churjones
12 Apr 2015
Re: A little bit of insight Rober01 I have started to follow your approach on the diversification aspect buying trusts where i see an opportunity or perceived value, which takes me to your last paragraph re:individual psychology and bias, that bit sums it up for me, as i love doing the background work and hopefully picking those shares that will do it for me, without the need to follow the crowd, but search out perceived value. regards
Rober01
12 Apr 2015
Re: A little bit of insight Rober01 churjonesHence the diversification a fund can bring, as opposed to whatever number of individual company shares one buys. That is say unless one happens to be another Warren Buffett, when the whole issue becomes academic!!!Incidentally, I have just had a further look at my 2015/16 tax model and my recent ISA action has certainly avoided the higher rate tax problem I have just had in the 2014/15 tax year. Nevertheless it is still to close for comfort and another set of dividends from LRE like the last lot would be difficult, especially if one other set was exceptional.Still, "you have to earn it to pay it" they say, so I should not complain. The assumption I made on this issue in the face of the my tax model facts, just proves how important a role individual psychology and personal bias play.Regards
churjones
11 Apr 2015
Re: A little bit of insight Rober01 That is quite impressive and you cannot deny the facts, My claim to fame buying on 2 occasions shares for the same reason as you stability, and reasonable long term return, alas Ferranti and the banks RBS & LLOY had a share graph much like yours but inverted ha ha,so longer term and risk are in my thoughts but i never make these my mantra, stability yes. I just look at the information and make a decision these days irrespective, but aware. regards
Rober01
11 Apr 2015
Re: A little bit of insight Rober01 churjonesI could not go without getting you to look at my oldest living investment!! I bought this insurance fund in 1987 and sold a large part of my holding at a very good profit in in the early part of 1998. I think it sums up my philosophy about "stability. Over all of that time it has managed to maintain a Total Return of 7.8% pa through thick and think. Some achievement.The link is MMOR&it=ukin." target="blank" rel="nofollow">[link] When you get chance take a quick look.As I previously mentioned, I intend to add to my holding as soon as I think the price ii right. At the moment it is on the up and up.For me investing is all about balancing risk and reward.Regards
Rober01
11 Apr 2015
Re: A little bit of insight Rober01 churjonesIt suggested that the B----Y politicians will start tinkering with CGT again under the next regime, God Help Us All!!Incidentally, you know how hot I am transaction charges ( my last purchase commission was 500ths of one per cent). Well on doing a bit of a review I find my broker has charged me 50 pence over the odds on 6 transactions. Needless to say I have immediately written "demanding" the return of this "illicit" overcharge of £3. I have also demanded to know what "action" they intend to take to ensure this never happens again. I decided on this occasion not to ask for compensation for the hurt and distress caused and as I had not made any, I really could not ask compensation for the cost of telephone calls, as I have done in the past.Some of these organisations have the cheek of the devil!!
