11 ms·

Ask HN: Which 5 investments of £1k each should I make?

57 points by ratsimihah 8y ago

I have £5k to spare and want to make 5 separate investments, VC-like, such that even if 4 fail, one grows 10x over 5 years. What should those investments be?

auslegung 8y ago
If it were me I would take that money and invest in myself. 5k can go a long way in self improvement and growth. If that’s not necessary or appealing, idk, I dont have any experience or knowledge of investing other than the stock market. Another thought is to give it to a friend or acquaintance who would benefit enormously from it, such as someone who’s not making much money but could use a few thousand for self improvement that would double their income soon.
- ratsimihah 8y ago
  That's a great advice! I just put £3500 into my yoga teacher training and started teaching. That should be paid back fairly quickly :)
bitxbitxbitcoin 8y ago
With your risk tolerance as described I feel like I need to be the (ir)responsible one and suggest at least 1k into Bitcoin.
- Lizzo 8y ago
  Username checks out. Personally I think Bitcoin is going to go huge soon, perhaps not as big as it originally was, but it's definitely going to go up a bit - bear in mind I'm no crypto expert, merely a CS student.
  - djaychela 8y ago
    Any more info on your thinking? Not looking for a fight, just wondering what makes you say this against a backdrop of near universal negativity. (I say this as someone who has 10 BTC and has pretty much give up on it (I bought it in 2013, IIRC, so I'm still up)).
    - bitxbitxbitcoin 8y ago
      Near universal negativity is a good way to describe the current backdrop. The OP mentioned 5 years, which is the far short end of the timeframe that someone needs to be comfortable to hold before I suggest cryptocurrency as an "investment" to them.
    - Lizzo 8y ago
      Nope, no info! Just a total guess... Feel free to downvote me, I just have a feeling it's gonna surge, but who knows?
pliny 8y ago
Whatever answer you get, make sure you can use your losses to cover some of your tax burden from your wins, otherwise even in the scenario you describe you lose a third or half to the government (depending on how the income is declared and what else you did in those 5 years) and barely come out ahead.
- pjc50 8y ago
  Plenty of countries have tax-shielded vehicles for small investments like this, which it would be handy to find out about. The UK "ISA", for example.
  - ratsimihah 8y ago
    Good points! I do have an ISA, maybe I should limit my investments inside it. It doesn't support US shares though.
    - pjc50 8y ago
      My Halifax one lets me invest in US Vanguard funds, haven't checked whether it supports individual shares.
    - scriptstar 8y ago
      Hi check https://freetrade.io/ https://freetrade.io/ and is available in U.K and can invest in U.S stocks. Have a look. Cheers
marcrosoft 8y ago
Invest in 500 things by purchasing a low cost S&P 500 index like the ETF VTI and call it a day. 5k is too low of an amount to purchase 5 separate investments after you consider fees.
Scotrix 8y ago
Spend it for something nice which makes you happy and you’ll remember forever.
- ratsimihah 8y ago
  I have all the material things I need, which is why I am looking into building longer-term wealth.
e1g 8y ago
VCs with infinite capital, networks, business knowledge, and 100% focus are shooting for 1-in-10 investments to get a 10x return. It's rather optimistic to expect a success rate twice as good as their teams get. You're trying to get an annual return of 15%. Investments into US index funds over the last 5 years returned ~10% p.a. with minimal risk of a major loss.
- ratsimihah 8y ago
  Fair enough!
pg_bot 8y ago
If 4 fail and one grows by 10X you will have 10K. It seems that your goal should be turning 5K into 10K over 5 years which seems doable. Since the amount of money you're dealing with is fairly small, I would suggest putting your energy into a single project instead of multiple ideas. Splitting your focus seems like a mistake when dealing with so little capital. Start a side hustle if you want or spend it on teaching yourself a skill that will translate into a higher income. Investing in yourself is generally the best thing you can do with that kind of money. If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal. If you are looking to begin saving for retirement, put it in a Vanguard total stock market etf and let it sit for 50 years.
- ratsimihah 8y ago
