Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

WELCOME TO ‘YOUR VIEWS’

This is your platform to talk about key investing issues.

Each week we will pose a question and publish the best comments in a future edition of Shares. You can comment on our Facebook page, send us an email or interact via our Twitter account.

________________________________________

This week's question...

What sectors do you perceive as too complex to invest in?

 

I avoid AIM-quoted technology stocks. The risks are too high. A company is promising you that its technology is a) worth something big in the future; b) works properly; and c) different from something that's already on the market. But you are investing purely on the basis of faith until the technology is fully developed, there are contracts in place, and the company is earning money.

B.Cramer, via Email


 

This is an easy one. I avoid banks. Any company that breaks its financial results up into more than one part is automatically too complex, in my book. Why should I have to trawl through hundreds of pages of material just to work out if earnings are going up or down? Many of the insurance companies would also fall into this category as well.

Peter Bucati, via Email


 

Biotech, oil and gas, mining, software – if you need a glossary to understand the terminology, then I don't invest directly. However, I do appreciate the benefits of having exposure to these sectors so I leave it up to experts to pick the stocks. I buy a relevant fund and let someone else spend hours trying to work out the difference between SAAS, JORC and LAN.

Montgomery Richards, via Email


 

1)      Financials. This is due to a lack of transparency. I find it almost impossible to weigh up what risks they are taking.

2)      Metals and mining. The problem is that the price that they will be able to sell their products for in a year or two is very unpredictable.

Paul, via Email


@SharesMagDan, @SharesMagJames, @SHARESmag
Tech sector!! ‘ too many variables and uncertainties!!!!

@bishoprobertho1, Twitter


THE BIG QUESTION FOR NEXT WEEK

What's the one bit of advice you would give someone new to investing?

Feel free to explain your decision in detail.

Email: yourviews@sharesmagazine.co.uk

Twitter: @sharesmag

facebook: www.facebook.com/sharesmag

 

‹ Previous2016-11-03Next ›