There are plenty of options these days when it comes to investing your hard-earned cash. Now in her mid-60s, Sarah first started putting her money to work in the markets in 2003 through a wealth management firm and stockbroker, however it was not until the pandemic that ‘she got the investing bug’ and began trading through a stocks and shares ISA.

During the pandemic she became increasingly frustrated that her existing accounts were expensive to run and the advice that she was given was inconsistent. 

‘I accumulated losses of 30%, after that [I thought I could do a better job] managing my own portfolio. Even if I didn’t make any money at least I was saving on fees.

‘My wealth management account wasn’t losing any money; in fact, it made a 25% gain over 20 years. however, the dealing charges and fees were increasing over time.  The account was small, and I was investing in 37 different types of funds, bonds and other financial instruments.

‘At least half the funds I didn’t understand and in the year-end reports there seemed to be a lot of transactions for no apparent reason.’

Sarah explains she was frustrated that she was made to feel uncomfortable when she questioned the advice and performance she was getting.

GOING DOWN THE DIY ROUTE

Having now become a DIY investor, Sarah finds the process really interesting and feels much happier being able to control her own money. In the process of retiring, she sees controlling her investment journey as a means of staying busy and also helping her daughter financially.

‘However, the question I ask myself whenever I go to anything financial; whether it be AGM’s trade shows or investor evenings or days is how few women are present,’ she says.

Sarah’s investments are in three distinct baskets, a dividend-focused collection of shares, a dealing account containing investment trusts and an ISA for growth shares.

Sarah says this latter account is ‘more experimental’ and where she does the majority of her trading. I have found the only way to really understand the markets is to buy and sell shares yourself. There is nothing more real than looking at a [trading] screen,’ she says.

Sarah readily admits that her biggest source of [stock market and financial] information is her husband. ‘He is better at reading a balance sheet than me. In fact, he was the inspiration behind me taking responsibility of my own money.

‘I think secretly he would just like me to hand it over to him but I am an independent woman and I was having none of that. Also, we trade completely differently.’

SOURCES OF INFORMATION

Sarah also gets financial information and ideas from AJ Bell investor evenings, from Shares and other titles targeted at private investors, Bloomberg, national newspapers and AGMs (annual general meetings). She also follows high-profile investors Ian Cowie and John Lee, Baron Lee of Trafford.

Sarah says she has had both good and bad experiences with investing. Prior to managing her own money, she was invested in a commercial property REIT (real estate investment trust) which was trading at all-time-high but has subsequently fell by 45%.

‘Fortunately, the REIT pays a good dividend. I refuse to sell it until the share price goes up. This purchase is an example of a REIT being bought at the wrong time, and without my knowledge.’

There have been success stories too, as Sarah explains: ‘I recently bought Concurrent Technologies (CNC:AIM) after reading an article in the Financial Times and the shares have gained more than 100% over the past year.’

LONG-TERM GOALS

Sarah would like to grow the value of her ISA, retain a steady income, reduce her holdings and concentrate on fewer shares. She also has some advice which she tries to follow herself and which believes could be helpful for others. ‘Don’t be frightened to sell a stock when it falls in value, or to take a profit. Don’t be frightened of sitting on cash. Never invest in a company that you don’t understand. Never buy a stock tip without doing your research and, finally, keep it simple,’ she concludes.

DISCLAIMER: Please note, we do not provide financial advice in My Portfolio articles, and we are unable to comment on the suitability of the subject’s investments. Individuals who are unsure about the suitability of investments should consult a suitably qualified financial adviser. Past performance is not a guide to future performance and some investments need to be held for the long term. Tax treatment depends on your individual circumstances and rules may change. ISA and pension rules apply.

AJ Bell referenced in this article owns Shares magazine. The author (Sabuhi Gard) and editor (Tom Sieber) of this article own shares in AJ Bell.

WE WANT TO HEAR FROM YOU

We are looking for individuals or couples to share their experiences of managing their own investment portfolios.

If you would like to take part, we want to know why you chose certain stocks, funds or bonds, why you might have subsequently sold some of them, and what you hope to achieve from investing.

We will pay £50 in John Lewis vouchers as a thank you to anyone whose story is published in the digital magazine.

Drop us a line with your name and two lines describing your investment experience. For those picked to feature in the magazine, we’ll be in touch to get the full story.

CONTACT: shareseditorial@ajbell.co.uk with the words My Portfolio in the subject line.

DISCLAIMER: Shares/AJ Bell does not provide advice or personal recommendations. The My Portfolio articles are for information only. You must do own research and consider your own personal circumstances before making investment decisions.

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