The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Robleo -
I'll echo a lot of what others have written.
My experience of stocks has been more to the downside. Never done well. More I've found where I belong and I should be happy with that.
Solid dividend players for me is my future and just keep ploughing savings into those funds/stocks. I don't re-invest dividends for the simple reason that if that company went under, then I'd lose the capital + the income reinvested. All boils down to not putting your eggs in one basket.
There's been occasions where my original belief on why I bought into a company remained consistent, but market forces had other ideas. For example, oil. I bought heavily into drillers last decade in the middle. Height of the oil boom. Prices for oil were north of $100/barrel. oil companies were pulling oil out of the ground at an amazing rate and driller were being paid whatever they asked for. Then the price crashed, with supply cited as outstripping demand. When you look at the data like I did, the world wasn't accumulating vast quantities if oil....perhaps a 1M boed either side of 100M boed. But those with the power to shift prices exaggerated that and dropped the price of a barrel to as low as $28. Funny that...did you ever notice petrol at the pumps materially lower than £1 between 2015 and 2020? I didn't. Did people stop buying fuel? Nope!
Nevertheless, the debt which driller took on board to buy more rigs crippled then and the day rates dropped by over 80% in some cases. Whilst its crazy to think oil was going to be plentiful for the next 100 years, that's how the market treated drillers and in the end, despite me not seeing lowing price of fuel at the pumps, drillers filed Ch11. I held on to my conviction and accepted the paperloss, to the point where my share were de-listed.
There's been other occasions where I've called it a day on my paper loss, booked a 90% loss buy selling, only to see the stock miraculously rise 20 fold the following month owing to a buyout or fantastic FDA results or bloody COVID!
Some folk are plain lucky. Some aren't. I'm the latter.
But I have settled into slow and steady (like Edward) with some limited success. This is where I belong.
As long as I beat the banks' savings rate, I'm happy.
Deutsche Bank raises Legal & General price target to 295 (290) pence - 'buy'
Also noticed my other holding got a nice 10% increase in the PT.
Deutsche Bank raises M&G price target to 250 (230) pence - 'buy'
Casapinos - Defo not boring.....The current turmoil in the markets over the last 18months has presented a gift that keeps on giving. Boring but likely reliable investment that provides a bit of stability to anyone's portfolio.
In a few year, you'd be kicking yourself if Interest rates fall back to
Casapinos - Oh...There's also no stampduty to pay like shares, but you still pay HL commission to buy and sell.
There's a slight loss in interest calculated in the run up to the next maturity date. Pro-rated I presume.
Casapinos - Thanks.
I understand the relationship between Interest rates (& bond coupon) vs bond prices. That's why I'm asking giving we're nearing peak rates (if not already there). There's a few bonds priced below par offering coupons above 4% on HL platform.
Treasury 4.25% 07/12/2055
GBP | GB00B06YGN05 | B06YGN0 4.250 7 December 2055 93.440
You'll get 6% upon maturity and 4.25% annually for over 20yrs...Just tuck it away!
Treasury 4.75% 07/12/2038
GBP | GB00B00NY175 | B00NY17 4.750 7 December 2038 102.410
You'll lose 2% upon maturity but you bag almost 15yrs worth of coupon at 4.75%.
Casapinos - who do you buy your gilts through?
Is there's a minimum amount and how liquid are they to sell.
Just to confirm....being gilts, their coupons don't eat into any of our tax allowances do they if held outside of an ISA? That was my understanding.
"A pretty positive message from SMT"
Can you seriously see one of the largest investment growth trust out there to issue a statement....."We're in bad shape/We have no clue what we're doing/we keep picking bad horses/we can't explain the >15% discount to NAV"?
BTW MrAmericano - MRNA disappointed the market again.
The only way this stock is going to have a floor is if they exclude COVID revs completely from all quarterly presentations.
Unless its free, you're not going to get bumper revs.
Icarus321
"Question Three:
At the end of the day and despite all the good arguments you make about the strength and size (and therefore the valuations) of the private companies in the portfolio, is the discount to NAV not driven primarily by the fact that public valuations are treated with a higher level of certainty than those obtained privately? If so, how then do you close the NAV discount and unlock that value for shareholders?"
Slater's answer was rubbish.....everyone else is down so why can't we? Err...at 20% discount? And as big a fund as yourself.
MrAmericano - Tracker is defo a good call....you may not catch the biggest spike should it happen, but nothing wrong with slow and steady. Global growth funds too have less volatility and you can see a nice uptrend, even if the gradient is not steep. Polar Capital tech trust is another similar themed to SMT, just with different minds in charge.
Anyway, I'm looking at purchasing Gilts at the moment and lock in some below par bonds at 5% for 20 years.
Well, I found it pretty pedestrian.
They weren't going to admit to any wrongdoings or massively poor choices of picks.
I'm glad they confirmed they kicked out ILMN. The company has problems it just can't fix in its current form.
They pretty much avoided answering the question regarding price to NAV discount. More, well every other trust is at a discount so why can't we? Errr 1) not entirely true, 2) You're SMT and perhaps you should be a bit more concerned 3) why nearly 20%?
At times, I felt Slater was a tad arrogant. He came across as :" This is a waste of my time!"
LLL and WALP : Bonds are actually a nice side earner.
You can pick up some long dated Gilts (I use HL as a broker) for a near 10pc discount to par and book that 5%+ coupon.
+ tax free so doesn't eat into your ISA allowance.
Not exciting, but it smooths out the performance. Quite nice to get a 5% coupon ( paid semi-annually)
LLL "However, 30% is a lot to invest in any one asset IMHO, whatever your level of conviction."
LOL! One of my wife's ISA is 100% in SMT bought at 800p!
At least its not as bad as the 10pc of my 4yo daughter's JISA in BG Global Discovery (Bought in at 2950p).