Doffing cap to Forum from a perpetual lurker Â– respect! I have an execution only mandated account with a London stockbroker. So deal costs are high and no advice but plus is no holding / admin charges. I have GBP7k which I want to invest in a single counter over the long term in a quality company /etf tracker. Have considered Google, GE, Nestle and tracker funds. Know IÂ’m asking the impossible, but any ideas? Comfortably early retired with LA, local & intl portfolios and property.
Thanks for your caution as to risk of concentration and backing the wrong nag. There will also be Volkswagens out there. However I would not consider buying diversifieds like say Billiton or the intl versions of Remgro at current prices with hard currency returns excessively risky. There are countless global tracker funds with low cost & buyable in ETF format , eg Russell 500 or HSBC Global with less risk than buying Allan Gray Value Fund UT & returns in hard currency.
I think you have answered your own question - diversification is the only free investment lunch you and everyone else will ever have. One share is not diversification. Based on your time horizon, pick a tracker.
I see you mentioned AG 's fund. Hmmm..Have you ever looked at funds that correlate with nothing on the planet?? - there are many - not hedge funds which seem to correlate mostly with low returns- for example one I admire is M&G recovery fund - 40 plus years of being different... of course I am not recommending it - I just like it because its a one off(?)... Off to get my wine for the Carbonara tonite - Marcella Hassan's recipe - the woman's a genius