I wanted to raise a few things with you with regard to how we should move forward and so forth. I want to set out a few points that will help our direction:
There will be no new fund for the time-being
- there seems to be no real appetite for a separate fund
- there would be various time consuming work needed to incorporate one and without sufficient call it would not be in the interest of the Club right now
- I don't expect us to need to review this until this time next year, just to set the topic to rest for a while
We should concentrate on FTSE100 and FTSE250 companies for the time-being
- BREXIT will continue to cause uncertainty
- the forthcoming General Election will also cause some uncertainty for the next few months but hopefully less so thereafter from a UK government perspective
- we have slipped up with NCC, (on paper, though I would hope us to "escape" this one through company improvement) and we deviated from our FTSE100 and FTSE250 focus of before
- generally speaking the FTSE100 and FTSE250 should be more reliable than the All-share and as we are still quite small, have limited purchasing power and generally cautious in outlook we should stick to the FTSE100 and FTSE250.
- there is plenty of scope within the FTSE100 and FTSE250!
Focus more on high dividend and potentially undervalued companies
- we have had pretty good success to date with purchasing companies with good dividends that also offer the potential of price increase
- price increase might take time but the dividends on offer should provide a good cover during that period
- buying these companies as opposed to those offering a poor dividend and the same kind of price increase potential is less of a risk to us
- it alleviates the need for me to keep a close eye on the short-term bets and we do not really need the trackers I have set previously on the short-term purchases for the longer-term purchases, as we are in for the long haul
Continue to back our existing long-term investment choices by investing further when an appropriate opportunity arises
- we have had reasonable success to date in doubling up our investments in long-term holds
- if it makes sense to realise a gain in one share and purchase an increased holding in another long-term hold we should look to do that
If we do seize an opportunity for a shorter-term investment we should be more thorough in our assessment before purchase
- not that this would have helped our NCC purchase but it does mean we treat such shares much more carefully in the decision making process
I'd welcome your thoughts on all the above points. I think it helps define, with a bit more clarity, how we should move forward.
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