When buying shares ???



  • I try to have an equal amount of shares in each player I own without really thinking about it it’s just what I’ve done since I started but heard on a few podcasts and read a couple of times folk do it with a set amount on each player so the cheaper the player the more shares etc

    Are there benefits to doing one strategy than the other ??



  • Just depends what way you're wired.



  • @weerab we have had this topic a couple of times.. I find it fascinating cos I always do it by shares not cost... And I can't ever imagine changing... But it usually comes down 50/50 with many on the other side as vehement that they couldn't conceive doing it my way.



  • @weerab the problem when going by cost instead of shares is that a large hold i a low cost player dropping in value could easily wipe out profits in many small holds in expensive players. In my opinion it can cancel out the reason for being diverse in your player selection.

    A hold of 500 in a 60p player dropping 10p would wipe out a £1 in value of a hold of 50 in a £6 player. I know it works both ways but i prefer to weigh up the risk before the reward



  • Thanks for the reply’s the thinking seems similar to mine about a large holding of shares potentially wiping out a smaller holding of shares profit I have almost every player in my port around the same apart from two who I have went far higher in as both short term transfer gambles



  • I think he if you want to spread risk do it by cost.

    Buying big players is risky and you could have 20-30% of your port tied up in one player without realising.



  • @Tom77 said in When buying shares ???:

    I think he if you want to spread risk do it by cost.

    Buying big players is risky and you could have 20-30% of your port tied up in one player without realising.

    ^^
    This....

    When I first started I divided my pot over a handful of players. Never going over 15% in any one player.

    My typical hold was 5% of my portfolio value in most.



  • @Ericali said in When buying shares ???:

    @Tom77 said in When buying shares ???:

    I think he if you want to spread risk do it by cost.

    Buying big players is risky and you could have 20-30% of your port tied up in one player without realising.

    ^^
    This....

    When I first started I divided my pot over a handful of players. Never going over 15% in any one player.

    My typical hold was 5% of my portfolio value in most.

    Yep and when you get a coman type drop you can suck it up and not panic.


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