The problems include:
- Newspaper journalists are not investment professionals. There is no comeback on their “advice”
- They don’t consider attitude to risk or things like the need for emergency funds.
- Do you have the investment knowledge? Is the share a cheap because they company is a basket case or merely unfashionable? Can you predict Northern Rock style crises?
Invest in a good mutual fund, you eliminate a lot of the risk. A professional manager looks after your money and can taken action on your behalf in the event of a Northern Rock style crisis or take advantage of low market prices
Which ones? Speak to your financial adviser, discuss your needs, risk and how much you can realistically invest.