What to do with £100,000?

[starspacer]

Here is what I would do....

All assets, to a greater or lesser extent are currently in 'bubble mode'. The result of unprecedented injection of liquidity following 9/11 and the dot com crash (as well as countless other reasons).

Since sooner or later, bubble assets revert to the mean (and usually overshoot on the other side), keep your money in cash earning 5% until.....

Liquidity tightens, bubble assets (or at least some of them) deflate and assets become unpopular (like property in the early 90s, equities in the early 80s, bonds in the late 70s, commodities in the late 80s and gold in the late 90s).

Then, spread your 100k around these unpopular assets and wait....

In other words, invest like Warren Buffet.

 

[dave2rave]

Let us know when you have an answer to your £100k question.

I would suggest reading or subscribing to www.moneyweek.com for ideas.

Tax free ISA using Fidelity Special Situations has a 20% p.a. return for the last 20 years or using a commodoties ISA (gold, sugar, coffe, metals) - some of them have returned 34% plus p.a. in the last two years.

 

[jklondon]

Property Oversees - Slovakia or SE of Spain. (places where I am looking to invest soon)

 

[DaveT]

It is said the place to buy value properties in the Med right now is :

Northern Cyprus (turkish) - prices are HALF that of their southern (Greek) counterparts.

 

[jrisley]

bUY sOME Lloyds TSB at around £5 it has a better than 7% yield and could be hedged

 

[miniboot]

hmmm.... hedge funds... at most, you could probably invest in one hedge fund. Your typical min. investment is around 100k. Successful diversification requires an allocation to hedge funds of at least 5-10mil, and the general reccomendation of hedge funds in your overall portfolio is 20%. So unless you're a 25m+ client, I'd say forget it.

unless you want to go the fund of funds route and pay an additional layer of fees!

 

[vicktor]

I have sold me house in London to cash in my chips while the going is still relatively good. I have a lump sum after tax of about £100,000 to invest.

What shall do I with it? Bonds, Hedge funds? Specialist investment managers?

Sensible answers only please.

May I tell you of a true story about my experience when I had at the time what was considered a lot of money for a young 26 year old who worked in Alaska on a defense project. It paid a lot of money mainly because of the isolation and what was considered a hardship area, etc. It was on 1958, I saved $13,000 in one year. To give you an idea, a new home near Buffalo, NY (my home town) was only about $6000.00. I mean to give just a comparison of what money was in those days. Anyway, after a year I took a vacation to Las Vegas, the city was about 57,000 population at the time. While there I was offered 25 acres of land near the college for $10,000.00. If you know Las Vegas, that land was on what is today, way out on Flamingo road which also has the Flamingo casino. I was too stupid to understand, what would I do with useless desert land near some college. No one told this dumb kid to look 10, 20, 30 and yes even 40 years ahead. Heck, in those days wild and young, all I looked for was where was my next woman. Well, I am now 74. I have gone back to Las Vegas many times in the past 13 years, and every time I drive past that land I didn't buy, I get sick. In all the years that I played the stock market and some mutual funds, and in each of the latter two I am a failure. I don't think that there are too many people that can tell me much about the stock market or mutual funds investing. So, the bottom line is, depending on your age, take a look around, even in your own country or wherever and try to get a feel of what land prices will be in the future, the far future, like 10 and 20 years from now and then buy it and forget about it. If you try to beat the market it's a great probability you will lose, and you know that eventually, every market will crash some day, but land can decrease slightly in value, but in the log run will always be of great value. BTW, Las Vegas today is about 1.6 million population. I have many friends who have played the stock market, none have gotten rich from it.. In those day, land around other parts of Vegas was only $5.00/acre..unbelivable, to day, 10 and 20 and 30 miles away from the center, land is $100,000.00/acre. Aggrrrhhh!!

BTW, unfortunately, I live in Italy, but I warn you, don't buy land here or have anything to do with anything Italian, you will only be ripped off and cheated, they can't do anything else here except rob and cheat and pirate. It is a looting society..

 

[Gibman]

Buy land. as they say it's the only thing they ain't making any more of.

 

[chump]

The biggest problem with this investment type as with gold is it tends to offer no yield during it's active life so there is no compounding effect ..and compounding is the holy grail if there is such a thing... taken to it's nth degree buy some land today and sit on it for 30 years , factor in inflation over that same period and it is all too easy to see how your investment could fail to deliver the expected payback. The example given above re Las Vegas is an exception to the general rule and not to be confused with the general rule ..the general rule for me is buying and sitting with an investement rather than active management according to a plan will not payoff .

 

[TWI]

Slap it all Long on the Nikkei

 

[Bluebelle]

Well mccw74, it will be a year next week since you started this thread. Put us out of our suspense. What DID you do and how much is you £100k worth now?

 

[TWI]

Well due to a lack of response I suppose we must assume either he lost it and topped himself or made a shed load and hasn't got internet access yet from his Yacht in the Med.
I certainly wish I had put 100k on my last suggestion!!

 

[cat eats pigeons]

i saw him mini cabbing in peckham last ....but the reception aint good in that area ...give the guy a break !

 

[Anonymous]

I think I saw a very posh sports car zooming across town a while back. The car plate if I recall correctly, although I can't be sure, MCCW74.