Member Info for zac0_4

ade2a - I didn't say the income generated by the fund was short. I was simply questioning the validity of your claim that dividend income generated was well short of the level of dividends paid out.

Despite NCYF and SEQI, apparently, generating dividends 'honestly' their capital performance is little better than here.

Here's the sp performance over 3 years - NCYF -15%, SEQI -25% & HFEL -15%. Or how about over the last 12months - NCYF -8%, SEQI -17% & HFEL -2%.

It seems to me that they're just as guilty when it comes to capital depreciation.

jamtart1 - BP, for me, is an oil company. It is a million miles away from having a meaningful level of revenue generated from renewable energy. Of course I might be wrong. But I've yet to see any figures that dispute the statement above.

Don't get me wrong, renewables is a growing sector. However, I'm invested elsewhere in order to try to capitalise in this opportunity.

Then why not invest in a renewables company rather than an oil company?

jamtart1 - so what proportion of current revenue and profit currently comes from renewables?

jamtart1 - there's a big difference. From £2 to today's price was recovery. From here to £7 is substantial growth. Substantial growth from a company that is reducing output of its main product line by 40% over the next 7 (yes 7!) years.

OWLS & Spights - I love a system. I don't really have one now. I did historically. Nothing too technical. On a regular basis I used to download data showing shares with the largest downturn over 1m, 3m & 6m. I'd then cross reference these companies with director purchases. I figured that directors investing in their own companies whilst the share price was under duress was a positive sign.

Didn't always work but overall I had more winners than losers.

As a side, my focus at the moment is heavily weighted towards technology bias funds. I just can't see anything beating technology over the next decade.

Apologies again for being off topic (BP)

OWLS - I agree. I think data shows that something like 80% of actively managed funds underperform their benchmark (ie Index). The challenge is finding the 20% that outperform their index and selecting the right index!

On that basis I own a number of index funds alongside my actively managed funds and trusts eg

L&G International Index
L&G Global Technology Index
L&G Global Infrastructure
L&G Global Health & Pharmaceutical
L&G Global Thematic
Vanguard FTSE Global All Cap Index

Apologies for off topic (BP) post

ade2a - "what do I strongly disagree with you about?" I wouldn't say I strongly disagree, I just question the validity of your claims around the considerable level of shortfall in dividend income received vs dividend income paid out.

I assume you're not going to answer my question?

ade2a -

" I do not understand why you are in this conversation why you keep disagreeing with me" - can't I have my own opinion?

"Yield is not important, the rest of this conversation does not matter" - as a %, no, as a monetary value, yes

"You almost seem to dislike me" - I've never met you so no view one way or another. Just because I have an opposing view to you means just that

"Why do you need to know now what the discussions are about the dividends this aparrently is not important to you" - not dividends, but dividend washing. A point you raised and feel strongly about.

So, finally, will you answer my question?

OWLS - (apologies I should have included this in previous post for context) My largest fund holding by far is in Fundsmith. I've been in it for many years. It was launched 2011 and to date has delivered an annualised growth rate since inception of 15.5%. Not bad for an 'invest and forget' investment.

OWLS - my days of looking for single shares that fall into the 1% that you refer to are behind me. I've done that. Had some belters and also some absolute disasters. All part of a 25 year education in investing. Still learning but I've done ok over the long term. Certainly helped me retire early.

I really like funds for many reasons and, just like single shares, if you're lucky enough to pick the right one then you'll do really well. One of the lessons I've learned over time is that the harder I try to make money the less I make.

To go back to your '1%'. I think it might have been Jack Bogle who said 'stop looking for the needle in the haystack . . . simply buy the haystack!' That's more my investing style now.

It will be interesting to see how your grandaughter's global etf performs compared to your own investments in shares over the longterm. Good luck.

ade2a - for me looking at the yields of holdings is meaningless. It's the monetary value that's important.

The August 2022 statement showed income received as 24.41p per share. They paid a dividend during the reporting period of 23.80pps. So, dividend fully covered.

How the income arrives is of little concern to me.

Yes, the capital performance is disappointing but there's a host of possible reasons for that. So, I think we're simply going to have to agree to disagree.

So, how about answering my question?

Please define 'yield in the context of your statements / questions below.

Thanks

ade2a- I didn't object to your comments i simply disagreed with them.

It was and I did.

There are many possible reasons for poor capital performance.

and what was Mike's response?

Owls - sounds like a plan that works for you.

Me? I very rarely sell. Buy and hold for the long term, that's me.

I've been moving away from single shares for some time now. They pose too much risk. Down to my last 3.

For dividends I now hold a range of investment trusts. Less risk of a catastrophe and less risk of a dividend cut.

For growth, a range of investment funds. Again far less risk than individual shares and, in the main, a better return over the long term.

My portfolio took a hit last year but up until the had performed very well and I expect a reasonable year this year. Fingers crossed!

Good luck with your investments.

HopeGreedNothing

I’m not as optimistic as you regarding buy backs. Over the last 22 years BP have carried out share buy backs to the value of $78bn. The result? A 20% decline in its share price!

y11-shx - I take the meaning as inactive, or dull. I just don't see what will move the share price on an upward trajectory over the longterm.

I fear we'll still be looking at a price around £4.80 to £5.00 in 2 or 3 years time. In which case, for me, that's not a good investment.

Owls - I don't have too much to say about BP either. I think I've a decision looming as to whether to stick or sell.

For me the sp seems to be starting to stagnate.

I'm also beginning to question their use of capital. Throwing $billions at buy backs with no tangible benefit that I can see.

And the last meaningful acquisition? Over $4bn for a business which made a $25m loss in the 9 months to September 2022!

Decisions, decisions . . .