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Thread: Do Hibs Invest In The Stock Market

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    Heavenly Radge and all round bampot! BVilleggiante's Avatar
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    Do Hibs Invest In The Stock Market

    Literally knowing nothing about football and how clubs invest I thought I'd ask if anyone knows if Hibs invest in the stock market?

    Here's my thought.

    If each time Hibs sold a player, let's say 10% of that sale went into an account that was money to invest in the stock market, in the long run this would have large scale benefits. If after time Hibs had an account with a million quid in it and an average rate of return on that of 8% each year then Hibs would have 80,000 quid to kick around for essentially free. As this account builds then so does the free money to play with. It's a long term strategy but do Hibs do anything like this?

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    Radge Private Member
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    We once invested in wine bars and restaurants through a share flotation with the intention of generating such returns...

    The stock market is no different from the bookies. It's gambling your money. We tried it and lost spectacularly....

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    I'm pretty certain there's nothing in the accounts so no.

    To play devils advocate Hibs would probably say they invest in young football talent, not necessarily just through the academy, which it could be said we have a talent for!

    Having players turning out for the first team is the dividend. Being able to sell them for an undisclosed fee or millions is a very good bonus.

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    I doubt there's much surplus. The big chunk of cash is when season tickets are bought and I guess if that's not immediately spent on transfers or debt servicing then they must do something with it. Thing is, rates of return of 8% are a thing of the past if you actually want to be pretty sure you don't lose anything. So I guess maybe they buy some sort of product that's low risk but it won't make much over inflation. Caveat - my knowledge of both hibs' finances and general investment is fairly limited!

    Different question and I've asked it before, but can't recall the answer. Didnt the club used to own quite a bit of land? The bit behind the east and something at the foot of the royal mile? What happened to that?
    so what do I know

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    Quote Originally Posted by BVilleggiante View Post
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    Literally knowing nothing about football and how clubs invest I thought I'd ask if anyone knows if Hibs invest in the stock market?

    Here's my thought.

    If each time Hibs sold a player, let's say 10% of that sale went into an account that was money to invest in the stock market, in the long run this would have large scale benefits. If after time Hibs had an account with a million quid in it and an average rate of return on that of 8% each year then Hibs would have 80,000 quid to kick around for essentially free. As this account builds then so does the free money to play with. It's a long term strategy but do Hibs do anything like this?
    No they don't but its an interesting thought and if they did (or had) in the past there isn't much doubt that they would be sitting on a very large capital sum generating income every year.

    That's exactly how a lot of us will generate pension income in the future from our built up capital reserves built up through periodic savings usually monthly.

    Some countries do this as well with Norway sitting on a sovereign wealth fund of £1 trillion pound though they do it by skimming off their oil tax rather than transferring players..

    Try property as a long term investment instead as safer but Hibs don't attempt this as they need the money to fund short term losses ie pay the bills as Hibs essentially run at a loss for a few years and then sell a player to break even.

    Its great long term thinking though but it will never catch on.
    Football is the most important of life's least important things.

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    Quite a bit past it radge






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    Quote Originally Posted by HenryLB View Post
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    I doubt there's much surplus. The big chunk of cash is when season tickets are bought and I guess if that's not immediately spent on transfers or debt servicing then they must do something with it. Thing is, rates of return of 8% are a thing of the past if you actually want to be pretty sure you don't lose anything. So I guess maybe they buy some sort of product that's low risk but it won't make much over inflation. Caveat - my knowledge of both hibs' finances and general investment is fairly limited!

    Different question and I've asked it before, but can't recall the answer. Didnt the club used to own quite a bit of land? The bit behind the east and something at the foot of the royal mile? What happened to that?
    Hibs owned land at the foot of the Royal Mile?

    Every day is a school day on here.

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    Quote Originally Posted by Jack View Post
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    I'm pretty certain there's nothing in the accounts so no.

    To play devils advocate Hibs would probably say they invest in young football talent, not necessarily just through the academy, which it could be said we have a talent for!

    Having players turning out for the first team is the dividend. Being able to sell them for an undisclosed fee or millions is a very good bonus.
    That's a very good point. Hibs as an institution are probably better at making money by picking and training footballers than they are at picking equities or investments or whatever. So the effort and money is arguably better put there, even if you're thinking just in terms of making money.

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    Quote Originally Posted by Sir Shrink View Post
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    Hibs owned land at the foot of the Royal Mile?

    Every day is a school day on here.
    I'm probably remembering it wrong. I am quite smashed to be fair.
    so what do I know

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    Quote Originally Posted by Smurf View Post
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    The stock market is no different from the bookies. It's gambling your money. We tried it and lost spectacularly....
    Not entirely true. The strategy of buying and selling individual stocks short term is akin to gambling and there's Always some element of risk but as a long-term fund investment it's a decent one, hence your pension is probably tied into the stock market.
    "Son, no one gives a shit about all the things your cell phone does. You didn't invent it, you just bought it. Anybody can do that."

