Helimutt,
It depends on how long you plan to invest it. In a recent NYT Op-Ed, Warren Buffet writes that equity stocks are the surest bet. There are some real bargains with sub-15 P/E ratios right now. One thing for sure, cash in an interest bearing account is not going to keep up with inflation and putting it in bonds will lose against inflation by several percent, though both are reasonable places to avoid the short term volatility. Too bad a share of Berkshire Hathaway costs a lot more than your £10K.