# 5k to invest in shares



## Builder (2 Jan 2011)

I have 5k to invest in shares, possibly in 5 different companies.  I will probably invest in the Irish stock market to start with.  Any-one got any advise as to how I would find out what are the best stock to invest in.  Any advise greatly appreciated.


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## mercman (3 Jan 2011)

Without my being rude to you, I think it advisable to 'do your own research' first, as from what you are looking for you may as well buy the Racing Post instead of the Financial Times. If you think that there is a quick fix when investing shares, it will not happen and you will be placing a thread on this forum requesting 'how to find 5k lost in the stock market'


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## horusd (3 Jan 2011)

Agree with Mercman, you need to do some research first.  Some information on shares can be got from sharewatch.com for charts on share prices etc.  You can also get add'l info from blogs and investment sites such as motelyfool.com (US) and its UK equivalant fool.co.uk. Information is often more easily available for UK/US companies - Ireland and the iseq is a very small market. You will also need a broker to buy & sell  shares and various charges apply for this - these can be substantial, so resarch them first. There are a number of different brokers in Ireland such as Goodbodys, Dolmen, various banks like AIB etc or you can use specific online brokers like TD Waterhouse, AIB online etc.  Another consideration you might have when choosng shares is the dividend payable from the companies profits and returned to shareholders. This is not guaranteed income like interest on deposits, but companies who paid them in the past and remain profitable usually continue to pay them.  You can check out dividend history for particular companies online from various websites, such as yahoo finance who also provide quite a lot of general info on companies. Another source is incomefromdividends.com. Share investment is often a long-term buy, can have tax and FX implications, can be costly and risky and is usually not suitable for risk averse investors (Think of Anglo and other bank shareholders who lost their shirts recently).  If you decide you want to take a punt on shares you must be prepared to lose the money if it all goes belly-up and you absolutely must do detailed research before taking the plunge.


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## Bob_tg (3 Jan 2011)

For 5k, it might not be worth taking the time to do research.  It's effectively a blind gamble at that level - especially if you're thinking of spreading across 5 companies.


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## Complainer (3 Jan 2011)

Are you sure that you really want to do a direct investment? Why not buy into one of the Quinn Life funds - Celtic for the Irish market? Or buy an ETF?


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## mercman (3 Jan 2011)

In the short term, there are very few companies on the Irish market that show any distinct possibility of catching up or following the market.


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## farmerette (4 Jan 2011)

mercman said:


> In the short term, there are very few companies on the Irish market that show any distinct possibility of catching up or following the market.


 
id exclude three

glanbia
kerry
paddy power


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## QED (4 Jan 2011)

€5,000 (while it may be significant to you and me) is not large enough to allow a risk reducing portfolio be developed that gives suffiecient returns to justify the amount of time (and money) you would spend researching and transacting.

If you are picking one or two companies to buy shares in, you may make money, but just be clear that you are gambling rather than investing.


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## Complainer (4 Jan 2011)

QED said:


> €5,000 (while it may be significant to you and me) is not large enough to allow a risk reducing portfolio be developed that gives suffiecient returns to justify the amount of time (and money) you would spend researching and transacting.


But just to be clear, it is large enough to buy into an existing fund, hopefully a low-charging fund, that allows you to spread your eggs across multiple geographic and sectoral baskets.


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## PMU (4 Jan 2011)

With 5k the cost of dealing charges, stamp duty, takeover panel fees etc. will significantly lower your gains if you buy multiple shares.   With 5k realistically you should consider investing in a spread of  diversified low cost funds (e.g. through QL or equivalents).   You should read Ben Graham’s ‘The Intelligent Investor’ and if you really want to invest in individual shares read and study e.g ‘The Investors Chronicle’ or ‘Shares’ magazines, and the financial pages of the London Times or the Telegraph.  – not so much as to buy the recommendations  they make but to see how they evaluate individual shares, e.g ability to grow earnings, p/e ratio, debt, dividend cover, discount to NAV, etc.  This will give you an idea of the analytical process that you need to go through in evaluating shares for investments.


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