churjones
10 Apr 2015
Re: A little bit of insight Rober01 I'm into 3 stocks at present in commodities, AAL flat lining at present and monetarily i am well down arh!!!, PMO holding my own but the divi has gone, and BRWM which i am slightly up on having bought on the fall after their recent problems in Africa. Yes make the most of the lump sum, i to can see changes afoot all round with that which has been put in place by George. regards
Rober01
10 Apr 2015
Re: A little bit of insight Rober01 churjonesToday has been the best market day for me since last July.I have never owned petroleum/mining companies they have just not appealed even though the large companies provide/provided good yield. I do however understand the need for commodity involvement, as it is uncorrelated to the general market. Therefore I use BRCI to provide portfolio balance in this area (thank goodness I did not choose World Mining). I have never managed to break even on capital cost, but I console myself with a reasonable yield. I look at adding to my holding from time to time as the price has dropped, but this is not yet sufficient for my taste.Incidentally, I completed my my bed and Isa transfer yesterday, next step adding to my SIPP and taking part of my 25% tax free, before the next government does away with it. I would like to take it all, but that would necessitate selling good shares, which for me is a no no. I just hope I can build up enough income to take the rest before it is taken away.Regards
churjones
09 Apr 2015
Re: A little bit of insight Rober01 Wish i had been a step behind you when you bought,CKN here is a thought on the recent oil find down south and my buying PMO egdon resources have numerous licences in and around that area PMO have a holding in them and the chief executive is on the board, interesting but not really your cup of tea i know, nor mine now the divi has stopped
Rober01
09 Apr 2015
Re: A little bit of insight Rober01 churjonesCKN is great but my average price is £6.28, price last night £22.85 and it has been a lot higher!!! Just too rich to add more, for my blood. All this, when the shipping market is overburdened with new ships, must be one of the greatest British success stories, that no here has heard of.Wish more of my portfolio was like that!!Cheers
churjones
09 Apr 2015
Re: A little bit of insight Rober01 I thought CKN was a favourite of yours can see what you mean though, EAT was one i wanted to buy way back still on my list actually, unfortunately the price rocketed and i could not afford to buy, what was interesting was the link to dividend/ n.a.v, will bear that in mind. regards
Rober01
09 Apr 2015
Re: A little bit of insight Rober01 churjones"though if i have a share that has fallen in price since purchase then the yield will drop also"But only if the dividend drops!! If not then the yield will actually rise. Conversly if the price goes up but the dividend does not, then as you say the yield will fall e.g CKN for me 8% yield, at current price 2%. Unless as in the rare case of EAT the yield is set at 6% of current NAV.I personally use a annual basis (total return/divided by period held) for both capital and yield returns. Otherwise one can kid oneself that say a 5 year return is a single year return!! Historically of course dividends contribute more than price to total return, just as research indicates that allocation contributes much more than stock picking to total return, a case proven by a number of IT return breakdowns.Regards
churjones
08 Apr 2015
Re: A little bit of insight Rober01 I can see a good yield in there with all the pictures,do you use that type of pictogram with your portfolio. Yield is dependant on what price you bought into the share on most of the paperwork i get from the broker and on the site it is quoted as the live figure today, on my account it shows an average of 5.4% which in reality is far lower than my actual return, conversely though if i have a share that has fallen in price since purchase then the yield will drop also, that is what happened during and after 2008 low sp + low dividend yield, so no selling this is another indicator of hold/sell or not sell for me an average of 5.4% is fine for me as i have made a capital gain to cover any interest lost but i need to sell to crystalise it. if you look at HSD the figures are about 8% now but my yield is about 4.2% historically, still not bad in todays markets conversely CLIG and CTR offer yields over 10% at the price paid but they also have a high sp so a sell would be on the cards for both. regards
Rober01
08 Apr 2015
Re: A little bit of insight Rober01 churjonesThe reason in part for my excess dividend receipts is due to LRE. In the last financial year I actually received a net yield of 15%, yes 15%. The sites will normally tell you its yield is between 2-3%. This is due to the fact the do not include special dividends. LRE have a policy of paying all income not needed in the business as "special dividends". Markets were tough last year and LRE did not chase poor returns hence the level of special dividend.I know we have spoken about this one in the past, but I thought you might like to look at this link [link] as it might give you some idea of my yield philosophy. This is despite the shorters loving this one!!At some level the same approach can be seen by me in respect of IPE.Regards
Rober01
08 Apr 2015
Re: A little bit of insight Rober01 churjonesWhat happened to me is embarrassing, I should have none better!!However, as you say, it does illustrate the complexities of the tax system and the fact that those used only to PAYE are about to get a big tax system shock.My SA has now been submitted and I move on to consider this years ISA. Good Luck with your SA.Cheers
churjones
07 Apr 2015
Re: A little bit of insight Rober01 That's an interesting point on the tax element, and although i'm not in anyway near those figures it does show how you can be led into, think/ believe you have nothing to pay, a similar situation is about arise with the new pension provisions, i:e the 25 % lump sum out of the individual pension pot, take out more and the same still applies as in previous years HMRC will be calling with a "pay me form " regards
