View the article online at http://citywire.co.uk/money/article/a573630
Diary of a Dumb Investor: how I made 11% in seven months
Examining the performance of one of my top gainers makes me think that I’ve finally figured out how to do okay in this investing thing.
‘Dumbo! Idiot Investor! Moron Punter! Dog Boy!’ That’s what they call me, and it stings (although ‘Dog Boy’ is more confusing than painful). But I believe I won’t hear those names for much longer.
An analysis of the performance of one of my top gainers makes me think that I’ve finally figured out how to do okay in this investing thing.
I haven’t really paid the trust much attention of late, focusing instead on my purchases of shares in BP (BP.L) and Personal Assets . But this morning I noticed that I’ve actually made 10.7% on the holding, which has rebounded far more strongly than some of my other investments, such as Lloyds (LLOY.L) and TR Property .
That said, my entire portfolio is up 11.7% since I bought Scottish Oriental (although at £9,236.84 last time I looked, it’s still down 7.6% since I started investing…)
Basically the trust, which unsurprising invests in smaller companies across Asia, has done well as emerging markets have rebounded on hopes that Europe won’t collapse and the global recovery is still on track. The chance that China will start easing monetary policy, I understand, is likely to help those shares do even better in the future.
And it’s also got a great name: makes me think of a haggis, in a tartan-coloured takeaway container, stuffed with egg fried rice and sweet and sweet and sour noodles.
But what's really encouraging about the investment is that I bought in when everyone else was selling out of markets. They were scared; I was collected and machine-like.
Of course, I need to own a wide range of investments to diversify my portfolio yada yada, but my gains on this trust teach me that other golden rule: buy good quality assets on the cheap, then hold them.
Admittedly the price I paid for BP, 503.3p, was not particularly cheap. But it is a solid company, with a growing dividend – and I read a while ago that the stock could actually be worth as much as 900p if management decide to act on a radical break-up strategy.
And readers were generally supportive of the move, even though a few bristled somewhat at the triumphalist tone of my last piece.
News sponsored by:
The Citywire guide to investment trusts
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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
Look up the investment trusts
- Scottish Oriental Smaller Cos (Ordinary Share)
- Personal Assets (Ordinary Share)
- TR Property SIGMA (Ordinary Share)
More from us
- Diary of a Dumb Investor: markets are sinking – and I’m buying
- Diary of a Dumb Investor: The Stockfather, Part BP
- China inflation drop raises hopes of economic stimulus
- Dumb Investor: the story so far
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