Investment Thread

Discussion in 'General Chat' started by huntingground, Apr 22, 2020.

  1. huntingground

    huntingground King Kenny Competitor

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    All investments can go in here.

    I have been waffling on about investments for a while. Buy FTSE tracker when it dipped below 5000 : I chickened out (it is 5770 now). Buy oil when it dropped. I have finally made the plunge today.

    Oil dropped into low price territory. I have never seen a barrel of Brent as low as $20.

    Screenshot 2020-04-22 at 19.19.53.png

    Screenshot 2020-04-22 at 19.20.06.png


    I was going to buy an ETF but plumped instead for BP and Shell at 14:57 today (I was a bit late due to a conf call).

    Running profit/loss : +£41.22.
     
    #1
  2. huntingground

    huntingground King Kenny Competitor

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    Screenshot 2020-04-22 at 19.25.21.png

    Screenshot 2020-04-22 at 19.25.38.png
     
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  3. pooley1810

    pooley1810 Moderator

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    I'd love to join in mate
    But I've no idea what your talking about
     
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  4. Afghan

    Afghan Top Contributor

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    Plz explain in terms that a child would understand
     
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  5. huntingground

    huntingground King Kenny Competitor

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    British Petroleum and Royal Dutch Shell are two of the top five major oil companies in the world. They are involved in other commodities too i.e. natural gas etc but are still heavily reliant on oil.

    The oil price historically has been $60+ per barrel and as high as $120+ per barrel in the past but a surge in oil output, less demand due to renewable energy sources and also CV19 has meant that the price of a barrel of oil has fell to $20. This is unsustainable as the OPEC countries need more than that just to extract the oil so they will restrict the supply driving the price up. Because of the glut of oil, this may take a while to trickle through and we need CV19 to fook off and the economy and business moving again.

    Anyhow, I believe that oil will go $40+ a barrel within 12-24 months and this is a long term investment in the two aforementioned equities. I will also get yearly dividends (which is a share of profits for each share I own).

    The price of a share in each of the two companies is low (see graphs above) and I am happy to take a punt on them rising substantially when the price of Brent rises.

    Anyhow, I made £41 in 2 hours today. Let's see how this does over the longer term.

    All of the above are my thoughts and are not investment advice in any way, shape or form. I am not an investment adviser at all.

    I will keep a running total.
     
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  6. Guest

    Guest Guest

    Huel
    Mountain bikes
     
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  7. milner575

    milner575 Top Contributor

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    Who do you use when buying mate? Loads of different platforms obviously and it’s actually summat I’ve been looking at recently
     
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  8. huntingground

    huntingground King Kenny Competitor

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    #8
  9. Simon

    Simon Moderator

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    Oil has been mental. The May Futures contract on the settlement date went to minus 40 or so per barrel. So if my calculations are right, in theory if you had bought 100 contracts you’d have been paid around $38,000 and got 10,000 barrels of oil. Pity you’d have to take delivery from Texas and there’s nowhere to store it!
     
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  10. huntingground

    huntingground King Kenny Competitor

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    Hargreaves Lansdown.
     
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  11. Jojo

    Jojo Full Member

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    3Z1fs9bD259q1buTR1.gif
    Edit: Oops was supposed to be a reply to @Afghan lol
     
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  12. huntingground

    huntingground King Kenny Competitor

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    That is why oil is difficult to invest in isn't it? That is why historically I have looked at ETFs but they have a percentage of futures in there and I didn't like that so I invested in the two majors above.
     
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  13. huntingground

    huntingground King Kenny Competitor

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    #13
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  14. Simon

    Simon Moderator

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    Yeah you don’t want to get caught holding the contract when there’s physical delivery. I also quite like the look of Royal Dutch Shell. To start with it was following the price of oil closely but over the past week it’s held up much better. Seems logical that longer term it will go up substantially but wouldn’t want to bet on when, might take a few years before it’s getting back to its normal trading range.
     
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  15. huntingground

    huntingground King Kenny Competitor

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    I am looking between 12-36 months for this so will see how it goes. Of course, I will be ready to sell if it hits a certain ceiling too.
     
    #15