Investment for January 2020

Discussion of the proposed Cashback Investment Club

Moderator: CIC officers

I would like to invest in

Poll ended at Mon Jan 20 2020 12:01am

Codemasters
9
75%
Barratt Developments
3
25%
Renew Holdings
0
No votes
Brewin Dolphin Holdings
0
No votes
None of the above
0
No votes
 
Total votes: 12

Boro Boy
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Re: Investment for January 2020

Post by Boro Boy » Sat Jan 18 2020 2:42pm

Just an idea for the club: why doesn't the club examine a regular monthly drip feed into two or three different shares? Timing is always important and the club doesn't seem to have the best of luck with that issue. So, an option may be to establish a regular monthly purchase?

Share Centre offer a very cost efficient monthly investment scheme and this suggestion dispatches the timing issue and you could benefit from pound cost averaging...?

This is just a suggestion for the club and I wouldn't be upset if it was rejected but I thought you should at least debate it...?
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BeautifulSunshine
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Re: Investment for January 2020

Post by BeautifulSunshine » Sat Jan 18 2020 5:18pm

Boro Boy wrote:
Sat Jan 18 2020 2:42pm
Just an idea for the club: why doesn't the club examine a regular monthly drip feed into two or three different shares? Timing is always important and the club doesn't seem to have the best of luck with that issue. So, an option may be to establish a regular monthly purchase?

Share Centre offer a very cost efficient monthly investment scheme and this suggestion dispatches the timing issue and you could benefit from pound cost averaging...?

This is just a suggestion for the club and I wouldn't be upset if it was rejected but I thought you should at least debate it...?
Thank you for the idea and I, personally, think it has merit. I would envisage in the future a separate fund for such a technique. At present, I think we have got the right technique in place.
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garindan
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Re: Investment for January 2020

Post by garindan » Sat Jan 18 2020 10:23pm

Boro Boy wrote:
Sat Jan 18 2020 2:42pm
Just an idea for the club: why doesn't the club examine a regular monthly drip feed into two or three different shares? Timing is always important and the club doesn't seem to have the best of luck with that issue. So, an option may be to establish a regular monthly purchase?

Share Centre offer a very cost efficient monthly investment scheme and this suggestion dispatches the timing issue and you could benefit from pound cost averaging...?

This is just a suggestion for the club and I wouldn't be upset if it was rejected but I thought you should at least debate it...?
To be honest - having looked at the frequent dealing tariff in the past it was going to cost about the same per deal but more overall as there was an additional quarterly fee, so we chose the cheaper more cost effective option. However, as we grow this tariff might become more worthwhile if we have at least one investment/sale a month and it is for a bit more per investment than we are currently putting in.

I can't find a drip feed option on either tariff. Do you have a link?
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Boro Boy
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Re: Investment for January 2020

Post by Boro Boy » Sat Jan 18 2020 11:55pm

garindan wrote:
Sat Jan 18 2020 10:23pm
Boro Boy wrote:
Sat Jan 18 2020 2:42pm
Just an idea for the club: why doesn't the club examine a regular monthly drip feed into two or three different shares? Timing is always important and the club doesn't seem to have the best of luck with that issue. So, an option may be to establish a regular monthly purchase?

Share Centre offer a very cost efficient monthly investment scheme and this suggestion dispatches the timing issue and you could benefit from pound cost averaging...?

This is just a suggestion for the club and I wouldn't be upset if it was rejected but I thought you should at least debate it...?
To be honest - having looked at the frequent dealing tariff in the past it was going to cost about the same per deal but more overall as there was an additional quarterly fee, so we chose the cheaper more cost effective option. However, as we grow this tariff might become more worthwhile if we have at least one investment/sale a month and it is for a bit more per investment than we are currently putting in.

I can't find a drip feed option on either tariff. Do you have a link?
I think you are missing my point about investment timings - pound cost averaging - investing in the same investment over a period time through-out the ups and downs, averaging out the overall price rather than timing it wrong and investing a lump sum at a high.

This "feeder account" is accessible on the Share Centre website: My Account-Regular Investing/Direct Debit-Account Choice
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Beachboy
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Re: Investment for January 2020

Post by Beachboy » Sun Jan 19 2020 8:21am

Boro Boy wrote:
Sat Jan 18 2020 11:55pm
garindan wrote:
Sat Jan 18 2020 10:23pm
Boro Boy wrote:
Sat Jan 18 2020 2:42pm
Just an idea for the club: why doesn't the club examine a regular monthly drip feed into two or three different shares? Timing is always important and the club doesn't seem to have the best of luck with that issue. So, an option may be to establish a regular monthly purchase?

Share Centre offer a very cost efficient monthly investment scheme and this suggestion dispatches the timing issue and you could benefit from pound cost averaging...?

This is just a suggestion for the club and I wouldn't be upset if it was rejected but I thought you should at least debate it...?
To be honest - having looked at the frequent dealing tariff in the past it was going to cost about the same per deal but more overall as there was an additional quarterly fee, so we chose the cheaper more cost effective option. However, as we grow this tariff might become more worthwhile if we have at least one investment/sale a month and it is for a bit more per investment than we are currently putting in.