  Hello! Thanks for the answer, I liked how you approached the problem. The issue is that I cannot focus on a single project. > If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal. I have a steady 9-6 job as a React Native developer, where I keep learning and growing and can apply my knowledge to front-end React as well > or spend it on teaching yourself a skill that will translate into a higher income. I've just invested in a yoga teacher training and started teaching yoga classes, so some of my time goes there > Start a side hustle if you want I'm building http://music.hatharaja.com http://music.hatharaja.com and http://spotifyxgenius.now.sh http://spotifyxgenius.now.sh in my spare time, making yoga websites for my friends (for free), and building a model to recognize yoga poses. > Since the amount of money you're dealing with is fairly small, I would suggest putting your energy into a single project instead of multiple ideas. I really want to start learning about 3d modelling and product design (inspired by https://www.instagram.com/dobu.haishen/ https://www.instagram.com/dobu.haishen/ https://www.instagram.com/blankwilliamnyc/ https://www.instagram.com/blankwilliamnyc/) I'm also learning machine learning. The Snowball book about Warren Buffet also advises focussing on one thing, which I wish I could do. Anyway, my point is that my time is already diversely invested, which is why I am also looking at some more passive forms of investment. People have been suggesting ETFs as "safe" long-term investments, which I'm looking into. Maybe I can use 50% of my investment capital to build some products after I've learnt 3d modelling and then invest the rest in ETFs.
cabraca 8y ago
Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.
- giancarlostoro 8y ago
  Care to elaborate on MSCI? I've looked at some of the returns for at least one of their ETF's and I'm not seeing 10x growth even with them paying dividends at a reasonable sum, am I just not savvy enough with investing or something? I must be missing something. Edit: I didn't account the increase of the value in the stock, saw one that doubled in value, so if someone had invested in it when it opened they would of gotten back twice what they invested, still not necessarily 10x but it's not bad for a safe low risk investment.
- deleted 8y ago
  [deleted]
- randomacct3847 8y ago
  Emerging markets have substantially underperformed US stock market for last few years...in a global recession those markets would be the first to go.
  - cabraca 8y ago
    well you're right. fixed that in my post.
- mooreds 8y ago
  Great financial advice. I might quibble with the last bit, because we don't know what country the poster is in nor the time horizon for using the money. That will affect the investment possibilities. But the rest is spot on.
  - 8y ago
zMiller 8y ago
Considering the current political and economic climate : 1- Pay back as much debt as you can: Signs point to the 'cheap money' party ending relatively soon and debt will start becoming considerably more expensive to carry. 2- Bitcoin. Yes, I said it. My 2 cents: Forgetting the debate on the currency aspect and its usability as such . A politically neutral store of value has a use case and there is a tremendous need for it going forward in this world. Bitcoin checks all the marks needed and has been around for more than 10 years now proving its use case. What you have to ask your self at this point is the following : What happens if it all goes down the gutter? Well you loose 1k. What happens if it actually works out? 10-100x? Who knows, but such asymmetric value propositions present themselfs once or twice in a lifetime. Educate your self and take action with the intention of being able to justify it to your future self in 10 years. Ultimatey that is whom you will have to answer to :)
- ovi256 8y ago
  >debt will start becoming considerably more expensive to carry Only if it's not fixed interest. If you have low fixed interest debt, is there any reason not to keep it ?
  - zMiller 8y ago
    If you manage to secure it for a sufficiently long term where you feel comfortable you can meet it's obligations before the terms expire, then go for it !
- cycrutchfield 8y ago
  Oh great, another crypto shill looking to recruit new bagholders.
  - zMiller 8y ago
    Go read bud.
- ratsimihah 8y ago
  I don't have debts and the 4k worth of btc I had when its value reached its maximum are now worth less than 1k. BTC is too volatile and not something I would consider an investment.
randomacct3847 8y ago
I’m not going to give you financial advisor like advice, so be warned. 1k each in: 1. Teladoc $TDOC (telemedicine) 2. Canopy Growth $CGC (weed) 3. Nvidia $NVDA (gaming, crypto) 4. Bitcoin $BTC 5. Adyen (payments) Macrodrivers: growth in telemedicine/direct to consumer healthcare, eventual worldwide legalization of weed, gaming, mainstream crypto use, ecommerce payments....
- fucking_tragedy 8y ago
  Buying Bitcoin as an "investment" is like buying baseball cards or Beanie Babies as an "investment".
  - 21 8y ago
    10 years later, millions of percents higher, still waiting for the final collapse to zero.
    - fucking_tragedy 8y ago
      The utility of a Bitcoin approaches zero for nearly all of its purported uses. Unlike financial instruments, the underlying asset represented by Bitcoin has no intrinsic value. Bitcoins are more like tulips, baseball cards or Beanie Babies than actual vehicles for investment.
