Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Gwm121 - " . . . in ur opinon which funds beat leg or vod from now . . . " That's not a question I can answer because it would be nothing more than a guess. LGEN forms a part of my portfolio and will continue to be for the foreseeable future. Vodafone I wouldn't touch. Too many issues.
One piece of advice I would give to anyone starting out on their investment journey would be to regularly invest (every month by direct debit never selling year in year out) in a global equity tracker fund. As stated below, L&G International Index Acc, is worth a look in that respect. In this way you're simply "betting" on the global economy continuing to develop and grow over the long term. Something it's managed to do for hundreds of years!
That would be my starting point to build a portfolio around.
On the subject of AI, the L&G Global Tech Index will I'm sure provide future exposure, and I've recently taken small positions in Microsoft and Nvidia.
And finally, investing is a marathon not a sprint. Good Luck.
Robleo - I'm not familiar with HL UK growth shares (do any UK shares actually grow?!!) or L&G Future World. The rest I'm either invested in or have been invested in. In almost all cases the year to date performance (accummulation version of each fund) beats the LGEN ytd return. Some by a considerable margin!
I'd have no hesitation in continuing to hold the ones I am familiar with. But of course that's your choice.
Eccles04 - ". . . the stories one hears along the lines of "made 20% this year" are mostly BS . . . "
It is difficult to keep a portfolio growing. At least I think so. I've been investing for many years. Took early retirement in 2018 and so have relied on my portfolio's performance to provide a proportion of my income from 2019 onwards.
Here's my annual results since:
2019 +20.9%
2020 +0.7%
2021 +17.4%
2022 -9.7%
2023 ytd +7.4%
Above figures are total return per calendar year. 70% global equity funds & 30% dividend paying shares / trusts. I'm just in the process of culling all my dividend paying holdings from my SIPP and re-investing capital into funds/etfs. Some of my dividend paying holdings have been appalling. I see no point in continuing to hold, even if that means selling at a loss, when I think I can get better results elsewhere. Once complete the split will be more like 82.5% / 17.5% in favour of global, predominantly non-dividend paying, holdings.
Robleo - be patient with your funds. A 'sluggish' performance of 0.8% return each month results in a double digit annual return!
Do you just invest in funds holding UK companies? There's a big wide world out there. The UK accounts for less than 4% of the global economy! Global equity funds have served me well over a number of years.
NoloServileCapis - that's the one. Legal & General Global Technology Index Trust, accummulation version. I've been invested in it for years. A bit volatile but generally heads in the right direction if you're patient.
However, don't take anything I say as advice!!!!
MrMath - yes, good to have a mix. I've far too many holdings - 23 at last count. Unfortunately at the half year LGEN sitsat position 20. I do agree with your earlier post when you state you fully expect to get your current loss of capital back. I certainly think a future share price of c.£2.56 is very probable. (that's your breakeven share price if my calcs are correct??!!)
My largest holding, by a country mile, is Fundsmith Equity fund. Currently up 8.5% at the half year.
Good luck
Robleo - ". . . but at these times of hight inflation there's is no growth coming from the funds . . ."
That's not strictly true, in my case anyway . . . here's some ytd results at the half year from some of my holdings
L&G Global Tech +37%
AXA Framlington Global Tech +19%
LF Blue Whale Growth +15%
Rathbone Global Opportunities +10%
L&G International Index +9%
I just wish my dividend paying holdings were delivering anything close year to date!
MrMath - So, by my reckoning, a compound annual return of 4.45% pa, over your 3 year period. Not a stellar return by any measure!
Their global tracker fund, L&G International Index Trust, has returned 11.10% pa, over the same period.
I hold both by the way.
You could have made a similar statement 12months ago. Using your maths you would have been looking at a 10% dividend over the forthcoming 13months. The bit you fail to mention is possible capital erosion. During the last 12months the share price has declined by over 6%. Dividends are certainly worth having . . . unless, of course, you're paying for them in loss of capital!
Tichtich - I have a foot in both camps - dividend payers and non-dividend payers. For me both categories are growth in terms of trying to overall provide you with positive return (growth) on your investment.
