THIS IS NOT A TIP OR RECOMMENDATION. I AM NOT A TIPSTER. PLEASE DO YOUR OWN RESEARCH. PLEASE READ THE DISCLAIMER ON THE HOME PAGE OF MY WEBSITE. IF YOU COPY MY TRADES, YOU WILL PROBABLY LOSE MONEY. I HAVE A LARGE PORTFOLIO AND I USE DIVERSIFICATION TO SPREAD RISK ALONG WITH TRICKS LIKE HEDGING AND OCCASIONALLY BY THE USE OF STOPLOSSES - IF YOU BUY ANY STOCK YOU REALLY SHOULD FOCUS ON HOW IT FITS IN YOUR PORTFOLIO AND KEEP RISK MANAGEMENT AT THE FOREFRONT OF EVERYTHING YOU DO. BE AWARE THAT ALL INVESTORS/TRADERS GET THINGS WRONG AND MANY STOCK SELECTIONS WILL WORK OUT BADLY.
If you have been keeping on top of my rare and infrequent Trades this year, then you might have spotted that I recently sold out entirely of my Holding in Sainsburys SBRY which I had held primarily in my Income Portfolio but I also had a Long Spreadbet on it which I sold earlier (you can see all details of my Trades on the ‘Trades’ page, funnily enough).
The idea behind my Income Portfolio is that it is really intended to be Low Risk, Low Activity and Low Return - but what I mean by that is by targeting a Blended Dividend Yield for the Portfolio of 5% and with a little bit of Capital Gain each Year I hope to get about 7% CAGR (Compound Annual Growth Rate). If you skip over to my ‘Portfolios’ page you will see at the top a full list of the Stocks in my Income Portfolio at the moment.
It is most definitely a ‘drawback’ (High Class Problem, more like !!) of not doing a ‘Real Job’ that Bank Holidays tend to catch me totally by surprise and I had not realised we have one this Weekend until some point yesterday. That of course means I have more time than usual to write a Charts Blog but my intention as I start scribbling is to get it finished Sunday Night rather than having it drop into Monday as well.
I am currently reading ‘A Man on the Moon’ by Andrew Chaiken and have nearly finished it but probably because of this sort of coincidence, I picked up with special attention that Alan Bean who was one of just 12 Men who walked on the Moon in the period 1969 to 1972, had sadly passed on to the Heavens (he was on the Crew of Apollo 12 which was the one that got hit twice by Lightning just after Launch and for some rather worrying minutes had no Computer whatsoever until they figured out how to reboot it).
I figured that title would attract a huge Readership to this Blog - I nearly went with ‘Free Bitcoins’ as I thought that would drive devourers of Reading Material on the Web utterly insane with their frenzy to take advantage of such an appealing offer.
I nearly went with something along the lines of ‘Actresses and Bishops’ because that tends to draw a big Readership also but I didn’t think I could stretch what seems to be the dull subject of Dividends that far. I also know that a small chunk of Readers are under 18 so I need to keep it clean (ish).
I have actually stolen the title from my mate Cappy (@SmallCappy on Twitter) who always comes up with this term when we mention the wonderful phenomenon of nature that is the humble Dividend Payment. He has nailed it with such a description and I am fully onboard with his use of this term and I shamelessly pinch it whenever I can (you should have copyrighted it when you had the chance, mate !!).
I am bashing out this Charts Blog on a Saturday Night for a change because tomorrow I am off to somewhere near Birmingham to attend some sort of ‘Hill Climb’ event in celebration of 60 Years of the Austin Healey Sprite (yeah, that Frogeye thing that evolved into the MG Midget). It’s pretty sobering to realise that I was at the Sprite50 Event at the British Motor Heritage Museum at Gaydon which must have been 10 Years ago and as ever it seems like just a few Years have passed and it just brings home how fast time whittles through our fingers……..
A very close friend has one of the later Sprites from about 1964 I think and that looks much more like a Midget with no Frogeye Headlights but is remarkably quick and fine handling for something so old and with such a piddly engine (I think his is an 1100cc but I might be wrong). So the plan is to meet up with him and perhaps one or more of his offspring (that will be scary because I haven’t seen them for a few Years and they will no doubt be huge teenagers now) and it should be a fun day. I am looking forward to seeing the Healey 3000s and suchlike which are really where it’s at.
