Looking to Buy! Your Candidates Please! (My Full Comments)

Thread is here http://boards.fool.co.uk/looking-to-buy-your-candidates-please-13197188.aspx?sort=whole#13200205

Good morning all,

I've got the money to buy some more HYP shares now. Looking around for candidates, the only one I've seen that is potentially close that I like now is BLT. I was thinking of buying that at 1416p recently but couldn't because investing money when you know VERY little about the company is not something I do! I know more about it now and would probably buy if it came down to around that level.

Anyway I'm interested in your potential candidates for buying now! The main consideration for me is... that the share price goes UP and I'm paid a nice dividend. In terms of 'diversification' people would def say that I am over exposed to financial shares... and I also have quite a lot in GSK and BP. More than HYP purists would like. But being a share investor for over 10 years now, and having written share articles for the past year... it hits home to me that all matters is how much you make (overall, taking both yield and capital rise into account.) I don't think any of the shares I currently own are at 'buy' prices now, so candidates will probably not be 'main' shares...

Another thing that's hit home to me lately is just how much better shares are than cash as long as you can keep the money in shares for at least a year! Over the past 18 months I've been putting much more of my cash into shares.

I'm still long term buy and hold and haven't sold any shares in over 8 years.

So I'm ready to hear your suggestions... details of what you think of the companies and their 'strategic plan' will be good too! Thanks!

Thanks again for reply.

Please bear in mind that I am a long term buy and hold investor. I have not sold for over 8 years and that strategy is set to continue.

Instinctively at the moment of all the shares (and one investment trust) that I have looked at none look to be great value. However I think it is fine to put shares on a watchlist and then buy them if/when the time is right. At the moment I have BLT and Royal Dutch Shell on my watchlist. I am also currently looking at BlackRockWorld Mining Trust on my father's advice. Don't know whether this will be on my watchlist properly but looks quite interesting. Long term I think mining shares will do quite well.

With long term high yield shares it's all about buying the right company at the right price... then holding. Often silly fears that the market throws up can lead to a buying opportunity.

Thanks all for replies.

If you check out my blog and articles etc you will have seen what shares I have... but have copied and pasted here for your benefit.

BP. LSE
BATS LSE
GSK LSE
SBRY LSE
SSE

HSBA LSE
TSB LSE

BNC LSE
9813 LSE
BP. LSE
BT.A LSE
LGEN
LLOY LSE
NG. LSE
RMG LSE
SBRY LSE
SSE LSE
UU. LSE

This is the vast majority of my shares but I also have Centrica and a LGEN all share ftse tracker...

I do like these boards because they get my mind thinking.

In some ways my approach IS HYP. Fool got me onto it really. I do long term buy and hold (haven't sold in over 8 years) and judge share selection mainly on FTSE 100 shares with a good yield and low PE.

At the end of the day though I don't TOTALLY believe in 'strategic ignorance' and over the past say 2 years I have been watching the prices and charts more aiming to get in at a good price when buying a share.

Because with shares all that matters to ME is how much money I make. I think of money as kind of like a score in a computer game really. I'm not a consumerist person but I do like getting more in a kind of high score way. There's no point getting a share which looks like it has a low PE and a high yield... if that yield is cut the profits drop and the prices go down. I have made that mistake in the past to an extent with LLOY and SBRY.

But overall I think getting a share with a low PE and a high yield is USUALLY a good way of making money in the long run!

OK time to blast out a quick reply...

The 'for your benefit' bit was meant as a jovial remark :)

I've thought about this more...

It's interesting to see how a lot of people said... "But what shares do you have now??"

Here's reply I sent to someone who LIKED MY POST.

"I actually have more to add aka... it doesn't MATTER MUCH what shares you currently have... what matters is the TOTAL RETURN of the shares you buy now make in the future."

That's all that actually matters now in terms of my decision.

I know a lot of people like to have 'diversification'. AKA SPREADING THE RISK. And that's fine if that's what they need/want.

But what matters to me is HOW MUCH MONEY I MAKE.

If I already have a lot of a share... but I believe it will go up and it does go up it would be the right decision to buy more of that share at the right price before it goes up... for me anyway. And I would suggest it would be to anyone who... LIKES MAKING MORE MONEY :).