  - garmaine 8y ago
    I disagree on the nature of bitcoin, but FYI buying collectables can be a good investment strategy: http://money.com/money/4162059/lego-investment-compare-gold-return/ http://money.com/money/4162059/lego-investment-compare-gold-...
- marketgod 8y ago
  AMD is trending better than NVDA currently.
  - randomacct3847 8y ago
lesss365 8y ago
If you're considering following the suggestions of investing in the stock market, hold off until a possible Brexit market reaction passes in March. Also, wait to see if the S&P can get up and hold steady above $2750. If it can't hold above that mark for a month or so, expect significant drop. Read up on simple moving averages (sma), relative strength index (rsi), and stochastic rsi indicators. Then read up on golden and death crosses. Follow the readings up with monitoring daily, weekly, and monthly charts. https://www.investopedia.com/terms/s/sma.asp https://www.investopedia.com/terms/s/sma.asp https://www.investopedia.com/terms/r/rsi.asp https://www.investopedia.com/terms/r/rsi.asp https://www.investopedia.com/terms/s/stochrsi.asp https://www.investopedia.com/terms/s/stochrsi.asp https://www.investopedia.com/terms/g/goldencross.asp https://www.investopedia.com/terms/g/goldencross.asp https://www.investopedia.com/terms/d/deathcross.asp https://www.investopedia.com/terms/d/deathcross.asp Nadaq's site offers a solid chart and indicators at no cost, as does Yahoo and Stock Charts. https://www.nasdaq.com/symbol/spx/interactive-chart https://www.nasdaq.com/symbol/spx/interactive-chart https://stockcharts.com/h-sc/ui?s=$SPX https://stockcharts.com/h-sc/ui?s=$SPX https://finance.yahoo.com/quote/%5ESPX/chart?p=%5ESPX#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 https://finance.yahoo.com/quote/%5ESPX/chart?p=%5ESPX#eyJpbn...
- cimmanom 8y ago
  Thank you for this, especially the Golden Cross / Death Cross links. I learned something today.
ctwilkie 8y ago
Invest in yourself for a higher income (books, classes, laptop, etc)
- ratsimihah 8y ago
  I've already invested in all of those. £3500 in yoga teacher training, and I continuously learn and expand my knowledge. I do feel like I'm in a good place to explore more diverse investment opportunities. Thank you!
mooreds 8y ago
If you really want to spread your risk, choose 5 different ETFs that are not correlated. But I don't think any investment available at the 1k level will net 10x.
- ratsimihah 8y ago
  I'm not particularly expecting 10x. I'll look into those, thanks!
  - mooreds 8y ago
    This might help: https://www.portfoliovisualizer.com/asset-class-correlations https://www.portfoliovisualizer.com/asset-class-correlations I honestly don't know enough about finance to go from correlations between two asset classes to the correct correlation between five, but maybe google will help.
EliRivers 8y ago
such that even if 4 fail, one grows 10x over 5 years This seems really hard. Sounds like you're asking for some kind of coupling; a set of five stocks such that if any four of them go to zero, one of them will definitely multiply by ten. If anyone here could do that reliably, they wouldn't be here. Whatever you end up investing in, don't forget to do it inside a taxfree ISA.
nyrulez 8y ago
Most answers you're getting here are on the responsible side i.e. Bogleheads-like. Your question makes it feel like you're ready for some extra risk and I am assuming these 5k aren't your entire savings. - Wefunder allows you to invest in companies with small amount. Find something really promising there. - Spend time researching small-cap companies in the $1-$5 range and invest 1K where metrics and fundamentals seem to line up for you. It can be almost like angel-funding but a bit more proven. - Learn about derivatives and buy Options calls above the current stock price for something you feel will go up significantly in the public markets. This allows you to leverage huge gains from a small amount of capital. In the worst case you end up with nothing. This is an interesting time due to the recent bear market and there are many many stocks ready to go up given the right macro triggers. Note that selling Options is dangerous and don't do that unless you're an expert - that can land you in big trouble. Leave that for https://www.reddit.com/r/wallstreetbets https://www.reddit.com/r/wallstreetbets :) - Ride strong momentum and trends for smaller companies that have good fundamentals - momentum can be a strong and proven factor for many investments in the public market. I'd plug my own project [0] that's designed to detect low-volatility trends and momentum across the entire market. It's soon going to be in Alpha. - There are many leveraged ETFs in all directions of the market for different segments - they give outsized returns for market moves of all different kinds. You can speculate and get outsized gains (or losses). Again higher risk. - There is still plenty of money to be made in the ICO market even in this environment by riding momentum, and it's perfect for smaller amounts due to lower volume involved. Many tokens keep on returning outsized gains all the time. If you have the inclination, you can look into that. Here are some examples from my project: https://i.imgur.com/N4H3pka.png https://i.imgur.com/N4H3pka.png - https://www.reddit.com/r/weedstocks/ https://www.reddit.com/r/weedstocks/ - I can give you many more ideas but they start getting a bit too speculative and into the realm of gambling. ---- [0]: https://stockquanta.com https://stockquanta.com and http://coinquanta.com http://coinquanta.com (For detecting crypto momentum)
