View the article online at http://citywire.co.uk/money/article/a646272
Diary of a Dumb Investor: my 7% return in 7 months
It may not have been the toughest market environment, but for a beginner I reckon I've done okay.
‘You had to try hard to lose a lot of money in 2012,’ said a smug-sounding senior City figure last week.
Barring some commodities and individual basket cases like the share markets of mainland China and Spain, practically everything has gone up over the past 11.5 months.
Me, I’ve made 7% on my investments, but that’s only in the space of the seven months since I took over this portfolio from Dumb Investor Mark 1 back in May.
My portfolio 7 months on: Click to enlarge
You might uncharitably say I’ve merely ridden a wave, as Ben Bernanke and Mario Draghi, the generous chiefs of the US and European central banks, have propped up markets.
And more fundamentally, even as a meek investment greenhorn I at least didn’t make the same mistake as the managers of investment trust RIT , one of the losing holdings in my portfolio (and part of my inheritance from the first Dumb Investor, who thoroughly lived up to his name, losing just shy of 10% of the original £10,000 before bowing out disgracefully in May).
The managers of RIT, which is chaired by Lord Rothschild, were just too cautious. Not so many months ago, in the depths of the eurozone’s existential crisis, such investors chose safer stuff to invest in.
They’re now promising riled investors remedial ‘steps’. But RIT’s performance this year shows how avoiding risk is in itself a risky business; you risk not making as much money as you could have otherwise done. RIT remains on the ‘naughty step’, as Citywire reader sgjhaghsdg put it.
But if RIT was a slippery banana left for me by my predecessor on the portfolio, then BP (BP.L) was a vicious punji trap.
News sponsored by:
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Look up the shares
- BP PLC (BP.L)
- Aggreko PLC (AGGK.L)
- Standard Chartered PLC (STAN.L)
- Lloyds Banking Group PLC (LLOY.L)
Look up the investment trusts
More from us
- Bullish investors set to pounce on bond-like shares
- Diary of a Dumb Investor: DI is dead; long live DI!
- What is OMT and how does it save the euro?
- Underperforming RIT takes 'active steps' to fight back
- Artemis buys into Rosneft, says it's the winner from BP deal
- BP faces £2.8bn criminal penalty for Deepwater spill
- BP raises dividend on forecast-beating $5.2bn profit
- Aggreko plunges amid European market sell-off
- Diary of a Dumb Investor: I’m making a killing on Standard Chartered
What others are saying
Tools from Citywire Money
From the Forums+ Start a new discussion
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.