New Sunday Times Feature - Diary of a Private Investor

EmmDee

Registered User
Messages
189
That seems wrong to me. Just arithmetically.

If you bought Stock A at 80 for a 5% yield and now the price had moved to 100 (so now yielding 4% on the market price), you could sell Stock A and buy any Stock B with a yield of say 4.5% (or any number greater than 4%) and be better off that you were.
The yield change is only relevant for those who buy at the revised price. If you buy something for €80 which pays €4 per annum you are receiving 5% yield. If that asset changes price to €100, you are still receiving €4 on your initial €80 - you are still receiving 5% yield. If I buy the asset at €100, I only get 4% but that doesn't change your return until you change your holding.

If you then look around for a better % return, you need to beat 5%. In absolute terms you are thinking you need to beat €4 but in fact that's because you are converting capital gain (the 80 to 100) - you sell the asset and have a larger capital base. But to get the same % yield you need to beat €5 not €4. Which may be a valid choice if looking at absolute € income rather than % yield.
 

Colm Fagan

Frequent Poster
Messages
289
My latest diary update is called "Too good to be true". It tells of a weird product, concocted to satisfy savers' hunger for security and return. That's an impossible combination in today's low-interest environment.

http://www.colmfagan.ie/documents/34_Document.pdf?d=September 10 2019 14:24:54.

If you feel as strongly about the topic as I do, please share with your contacts.

I've decided not to post any more diary updates on AAM. Anyone interested can follow me on Twitter or LinkedIn.
 

Colm Fagan

Frequent Poster
Messages
289
Hi @cremeegg
Nothing against AAM. It's just that there has been very little/ no feedback on recent updates.
As to Twitter, I'm not sure. I'm only starting on it now. I'll have to get lessons on how to switch it on. I'm CFaganActuary . Let me know if you find me there!
Of course, anyone who's not on Twitter or LinkedIn can simply go to my website www.colmfagan.ie
 

Sunny

Frequent Poster
Messages
3,528
My latest diary update is called "Too good to be true". It tells of a weird product, concocted to satisfy savers' hunger for security and return. That's an impossible combination in today's low-interest environment.

http://www.colmfagan.ie/documents/34_Document.pdf?d=September 10 2019 14:24:54.

If you feel as strongly about the topic as I do, please share with your contacts.

I've decided not to post any more diary updates on AAM. Anyone interested can follow me on Twitter or LinkedIn.
That is shocking Colm. In this day and age that we still have this rubbish going on and BNP should be ashamed. I have a couple of contacts in the CB I will send the link and try and embarrass but Brendan is probably the best person. Think he has a hotline into them after the last few years!!

I am a regular reader of your website and will continue to read it. Not sure you will enjoy the delights of Twitter but sure I will follow you anyway!
 

SBarrett

Frequent Poster
Messages
3,093
Hi @cremeegg
Nothing against AAM. It's just that there has been very little/ no feedback on recent updates.
As to Twitter, I'm not sure. I'm only starting on it now. I'll have to get lessons on how to switch it on. I'm CFaganActuary . Let me know if you find me there!
Of course, anyone who's not on Twitter or LinkedIn can simply go to my website www.colmfagan.ie
That doesn't mean you're shouting into an empty room Colm. I've been enjoying your columns but don't necessarily feel the need to comment on each one of them. I can still read them on LinkedIn anyway.
 

Colm Fagan

Frequent Poster
Messages
289
Thanks Steven. I used to appreciate the feedback on AAM; some really insightful comments, which helped my understanding of issues (some stupid ones too, of course!). Maybe the reason for the fall-off is because all the questions have been asked and answered at this stage, but if you or any other readers feel like commenting on a future article, feel free to use this forum. I'll be more than happy to respond.
 

declan11

New Member
Messages
1
Colm, I would think I am like many other readers of this forum , I rarely post on AAM but am a regular reader of topics here. In fact I had to reregister today to post this as I have forgotten what email address I had used initially. I have an interest in investing in shares and have found your contributions and those of more knowledgeable responders very enlightening. Your contributions have spurred me to investigate some of the companies you have commented on and I have dipped my toe into one following my own research! I have also checked out your website but am not a twitter or facebook fan.

So thank you for your contributions on this thread. I would add my support to the other posters that are encouraging you to continue. While I'm in such good humour may I thank those other frequent posters here that have contributed to my education in this field. Declan
 

joe sod

Frequent Poster
Messages
700
Thanks colm for your input, you clearly put a lot of thought into it.
With regards to being let down a bit by the lack of feedback to your posting on askaboutmoney, I think it's a general thing now and not restricted to your posts.
There is plenty of feedback on other forums especially in relation to property investment and pensions and obviously brexit.
I think there is a lack of interest now by Irish people in investing in shares in general for a number of reasons,
The onerous tax levied on Irish shareholders now.
The collapse of the many people's investments a decade ago in relation to the banking collapse.
The on going poor performance of the Irish and British stock markets obviously hard hit by brexit concerns.
Therefore most people as judged by the postings are now only interested in very low risk ultra safe investments.
Your recent diary contribution has alluded to this with regard to a "too good to be true investment product"
 
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username123

Frequent Poster
Messages
1,436
I think @Colm Fagan above nailed it - it's all been done, most questions are asked and answered already. The answers are almost always the same. Investing in ETFs in Ireland is rubbish. Investing in shares is too much hassle and likelihood of picking dogs too high. Most lay people (myself included) have not got the time, knowledge or inclination to bother researching individual companies to put a fair value on their share price. Investing in shares with only 3k is pointless due to fees Vs with 1 million. Pay off any high interest loans first. Start a spending diary. Overpay non-tracker mortgage then. Max out your pension. Buy state saving after that. After that advice it's niche questions really.

There's nothing new anymore IMO in Ireland finance area. Best craic recently was the 3 mortgage switches in 6 months. Other than that so many people want high return with no risk or other such silliness. People don't want to read ideas about investment articles, they want to read "Buy this share now" articles. It's just all a bit "meh" really IMO. Again not a reflection on AAM it's just there's only so many questions to be asked really...
 
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SPC100

Frequent Poster
Messages
374
It might be related to content structure.

Since you started with external PDF articles I think interaction stopped. They are harder to read and quote and comment on.

I hypothesise if you do one new thread per article and include the article text you would get more interaction.
 

Colm Fagan

Frequent Poster
Messages
289
It might be related to content structure.

Since you started with external PDF articles I think interaction stopped. They are harder to read and quote and comment on.

I hypothesise if you do one new thread per article and include the article text you would get more interaction.
Fair point.
I'll try it. Watch for the new thread!
 

seamless

Registered User
Messages
46
I'd like to add my support and thanks for your contributions. I read your postings carefully and find them very educational. I think you do a great public service in explaining the risks and rewards of investing and I would encourage you to continue on AAM.
 

SPC100

Frequent Poster
Messages
374
Fair point.
I'll try it. Watch for the new thread!
Great! Thanks.

I will watch the experiment with interest. But it is biased now as folks will be interacting to encourage you to post in the future.

I too have enjoyed your articles and would be happy to continue to read them here.

It's great to have people with good maths skill, experience and financial knowledge sharing their wisdom.
 
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