- ratsimihah 8y ago
  Brilliant! Let me digest all that and get back to you, thank you!
- zapperdapper 8y ago
sefrost 8y ago
The Enterprise Investment Scheme in the UK _could_ be very beneficial to you here. Here's a description on Crowdcube: https://www.crowdcube.com/pg/eis-tax-relief-for-investors-44 https://www.crowdcube.com/pg/eis-tax-relief-for-investors-44 In short, you can reduce your personal tax bill for the year by 33% of the EIS eligible investments you make.
lucas_membrane 8y ago
Reminds me of back when I was studying economics; I read an article by a prominent economist, Samuelson I think, about how to get the benefits of diversification when buying stocks. He said that you could reasonably expect to get pretty near market returns by buying 5 stocks. Now, an investment guru will probably get you into well more than 5 funds, each of which will hold dozens or hundreds of stocks. The benefits of such attempts at diversity are low, good chance if you diversify into 5 of any class of investment offered to the public, you will get close to typical of that class. Of course, investment != stock, but don't speculate on pork bellies if you do not know to which end of a hog one talks.
momentmaker 8y ago
Invest in ChainLink :) https://chain.link https://chain.link
- Temasik 8y ago
  Vaporware scam Follow satoshi nakamoto
garmaine 8y ago
Even factoring in HN's pessimism towards cryptocurrency, it's the only thing available to a non-professional investor which meets your criteria (high risk, but possibility of 10x growth over 5 years). Maybe consider putting 1k in bitcoin, 1k in ethereum, 1k in a total-market equities index fund, and the remaining 2k in a volatile stock picks of your choice (e.g. Tesla). FWIW I think this is a recklessly dangerous thing to do and I feel dirty giving this advice. But I feel someone should actually answer your question as asked.
arithma 8y ago
If I am in a similar situation, but in a third-world country, with a few $K to spare, does anyone have any advice on how to put some money for the future?
Markoff 8y ago
what would you recommend with 30-40K EUR in EU and low risk? no mortgage/debts.small apartment in some country?
matew 8y ago
I prefer some reliable platforms for trading bitcoins just to be on the safe side. You know, licensed and other stuff. I have been trading with the Monfex platform for a couple of months and it works pretty well for me. It is a professional trading terminal that provides the most comfortable trading experience https://bitcointalk.org/index.php?topic=5097385.msg49235081#msg49235081 https://bitcointalk.org/index.php?topic=5097385.msg49235081#...
deleted 8y ago
[deleted]
cimmanom 8y ago
What percentage of your liquid net worth does $5k represent? I’d suggest far more traditional and less experimental investments for someone looking to invest their first $5k than for someone with $5m already in stocks and bonds looking to branch out with some “play” money.
zapperdapper 8y ago
That sounds more like speculating than investing. I always view investing as simply a hedge against inflation rather than a true money making venture. If you are investing put it in a low-cost index tracker sheltered in a tax efficient vehicle (in UK that would be ISA or private pension scheme). Let it compound forever. That's probably what I would do. If you've not heard of him, look up Harry Browne. He recommended splitting your portfolio four ways: gold, cash, bonds, stocks. He reckoned that way you'd do OK no matter what was going on in the world. If you feel more like speculating perhaps learn poker and take a trip to Vegas? ;)
- ratsimihah 8y ago
  I've played poker overnight in Atlantic City and made about $100 with $100. Not exactly profitable. The cash, bonds, and stocks advice sounds similar to what Ben Graham recommends in the Intelligent Investor. Thanks!
osullivj 8y ago
Put some in Premium Bonds [1]. No interest, but you get capital preservation and a shot at the monthly GBP1M prize. Likely you'll pick up a few GBP25 prizes over a year, so it will be as good as a cash deposit, given the crappy savings rates on offer from the major banks. I did this 10 years ago when I temporarily had a lot of cash after a house sale. [1] https://www.nsandi.com/premium-bonds https://www.nsandi.com/premium-bonds

