As the US S&P 500 blasts through its record high of 4,000, today is an exciting time to invest in shares.
Possibly too exciting, as many will probably be sucked into today’s frothy stock market expecting to make quick money, only to come unstuck.
Investing is the same as anything else. You have to work at it to make it a success, especially when trading individual stocks and shares. Before starting out, ask yourself these questions.
Do I know what I am doing?
For newbie investors, the answer is almost certainly no. That is understandable but take it easy at first.
First-time investors should only start by investing money they can afford to lose, says Samuel Leach, director of Samuel and Company Trading.
This also means money you do not expect to need for some time. Your minimum investment term should be five years, but preferably much longer.
Am I the genius I think I am?
Too many first-time investors suffer from overconfidence and pay the price. A few big losses will soon clear the head, but do not let it come to that.
Armies of traders, fund managers, investment banks and private investors pore over stocks night and day, and the chances of a novice spotting something they have missed are slim, says Jason Hollands, managing director of investment advisory company Tilney. “Do not try to be too clever or confident in your ability to second-guess markets.”
Instead, keep it simple. “Look for businesses with great products and services that generate lots of cash and have healthy finances, but do not overpay for their shares,” says Mr Hollands.
Diversification is essential to mitigate losses – because you will make them at some point.
“If investing in individual shares, you should at least have a dozen holdings,” he says.
Am I willing to learn?
Finding the best stocks requires a bit of detective work, says Dan Lane, senior analyst at Freetrade.
“Ultimately, a company’s goal is to make money and your job is to figure out which companies are best placed to do this.”
Start by looking at a company’s finances, says Mr Lane. “How much does it make in revenue and how much of that is converted into profit?”
Other questions include: are its products or services in demand? What external forces may influence sales? Do the shares look expensive?
Am I letting gender work against me?
Women are far less likely to buy shares than men, yet research suggests they make better investors because they think long term, trade less aggressively and take fewer risks, says Anna-Sophie Hartvigsen, co-founder of Female Invest.
Investment company Fidelity Investments examined eight million customer accounts and found women made on average 0.4 per cent more every year, which adds up over time.
If you invested $100,000 and generated average growth of 5 per cent a year, you would have $432,194 after 30 years. Generate 5.4 per cent a year, and you would have $484,416, or $52,222 more. Ms Hartvigsen says mindset is everything.
“Investing is not about instant gratification but playing the long game. It takes time to see returns on your investments, so be patient.”
A common misconception is that you need a lot of money to begin with.
“You can invest small sums, then add to them later. The most important thing is to start.”
Is the share price right?
Everybody loves a bargain and that applies to shares as well.
“Value” investors seek out cheap shares they believe are undervalued and ripe for a recovery. One way to measure this is by looking at the price-to-earnings ratio, which measures a company’s share price against its earnings.
The further this rises above 15, the more expensive the stock is, while something trading at five or 10 times earnings is considered cheap.
As an extreme example, electric car maker Tesla now trades at a mind-boggling P/E of 1,223 times its 2020 earnings. Investors are clearly pencilling in rocket-fuelled growth.
Investing is not about instant gratification, but playing the long game. It takes time to see returns on your investments, so be patient
By contrast, New York-listed Campbell Soup trades at only 15 times earnings. Investors do not believe tinned soup has the same growth potential as Elon Musk’s electric vehicles.
Mr Hollands says never buy a share because it looks cheap or reject one because it is relatively expensive. The cheap stock may be a fundamentally poor business, while the expensive stock may be a great one, but tread carefully.
“A very high valuation should be a red flag.”
Mr Lane says the P/E ratio is no “golden ticket to guaranteed investment success ... It is just one indicator among many.”
Company debt is another. Heineken Holding has been hit by falling beer sales in the pandemic. It does not help that it had high net debt of more than €18 billion ($21.8 billion) as of the end of last year.
How tough is the competition?
Before buying a stock, check whether it has the edge over its rivals. Market dominance, a strong brand, low costs, loyal customers or high barriers to rival entrants will all help to sustain its position.
Last week, Netflix shares dropped by 11 per cent after subscriber growth fell significantly short of expectations.
A key reason was that increased competition from the likes of Disney+ has eaten into market share.
Netflix also burns cash, spending $3.3 billion on new content this quarter alone to keep up, says Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
“Offering the latest must-watch is crucial as competition is so fierce,” she says.
Netflix faces broader threats, such as whether people will still want to sit indoors streaming TV after lockdowns are lifted.
Trends change. Stocks and sectors move in cycles. Last year’s pandemic losers could turn into winners.
Airlines could rise if we start flying again. Cinema chains could light up trading screens for the right reasons. The big banks could cash in as the economy returns to growth.
Invest in what you think will happen tomorrow, not what happened yesterday.
Where can I find help?
The internet is packed with information that can help investors but you need to handle it carefully.
Mr Hollands says it is important to beware of following tips on online discussion boards.
“You are trusting a complete stranger who may be out to spread disinformation.”
However, ratings by brokers such as UBS, Goldman Sachs and Jefferies can point to where a stock price may go in future, says Mr Leach.
“For example, Tencent Music Entertainment Group, a joint venture between Tencent and Spotify, has 15 ‘buy’ ratings with no ‘sell’ ratings, which is a positive sign.”
The median broker price target is $31, with a high of $38. “That gives substantial room for growth, given that it is currently trading at $18.”
Am I investing or gambling?
