"GB" wrote in message
...
On 24/10/2016 11:38, Rod Speed wrote:
GB wrote
Simon Mason wrote

Just paid £5000 for a cruise to NYC in 2018 and shoved it onto a 48
month interest free card while my cash makes 7.7% in BP share
dividends. If you have a 5* credit rating, there are no end of credit
cards that are clamouring for your paltry £17 transfer fee even if
they don't actually make 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.

Not a high risk if you believe BP is a viable operation and presumably
he does.

That's not a very sensible definition of risk, is it?

No one said it was a definition of risk.

Sure, there is SOME risk of BP being involved in something very
stupid like that deep sea drilling rig blowout preventer ****up,
but the risk isnt really all that great.

There is some non-negligible risk that BP's shares could end the 4 years
with no value,

There isnt even the remotest possibility of that happening.

whilst the OP still owes £5k. There's a rather higher risk the shares
could be worth say half of the debt,

BULL****.

and so on.

Of course, this needs to be viewed in the context of the OP's overall
finances. He could probably repay the £5k from other assets.

However you look at it, it's not free money.

It clearly is free money. It isnt risk free money and he never said it was.