monthly savings each month since then on an annual basis. This is augmented with dividends thrown off from time to time.
Posts: 2,900
Buy BRH and after a year you'll be thanking me. As much coke as you want, and as many hookers as you want and you'll be in paradise
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Posts: 227
Thank you for that hahahehehoho. I think I can now add you to those that I have filtered. What a total tool you are. Your contribution is an EXCELLENT example of "noise" - the loudest of which is from an empty vessel.
So, Kinmitali22, you have a brilliant insight of the "bloke in the pub"/"You'll thank me for this"/"mate of mine mentioned"/"probably be shot for publishing this" sort of comment. A joke name "hahahehehoho" has provided a direct "TIP" to prop the price up.... classic pump and dump. More likely scenario is that the company will go bust (relatively speaking).
Use information that is verifiable from multiple and CREDIBLE sources for broad direction - we know that energy is transitioning from BIG OIL to renewables but we don't know whether solar, wind, hydrogen, wave or any other will be the dominant. We do know that batteries are important.... hence the rise of Tesla, Varta, VW etc. We know that Covid 19 is the CURRENT problem and that vaccine in various guises is being rolled out. What we don't know is how variants or any virus whether known or unknown will determine our health and response. Testing therefore is priority and a share in which I do have pecuniary interest TTG is involved. And while one boat might have left the dock some time ago, it does not mean that other (particularly in cutting edge technology) boats are under construction.
Be honest with yourself and understand that YOU have the advantage of time and far greater research than I had in the 1970's through to the 21st Century. Think about how the WORLD is changing, what is needed for the betterment of lives in general and what will maintain political stability and peace to be in that future world. Religious nutters (all faiths, IMO) have zealots and some resort to very violent measures in their attempt to stamp the theological from a perverted perspective. The investor will benefit from enhanced security, whether electronic, guns or boots on the street, from media as they give oxygen to sensation consequential from nonsense. And so it goes on. Use logic to determine the direction that will benefit your portfolio and how your choice will be both enhanced and disrupted. Time spent in thought to determine individual elements is not wasted because investing is not a race or a game. The worst players are those who have worked within the rules, have made lots of immaterial mistakes and are frightened to make mistakes as they have poor understanding of risk.
Your goal is not to eliminate risk but to use risk to your advantage. It starts at the point when you are frightened when measuring your capital that is exposed to equities and the size of bargain needed to be executed. For me, the point came when I needed to rationalise the holdings 10 fold. I was very happy dealing in £1,000 here and, quite inadvertently became my own tracker. Bit of focus needed with £10k transactions. Bit more with £50k ones. Same see-saw, different effect on c