I can't find a drip feed option on either tariff. Do you have a link?
I think you are missing my point about investment timings - pound cost averaging - investing in the same investment over a period time through-out the ups and downs, averaging out the overall price rather than timing it wrong and investing a lump sum at a high.

This "feeder account" is accessible on the Share Centre website: My Account-Regular Investing/Direct Debit-Account Choice
I would definitely be keen to find out more about this and understand how it works, what are the costs, pros/cons etc. because I have no indepth knowledge of this system at present so difficult to comment. However seems an idea at least worthy of exploring and discussion. :thumbup:
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Boro Boy
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Re: Investment for January 2020

Post by Boro Boy » Sun Jan 19 2020 10:36am

Beachboy wrote:
Sun Jan 19 2020 8:21am
Boro Boy wrote:
Sat Jan 18 2020 11:55pm
garindan wrote:
Sat Jan 18 2020 10:23pm


To be honest - having looked at the frequent dealing tariff in the past it was going to cost about the same per deal but more overall as there was an additional quarterly fee, so we chose the cheaper more cost effective option. However, as we grow this tariff might become more worthwhile if we have at least one investment/sale a month and it is for a bit more per investment than we are currently putting in.

I can't find a drip feed option on either tariff. Do you have a link?
I think you are missing my point about investment timings - pound cost averaging - investing in the same investment over a period time through-out the ups and downs, averaging out the overall price rather than timing it wrong and investing a lump sum at a high.

This "feeder account" is accessible on the Share Centre website: My Account-Regular Investing/Direct Debit-Account Choice
I would definitely be keen to find out more about this and understand how it works, what are the costs, pros/cons etc. because I have no indepth knowledge of this system at present so difficult to comment. However seems an idea at least worthy of exploring and discussion. :thumbup:
I'm pleased to have been a catalyst for discussion but as I am not a member of the club I feel I should back off now and allow you to start your own debate...

garindan
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Re: Investment for January 2020

Post by garindan » Sun Jan 19 2020 2:15pm

Boro Boy wrote:
Sat Jan 18 2020 11:55pm
I think you are missing my point about investment timings - pound cost averaging - investing in the same investment over a period time through-out the ups and downs, averaging out the overall price rather than timing it wrong and investing a lump sum at a high.

This "feeder account" is accessible on the Share Centre website: My Account-Regular Investing/Direct Debit-Account Choice
I appreciate you might think that but you are probably not aware we are tied to an Investment Club account, which is compulsory for investment clubs, and having checked again there are only two dealing options for how to invest - the plan we currently have or the frequent dealing option, which has a £24 quarterly charge in addition to what we currently pay, but only £7.50 per deal (minus Share center perk discount). We'd have to be doing around twice to three times the investments we currently do or much bigger monetary investment to make that kind of account worthwhile.

I'm not trying to shut down your suggestion - if you are aware of something we are missing out on then I'm all ears!
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Boro Boy
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Re: Investment for January 2020

Post by Boro Boy » Sun Jan 19 2020 6:08pm

garindan wrote:
Sun Jan 19 2020 2:15pm
Boro Boy wrote:
Sat Jan 18 2020 11:55pm
I think you are missing my point about investment timings - pound cost averaging - investing in the same investment over a period time through-out the ups and downs, averaging out the overall price rather than timing it wrong and investing a lump sum at a high.

This "feeder account" is accessible on the Share Centre website: My Account-Regular Investing/Direct Debit-Account Choice
I appreciate you might think that but you are probably not aware we are tied to an Investment Club account, which is compulsory for investment clubs, and having checked again there are only two dealing options for how to invest - the plan we currently have or the frequent dealing option, which has a £24 quarterly charge in addition to what we currently pay, but only £7.50 per deal (minus Share center perk discount). We'd have to be doing around twice to three times the investments we currently do or much bigger monetary investment to make that kind of account worthwhile.

I'm not trying to shut down your suggestion - if you are aware of something we are missing out on then I'm all ears!
Noted, I was unaware nor did I examine the difference in charging structure between the individual investor and an investment club. It may be worthwhile confirming your understanding with Share Centre directly...?
Thanked by: garindan

garindan
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Re: Investment for January 2020

Post by garindan » Sun Jan 19 2020 6:23pm

Boro Boy wrote:
Sun Jan 19 2020 6:08pm
Noted, I was unaware nor did I examine the difference in charging structure between the individual investor and an investment club. It may be worthwhile confirming your understanding with Share Centre directly...?
Unfortunately I think it is a dead end. I don't have a personal share account, so when I log on to the system and try to apply to the regular investment direct debit it says I have no accounts to apply it to. It classes the Investment Account as an "other" type of account, which is not a personal one to me - as it is of course shared amount all the members of the club, with me just a nominated officer. The law around forming Investment Clubs is much tighter than if you are an individual, which is perhaps why this is not offered in conjunction with them. :thumbdown:
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Re: Investment for January 2020

Post by garindan » Mon Jan 20 2020 9:10am

Thanks to everyone who voted - this purchase has now been made, as follows:

Codemasters

Quantity 337
Buy price 294.00p
Commission £6.94
Total £997.72

Actual cost per share including charges = 296.06p
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