DIY Investor Magazine
/
2015 Issue
30
Q&A
FROM DIY INVESTOR
HOW LONG HAVE YOU BEEN A DIY INVESTOR?
20+ Years(15 Years As An Online Share Trader)
WHAT TYPE OF INVESTOR ARE YOU?
Mostly long term buy and hold on decently
yielding stocks (most of my investments are via
my SIPP), I would say that I have become a
more cautious investor, but I am still prepared to
take reasonable risks.
In the last few years I have looked to get a far
better balance to my portfolio, so not just straight
equities, but also Exchange Traded Funds (ETF)
and Exchange Traded Commodities (ETC) and
bonds. In particular, I have looked to invest in
new issues of retail bonds, with yields between
5 and 6% typically and found it easy to do so (at
nil commission) via my broker, Selftrade.
I tend to pick up information on retail bonds via
Selftrade, the LSE website and also Retail Bond
Expert. Similarly, ETFs/ETCs are simple to trade
online and provide greater diversity and balance
in my portfolio.
Over the years I have purchased various ETFs/
ETCs including tracking of a basket of Australian
stocks, index trackers of the FTSE250 (which I
still do via a monthly regular investment), DJIA
and Nikkei. I have also invested in ETCs for
Gold, a combination of Gold/Silver/Platinum,
Copper and even Water Companies.
WHAT ARE YOUR KEY CONSIDERATIONS
WHEN MAKING AN INVESTMENT?
Good yield, sound investment with (hopefully) a
potential of decent capital uplift. I will generally
not look outside the FTSE 350 for equities with
my SIPP, but do occasionally invest in AIM listed
stocks in my ISA. Within my SIPP, my employer
pays in a set amount each month and I have
8 regular investments that, after 4 or 5 years,
are now a significant value and pay an good
dividend.
ISA OR PENSION?
Both, as the ISA will allow instant access in case
of that ‘rainy day’ and recent changes in ISA rules
(allowing bonds with less than 5 years to maturity,
allowing AIM listed stocks and an increase in the
annual subscription to £15000) make it a better
vehicle to invest in. As with most investments, I
think it is important to have a spread of products/
risk etc.
WHAT HAVE BEEN YOUR BEST AND WORST
INVESTMENTS?
Equities have generally figured in my highs and
lows: Marconi, RBS (all FTSE100 that had a
massive fall from grace) as well as a couple of
stupid AIM plays. I console myself with the bad
decisions hoping that I have learnt my lesson and
will make a better decision in the future (which
I believe I generally do). Some of my better
investments include ITV and the original Orange
listing.
WHAT ADVICE WOULD YOU GIVE TO SOMEONE
CONSIDERING SELF-DIRECTED INVESTING
FOR THE FIRST TIME?
Have a balanced portfolio which includes a
combination of equities, bonds and ETFs/ETCs
and be very clear on your goals (i.e. retire at 55,
save for school fees etc.), concentrate on keeping
your costs to a minimum and don’t be too greedy!
RICHARD/AGE 43/RESIDES SOUTH EAST/MARRIED TWO CHILDREN
