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I don't see a good reason to sell any of our shares today, in fact the oppostie I would like us to increase and diversify of our investments.garindan wrote:I just wanted to add something into the mix on this topic. We also need to consider:
...our current holdings and if it actually makes sense to INCREASE this rather than anything else.
Spot on.garindan wrote:I have to say I am not keen with this idea at all. The trouble I see with this approach is that we will either no longer continue holding shares that might pay a good dividend or we'll end up selling shares repeatedly at a loss, or both at the same time... I don't see where we'd make money unless one of those is compromised.
If this was the strategy in place and we had to vote right now - I'd vote for Shell as it would lock in a profit, rather than Sainsbury, which would lock in a loss. I don't want to sell Shell. Any of the others would also lock in a loss. So we'd take a quick buck on a long-term share and lose the opportunity of income from it, which would (currently) be more in a year than the profit of a quick sell. But why would we sell for the sake of having a poll when we don't actually have to? Trading is about predicting what shares will do and when the right time is to pull the plug and take your leave - whether in profit or not. I don't think it is about arbitrarily deciding it is time to buy and sell. In an AIM market maybe it might work better but we are in a FTSE market.
I can only really see the value of my investment going down over time, even if we sold Shell for a profit to begin with. I would suspect Sainsbury would run Shell close or win in a poll, meaning my fear of continued loss would begin to be realised from the off!
For me personally, the idea of forcing buying and selling of our shares for seemingly no real reason makes it considerably less attractive to be part of the club.
For me personally, the idea of forcing buying and selling of our shares for seemingly no real reason makes it considerably less attractive to be part of the club.
There are three things you mention here.kevinchess1 wrote:I agree that we should not be afraid of selling at a loss and, as stated, I want us to sell Sainsburys ASAP
You won't make money on every share but you can/should cut your losses
Personally I don't see a problem with having cash in the bank doing nothing
So what does everyone think the right number is?richard@imutual wrote:It doesn't have to be 5, but I think as a club we have to have some view as to what the optimal number should be.
Me: "I'm interested in joining the Cashback Investment Club. So what have you sold?"
CIC: "Sainsbury's."
Me: "That great, how much profit did you make?"
CIC: "We didn't, in fact we made a loss."
Me: "OK, you guys carry on, don't mind me, I just had too much time on my hands and thought I would pop the question."
CIC: "That's fine. If you change your mind please contact me."
Me: "Yeah, no problem. Bye (F-O-R-E-V-E-R)."
I hate to be at odds here, but I am not sure there is a right number. I am convinced 5 is too low. As has been mentioned we could be selling a good share because we have such a small maximum amount we can hold at any one time. We could set a maximum amount of shares we want to hold eg:10 or even 15 or 20 but do not have to hold that amount. I would have thought that within that limit there was plenty of scope to play and hold on to good performing shares. Also helping with the excitement.richard@imutual wrote:So what does everyone think the right number is?richard@imutual wrote:It doesn't have to be 5, but I think as a club we have to have some view as to what the optimal number should be.
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