Pebble8 Aug 2011 14:23
Thank you for your few kind words.
My knowledge - such as it is - is born out of what has worked for me in the past and may be of no use to you. I bought my first share in 1975 - when i was 18 - and continued adding until the late 90's, although i almost always take up RI's and always if offered take divs as new shares, so my portfolio continues to grow. All of my holdings bar 2 are in paper form, which makes quick dealing impossible, so am considered a dinosaur by most on here!!
I always considered my shares as my pension fund, so not interested in continually changing holdings or day trading as i didn't have the time. Over the years i have roughly split my investments 50/50 between shares and unit trusts, using UT's to invest in areas that i would otherwise not have had access to. Made useful gains in the early days of the dot.com bubble, and more recently switched to Emerging Markets and China, again with some success, so would suggest you look at those as a way of diversifying. I retired in my late 40's and have what i consider to be enough to last me and my family to the grave!! As and when i need the money i will start selling off my stocks and UT's, getting rid of the poorly performing and low yielding ones first.
Enough about me and on to your question. There are an infinite number of types of investor, ranging from me - with my buy it and keep it for life strategy - to those who monitor every 0.1p move, and those that buy penny shares on AIM looking for the next big thing. Somewhere in amongst all of those will lie your good self.
Personally i cannot fault your strategy or choice of shares, it has worked for me. Other good yielders would be NG and the utilities, and if it gets it act together soon BP. I would hesitate to recommend individual shares to you, that is not my style, and there is always someone out there who claims to know more and will disagree, sometimes quite unpleasantly. Some advice i would offer however is that where offered i would always suggest you take your divs as new shares, via a DRIP or SCRIP. With a yield of 6% your holding will double in size in about 12 years at no extra cost to you, so even if the increase in sp has only been modest over that time you will have seen your investment at least double. And, spread your risk. The more areas you are invested in, the more chance you have of picking a winner.
Have seen some major falls and recoveries in my time so am not unduly worried at the moment. FTSE stocks have fallen recently, but most by not as much as some of the AIM ones who are all froth and hype. Unless you are the luckiest person on the planet, or have your own crystal ball, don't get too hung up on trying to get in at the bottom or out at the top. Buy when you have the cash to spare and when you think a share represents good value, some you will get right, some you won't, but, if you hold long term, then 10-15 years down the line 5-10p here or there won't make much difference. ATB.