View the article online at http://citywire.co.uk/money/article/a658018
Diary of a Dumb Investor: crash! go my mining shares
And I don't know why. So I'm reconsidering my strategy.
My speculative investment in Aurum (AURU.L), the miner attempting to find gold and tungsten in Spain, threatens to blot out my portfolio's small gains.
I knew when I bought the share, just two weeks ago, that it was my portfolio’s wild card. That it could rise and fall abruptly.
But I thought there would at least be some visible news behind the share price movement. I’ve unwittingly put £1,000 into an information void.
The shares are down 18% already and I have no idea why. I can’t see any bad news. My primary investment tool, Google, is for the first time failing me.
My portfolio: Click to enlarge
There’s not much I can do but watch the shares and the company news. Maybe this is just how it works with AIM shares.
Perhaps I need a change in strategy: rather than finding plucky Aurum-type shares (my Hutchison China Meditech (HCM.L) investment isn't looking too great either), follow the herd more closely.
Short term, the company is recovering well from the financial crisis, having recently attained two credit lines. Longer term – according to a compelling argument from AXA fund manager Jamie Hooper – Paragon is a way to profit from a shift towards more Brits renting. Like shorting the dreamy-eyed British home-owning ideal.
Watching what good fund managers do, backing that up with some of my own research, and then making an investment. That can’t be such a bad strategy, can it?
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the shares
- The Paragon Group of Companies PLC (PARA.L)
- Aurum Mining PLC (AURU.L)
- Hutchison China MediTech Ltd (HCM.L)
Look up the fund managers
More from us
- Diary of a Dumb Investor: going for broke on Spanish gold
- Diary of a Dumb Investor: should I short gilts?
- Small bank could be big deal for buy-to-let lender Paragon
- The investment opportunity from Britain's ebbing home ownership cult
- Nimmo buys trio of ‘damaged’, but rehabilitating shares
- Citywire Selection
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.