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How would you invest 20K of 2 years interest free cash?

Discussion in 'General Business Forum' started by Karimbo, Aug 24, 2018.

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  1. Karimbo

    Karimbo UKBF Ace Free Member

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    What would you do to profit on that money?

    I read about stoozing on a money saving website. People spend on 0% purchase credit cards, then instead of paying the money off, they put the money on an interest bearing account and earn interest.

    To be honest earning £200 interest a year on a £20K credit card balance does not appeal to me. That's really bad return.

    I was thinking of risk free ways I can turn that 20K loan into something better. But it has to be risk free and easy to liquidate your investment in order to repay money if credit card company wants it paid back sooner.

    What are your thoughts?

    I was thinking ebay business with 20-30% ROI on each shipment completely sold, it could be lucrative. Additionally that per shipment. So you can restock 3-4 times a year and make your income grow.
     
    Posted: Aug 24, 2018 By: Karimbo Member since: Nov 5, 2011
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  2. Mr D

    Mr D UKBF Legend Free Member

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    Risk free and easy liquidate? Low return.
    Ebay isn't risk free or easy liquidate. The 20% - 30% ROI you mention is …. low. Try some different items with better returns or different risks.
     
    Posted: Aug 24, 2018 By: Mr D Member since: Feb 12, 2017
    #2
  3. atmosbob

    atmosbob UKBF Ace Free Member

    4,464 1,053
    The Euro.
     
    Posted: Aug 24, 2018 By: atmosbob Member since: Oct 26, 2009
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  4. Karimbo

    Karimbo UKBF Ace Free Member

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    Well not risk free but low risk. Easy to liquidate for me means you can get your money back in 2 or 3 months.

    Interesting with regards to markup. I usually sell stuff 2x my landed cost. I find that after ebay, PayPal, courier, vat, have been paid off I'm only left with 25% ROI.

    What product categories do you sell and what's the typical return?
     
    Posted: Aug 24, 2018 By: Karimbo Member since: Nov 5, 2011
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

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    My company sells in multiple categories.
    I prefer getting buyers to cover those costs, so for a start price with delivery in mind.
    Lets see, yesterday 25p wholesale item sold for £3, ebay plus paypal plus packaging plus delivery was about £1.20.
    An item sold today cost £1 and sold for 13.50, the same costs as above were under £4.50.

    Liquidating your stock over 2 or 3 months is nice when you can do it. Other sellers, demand, different releases and you may be stuck holding some items a while.

    I don't normally go as low as double the item cost, not worth bothering. Pricing higher than costs and taking account of time works. A few items it can take 20 minutes to pack - they arrive safely and packaging is considerable, buyer pays for all that as part of price. Both packaging and time.
     
    Posted: Aug 24, 2018 By: Mr D Member since: Feb 12, 2017
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  6. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,800 1,811
    I think you need to do some research. Nobody is making money from simple deposits, particularly not borrowed money

    If you want to make money without being lured by crooks you need to either understand a market or spread your risk.

    At this moment I must say you are a crook- magnet
     
    Posted: Aug 24, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #6
  7. MikeJ

    MikeJ UKBF Big Shot Free Member

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    I put £20k into Funding Circle at the end of May. It's already grown by over £350. Takes no effort at all. If you're looking for an invest and forget option, but it's not without risk.
     
    Posted: Aug 24, 2018 By: MikeJ Member since: Jan 15, 2008
    #7
  8. Mr D

    Mr D UKBF Legend Free Member

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    Shares can work quite well. The trick is to make money when you buy so you can sell when you want.
    Have met loads of people including those investing in the companies that employ them who don't go for making money when they buy and are stuck holding shares for years, maybe even decades, to even recover what they paid out in the first place.

    Risk and reward are tied together.
     
    Posted: Aug 24, 2018 By: Mr D Member since: Feb 12, 2017
    #8
  9. MikeJ

    MikeJ UKBF Big Shot Free Member

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    Investing in individual shares is a mug's game. If you want to go that way, buy into a tracker fund.
     
    Posted: Aug 24, 2018 By: MikeJ Member since: Jan 15, 2008
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

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    Depends if you know what you are doing.
    There are shares that may increase in value. There are shares that maintain. There are shares that pay usually good dividends.

