Number of shares strategy

  • To take my mind off the dividends from last night still haven't been paid I was wondering what everyone's strategy was when buying shares in players. Do you buy an equal amount? Do you buy a total cash amount?

    I have a lot of more shares in certain players as I'm more confident in them than others I hold. However I'm starting to wonder whether this is the best way to go as if one of my biggest holders gets a long term injury then a lot more money is going to be tied up in comparison to the smaller holders.

    What do you do?

  • I buy dips which means my worst performing holds are my biggest ones 🤦‍♂️

  • @MickTurbo Interesting pal. I've just used the deposit bonus to that on some of my players especially Mancini, however I'm concerned should he sustain a long term injury a lot more money is tied up in him than someone else I own. I guess that's the risk you or I take when doing this.

  • feel like we have had this topic a fair few times recently but a chance for me to harp on again about risk management.

    I buy in number of shares, and whilst I do have a range (highest hold is 3000, lowest is 900) I tend to keep them as similar as possible. Most of my holds are 1000 shares.

    I understand everyone likes to deal in ROI percentages and % risk... but dividends aren't paid in %, and the price movements aren't in %.. they are in pence.

    So if you hold 10 Pogba and 100 murgia … your risk is all in murgia as each penny change is £1 whereas Pogba movements are just 10p... And div winners tend to be more expensive so you'd always be making less dividends buying your port by amount instead of shares.

    If dividends were 1%, 2%, 3% etc then id absolutely manage my portfolio by amounts and % instead of number of shares. But as it is I don't want Pogba to have to rise £1 to make the same money as say my ibrahimovic moving 3p …

    My range comes from a few factors. My biggest hold is Rashica … its based on lack of volatility (I bought when he was injured) but also his ceiling … I bought 3000 during his dip knowing in all likelihood the only way was up … but I also think he has a £2 max unless he turns into a PB beast, so I want to make as much as possible in that time. With my dividend holds like Neymar and Pogba I have 1500 and can just sit on them... makes a lovely dividend return, and their volatility doesn't have the biggest impact on my port as it's offset by my 3000, 2500, 2000 share holds who ive picked for steady consistent growth.

  • I just buy in cash amounts rather than shares - depending on the risk, I have £25, £50, £100 or £200 in any one player.

  • I buy £200 worth of every player I hold, if/when they reach £300 in value I list the excess over £300 to cycle that money into the next big prospects.
    It means you've a constant money stream to fund new purchases preventing me from selling existing holds through impatience.
    By limiting my holds at £200 it naturally focuses my investment on the lower priced players... There's not much point in holding £200 worth of an example.
    Works well for me 👍

  • @Vespasian32 you're right we've had this conversation before and as before I'm not in agreement with your approach. To me it doesnt make sense. Surely you have to look at the exposure you have to a player, i.e. the total value (in £) of your holding in the player, and if you're happy to accept that risk. It seems a lot of people have portfolios that are heavily biased towards the high end players, Pogma, Neymar, Sancho etc., because they want to hold a similar number of shares across expensive and cheap players. This means they have far more money tied up in those expensive players and consequently are highly exposed to fluctuations in their price. If you're happy with this, fine, but personally I'm not. I look at the current value of my holding in each player and consider if I'm happy with that compared to others in my portfolio and amend it if necessary. Returns on investments are always measured in % and FI is no different.

  • @Old-Man when it comes to ROI its a croc of shit tho… id rather earn 1% of a million that 200% of a 5'er

    You are top loading your port to less valuable assets. Once you've put your money in … lets say £100 in Kane so you have 20 shares-ish and your £100 in Henderson and you have 200 … you are from that point on hoping Henderson wins more divs and rises in more price than kane … cos its £2 per penny instead of 20p. To the point where you may as well not have Kane.. cos his price movements will barely make an impact on your portfolio.

    Whether i put 10k or £500 into a player i never consider that my risk … other than death or retirement .. there is no chance of losing your total stake. you manage how much you are willing to lose on a player. Im happy to disregard death … it happens once in a blue moon and youd be so unlucky for it to happen to a player.. if it did so be it.

    hard cash, not % is what matters... you don't go to waitrose and spend work out % of your salary a bottle of wine is costing. So i look at a potential buy … i.e. Ibra. He was 30p and i was like... he can easily be 55-60p i want to make £500 there... how many shares to i need... 2500. So i bought 2500, didn't care how much they cost... ive seen an opportunity to make £500 and that has a tangible meaning cos i know what i can buy with it.

  • Totally with @Vespasian32 on this one. In my early days on here I bought monetary value and ended up with a 50p player moving my port significantly and a more expensive one just seemed like walking through treacle in comparison.

  • I agree I’m still in the early days of my port but I aim to have 100 shares in each player top end Pogba (100@6.28) bottom end some french guy who’s name escapes me (100@0.37) all in PB leagues.

    I buy multiples of 10 for my players if I see an IPD opportunity, dip in price on a Monday or injury when I have divs or deposits to bring all 40 players up to 100.

  • @Vespasian32 I know you dont agree with me, and that bothers me not a jot, but I'd be curious if you'd use your approach in other assets, e.g. unit trusts, pension funds, equities, investment trusts, etc.? Again, if you dont, or wouldn't, then fine, but I think your approach goes against the accepted practice on how to manage risk in an investment portfolio. As my name suggests, I'm old, and have been investing in equity markets for 35+ years. It is about %'s. % or your portfolio exposed to a single product. % returns from your portfolio as a whole. % returns from each part of the portfolio. Unless you use % your not comparing like with like. Sorry to disagree with you, but I dont understand your approach.

  • @Old-Man different mechanics apply to different markets. each to their own - not trying to change your view. i suspect you cant fathom my approach as much as i cant fathom yours.. always interests me when people can have such different views over something so uncontentious

  • @Vespasian32 fair enough, let's agree to disagree 👍

  • @Old-Man if your both happy to make money that way your both right ., good luck to you both

  • Very true @NewUser309532. As long as everyone's happy doing what they're doing, and making money, I guess it doesnt matter what approach you use!! 😁

  • @Old-Man 👍👍

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