57 points by ratsimihah 8y ago

I have £5k to spare and want to make 5 separate investments, VC-like, such that even if 4 fail, one grows 10x over 5 years. What should those investments be?

auslegung 8y ago

If it were me I would take that money and invest in myself. 5k can go a long way in self improvement and growth. If that’s not necessary or appealing, idk, I dont have any experience or knowledge of investing other than the stock market. Another thought is to give it to a friend or acquaintance who would benefit enormously from it, such as someone who’s not making much money but could use a few thousand for self improvement that would double their income soon.

ratsimihah 8y ago
That's a great advice! I just put £3500 into my yoga teacher training and started teaching. That should be paid back fairly quickly :)

bitxbitxbitcoin 8y ago

With your risk tolerance as described I feel like I need to be the (ir)responsible one and suggest at least 1k into Bitcoin.

Lizzo 8y ago
Username checks out. Personally I think Bitcoin is going to go huge soon, perhaps not as big as it originally was, but it's definitely going to go up a bit - bear in mind I'm no crypto expert, merely a CS student.
- djaychela 8y ago
  Any more info on your thinking? Not looking for a fight, just wondering what makes you say this against a backdrop of near universal negativity. (I say this as someone who has 10 BTC and has pretty much give up on it (I bought it in 2013, IIRC, so I'm still up)).
  - bitxbitxbitcoin 8y ago
    Near universal negativity is a good way to describe the current backdrop. The OP mentioned 5 years, which is the far short end of the timeframe that someone needs to be comfortable to hold before I suggest cryptocurrency as an "investment" to them.
  - Lizzo 8y ago
    Nope, no info! Just a total guess... Feel free to downvote me, I just have a feeling it's gonna surge, but who knows?

pliny 8y ago

Whatever answer you get, make sure you can use your losses to cover some of your tax burden from your wins, otherwise even in the scenario you describe you lose a third or half to the government (depending on how the income is declared and what else you did in those 5 years) and barely come out ahead.

pjc50 8y ago
Plenty of countries have tax-shielded vehicles for small investments like this, which it would be handy to find out about. The UK "ISA", for example.
- ratsimihah 8y ago
  Good points! I do have an ISA, maybe I should limit my investments inside it. It doesn't support US shares though.
  - pjc50 8y ago
    My Halifax one lets me invest in US Vanguard funds, haven't checked whether it supports individual shares.
  - scriptstar 8y ago
    Hi check https://freetrade.io/ https://freetrade.io/ and is available in U.K and can invest in U.S stocks. Have a look. Cheers

marcrosoft 8y ago

Invest in 500 things by purchasing a low cost S&P 500 index like the ETF VTI and call it a day. 5k is too low of an amount to purchase 5 separate investments after you consider fees.

Scotrix 8y ago

Spend it for something nice which makes you happy and you’ll remember forever.

ratsimihah 8y ago
I have all the material things I need, which is why I am looking into building longer-term wealth.

e1g 8y ago

VCs with infinite capital, networks, business knowledge, and 100% focus are shooting for 1-in-10 investments to get a 10x return. It's rather optimistic to expect a success rate twice as good as their teams get. You're trying to get an annual return of 15%. Investments into US index funds over the last 5 years returned ~10% p.a. with minimal risk of a major loss.

ratsimihah 8y ago
Fair enough!

pg_bot 8y ago

If 4 fail and one grows by 10X you will have 10K. It seems that your goal should be turning 5K into 10K over 5 years which seems doable. Since the amount of money you're dealing with is fairly small, I would suggest putting your energy into a single project instead of multiple ideas. Splitting your focus seems like a mistake when dealing with so little capital. Start a side hustle if you want or spend it on teaching yourself a skill that will translate into a higher income. Investing in yourself is generally the best thing you can do with that kind of money. If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal. If you are looking to begin saving for retirement, put it in a Vanguard total stock market etf and let it sit for 50 years.

