‘I’ve switched from tech to opening-up winners’

The idea that first-time investors are interested only in short-term returns is a myth, according to Tom Shepherd, a university lecturer in global health from Cheshire.

In his mid-30s, he read a number of books on investing before he bought his first shares. One, How to Pick Quality Shares by Phil Oakley, taught him the basics of buying companies that could survive a downturn and grow.

“I started with America’s giant technology firms. They produce truckloads of cash and are also growing quickly. I also invested in passive funds that track the British and American stock markets,” he said.

As his confidence grew, Mr Shepherd branched out into smaller companies that had more potential to rise in value, such as Greatland Gold, a miner, Palantir, a data group, and Lemonade, an American insurer.

He said online forums such as those on stockbrokers’ websites were another great source of ideas as long as investors carried out their own research and were not lured into schemes where they paid to receive self- proclaimed “expert” investment training.

“Online you can come across ideas that newspapers might not have picked up on. Forums are great for new ideas,” he said.

Mr Shepherd has begun to shift his portfolio out of technology firms as lockdowns have started to ease around the world. “I made more than 300pc last year as the work- from- home boom increased the appeal of technology stocks. However, this trade has run out of steam and I’ve now invested in some companies that will profit from economies opening up again, such as Disney,” he said.

While his start in the investment world has led to far more winners than losers, Mr Shepherd said humility was key.

“Nothing is certain in investment so it is essential to have a cash pile to fall back on as well. Risk is part of being in the stock market. The other key is to keep trading costs down by picking the right stockbroker,” he said.