View the article online at http://citywire.co.uk/money/article/a604699
Diary of a Dumb Investor: crash-bang oil shares for my portfolio
I want to add a 'junior oil' stock, maybe a little North Sea number.
Maybe there should be a test.
If you are proven to have enough general knowledge, maths ability and investment nous, you are allowed to invest for yourself. Licenced even.
Those people who fail the test, or don’t turn out to be competent enough, aren’t allowed to have a go. They have to outsource their investment to a fund manager and even – since opting for a fund manager first requires making investment decisions – a financial adviser. Protected from themselves. Protected from their own idiocy, arrogance and the swindling marketing men.
After all, I imagine other would-be investors keep running up against the same problem as I do: I just don’t know enough to invest half of the time and there's too much choice so I can't focus.
For example, I’d like to nail some ‘junior oils’, some crash-bang shares.
For the uninitiated, these are small oil companies that seem to gamble everything on some remote chance of striking vast mineral wealth in shark-infested waters, often off geopolitically explosive shores. Every now and then you gotta ride them right down into the dirt – like Borders & Southern today. According to Citywire, ‘shares have plunged 70% to a three-year low after disappointing drilling news from the Falkland Islands’. Crash!
But when they score… Oh when they score, watch the share price shoot up, up and away… Bang! This is definitely where the action is. And besides, I’ve got to start somewhere (having taken over this portfolio from its previous Dumb Investor, my bro, I’ve sold stuff, but not been brave enough to buy yet) or Citywire will strip me of this column.
My portfolio on Monday: Click to enlarge
The problem is though, the companies are force-field protected: they are shielded by a barrier of impenetrable jargon, which presumably only the chief executive, experts on drilling/mining whatever, and super-specialist, investors understand. Not the rest of us.
So which ones are set to bang and which to crash?
I'm thinking maybe North Sea companies could be the place to start as they are set for 'M&A'/'consolidation'. But beyond that, despite extensive research/Googling, I'm struggling to nail it down. So please, readers, I need recommendations on investable companies in this area. I only want one. Promise I won’t be stupid or act rashly – I’ll do my own research if I can just narrow it all down a bit to start with. Trust me.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the shares
More from us
- Diary of a Dumb Investor: I'm going to make a fracking killing
- Diary of a Dumb Investor: Diamond’s raspberry in your face
- Diary of a Dumb Investor: everyone says buy BP. I say run
- Diary of a Dumb Investor: I won't be following America off a cliff
- Diary of a Dumb Investor: Lloyds in the eurozone scrapyard
- Diary of a Dumb Investor: where has my money gone?
- Diary of a Dumb Investor: bigger, badder… dumber?
- Diary of a Dumb Investor: DI is dead; long live DI!
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.