Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"Do you ignore COVID and inflation and just see a downwards direction? . . . "
Absolutely not. The share price recovered its Covid losses by the end of 2021. Since then, probably due to inflation and increasing interest rates it's been on a downward trend. Inflation figures have started to improve and as such the share price has rallied over the last 2 or so months.
My original post was on the back of a comment stating that this can only go one way . . . up! That's a dangerous assumption to make. However, I hope it does contine on its recent upward trend. For me, though, I'd be more than happy with a share price increase to around £2.60 by the end of 2024.
I would just add that I've held this since 2015 and out of a portfolio of 27 holdings this is still my 3rd largest despite selling some recently.
"there must have been a fair few dumkopfs selling . . . " - well not at £2.06 but at £2.17 on 6th October. My choice, my decision and one I'm more than happy with and confident that it's the correct one.
"Much of the up and down behaviour is caused by silly people who are financially clueless . . . " - so you think the share price of a business with a market cap of £14.5bn is driven by 'silly people who are financially clueless'? I've got to say I'm not so sure!!!!!!!!
" . . . If there is a better place to put some money dear posters please enlighten me . . ."
How about the Legal & General International Index Trust Acc? Better anualised returns over 1, 3, 5 & 10 years. Much safer as extremely well diversified compared to a single share. I hold both in my portfolio.
"our fund manager . . . never once beat the index . . . "
I still hold a number of managed funds but on an annual basis consolidate poor performers into global equity tracker funds. I've also adopted a strategy to move away from individual shares, LGEN is my last individual dividend paying share, and to reduce my exposure to dividend paying holdings. I've reduced it from 30% to 25% over the last 12 months and will have it down to 20% of my portfolio value this time next year.
It's amazing how, not only a number of managed f unds underperform the market, but also dividend paying investments.
For info my index trackers are: LGGG, IUQF, RSGL, WLDS and L&G Global Tech Index. Compare your own holdings to them!
I don't think there's a single avenue to follow when deciding what to do when sitting on an investment that's devalued your capital. For me, though, simply holding on in the hope of it recovering is a non-starter. Not unless you've good reason to believe a recovery is likely. If not then sell and move on to something with more promise. Hard to do, I know, I sold out of NRR a number of years ago at 80p (ish) for a 5 figure loss. Its price today . . . 80p (ish)
I still sit with a couple of real dividend paying 'dogs'. However, for various reasons they'll stay in the portfolio for the time being. I have been reducing my relience on dividend paying holding over the last couple of years and dividend payers now account for only about 25%, by value, of my portfolio. My aim is to reduce this further to about 20% by q1 2024.
I hold LGEN in a fund & share account, an ISA and a SIPP. My LGEN holding in both my fund & share account and my SIPP will be sold at some point over the next 12 months.
With such a small amount, ie 0.068% of shares in circulation, I don't see the point. They're saving £27k against an annual dividend cost of £39.8m! It's peanuts and insignificant and it's on that basis that I don't see the point.
What, a massive saving of £9,760 on dividend payments! I say again, what's the point? It's 0.02% of their dividend bill!! I don't see the point.
I don't see the point of these low value buy backs. This latest one was 0.02% of the current shares in circulation. What benefit is that?
Thanks for the link. Interesting read.
. . . "go for quality stocks . . . from steady businesses like HBR and SQZ"
Would that be HBR who have delivered a negative return of -18% over the last 12 months? Or, would that be SQZ with a -14% negative return over the same period?
Neither, I'm afraid, fall in to the category of what I consider to be 'quality, steady stocks'
Sidi - I learned many years ago that I cannot make money if I try too hard. To me that is trading. It doesn't work for me. I also came to the conclusion that the only reason I should actually be buying shares or funds etc is to try and beat the market. I define the market as the global economy. A large proportion of my investments haven't beaten the market on a regular basis. Accordingly I've been actively consolidating my investments so that my exposure to a simple global equity tracker fund / etf, as a proportion of my total portfolio, has been steadily increasing.
Here's my largest - Legal& General International Index Acc. If you prefer ETFs here's their equivalent - LGGG
Compare how your holdings have done over 1, 3 and 5 years to the above and come to your own conclusion. Good Luck!
Meoryou - time flies! I sold here around Feb time. I'll let you have an update as to how the portfolio i reinvested my bp capital in is doing on the 12 month anniversary.
Good luck with your investment here.
Simon1367 - an investment here 5 years ago with dividends reinvested would have delivered a total return of 27%.
However, to put that into context a similar investment in a global index tracker fund/etf would have delivered a return of 66% over the same timescale.
One reason why I limit my investment in dividend paying assets to around only 25% of my portfolio value
Robleo - I'm in a similar situation in that I have varying degrees of confidence with regards to future performance / recovery prospects of my dividend paying holdings.
Luckily my div holdings only represent around 25% of my portfolio. I shudder to think what my portfolio's performance would look like if I was 100% invested in dividend paying equities, as I have some absolute dogs presently.
Out of interest here's my list: MRCH, HHI, HFEL, EAT, UKW and LGEN.
Robleo - Warren Buffet's first 2 rules of investing are 1) don't lose money, and 2) see rule 1!
It seems to me your funds meet both rules whilst dividend paying shares don't (or at least aren't at the moment)
It always seems to be 'jam tomorrow' for my dividend paying holdings.
Global index funds will continue to be at the core of my portfolio. After all the UK is only 4% of the global economy.
Just compare the total return from the Legal & General International Index fund Acc (or LGGG ETF) to the return from LGEN share. I'm afraid the fund/etf wins hands down.
Unfortunately LGEN is one of my largest holdings!