Member Info for Alas_Smith

Institutional investor increasing holding.

Always a good sign for minority investors where shares are lightly dealt

Baxter7788 and steph - I do not follow this trust as perhaps as avidly as I should. It is held in a SIPP for IHT purposes and thus deliberately structured for growth at the highest level of risk. We have, at the moment a market that was terrible last year for everything connected with technology and this year there is some recovery but lead almost entirely by the promotion of AI following its burst onto the public radar at the end of last year.

That GROW has invested in such future is exactly as I would like; sure, some of the holdings will fail and some will succeed. BUT, my money is on the managers of this trust to identify prospects whether fledgling or unable to develop to inject healthy levels of capital in exchange for a substantial stake where, with seed or development cash they are able to release some of their holding to bank the maximum percentage gain in the shortest time scale thereby returning original risk capital invested and in time realise the true growth when sold/listed etc.

Not sure about anyone else, but my timescale is 30 years (until I will probably peg out) and then another 30 for those that inherit either reap the reward of my good sense or the world has been subdued to survival.

They read well to me.

Cautiously optimistic tone in results despite 2022 market upheaval that saw a portfolio valuation fall. Difficult to gauage reaction.

The share price remains pretty perky again.

BouncyDeadCat - there is not the slightest chance that I would EVER consider investing in what is basically a mathematical solution to a nonsensical mathematical question that has somehow captured the imagination of some (gullible) persons claiming to be investors.

I do not gamble, instead I try and discover as much as I can about the proposed business in which I wish to invest. This starts by looking at the historic accounts,, then the managers records and finally the potential reward for me.

Many mistakes have been made by me with such strategy, but my long term track record is over 13% compound growth over the last 44 years. Currently my portfolio is up 10.75% this year and is on track for over 18% growth.

If you are interested in my strategy, there will come a point when I will create and make a substantial distribution into a Family Investment Company which will be an unlimited company. The trigger point will be once portfolio exceeds £5m and more probably £6m as the setting up costs are huge, require a team of specialist lawyers and accountants to write the articles of association. I have had initial meetings with accountants to discuss this, but as IHT is (again) subject for revision, a decision is not there for the taking for me and my circumstance.

They read well to me.

An interesting article published today. Subtle changes in execution of strategy

Has been marked as a BUY in this weeks IC

Plenty of opportunity for the SP to fall further! We are back to levels last seen in 2020 and I would not be in the least surprised if the price falls to test recent lows.

No point making any hasty decision.

Am tempted to dip my toe back in to average down. I prefer to average up.

Update today is not great. Probably in for a caning today, but markets may react differently

Contd…..

And defence is critical to all Nations. We have the added complication that even as weaponry evolves, tactics simply adjust. BAE has cutting edge stuff, but as we see unfolding in Ukraine, defense is sometime easier than offense.

BAE, should have not only a stable order book to cope with current defence needs of those countries supplied but a growing one to resupply depleted stock..

While I concede that I am not the sharpest knife in the block, surely the first duties of an investor are to understand what the business does , how it makes its money and whether institutional investors believe it is undervalued. So often, I read that the shares in xyz company are expensive because they are priced in hundreds of dollars/pounds/euros/Swiss francs etc whereas the complete opposite might be true based on the earnings of the company.

Similarly, there are certain managers that have a brilliant track record in buying and selling companies as venture capitalists, but utterly useless if appointed as the CEO of a quoted company that they subsequently float.

For oldblue 1973 and Deft, this is not a criticism as you are probably at the start of your investing journey and building a portfolio, I am not in the least critical of whatever choice of equity, instrument or exchange where you choose to execute a bargain, but volumes, trends and any other signals is always secondary to financial news released as RNS as interim or final results (and sometimes more frequent for larger companies) followed by statements that are likely to affect the share price and finally institutional opinion for their clients (pension fund managers and that ilk).

Broadly, consensus opinion from investment community is that the mining sector is in a super-cycle. There will always be up days and down days and for miners there is the additional element of commodity prices and international politics .with which to contend.

