RE: Glen US currently 39211 Jun 2018 22:34
Pete,
If you're looking to invest and forget... best thing to do is buy a few UK Smaller Companies investment trusts. I will be doing so shortly. Why?
1. Growth rates on average 14 to 19% a year. That might sound rubbish, but a 100% compounded return within 5 years is not unusual, and even the lower performing ones usually hit 70 - 80% return within 5 years.
2. They're diversified, so you don't need to worry about buying one rubbish stock and losing your shirt.
3. Investment trusts are low cost, you don't get charged a percentage of their value like you do with Unit Trusts. With Hargreaves Lansdown for example you could have �1 Million in one but the charge is never more than �200 a year. That's just an example, I know you don't have �1Million.
Trust me, apart from getting lucky on one stock once in a blue moon. It's extremely unlikely you or anyone else will hit 100% within 5 years and certainly not consistently over their entire funds.
Yes Billy for example did it with Glen... but it's not normal, I'm sure Billy will agree. Glen was a unique example, the odds of sticking all your money in one stock and doubling or tripling it slim, and it leads to bad mistakes later when people try to repeat it on another stock and lose a lot. Some people might get 100% or even double, triple getting lucky on a small cap... but most people won't put all their money in one, because often they fail completely and people lose everything.
You seem to want quite big returns, fairly quickly but are coming to the conclusion that trying to trade stocks constantly is hard work. That's about as good as it gets with UK smaller companies investment trusts. Other decent sectors are Biotech and occasional real estate trusts REITS.
But from the research I've done, UK smaller caps are more reliable. Now that's the good part... the bad part is, if you buy one of these trusts in a market crash on paper you will lose a hell of a lot at least temporarily. In 2008 the top performing UK Smaller companies Investment Trusts lost up to 70% of their value. Fast forward 10 years and they've made 450%+ a smart investor would be buying more of the fund as it dropped, and all the way to the bottom, reinvesting dividends and be sitting with a big sum now.
My son has Autism, and is becoming harder work as he gets older. So I'll be buying these investment trusts on the next big correction and leaving them there. With what we've saved between ISA's and Sipp's I've got zero doubt within 20 years we'll have several Million if I just buy them and hold them. The compounded gains over 5, 10 or more years is very big.