The Anonymous Widower

How Zopa Beats The Stock Market

This article was trawled out of the Internet by Google. It’s well worth a detailed read.

October 5, 2012 - Posted by | Finance | ,

2 Comments »

  1. The problem with all comparisons with the stock market is that they look at a particular index, usually the FTSE 100. In reality only an idiot would simply track an index, as the selection on what is in the FTSE 100 is not based on anything to do with how worthwhile an investment the companies are, but how big they are. Investing is about selecting the most undervalued companies, those that are likely to be worth more in the future, or those that look as they will produce good dividends. The selection therefore changes from time to time to match expectations. Also anyone investing would also be foolish to only invest in equities. A balanced portfolio must contain a mix of investment types. Any investment portfolio needs to be designed to match the requirements of the investor. Someone looking for an income will have different requirements from someone trying to grow their wealth. Timescales are important too. Higher risks make for higher returns, but not necessarily in the short term.

    Comment by John Wright | October 5, 2012 | Reply

    • One of my most important requirements over the last couple of years has been access. Zopa is effectively like a 30-day access deposit account, as you can always draw out the interest and cashed loans, as you need it. Just make certain, that you’ve got enough capital, so it generates enough cash flow.

      Comment by AnonW | October 5, 2012 | Reply


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