Notafettler
Guest
Hi a share that cost £1 can be 10 times more expensive than one that cost a £100. You do understand that?
Buying Shares
- Thread starter Spiderweb
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Notafettler
Guest
The price of the share divided by its earnings (profits) per share is the definition of price
Company A shares are trading at £100 and the profits per share are £10. You are buying on a multiple of 10. You are paying 10 times the profits.
Company B are trading at £1 per share and makes 1p per share in profits therefore its trading on a multiple of 100. You are paying 100 times the profits.
Therefore company B is 10 times more expensive than company A.
The latter could also be reflected in the dividends ie if both gave out half there profits in dividends then a investment of £1000 in company A gets you £50 in dividends while a £1000 investment in company B gets you £5 in dividends.
Just examples
Company A shares are trading at £100 and the profits per share are £10. You are buying on a multiple of 10. You are paying 10 times the profits.
Company B are trading at £1 per share and makes 1p per share in profits therefore its trading on a multiple of 100. You are paying 100 times the profits.
Therefore company B is 10 times more expensive than company A.
The latter could also be reflected in the dividends ie if both gave out half there profits in dividends then a investment of £1000 in company A gets you £50 in dividends while a £1000 investment in company B gets you £5 in dividends.
Just examples
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If you have Bank shares, they are not paying Dividends for, possibly, the next 9 months.
Sky News linkie
Sky News linkie
Notafettler
Guest
That's completely out of order. That's not suggestion its guarantee. Are you prepared to pay for any losses? If not do not guarantee a share price will go up.
Notafettler
Guest
I forgot to say he generally buys US shares. Not sure if the turn around will be synchronized. Also he is quite secretive about when he starts to buy. He only let's the market know he bought shares in particular companies when he has to ie when his shares are above certain percentage. He doesn't claim his timing is perfect.
Why it is time to short oil...
View: https://twitter.com/SebCochard_11/status/1245598977589776384?s=20
View: https://twitter.com/SebCochard_11/status/1245598977589776384?s=20
Notafettler
Guest
Yep as I said. US oil simply can't compete in a low oil price environment. Shorting oil
Is Either borrowing shares of institutes who hold oil companies shares and selling on the market and buying back when the shares fall. The institute's get fees based on the time there borrowed. Obviously not available to the peasants.
I assume the other options are contracts for a difference? No interest not prepared to take the risk. Not competent enough might be a better way of putting it!
Notafettler
Guest
Note US shale oil maybe competitive within the US and if the US have any common sense they will help out the shale oil companies. There is nothing wrong with being self sufficient.
- Location
- Somewhere wet & hilly in NW England.
- Location
- Somewhere wet & hilly in NW England.
Thanks to whoever pointed in the direction of Vanguard.
Just trying to get my head around all the different funds prior to dabbling.
Just trying to get my head around all the different funds prior to dabbling.
Read some advice firstThanks to whoever pointed in the direction of Vanguard.
Just trying to get my head around all the different funds prior to dabbling.
Rule of a thumb is closer you are to retirement less shares more bonds etc
So instead of index tracker you would be better off with maybe LifeStrategy 40/60 or 60/40
Keep in mind we are finally in the bear market so might be wise to locate money in safer options for the time being
- Location
- Somewhere wet & hilly in NW England.
Without meaning to sound crass we are pretty well off tbh and all but 8% of our reserves are locked up quite safely in ISA's, Fixed Rate Bonds and some NS&I Bonds so we are not massively driven by short-term safety as things stand.
We have some more-liquid savings that have accumulated in a Santander 123 account that we were going to put into another Cash ISA or FRB but really want to have a further punt with a Stocks and Shares ISA at the start of the new tax year and whilst markets are low. We will be happy with an overall 10% of our total reserves exposed to stock market variations.
I'm just trying to get my head around what the different funds do and there is a fair bit of reading up as you say.
Thanks for your reply.