ratsimihah 8y ago
Hello! Thanks for the answer, I liked how you approached the problem. The issue is that I cannot focus on a single project. > If you work 40 hours a week, 50 weeks of the year for five years that equals 10,000 hours. So if you can learn a skill that increases your hourly wage by $1 you will have met your goal. I have a steady 9-6 job as a React Native developer, where I keep learning and growing and can apply my knowledge to front-end React as well > or spend it on teaching yourself a skill that will translate into a higher income. I've just invested in a yoga teacher training and started teaching yoga classes, so some of my time goes there > Start a side hustle if you want I'm building http://music.hatharaja.com http://music.hatharaja.com and http://spotifyxgenius.now.sh http://spotifyxgenius.now.sh in my spare time, making yoga websites for my friends (for free), and building a model to recognize yoga poses. > Since the amount of money you're dealing with is fairly small, I would suggest putting your energy into a single project instead of multiple ideas. I really want to start learning about 3d modelling and product design (inspired by https://www.instagram.com/dobu.haishen/ https://www.instagram.com/dobu.haishen/ https://www.instagram.com/blankwilliamnyc/ https://www.instagram.com/blankwilliamnyc/) I'm also learning machine learning. The Snowball book about Warren Buffet also advises focussing on one thing, which I wish I could do. Anyway, my point is that my time is already diversely invested, which is why I am also looking at some more passive forms of investment. People have been suggesting ETFs as "safe" long-term investments, which I'm looking into. Maybe I can use 50% of my investment capital to build some products after I've learnt 3d modelling and then invest the rest in ETFs.

cabraca 8y ago

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

giancarlostoro 8y ago
Care to elaborate on MSCI? I've looked at some of the returns for at least one of their ETF's and I'm not seeing 10x growth even with them paying dividends at a reasonable sum, am I just not savvy enough with investing or something? I must be missing something. Edit: I didn't account the increase of the value in the stock, saw one that doubled in value, so if someone had invested in it when it opened they would of gotten back twice what they invested, still not necessarily 10x but it's not bad for a safe low risk investment.
deleted 8y ago
[deleted]
randomacct3847 8y ago
Emerging markets have substantially underperformed US stock market for last few years...in a global recession those markets would be the first to go.
- cabraca 8y ago
  well you're right. fixed that in my post.
mooreds 8y ago
Great financial advice. I might quibble with the last bit, because we don't know what country the poster is in nor the time horizon for using the money. That will affect the investment possibilities. But the rest is spot on.
- 8y ago

zMiller 8y ago

Considering the current political and economic climate : 1- Pay back as much debt as you can: Signs point to the 'cheap money' party ending relatively soon and debt will start becoming considerably more expensive to carry. 2- Bitcoin. Yes, I said it. My 2 cents: Forgetting the debate on the currency aspect and its usability as such . A politically neutral store of value has a use case and there is a tremendous need for it going forward in this world. Bitcoin checks all the marks needed and has been around for more than 10 years now proving its use case. What you have to ask your self at this point is the following : What happens if it all goes down the gutter? Well you loose 1k. What happens if it actually works out? 10-100x? Who knows, but such asymmetric value propositions present themselfs once or twice in a lifetime. Educate your self and take action with the intention of being able to justify it to your future self in 10 years. Ultimatey that is whom you will have to answer to :)

ovi256 8y ago
>debt will start becoming considerably more expensive to carry Only if it's not fixed interest. If you have low fixed interest debt, is there any reason not to keep it ?
- zMiller 8y ago
  If you manage to secure it for a sufficiently long term where you feel comfortable you can meet it's obligations before the terms expire, then go for it !
cycrutchfield 8y ago
Oh great, another crypto shill looking to recruit new bagholders.
- zMiller 8y ago
  Go read bud.
ratsimihah 8y ago
I don't have debts and the 4k worth of btc I had when its value reached its maximum are now worth less than 1k. BTC is too volatile and not something I would consider an investment.

randomacct3847 8y ago

I’m not going to give you financial advisor like advice, so be warned. 1k each in: 1. Teladoc $TDOC (telemedicine) 2. Canopy Growth $CGC (weed) 3. Nvidia $NVDA (gaming, crypto) 4. Bitcoin $BTC 5. Adyen (payments) Macrodrivers: growth in telemedicine/direct to consumer healthcare, eventual worldwide legalization of weed, gaming, mainstream crypto use, ecommerce payments....