My mate David from Blackthorn Focus is holding an Investor Event on Tuesday 26th June in Cambridge which you can see details of below and I asked him if he could knock up some words on each of the Companies as they look quite interesting. He has done exactly this and I have added some thoughts underneath.
I have also repeated the bit about the Duxford Aerodrome Event on the day before - Monday 25th June - everyone is invited and it will be a fun day out I am sure.
Full disclosure, I am taking no commission or anything from David. He is a mate and we regularly chat about Stocks (he is an excellent Investor) and I am merely helping get the word around about the Event he is organising. It is up to Readers if they want to go or not and it could be a decent chance to talk to the Directors of some interesting quality companies.
Well that was a rather pleasant Week for me, despite the drag of Superdry SDRY getting hit hard and On The Beach OTB leaping around all over the place around its Results but it is not something I am concerned about. My Portfolio gained 1.6% overall which is a very good outcome and I also had the additional joy which was caused by getting the Yearly Statement for my Prudential ‘With Profits’ Bond which has added 8.2% in the last Year which I think is the strongest Gain I have ever had from it in about 19 Years of ownership.
I have mentioned the With Profits Bond many a time and I have been so pleased with it over the Years. I must have about 15% of my Overall Wealth in it and it has some defensive qualities which make it quite a good diversifier. In the Credit Crunch it suffered but that was down to a thing called a ‘Market Value Adjustment’ (MVA) which is applied when you try to Cash it in but if you have held for something like more than 7 Years then an MVA does not apply to you and you can get out the Cash Value at that time.
“Don’t Buy Tips”
I don’t envisage this being a particularly long blog - it is a simple point really so a few paragraphs should cover it. I often see and hear the comment “Don’t buy Tips” and I was thinking about this the other day and came to the view that it is a lot more nuanced than that simple phrase allows for.
The first thought I had was that everything gets Tipped somewhere - i.e. in Investors Chronicle or Shares Magazine, or Mail on Sunday, or Techinvest, or Small Company Sharewatch, or Red Hot Penny Garbage, or Questor in the Telegraph or in the Times or whatever - there are countless sources of ‘Tips’. On this basis, if you were to apply the “Don’t buy Tips” ‘rule‘, then you wouldn’t really be able to buy anything and your Investing Universe would be extremely tiny !!
Wow, what a change to have glorious Sunshine all Weekend, especially on a Bank Holiday one. I have been out in the Sun mucking about in the Garden and pretending to ‘work’ on it but really just doing as little as I can get away with so that I don’t get over exerted and it is mainly focused on easy tidying up stuff. I am knocking out this Blog tonight as I have been invited to a Barbeque tomorrow which should be a laugh and a good distraction from the Markets etc.
I am so so happy that Summer has finally arrived. I detest the Winter (if I wasn’t so dependent on the Comfort Blanket of Stoke Mandeville Hospital I could quite easily depart for Spain or something during the miserable Months. The crazy thing is that I rarely go to Stock Mandeville but it is just nice to know that at the drop of a hat they will always deal with me if I have issues) and with the wonders of modern technology I really could do my ‘job’ from anywhere and the Time Zones aren’t massively different in Southern Europe etc. With this in mind and after a shocking Winter that seemed never-ending I fully intend to engage with the Summer Months with a gusto and to minimise my Investing Activities to the bare minimum I can get away with - I will not be surprised one bit if this means that my Returns actually improve !!
How do I know I have figured out what I am doing? How do I get ready for the Bear Market?
I am remarkably lucky that despite all my fears that in a fairly short period of time I would run out of ideas for Blogs and get chronic Writer’s block, by some weird quirk I manage to continually trip over new ideas that I think would make interesting subjects to write about (so that keeps me enthused to actually write them !!) and enable me to get some valuable educational points across to Readers. These ideas just seem to emerge from nowhere for much of the time but in this case the subject came about from an idea thrown up by a question from Snailspup via Twitter (@Winterfell4x) - I was going on about what to do when bad times hit (I had been reading ‘Trade Like a Shark’ by Robbie Burns which is strong on this) and saying if you have a proven system that works over time then you should stick to your knitting etc. and not panic.
Snailspup has been trading for about 5 years I recall but never been through a Bear Market so how can they know if their system works? I can’t recall the exact turn of the conversation but in essence this bit was asking if there was a way of measuring how reliable an Approach for engaging with the Stockmarkets was, and then there was a secondary part about how can you prepare for a Bear Market in advance?
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