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    [QUOTE=hibadelic;1603550]Not entirely
    Quote Originally Posted by hibadelic View Post
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    Not entirely true. The strategy of buying and selling individual stocks short term is akin to gambling and there's Always some element of risk but as a long-term fund investment it's a decent one, hence your pension is probably tied into the stock market.
    Exactly. There's a big correlation between risk and reward. And you don't even have to invest in stocks. If hibs had a spare 500k they could invest in ten startup businesses and they'd probably lose the lot. But they might get (very) lucky with an uber-type company and make a billion. Risk = huge, potential reward = huge.

    But more likely they'd go into a boring fund that produces a steady rate of return with almost no risk. At the most safe and dull end of this they could even just buy govt bonds (gilts) I guess. The current UK 10 year bond pays 1.46%.
    so what do I know

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    Heavenly Radge and all round bampot! BVilleggiante's Avatar
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    If not, I find this to be very interesting. I understand everyone's point on here of not doing it but that's why you hire a good financial investor, let them take a small fee and then they manage the investment for you. The more money you make the more money they make. The point is your supposed to diversify your investments and to simply rely on selling off youth doesn't really move you forward in the long run. I actually find this shocking Hibs don't do this even if it was in low risk, low return investments with a return of 2-3 percent. I'm in the US, but average rate of return long term on stocks is 8%. Yes ups and downs happen, but 8% is nothing to sneeze at.

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    Quote Originally Posted by BVilleggiante View Post
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    If not, I find this to be very interesting. I understand everyone's point on here of not doing it but that's why you hire a good financial investor, let them take a small fee and then they manage the investment for you. The more money you make the more money they make. The point is your supposed to diversify your investments and to simply rely on selling off youth doesn't really move you forward in the long run. I actually find this shocking Hibs don't do this even if it was in low risk, low return investments with a return of 2-3 percent. I'm in the US, but average rate of return long term on stocks is 8%. Yes ups and downs happen, but 8% is nothing to sneeze at.
    Absolutely. Thing is you need a surplus of cash in the first place! Others will know more than me but I doubt we have much of one.
    so what do I know

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    Heavenly Radge and all round bampot! BVilleggiante's Avatar
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    Quote Originally Posted by HenryLB View Post
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    Absolutely. Thing is you need a surplus of cash in the first place! Others will know more than me but I doubt we have much of one.
    Yeah, would love to hear what others think about this.

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    Quote Originally Posted by BVilleggiante View Post
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    If not, I find this to be very interesting. I understand everyone's point on here of not doing it but that's why you hire a good financial investor, let them take a small fee and then they manage the investment for you. The more money you make the more money they make. The point is your supposed to diversify your investments and to simply rely on selling off youth doesn't really move you forward in the long run. I actually find this shocking Hibs don't do this even if it was in low risk, low return investments with a return of 2-3 percent. I'm in the US, but average rate of return long term on stocks is 8%. Yes ups and downs happen, but 8% is nothing to sneeze at.
    From working in financial services I can assure you that financial advisers never take a small fee, especially if they are managing the investment for you.

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    get off yer bum an sing radge


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    Last few year been investing some in an ISA with online people Nutmeg..they claim to have an all time return for me of 21.37% Not quite sure what that translates to in individual years. Not that clubs can really do ISAs

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    Quote Originally Posted by Smurf View Post
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    We once invested in wine bars and restaurants through a share flotation with the intention of generating such returns...

    The stock market is no different from the bookies. It's gambling your money. We tried it and lost spectacularly....
    We used the funds to take a loss making chain of pubs off David rowlands hands at a grossly inflated price. Fraud is the word that springs to mind

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    Quote Originally Posted by Davy View Post
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    Last few year been investing some in an ISA with online people Nutmeg..they claim to have an all time return for me of 21.37% Not quite sure what that translates to in individual years. Not that clubs can really do ISAs
    You can't go wrong sticking your money in an ISA. I wish I had enough to take full advantage.
    "Son, no one gives a shit about all the things your cell phone does. You didn't invent it, you just bought it. Anybody can do that."

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    Quote Originally Posted by Purple & Green View Post
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    We used the funds to take a loss making chain of pubs off David rowlands hands at a grossly inflated price. Fraud is the word that springs to mind
    Indeed.

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    Quote Originally Posted by hibadelic View Post
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    You can't go wrong sticking your money in an ISA. I wish I had enough to take full advantage.
    You can if you invest it in the wrong investments.

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