fucking_tragedy 8y ago
Buying Bitcoin as an "investment" is like buying baseball cards or Beanie Babies as an "investment".
- 21 8y ago
  10 years later, millions of percents higher, still waiting for the final collapse to zero.
  - fucking_tragedy 8y ago
    The utility of a Bitcoin approaches zero for nearly all of its purported uses. Unlike financial instruments, the underlying asset represented by Bitcoin has no intrinsic value. Bitcoins are more like tulips, baseball cards or Beanie Babies than actual vehicles for investment.
- garmaine 8y ago
  I disagree on the nature of bitcoin, but FYI buying collectables can be a good investment strategy: http://money.com/money/4162059/lego-investment-compare-gold-return/ http://money.com/money/4162059/lego-investment-compare-gold-...
marketgod 8y ago
AMD is trending better than NVDA currently.
- randomacct3847 8y ago

lesss365 8y ago

If you're considering following the suggestions of investing in the stock market, hold off until a possible Brexit market reaction passes in March. Also, wait to see if the S&P can get up and hold steady above $2750. If it can't hold above that mark for a month or so, expect significant drop. Read up on simple moving averages (sma), relative strength index (rsi), and stochastic rsi indicators. Then read up on golden and death crosses. Follow the readings up with monitoring daily, weekly, and monthly charts. https://www.investopedia.com/terms/s/sma.asp https://www.investopedia.com/terms/s/sma.asp https://www.investopedia.com/terms/r/rsi.asp https://www.investopedia.com/terms/r/rsi.asp https://www.investopedia.com/terms/s/stochrsi.asp https://www.investopedia.com/terms/s/stochrsi.asp https://www.investopedia.com/terms/g/goldencross.asp https://www.investopedia.com/terms/g/goldencross.asp https://www.investopedia.com/terms/d/deathcross.asp https://www.investopedia.com/terms/d/deathcross.asp Nadaq's site offers a solid chart and indicators at no cost, as does Yahoo and Stock Charts. https://www.nasdaq.com/symbol/spx/interactive-chart https://www.nasdaq.com/symbol/spx/interactive-chart https://stockcharts.com/h-sc/ui?s=$SPX https://stockcharts.com/h-sc/ui?s=$SPX https://finance.yahoo.com/quote/%5ESPX/chart?p=%5ESPX#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 https://finance.yahoo.com/quote/%5ESPX/chart?p=%5ESPX#eyJpbn...

cimmanom 8y ago
Thank you for this, especially the Golden Cross / Death Cross links. I learned something today.

ctwilkie 8y ago

Invest in yourself for a higher income (books, classes, laptop, etc)

ratsimihah 8y ago
I've already invested in all of those. £3500 in yoga teacher training, and I continuously learn and expand my knowledge. I do feel like I'm in a good place to explore more diverse investment opportunities. Thank you!

mooreds 8y ago

If you really want to spread your risk, choose 5 different ETFs that are not correlated. But I don't think any investment available at the 1k level will net 10x.

ratsimihah 8y ago
I'm not particularly expecting 10x. I'll look into those, thanks!
- mooreds 8y ago
  This might help: https://www.portfoliovisualizer.com/asset-class-correlations https://www.portfoliovisualizer.com/asset-class-correlations I honestly don't know enough about finance to go from correlations between two asset classes to the correct correlation between five, but maybe google will help.

EliRivers 8y ago

such that even if 4 fail, one grows 10x over 5 years This seems really hard. Sounds like you're asking for some kind of coupling; a set of five stocks such that if any four of them go to zero, one of them will definitely multiply by ten. If anyone here could do that reliably, they wouldn't be here. Whatever you end up investing in, don't forget to do it inside a taxfree ISA.

nyrulez 8y ago

Most answers you're getting here are on the responsible side i.e. Bogleheads-like. Your question makes it feel like you're ready for some extra risk and I am assuming these 5k aren't your entire savings. - Wefunder allows you to invest in companies with small amount. Find something really promising there. - Spend time researching small-cap companies in the $1-$5 range and invest 1K where metrics and fundamentals seem to line up for you. It can be almost like angel-funding but a bit more proven. - Learn about derivatives and buy Options calls above the current stock price for something you feel will go up significantly in the public markets. This allows you to leverage huge gains from a small amount of capital. In the worst case you end up with nothing. This is an interesting time due to the recent bear market and there are many many stocks ready to go up given the right macro triggers. Note that selling Options is dangerous and don't do that unless you're an expert - that can land you in big trouble. Leave that for https://www.reddit.com/r/wallstreetbets https://www.reddit.com/r/wallstreetbets :) - Ride strong momentum and trends for smaller companies that have good fundamentals - momentum can be a strong and proven factor for many investments in the public market. I'd plug my own project [0] that's designed to detect low-volatility trends and momentum across the entire market. It's soon going to be in Alpha. - There are many leveraged ETFs in all directions of the market for different segments - they give outsized returns for market moves of all different kinds. You can speculate and get outsized gains (or losses). Again higher risk. - There is still plenty of money to be made in the ICO market even in this environment by riding momentum, and it's perfect for smaller amounts due to lower volume involved. Many tokens keep on returning outsized gains all the time. If you have the inclination, you can look into that. Here are some examples from my project: https://i.imgur.com/N4H3pka.png https://i.imgur.com/N4H3pka.png - https://www.reddit.com/r/weedstocks/ https://www.reddit.com/r/weedstocks/ - I can give you many more ideas but they start getting a bit too speculative and into the realm of gambling. ---- [0]: https://stockquanta.com https://stockquanta.com and http://coinquanta.com http://coinquanta.com (For detecting crypto momentum)

