Where Do I Buy Shares?

Where do I buy shares? Well the simple answer to that, is that shares are bought and sold on the Stock Market, through stockbrokers.

We go into more detail on stockbrokers on our ‘How do I buy and sell shares?’ page.

So, why the Stock Market?

There is only one reason to save and invest, and that is to make money. Money that one day you will be able to spend on a new boat, a nice holiday or early retirement. The earlier you start, the more likely you are to get some great gains. But the size of that boat or the luxury of your holiday destination will depend on the return that you make from your investments. That much is obvious.

But one thing is not so obvious. This is that historically the best returns come from the stock market. Not from gilts, corporate bonds or cash savings.

Get started in the exciting world of penny shares with my two FREE starter guides here.

The Best Return Comes From the Stock Market

Let me introduce you to Professor Elroy Dimson. He is the foremost authority on the subject of stock market returns – and by the way this is not such a straightforward matter as you might think. Because of the changing composition of the stock market as companies come and go over time; because of taxation; and because your investment return comes from a combination of income (via dividend payments) and from capital appreciation (via rising share prices) the exercise of calculating an aggregate return from the stock market requires the brain of a statistician and plenty of hard work. Fortunately for us, Elroy Dimson has these qualities.

Every January Professor Dimson and his colleagues at the London Business School release their annual analysis of the penny share market.

They use an index called the Numis Smaller Companies Index (“NSCI”) to monitor the performance of the UK’s penny shares. The index tracks the smallest 10% of the UK stock market by capitalisation. And the results are telling…

Over the full 60-year back-history, the NSCI has beaten the annualised return on the FTSE All-Share by 3.4% per year.

In the words of the reports’ authors: “Over the last 60 years, UK smaller companies have delivered truly astonishing returns to investors.”

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I go into shares in a lot more depth in my starter guide, “The Penny Share Letter Guide To How to Buy And Sell Shares”.

And the best part is that you can receive this guide and more absolutely FREE when you try The Penny Share Letter today.

Instantly download the latest issue of The Penny Share Letter and my three FREE guides when you start your 365-day trial today!

I’m offering you the chance to try The Penny Share Letter for one whole year, with no obligation to stay on afterwards. You will receive the following, which are yours to keep regardless of what you decide:

  • An instantly downloadable copy of the latest issue, plus access to the private members’ area where you can download past issues of The Penny Share Letter and view the current portfolio.
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  • FREE Book: 100 Baggers: Stocks That Return 100-T0-1 And How To Find Them, By Chris Mayer

This is all extra to The Penny Share Letter package which includes:

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Best of all, you can TRY The Penny Share Letter for one whole year with no obligation. And if you decide The Penny Share Letter is not for you, all you need to do is let us know within those first 365 days and you will receive a full refund. The free gifts will still be yours to keep.

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Sources:

The Numis Smaller Companies Index (“NSCI”) Annual Review 2015, published by Numis Corporation