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:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
Andrew Friend, acting co-manager*, and Marcus Langlands Pearse, co-manager of the Henderson UK Property Unit Trust (HUKPUT), provide an overview of the key risks and opportunities for the UK commercial property market.
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
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by James Carthew on Apr 14, 2014 at 14:06