There are investment courses available to give the average investor enough market advice to compete with experienced fund managers, writes Fiona Reddan
ARE YOU sick of investing your money with fund managers who in the boom times at best match the average market returns and are now losing money hand over fist?
For people who would like to take more control of their investments, but don't know a bull from a bear, help might be at hand from a variety of service providers who aim to provide investors with the requisite skills to generate real returns.
Investment courses first became popular in the US, but over the past number of years have begun to proliferate in Ireland as markets appeared to be only going in one direction - up - and the average saver looked to get extra advice to help them get a share of the gains.
Now, with mutual funds in freefall, many people must be thinking, why am I paying some fund management company 1-2 per cent a year to lose my money? Surely I could do better myself?
While global stock markets remain extremely turbulent, noted investors such as Warren Buffet say now is the time to be buying equities again, with value to be had in many blue-chip companies and the level of inter-day volatility also offering opportunities for a skilled investor.
Responding to this demand is a plethora of courses aimed at providing the average investor with basic stock market advice or with the know-how to outperform both experienced fund managers as well as the market.
In 2005, Rory Gillen, who is also head of funds with stockbroking firm Merrion Capital, set up his own investment training firm Invest Like the Best (ILTB). The firm offers a one-day training course once a month which aims to appeal to both novices or existing investors, and gives a "guaranteed understanding of how the stock market works", as well as the "confidence to put in to practice what you are taught".
According to Gillen, ILTB's approach involves three "simple steps to stock market success" - (one) smoothing out volatility; (two) following tried and tested approaches; and (three) understanding the power of compounding.
He has seen very strong demand for the course since its inception, and while interest may have slowed due to the current bear market he says his course is distinguished from others on the market by virtue of the fact that it concentrates on investment rather than speculation.
Solas Financial is another Irish course provider, and its half-day seminar aims to provide investors with the tools to start building and managing a portfolio of shares. It covers topics such as technical analysis, charting and the use of exchange-traded funds.
For investors looking for a more formal approach, Dublin Business School offers a diploma in stockbroking investment which runs over 14 weeks.
In addition to the above courses there are also some personality-driven courses available to Irish investors. In February Mark Shipman is giving a one-day investment course which also aims to give attendees an insight into the psychology of investing and an overview of future investment opportunities, as well as offering an introduction to the basic rules of stock market investing.
Shipman is the author of investment bestsellers The Next Big Investment Boom and Big Money, Little Effort, and is one of the more well-known investment pundits having started his career running his own hedge fund.
Gillen advises investors looking to sign up for a course to have about €1,000 to start off trading, and they can then add to this to build a diversified portfolio.
But is spending your money on a course actually worth it? Or would you be better off investing €20 or so in a reputed investment book such as Benjamin Graham's renowned The Intelligent Investor?
The courses are not cheap and can eat considerably into your returns - before you even start trading.
For example, for someone looking to invest €20,000 in the stock market, spending €1,000 on a course means that your returns are already down by 5 per cent and when you factor in the costs of trading this will bring your initial outlay up to about 6 per cent of your portfolio.
So to make a return of about 10 per cent on your investment you will need to generate an actual return of about 15 per cent - no mean feat even in the best market conditions.
Moreover, these courses are not regulated, and a Dublin-based professional wealth manager cautions people to do their research before signing up as he says that while they may be suitable for those with a natural inclination for investing, trading for yourself involves a lot of time.
Moreover, he adds that you are always pitting yourself against institutional investors who have more time, experience and knowledge of the market than the average punter.
Investors should also be aware of what they are signing up for, with the old adage "there is no such thing as a free lunch" ringing particularly true when it comes to some of the courses on offer.
While many offer free introductory seminars they are most often aimed at encouraging attendees to sign up to a costly course - which in some cases may run into thousands.
Moreover, some of the investment techniques being taught, such as spread betting in the case of Traders University, are not generally considered suitable for the novice investor.
What courses are available?
Invest Like the Best
Title: ILTB Stock Market Training Seminar
Tutor: Rory Gillen (right) co-founded stockbroker Merrion Capital
Where: venues throughout the country
When: once a month
Duration: one-day
Cost: the standard price is €850, but a 20 per cent discount is offered for bookings on the web. Two people can attend for €600 each.
For further information: www.investlikethebest.com
Dublin Business School
Title: Diploma in Stockbroking Investment
Tutor: Kitty Moloney is a former senior portfolio manager with Davy Stockbrokers.
Where: Aungier Street, Dublin 2
When: one evening per week, offered twice yearly in October and February
Duration: 14 weeks part-time, plus two Saturday morning workshops
Cost: €1,500
For further information: www.dbs.ie
Solas Financial
Title: Investor Workshop
Tutor: Stephen Egan and Micheál Ó Cróinín, who both have backgrounds in quantitative futures and derivatives analysis
Where: venues throughout the country
When: throughout the year. In November the company will be giving workshops in Dublin, Cork, Limerick and Sligo.
Duration: ½ half-day
Cost: €295
For further information: www.solasfinancial.com/training.php
Traders University
Title: Traders Secrets Seminar
Tutor: Led by Greg Secker, an investment professional
Where: Dublin
When: November 25th
Duration: two hours
Cost: free
For further information: www.knowledgetoaction.co.uk
Mark Shipman
Title: Investor Workshop
Tutor: best-selling author and one of the more well-known investment pundits.
Where: Dublin
When: February 5th, 2009
Duration: one day
Cost: £700
For further information: www.trend-follower.com
Coláiste Dhulaigh VEC
Title: Stocks and Shares
Where: Coolock, Dublin 17
Duration: 12 weeks
Cost: €200
For further information: www.colaistedhulaigh.ie
Spread betting
For people specifically interested in spread betting, most of the firms offering the service in Ireland, including Delta Index, also provide free tutorials
