I find myself a day before pay day and still have just over £50 in my account. So I’ve decided to invest it in £50 of stocks.
I already invest £300 a month on stocks, £150 through my work share scheme and £150 using Trading 212. But I would like to buy something different with my spare £50 and wondered what you fine people would suggest and why? Ideally looking for something that will either grow quick or grow slow with a decent dividend yield, but must be a safe buy.
Currently I’m investing in the following monthly stocks, which includes two pie portfolios based on dividend yield:
£150 - Mercedes-Benz shares through work
£50 - Recession Proof Dividend pie (Trading 212)
£50 - Mining for Dividend pie (Trading 212)
£50 - Vanguard S&P 500 Acc (Trading 212)
It sounds like you have already decided to save almost all your money in stocks. Have you not thought to diversify and think about an investment that is not common stock? I only say this because stock investment has been, for me, a no no since 2008. I directly invested in stock in 1979 (IBM shares) and lost 10% in 1 year (12% when you include the fees. The last time was when I gave Barclays Private Banking a six figure sum to invest on our behalf, and in 5 years it returned +1% (minus 2% after fees). During that same time if we had invested that sum in unleveraged UK property it would have doubled. Had we invested it in leveraged UK property, it would have been £1M. Lesson - never believe that a “financial consultant” is any cleverer than you. By the time you want to blame anyone for poor performance, they have either retired, or started another career. Start with the premise that you will only ever blame yourself for your actions and at least you will be able to exact revenge on yourself. I 've kicked my own b*tt many times.
Think about building a 3 month cash contingency fund (that you can use if all your primary income disappears, and you need time to recover), or start investing in small pieces of gold or silver. They are quite easy to convert back to cash if you have a life disaster.
Sorry to not answer your question but now I have given you a bigger problem to contemplate
Thank you for your insight and sharing your experience.
My stock portfolio is well diversified at the moment and I’ve personally selected the stocks using my own analysis and have only invested in stock that has a history of growth over many years. I wouldn’t ever give a company or bank my money and ask them to invest it for me, as they will always go down the super safe route which will indeed have very small returns. Only stock I haven’t selected myself is my Mercedes-Benz stock as this is done through a company scheme so is a huge tax saving etc. The S&P 500 stock has a average year on year growth of around 10% so I’m happy with that.
My investment pies are more diverse and I’ve selected the stock based on past performance and future forecasted performance. My ‘Recession Proof Dividend’ pie is exactly that, it’s 25 different stocks that have consistently paid dividends every single year for 25 or more years. They have slow growth but good dividend returns. My ‘Mining for Dividend’ pie consists of 10 mining companies that consistently pay out dividends and with this I’m also hoping to tap into the lithium market that’s about to explode.
You can see which stocks are in each of the pies by following these links:
Hi,
thanks for sharing the links with me. I think I will take a look at this. Just because I have not invested in common stock for ages, doesn’t mean I should not take another look. As we slowly plan to offload our leveraged BTL portfolio, I guess I need to find another destination for any residual funds.
I’m only limited to Nigerian stocks and havent bought intentional stocks, don’t know if i will like to buy any.
But daytrading the US stockṣ, i think $GM (General Motors) is a good buy for the evolution of EVs, Tesla to me already an overbought stock and i won’t consider putting a bucks there.
With $50, consider fractional shares of stable companies like Coca-Cola, Procter & Gamble, or Johnson & Johnson for stability and dividends. Alternatively, explore growth stocks like Square, PayPal, or ETFs like ARK Innovation for innovation exposure. Fractional investing allows diversification even with a small budget, spreading risk across assets. Research and align investments with goals for better outcomes.