ratsimihah 8y ago
Brilliant! Let me digest all that and get back to you, thank you!
zapperdapper 8y ago

sefrost 8y ago

The Enterprise Investment Scheme in the UK _could_ be very beneficial to you here. Here's a description on Crowdcube: https://www.crowdcube.com/pg/eis-tax-relief-for-investors-44 https://www.crowdcube.com/pg/eis-tax-relief-for-investors-44 In short, you can reduce your personal tax bill for the year by 33% of the EIS eligible investments you make.

lucas_membrane 8y ago

Reminds me of back when I was studying economics; I read an article by a prominent economist, Samuelson I think, about how to get the benefits of diversification when buying stocks. He said that you could reasonably expect to get pretty near market returns by buying 5 stocks. Now, an investment guru will probably get you into well more than 5 funds, each of which will hold dozens or hundreds of stocks. The benefits of such attempts at diversity are low, good chance if you diversify into 5 of any class of investment offered to the public, you will get close to typical of that class. Of course, investment != stock, but don't speculate on pork bellies if you do not know to which end of a hog one talks.

momentmaker 8y ago

Invest in ChainLink :) https://chain.link https://chain.link

Temasik 8y ago
Vaporware scam Follow satoshi nakamoto

garmaine 8y ago

Even factoring in HN's pessimism towards cryptocurrency, it's the only thing available to a non-professional investor which meets your criteria (high risk, but possibility of 10x growth over 5 years). Maybe consider putting 1k in bitcoin, 1k in ethereum, 1k in a total-market equities index fund, and the remaining 2k in a volatile stock picks of your choice (e.g. Tesla). FWIW I think this is a recklessly dangerous thing to do and I feel dirty giving this advice. But I feel someone should actually answer your question as asked.

arithma 8y ago

If I am in a similar situation, but in a third-world country, with a few $K to spare, does anyone have any advice on how to put some money for the future?

Markoff 8y ago

what would you recommend with 30-40K EUR in EU and low risk? no mortgage/debts.small apartment in some country?

matew 8y ago

I prefer some reliable platforms for trading bitcoins just to be on the safe side. You know, licensed and other stuff. I have been trading with the Monfex platform for a couple of months and it works pretty well for me. It is a professional trading terminal that provides the most comfortable trading experience https://bitcointalk.org/index.php?topic=5097385.msg49235081#msg49235081 https://bitcointalk.org/index.php?topic=5097385.msg49235081#...

deleted 8y ago

[deleted]

cimmanom 8y ago

What percentage of your liquid net worth does $5k represent? I’d suggest far more traditional and less experimental investments for someone looking to invest their first $5k than for someone with $5m already in stocks and bonds looking to branch out with some “play” money.

zapperdapper 8y ago

That sounds more like speculating than investing. I always view investing as simply a hedge against inflation rather than a true money making venture. If you are investing put it in a low-cost index tracker sheltered in a tax efficient vehicle (in UK that would be ISA or private pension scheme). Let it compound forever. That's probably what I would do. If you've not heard of him, look up Harry Browne. He recommended splitting your portfolio four ways: gold, cash, bonds, stocks. He reckoned that way you'd do OK no matter what was going on in the world. If you feel more like speculating perhaps learn poker and take a trip to Vegas? ;)

ratsimihah 8y ago
I've played poker overnight in Atlantic City and made about $100 with $100. Not exactly profitable. The cash, bonds, and stocks advice sounds similar to what Ben Graham recommends in the Intelligent Investor. Thanks!

osullivj 8y ago

Put some in Premium Bonds [1]. No interest, but you get capital preservation and a shot at the monthly GBP1M prize. Likely you'll pick up a few GBP25 prizes over a year, so it will be as good as a cash deposit, given the crappy savings rates on offer from the major banks. I did this 10 years ago when I temporarily had a lot of cash after a house sale. [1] https://www.nsandi.com/premium-bonds https://www.nsandi.com/premium-bonds