Cynics say that buying shares is purely a gamble, and there is some truth in that. Predicting winners and losers is never a sure-fire bet.
Lately, though, younger investors have been taking the idea a bit too literally. Many inexperienced investors have been speculating in high-risk shares such as Tesla or hyped-up US retailer GameStop, fuelled by free apps such as Robinhood in the US, says Simon Crookall, founder of online investment service InvestEngine. “Some are simply buying individual stocks or cryptos and hoping for the best.”
Instead of chasing speculative bets, Mr Crookall says investors should look to build a balanced, diversified portfolio of shares they understand. “Otherwise, you are diving headlong into choppy waters.”
Are direct equities right for me?
If all that sounds like too much trouble, let the experts do it for you, says Rob Morgan, investment analyst at Charles Stanley Direct. “Actively managed mutual funds and investment trusts, and index-tracking exchange-traded funds allow you to invest in the stock market while spreading your risk across dozens of different companies.”
It is time to start investing. But do your research first.
Essential questions novice investors should ask before they begin to invest:
- Do I know what I am doing if I invest in shares and stocks?
- Am I the genius I think I am?
- Am I willing to learn about investing?
- Am I letting gender get in the way of my investing strategy?
- Is the share price right?
- How tough is the competition in stocks and shares?
- Where should I seek investing advice?
- Am I investing or gambling?
- Are direct equities right for me?
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
What is an ETF?
An exchange traded fund is a type of investment fund that can be traded quickly and easily, just like stocks and shares. They come with no upfront costs aside from your brokerage's dealing charges and annual fees, which are far lower than on traditional mutual investment funds. Charges are as low as 0.03 per cent on one of the very cheapest (and most popular), Vanguard S&P 500 ETF, with the maximum around 0.75 per cent.
There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.
The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.
There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.
While the best-known track major indices such as MSCI World, the S&P 500 and FTSE 100, you can also invest in specific countries or regions, large, medium or small companies, government bonds, gold, crude oil, cocoa, water, carbon, cattle, corn futures, currency shifts or even a stock market crash.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
Stree
Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
Killing of Qassem Suleimani
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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UAE currency: the story behind the money in your pockets
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Killing of Qassem Suleimani
More on Quran memorisation:
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
The specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 849Nm
Range: 456km
Price: from Dh437,900
On sale: now
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Muguruza's singles career in stats
WTA titles 3
Prize money US$11,128,219 (Dh40,873,133.82)
Wins / losses 293 / 149
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
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The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
MATCH STATS
Wolves 0
Aston Villa 1 (El Ghazi 90 4' pen)
Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)
Man of the match: Emi Martinez (Aston Villa)
More coverage from the Future Forum
Squads
India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.
Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.
Results
6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m
Winner: Aatebat Al Khalediah, Fernando Jara (jockey), Ali Rashid Al Raihe (trainer).
7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer.
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
Winner: Dubai Avenue, Fernando Jara, Ali Rashid Al Raihe.
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
Winner: My Catch, Pat Dobbs, Doug Watson.
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
Winner: Secret Ambition, Tadhg O’Shea, Satish Seemar.
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
Winner: Golden Goal, Pat Dobbs, Doug Watson.
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
Killing of Qassem Suleimani
RACECARD
6pm Emaar Dubai Sprint – Conditions (TB) $60,000 (Turf) 1,200m
6.35pm Graduate Stakes – Conditions (TB) $100,000 (Dirt) 1,600m
7.10pm Al Khail Trophy – Listed (TB) $100,000 (T) 2,810m
7.45pm UAE 1000 Guineas – Listed (TB) $150,000 (D) 1,600m
8.20pm Zabeel Turf – Listed (TB) $100,000 (T) 2,000m
8.55pm Downtown Dubai Cup – Rated Conditions (TB) $80,000 (D) 1,400m
9.30pm Zabeel Mile – Group 2 (TB) $180,000 (T) 1,600m
10.05pm Dubai Sprint – Listed (TB) $100,000 (T) 1,200m
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Usain Bolt's time for the 100m at major championships
2008 Beijing Olympics 9.69 seconds
2009 Berlin World Championships 9.58
2011 Daegu World Championships Disqualified
2012 London Olympics 9.63
2013 Moscow World Championships 9.77
2015 Beijing World Championships 9.79
2016 Rio Olympics 9.81
2017 London World Championships 9.95
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
RACE RESULTS
1. Valtteri Bottas (FIN/Mercedes) 1hr 21min 48.527sec
2. Sebastian Vettel (GER/Ferrari) at 0.658sec
3. Daniel Ricciardo (AUS/Red Bull) 6.012
4. Lewis Hamilton (GBR/Mercedes) 7.430
5. Kimi Räikkönen (FIN/Ferrari) 20.370
6. Romain Grosjean (FRA/Haas) 1:13.160
7. Sergio Pérez (MEX/Force India) 1 lap
8. Esteban Ocon (FRA/Force India) 1 lap
9. Felipe Massa (BRA/Williams) 1 lap
10. Lance Stroll (CAN/Williams) 1 lap
11. Jolyon Palmer (GBR/Renault) 1 lap
12. Stoffel Vandoorne (BEL/McLaren) 1 lap
13. Nico Hülkenberg (GER/Renault) 1 lap
14. Pascal Wehrlein (GER/Sauber) 1 lap
15. Marcus Ericsson (SWE/Sauber) 2 laps
16. Daniil Kvyat (RUS/Toro Rosso) 3 laps
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
