Just paid £5000 for a cruise to NYC in 2018 and shoved it onto a 48 mo nth interest free card while my cash makes 7.7% in BP share dividends. If y ou have a 5* credit rating, there are no end of credit cards that are clamo uring for your paltry £17 transfer fee even if they don't actually mak e a penny in interest.
So, you have in effect borrowed £5k interest free for 4 years to invest in BP shares. That's a pretty high risk strategy. High risk => you will make lots of money some of the time and lose lots other times.
Massive oil company shares are totally under the control of the oil price and the value of the US dollar.
Weak Dollar = Strong commodities (and oil) Strong Dollar = Weak commodities (and oil).
Just watching the £/USD FX rate gives you a good idea of when to buy/sell oily shares.
In Jun 2014 you got £1.70 for a dollar and RDSB share price was over £26. Good time to sell and move into airline shares. IAG was about £3 at that time, by Jun 2015, IAG shares were £6 and oil while commodity shares were sliding and hit a low point in Feb 2016, when you could buy RDSB shares for just over £12 and BP shares just over £3. They were £22 and £5 early in July 16.
Don't forget CGT on your £19,000 profit. £11,000 is tax free but you will have to pay 10% on the other £8,000, unless your total income puts you into higher rate tax, when the rate will be 20%.
Now come on. Mr Mason has really impressed us over the years in the cycling newsgroup with his business acumen - there is no reason to disbelieve this story ;-)
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