Anyway may publish my other replies to this thread along with selected quotes on my blog because it's interesting thanks all for reading and replying!

Buy to Let Property

Good morning all,

My family and I are in the process of buying a buy to let house. It will probably be bought by the end of May 2015.

The process is interesting to me, but also annoying. My parents are (potentially) paying £124,000 for a new build terrace house in Huddersfield. It has its own car parking space and decent garden, and is good condition but it is still too much for a buy to let I think. There are many places in Huddersfield we could have got cheaper, and a LOT more in South Yorkshire we could have got cheaper.


They will be doing buy to let for at least a few years. Personally if we (the family) got a good income from it I would like to keep it a buy to let for a long time. The thing that frustrates me is that my dad is a decent share investor and probably could have made money by at least keeping the money in shares but he's buying this house. Buying a house is a lot more hassle than buying shares!

The only reason I would sell the house is if I felt I could make more money with the money in shares... but again selling a house is a hassle!

Anyway I'm here for your advice please :)

Like I say the property will probably be bought near the end of May. Survey is done offer has been agreed etc. My father is getting the money together and the vendor is moving into a bungalow that is going through probate.

What kind of things should I subtly say to my father to make sure the vendor leaves the house in as good a condition as possible?

In my mind, the key thing is getting a tenant who will pay the rent and not cause trouble/damage the property. Personally I would want the tenant there long term- my father is coming round to that way of thinking having talked to another local buy to let friend investor. He is worried about Labour getting in and creating new tenancy laws- another reason not to vote for them. What do you think?

Any other advice on starting with buy to let would be great. We've done quite a bit of research, just a case of doing the best thing in practice now. Thanks for your help!

Shares to Buy!

Good morning all,

I've got the money to buy some more HYP shares now. Looking around for candidates, the only one I've seen that is potentially close that I like now is BLT. I was thinking of buying that at 1416p recently but couldn't because investing money when you know VERY little about the company is not something I do! I know more about it now and would probably buy if it came down to around that level.

Anyway I'm interested in your potential candidates for buying now! The main consideration for me is... that the share price goes UP and I'm paid a nice dividend. In terms of 'diversification' people would def say that I am over exposed to financial shares... and I also have quite a lot in GSK and BP. More than HYP purists would like. But being a share investor for over 10 years now, and having written share articles for the past year... it hits home to me that all matters is how much you make (overall, taking both yield and capital rise into account.) I don't think any of the shares I currently own are at 'buy' prices now, so candidates will probably not be 'main' shares...

Another thing that's hit home to me lately is just how much better shares are than cash as long as you can keep the money in shares for at least a year! Over the past 18 months I've been putting much more of my cash into shares.

I'm still long term buy and hold and haven't sold any shares in over 8 years.

So I'm ready to hear your suggestions... details of what you think of the companies and their 'strategic plan' will be good too! Thanks!

BHP Billiton

Good morning all,

Have the cash to buy some more shares now... BLT (BHP Billiton) is on my potential buy list!

As of yesterday I knew very little about the company... did some research and it looks like quite a good HYP (High Yield Portfolio) share. Will be doing more research today. Would welcome some input on where you think the company will be going in the next five years, its strengths and weaknesses etc and any other research you think I should do- done most of the obvious things already!

Follow Warren Buffet's and Ben Graham's Advice on Shares

You’ll have noticed for the past two weeks I haven’t been writing as many share articles.
That’s because I’m now putting into practice Ben Graham’s advice on shares more.

Particularly in ‘young’ investors, people can spend too much time watching the market- or in my case writing about it! Graham states that young investors should put more time into maximizing their income, which is what I’m doing now.

In fact I’m playing poker while typing this out!

I don’t think 31 is that young, but it’s good advice from Warren Buffet’s teacher. In fact you could go as far to say as that when you’ve got a good portfolio of high yield shares you could even just ‘work’ really hard and have a quick check of your shares once a week. Personally there’s been very rarely a day in the past ten years I haven’t checked my share valuation… but unless I’m buying or selling (and I haven’t sold in over seven years)… I DON’T NEED TO.

Relates to my ‘How Much is Your Time Worth’ article. From the time you allocate to getting money you should be really aiming to MAXIMIZE that… something I need to push my comfort zone on and do more!

Anyway hope you can apply this to your life!