Right amount of shares to initially purchase?

  • With only just starting out on football index a few months ago I don't have too much to invest (yet). Mainly as I want to find my feet initially - I am starting with only £350

    Therefore I am wondering is it even worth me investing in players at £2.00+ for only a handful of shares? They will most likely be in MB etc but you wont get much return so in my eyes 'whats the point' or would people suggest invest in youngsters to wait for their stock to rise, sell on, then invest more into the bigger return players I.E the Sterlings of the index?

    I dont want to waste my time nor money at the start with making only a couple of quid here & there.

  • Tricky question.

    When I started I had no appreciation whatsoever of the value of dividends. Therefore, like an absolute stereotype, I invested my money in the lower end, specializing in wonderkids like kangin and odegaard who were both 60 odd pence at the time. I made good money because evidently other people had the same approach.

    Arguably you could do the same if you choose wisely, and get really good cap app, making you better equipt to then start looking at the top end. This is more or less what I've done, although it wasnt necessarily the plan, I've stumbled around, educating myself along the way.

    The other approach would be for you to invest in divs earners who are of course more expensive, but then build a port through divs.

    My advice to you is to go for PB players for now because they are a lot cheaper than MB players, and will be flying off the shelf come payday this month. Your money will go further, and you will see cap app. You can then hold for divs, or cash in and have a bigger kitty.

    Good luck

    Edit: I've just realized I didnt actually answer your question. This is probably just me, although I've realized through reading the forum that my level of OCD is not as out there as I had thought, but for a player who I hope to win divs from, I would hope that one win would at least buy me another of that player, so I would not hold less than sufficient for that

  • I must admit when I started i invested lower end to get to grips and don't think that's a bad tactic to use... depends why you've joined and what you feel you can achieve and in what time.. and how you think you're going to reach your target?

    You can't go wrong with spreading the risk of your portfolio on footballers that you think are good players to start with... then tweaking it to fit within your strategy as you go??

    If you work on simple logistics of what you want to achieve and in what time frame you can come up with a suitable strategy that will work for you... whether it's quick capital appreciation through the transfer market? dividend wins through popular players or performance based returners on undervalued footballers? It's easy to say either chuck all your money in £10 players or £2 players but you need to have a strategy that works for you in order to make a decent return!!

  • I’d advocate having a holding of a player at the higher end of the market who produces regular MB wins. I’m a small investor myself and do hold one high end player, Neymar, who has produced dividends nearly daily this summer and while some may be 1p per share, it still keeps my pot of money ticking over and has helped me buy into the bottom end of the market (sub £1).

  • Id suggest jumping in a time machine, going back 24 hours and buying as many Mario Lemina futures as you can afford and then sell them all right about now :)

  • @janner73 said in Right amount of shares to initially purchase?:

    Id suggest jumping in a time machine, going back 24 hours and buying as many Mario Lemina futures as you can afford and then sell them all right about now :)

    going to be one hell of a drop tomorrow if United get linked with yet another midfielder.

  • @Chris-J On top of the other 300 they're already linked with lol. Gonna be a few people getting seriously burned at some point on these United links.

  • @This-is-the-one I’ve invested a little more than you at £400. I’ve got a small holding in a good chunk of the MB regulars (Neymar, Messi etc) to keep the money pot ticking over while having larger holdings in lower priced players I anticipate to rise in price. Seems to be working as I’m sat on over 40% ROI after 12 months or so.

  • I personally don't like holding small amounts of shares... Like you say the returns from divs are meaningless... And player needs to rise so much anyway to cover spread and commission when you want to capitalise on every penny over that... Not just make a few pence.

    So I hold minimum 300 but most of my holds are 800

  • @This-is-the-one I love that profile picture! Did the one with his head slumped down on the advertising hoarding at Anfield come under consideration?

  • My advice would be to target English youngsters who are below £1 and have around 50 shares in each and build on from there. A mate of mine has only recently just joined and that’s the same advice I’ve given him and he’s doing decent. The best way to start is small and build on from there as your confidence grows

Log in to reply