    Just picking one based on its name or the fact its in the news is foolish. Spending a few weeks researching one company before deciding to buy any shares in it.... risks cannot be eliminated but can at least know what you are buying.

    I had a choice once, my research had identified two shares but not cost effective to invest in both.
    So I made my choice and made 35% net profit when I sold later that year.
    That was the wrong share to buy as it turns out.
     
    Posted: Aug 24, 2018 By: Mr D Member since: Feb 12, 2017
    #10
  11. MikeJ

    MikeJ UKBF Big Shot Free Member

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    You got lucky.

    Research has shown monkeys make as good a share pick as humans, even with research.

    Buy a tracker fund.
     
    Posted: Aug 25, 2018 By: MikeJ Member since: Jan 15, 2008
    #11
  12. Mr D

    Mr D UKBF Legend Free Member

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    Ah luck, the claim of the people not willing to do the work and learn how to do something.
    Success in passing driving test? Also luck. Success in exams? Also luck.

    Trackers exist for those wanting risk spread around and others to do the work. If you want to use luck for reward then buy a lottery ticket and have random numbers.
     
    Posted: Aug 25, 2018 By: Mr D Member since: Feb 12, 2017
    #12
  13. Inva

    Inva UKBF Regular Free Member

    370 62
    People's investment suggestions are based on their personal interests. You might get a good suggestion but if that field does not interest you, it will quickly turn to a bad suggestion. Since you are not sure, i would recommend you hold off until you know what you want to do with the money.
     
    Posted: Aug 25, 2018 By: Inva Member since: Aug 10, 2018
    #13
  14. MikeJ

    MikeJ UKBF Big Shot Free Member

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    Or buy individual shares.
     
    Posted: Aug 25, 2018 By: MikeJ Member since: Jan 15, 2008
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

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    If you aren't going to do any work then yes you could randomly choose individual shares. Not quite as random as you think unless you work to make it random. Pull name from hat, throw a dart blindfolded etc.
    Looking at names on a sheet of paper you can subconsciously decide based on things you have seen or read so its not a fully random pick.
     
    Posted: Aug 25, 2018 By: Mr D Member since: Feb 12, 2017
    #15
  16. MikeJ

    MikeJ UKBF Big Shot Free Member

    5,837 1,721
    Posted: Aug 25, 2018 By: MikeJ Member since: Jan 15, 2008
    #16
  17. Mr D

    Mr D UKBF Legend Free Member

    24,297 2,946
    Posted: Aug 25, 2018 By: Mr D Member since: Feb 12, 2017
    #17
  18. MikeJ

    MikeJ UKBF Big Shot Free Member

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    :D This is too funny.
     
    Posted: Aug 25, 2018 By: MikeJ Member since: Jan 15, 2008
    #18
  19. Mr D

    Mr D UKBF Legend Free Member

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    Indeed it is. Can I ask as a director does your business rely on luck alone?
     
    Posted: Aug 25, 2018 By: Mr D Member since: Feb 12, 2017
    #19
  20. MikeJ

    MikeJ UKBF Big Shot Free Member

    5,837 1,721
    No, but luck plays a part. I went to a meeting about 10 years ago, and found a customer that had just been annoyed by his existing supplier. He also had a demand for something we'd just developed, that his existing supplier didn't have. We've made well over £1m profit on that customer since then. There was a lot of hard work done leading up to that meeting, but there was also a lot of luck that we turned up with the right product just at the right time. If his existing supplier hadn't annoyed him so much, then we may not have got the meeting.

    If I studied form for a horse race, and bet on one that I fancied, and it came in, I'd congratulate myself. But I'd be a fool if I thought I wasn't lucky too.

    You've studied a company, and made some money on them, and think this is just down to your skill. I think you were lucky.

    There's been lots of studies done that show experts fail to beat the market when picking shares. That's why tracker funds are so popular. They're the most efficient way of investing in the market.

    I own some individual shares. I hold some IAG (British Airways, as was) as I thought they would benefit from the drop in oil price a few years ago. Currently up 60% ish. Tesco, which I bought when they dropped suddenly a few years ago. Up 22%. I made 50-60% on Ryanair, which I bought at the same time as BA, but dumped after a couple years. I don't think I was particularly clever though. Just lucky.
     
    Posted: Aug 25, 2018 By: MikeJ Member since: Jan 15, 2008
    #20
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