RobJC27 Jun 2011 14:32
No, didn't sell out, am a long term holder not an active trader. An odd investment strategy i admit, and not one that most would be able to get their heads around, but it works for me. Always regarded my investments during the 70's-90's, mainly the big state privatisations, as my own self select pension. The money was put away to provide an income later in life when needed, and have only ever sold when one of my holdings has been the subject of a takeover. So my last sale was Cadburys and no doubt soon i will have to sell BSkyB.
Bought BG when it was first floated back in '86 for around 130p. With all of the susequent demergers i now own BG, Centrica and Nat Grid, and am considerably up on the deal, although i dread having to sell one of them as working out the base cost would be a nightmare!!! Am also regarded as a dit of a dinosaur by many as all of my holdings are in certificated form, which would make quick sells and buy-backs very difficult. And, as i've always taken divs as new shares when available, i have a mountain of paperwork!! But it does mean that with a yield of around 5-6% some of my holdings have doubled in size over say 14-16 years. Pity BG has such a poor yield and does not over a SCRIP or DRIP or i could have had many more shares.
I have the highest regard for anyone who can make money out of being an active trader, i just know i would make too many mistakes as i'm not prepared to put in the time to analyse things properly. Yes i could have ended up with some free shares if i'd sold BG at 1550 and bought back in now, but as my base cost is somewhere around 50p the only question is how much money i make when i sell, and not if i make any.
Like you i'm also suffering at the moment with BNC and LLOY. But my BNC shares were free as i was a customer of Abbey when they floated - i was one of those people that back in the 80's and 90's opened accounts with every building society there was in order to make a killing out of the free shares that were on offer when the old mutuals converted to banks - and my original holding of lloyds was by way of TSB shares when they floated plus the recent RI's so hopefully i am just about at break even.
Guess the real point i'm trying to make is that if you are able to put some money away for the very long term, say 20-30 years, and pick some sound stocks with a good yield, then you will build up a better nest-egg than putting it into a savings account. Yes i have made a lot of money on some, none on others, and even lost money on some shares, but overall i have achieved a very reasonable return on my investments. And, unlike a pension pot where you take 25% as a lump sum and have to buy an annuity with the remainder, with my shares i can sell the lot in one go if i so wish. Although to avoid paying HMRC any CGT i would only take my allowance out in any tax year and supplement that with others that are in PEP's or ISA's.
Apologies for rambling, don't really do short posts!! ATB