RIO is an investment that should be considered in terms of ownership for decades rather than months and, in mu experience there is never a good time to sell and rarely a good time to buy. Just have to trust information received and that the managers in the company will not simply sweat their assets but reward their employees with a fair days pay for a fair days work.

At the risk of boring others, probably the most important thing you can do is make sure that you have created Wills. You might wish to consider creating Power of Attorney for both heath and wealth aspects. These are triggered when capacity for decision making is impaired. You might wish to have a living will in place to help others in their decisions that might be necessary when using their power of attorney.

There is no liability to IHT on 1st death provided estate goes to surviving spouse. Gifts exceeding £3,000 in a tax year except as provided by the surplus income rule are potentially exempt transfers (PET) and fall under the 7 year rule. (There is a 14 year rule too, but we will pass on that). Keep accurate notes of date and amounts. Any unused exemption on 1st death can be applied in the proportion for executors after 2nd death. Gifts to trusts fall into the category of PET but as settlors, while alive, we have limited discretionary control with any distribution that a trust might make. (Important if there is a disastrous business venture or marriage where the trust has loaned capital for house purchase - trust can call it in and does not form part of the assets that it was loaned to)

Fromage, bonjour. For others this is off topic and I extend apologies. Succession planning began in 2014 when I realised that our estate had triggered the threshold for IHT and yet neither I nor my wife had inherited anything. Arrangements were made in advance of such event with the creation of a Discretionary Trust. This became effective in 2015 and is subject to taxation at 6% every 10 years. Discretionary Trusts have tax free allowance on death of £325k if broken.

A 2nd, 3rd and 4th Trust will be created,but between all trusts a maximum of £325,000 can be settled every 7 years. They are expensive to setup but from the capital invested, so they can be managed on a discretionary basis.

We have structured our portfolio, well our stockbroker has, so that most of our investments are sheltered in ISA wrapper with a mixture of UK, US, Asian, European and equities and Investment Trusts quoted on various exchanges around the world. Some are potentially exempt holdings (AIM for instance), but the strand we have not considered is using a SIPP wrapper. So, the direction that we are taking (and this is not investment advice or necessarily appropriate for anyone else) is to sell our houses and buy a farm - that should take valuation for land out of our estate in 2 years, though probably not the house element - move assets now that I have been the recipient of legacy left to me following surviving parent death last year into trusts for those to fall outside our estate in 7 years and build up SIPP holdings.

Equities in SIPPs are, for the most part shares in Investment trusts. Surplus income thrown off in our ISA accounts is gifted to children directly and replaced with cash from our dealing account. As we only began funding our SIPPs 2 years ago, neither has reached the minimum level (£200,000) for our broker to manage on a discretionary basis. Investment trusts need very little maintenance and expose wealth to focussed sectors, strategies or geographies. In that sense it is balanced.

With exception of my regular monthly deposit into SIPP account, just 16 bargains have been executed this year in my portfolio and all as a consequence of the receipt of legacy, 11 in general account, 4 in ISA account (2 from last years allowance and 2 in this) and 1 with cash settled into the 1st trust.

Phew - sorry to bore everyone.

FWIW, I am generally very bullish when it comes to investing. Yes, I know there is a cost of living crisis, inflation that is just starting to fall back and interest rates that have been rising for many months which is putting those with borrowings under greater pressure. Reports that airlines are starting to return to pre-covid passenger numbers is really good news but it has yet to translate to the SP in On The Beach rising.

I am sure it will, but recovery is likely to be delayed for a few months, I think as this has all the hallmarks of having found a level for consolidation to occur. And although it does seem troublesome for the SP to remain stubbonly at basement levels, this periods of consolidation do allow provision for the PI to consider their holding with fresh information that recent numbers provided.

I have only ready through the narrative of recent news and not considered the numbers to anything other than a superficial glance. It does seem to me that the bulk of revenues is from the societal sector that has the smallest cushion for economic worry and reliant on very tight budget constraint. They are likely to want to go on holiday, but are extremely price sensitive and may indeed have to book at the last minute.

Last minute bookings I suspect either have massive bargains or a case of where can my budget take us.

Investor and analyst meeting called later today.

News gets better and better.

Well, perhaps sharing your penetrating analysis might help all of us to be better investors.