With the L&G International Index Trust all I'm betting on (if that's the correct terminology) is that the global economy will continue to grow over the long term. Something its done for hundreds of years. Nothing else.
Out of interest which other dividend payers do you hold? Mine are LGEN, HHI, MRCH, HFEL, UKW, EAT and NCYF. Only UKW has come anywhere near the 5 & 10 year annualised returns delivered from the L&G tracker fund.
I'm down to 30% of my portfolio in dividend payers now. I fully intend to continue to reduce that contribution over time.
How do the fund managers keep their positions whilst delivering this dreadful performance?
Next they'll be telling us it's delivering an outstanding yield compared to its peers . . . yes, on the back of a 35% destruction in capital over the last 5 years!!
Tichtich - not sure of the relevance of your first point. Where does Motley Fool fit into my post?
I'm the polar opposite to you. I actually want my investments to go up not down! I do agree with your statement regarding not taking too much notice of short term performance though. I invest for the long term so it's that performance that interests me. Out of my dividend paying holdings this is one of my better ones. So let's take a look at UKW annualised returns (with dividends reinvested) over 10, 5 and 3 years.
Here they are (10) +8.27%pa, (5) +7.32%pa & (3) +3.77%pa
Here's the same annualised returns from a global equity tracker fund - L&G International Index
(10) +10.59%pa, (5) +8.97%pa & (3) +10.32%
The differences mount up compounded over the long term. The above is the main reason why I'm slowly moving away from dividend paying investments.
. . . dividend paying share that continues to erode capital! What are Warren Buffet's first 2 rules of investing?. . . no.1 Don't lose money, and no.2 refer to rule 1
Thankfully 70% of my portfolio is invested in global equity funds
Brib - It does. It's not looking particularly promising for my dividend paying holdings this year to date though. If their share prices remain 'as-is' until year end here's my projected total return (capital & dividends) for 2023.
LGEN -3.1%, New City High Yield -5.0%, MRCH -3.3%, HHI +3.8%, HFEL -5.4%, EAT +0.9% & UKW -4.1%
I often ask myself why I bother with dividend paying holdings! Thankfully 70% of my portfolio is in global equity funds. I'd have been far better simply putting all of the above in a global tracker fund - my holding in L&G International Index is up almost 7.0% year to date.
At what cost to your capital, though?
"Look at a companysuch as Aon (NYSE:AON) due to buybacks . . . "
That's an assumption. Perhaps the rise in share price could be down to the increase in profits from $700m to $2,600m during the same time period.
As I've said, I'm not convinced by buy backs . . . but that's only my opinion.
Neversellshell22 - Thanks. Although the harsh reality is that the total return I've enjoyed (!) over the last 5 years, with dividends reinvested, has been . . . a loss of 8%
If I'd have had my money in a simple global tracker fund, ie L&G International Index fund, over the same period I'd have enjoyed a return of +59%.
That's one of the reasons I'm moving away from (i) individual shares, and (ii) dividend paying holdings
Bald_eagle
"Zac, don't panic, I'm not saying personally that I think the divi is unsustainable . . . " Good. And I'm not panicking!
I think your final point "People who like dividend growth but tolerate capital erosion then please explain your theory on why that is good? . . . is too often ignored or when recognised is not acted upon. I wouldn't say I've consciously tolerated capital erosion but I've certainly been caught out believing a share price will recover. My investment in NRR cost me a 5 figure loss! Bought in around £3.00. Sold at 80p. An expensive lesson.
I'm not too bad here. 1st purchase made in October 2015 and have added along the way, including last Friday. Highest price paid £2.76, lowest £1.77 with an average of £2.39. So, to date around 8% down on capital but dividends received to date to the value 43% of my overall cost.
Despite the above looking ok I'm fully aware that over the last 5 years (to date) LGEN has delivered an annualised return, including dividends reinvested, of 3.75% pa. My investment in L&G International Index fund has delivered an annualised return of 9.60%
I'm slowly weaning myself off some of my dividend paying investments. Shell was sold last week. LGEN is safe for now but on the watch list!
Gulharbour - apologies. I mustn't have explained myself clearly. I'm not in favour of company buy backs. Buy backs indicate to me that a company doesn't have anything better to spend their profits on . . . ie profitable reinvestment in their business!