RE: Warnings on Dealing18 May 2024 15:28
Sean, I'm primarily investing for income and these days (capital growth, at least in the short/medium term, is of secondary importance), with mixed results. I'm a contrarian. I believe that the UK market is fundamentally undervalued and that, by the normal rules of arbitrage, at some point investors will be forced (ny logic) to return but for the moment they seem to be firmly wedded to buying an asset for 100p elsewhere even though a comparable asset can be bought here for 80p!
I'm quite heavily invested in the pension/insurance market (about 20% of my portfolio by cost), e.g. AV, LGEN, MNG and PHNX, as I believe that this market will continue to thrive as the UK's population ages. Income has been good thus far but capital returns less so (about breakeven) ;-(
I'm also a bit of sucker for infrastructure and property (again about 20% of my portfolio by cost), e.g. AEWU, BBGI, GCP, GSF, RGL and SAFE. Again income has (generally) been good thus far but capital returns not so (RGL has been particularly badly affected by the rise in interest rates). However, I think these will start to improve if interest rates start to fall as expected in the forthcoming year or so.
The rest of my portfolio is a bit of mixed bag. I do currently hold one equity investment trust (AEI) which I hold for income and a bit more diversification, and am looking at other possibles. AEI has quite a good dividend at present but I'm not sure whether it'll be able to sustain it (I believe so but am not certain) because a few of its investments have cut or stopped their dividends recently. That said, it's NAV has been buoyed of late by a few takeover offers, so it's not all doom and gloom.
I do hold a few outliers that I think could become multibaggers (doesn't everybody) and I rather fancy FTC, SOS and ZTF at present. SOS is, I believe, well managed and a bit of a slow burner but I think it will come good given time. FTC and ZTF are already on the march and I think that both could still double from here over the next 12-18 months.
ZTF might actually do better than that if its new beverage packaging material really starts to gain momentum; look out for some further positive news in its AGM statement next week (it could be the next TetraPak i.e. it could be the next market disruptor). In a nutshell, it's a mono-recyclable material which uses less energy to produce than comparable packaging, offers longer life when opened and is also microwavable. Not only that, existing production facilities, with minor upgrades, can be used to produce the new packaging! This article might better explain: https://www.packworld.com/sustainable-packaging/recycling/article/22910049/disruptive-monomaterial-aseptic-hdpe-carton-tech-takes-aim-at-lpb. Also, ZTF's other businesses are good too.