Ingleby_Flash
Well-known member
Personally I’d go BAE over RR.
Investing In Shares
- Thread starter Randy
- Start date
Redwurzel
Well-known member
With Investment trusts
Check Performance over 3 months to 10 years if it is available - particularly check relative performance against similar trusts i.e trusts in the same sector. I like Trust that usually out perform their rivals more than are out performed. In football look at Warnock's record is it better than other managers, he will have ups and downs but you get a sense of beating the average over time. Trusts can be similar
Check discounts/premiums - I don't buy trusts on premiums (underlying assets are worth less than the Trusts share price. Is the discount lower than average for the same trust over the last 12 months. An exception is venture capital trusts. Sometimes a discount can increase for no special reason there could be a buying opportunity.
What is the media saying e.g are there recommendations for the Trust from financial journalist(s).
I try and buy when something is not popular but has the potential to do much better. An example related to football would be Sunderland or Bolton or Charlton @ present. Unpopular sectors are Property, UK value companies, Japan (although changing), Emerging Markets. Alternatively sectors than look ordinary but could be big growth areas example at present Vietnam Trusts which are in the Frontier Markets sector. This style does not suit most people because they can't deal with it psychologically i.e buying when others are all selling. Most Professional manager would never do it, because if tehy do and they struggle they will be sacked. If you struggle and you did the same as everyone else you often keep your job. This can produce herding with professional managers. In the last 8 months they have all being buying big Tech until virus announcement.
Sometimes a new management team can make quite a positive difference.
After that fingers crossed.
Check Performance over 3 months to 10 years if it is available - particularly check relative performance against similar trusts i.e trusts in the same sector. I like Trust that usually out perform their rivals more than are out performed. In football look at Warnock's record is it better than other managers, he will have ups and downs but you get a sense of beating the average over time. Trusts can be similar
Check discounts/premiums - I don't buy trusts on premiums (underlying assets are worth less than the Trusts share price. Is the discount lower than average for the same trust over the last 12 months. An exception is venture capital trusts. Sometimes a discount can increase for no special reason there could be a buying opportunity.
What is the media saying e.g are there recommendations for the Trust from financial journalist(s).
I try and buy when something is not popular but has the potential to do much better. An example related to football would be Sunderland or Bolton or Charlton @ present. Unpopular sectors are Property, UK value companies, Japan (although changing), Emerging Markets. Alternatively sectors than look ordinary but could be big growth areas example at present Vietnam Trusts which are in the Frontier Markets sector. This style does not suit most people because they can't deal with it psychologically i.e buying when others are all selling. Most Professional manager would never do it, because if tehy do and they struggle they will be sacked. If you struggle and you did the same as everyone else you often keep your job. This can produce herding with professional managers. In the last 8 months they have all being buying big Tech until virus announcement.
Sometimes a new management team can make quite a positive difference.
After that fingers crossed.
Ayresome
Active member
Great advice Redwurzel. You sound as if you follow Ian Cowie in the Sunday Times. This advice is his mantra and has worked very well for him over the long term.
Redwurzel
Well-known member
1finny - ref DS Smith - I believe they make the packaging for Amazon in the UK, a Trust called Impax Environmental held a lot of DS Smith shares.
Ayresome -You are correct I do read some of Ian Cowie's articles in different media and we do think a like - its sounds a bit boastful but he tends to follow me so he has bought some Trusts I bought a few years before him. Sadly I have no money to invest, unlike IC.
Ref Rolls Royce - 98p back when mentioned in November now 117p? Risky share to own, because they are living off their borrowings at present and will do in 2021. But how many companies have 50% of the world market of civil aircraft engines. No matter what people say about the decline of air travel. I think it will pick up alot when CV19 has shrank, back roughly to where it was. Airports are expanding not shrinking. RR are reducing costs at present. They are also developing engines for nuclear subs wich should give a steady demand for years to come.
Laughing - I like buying good quality at low prices, very hard to do, but sometimes it appears. At present possibly some retail/office property in getting into that category. Also Frontier markets (countries below Emerging). UK in general is fairly bombed out, 4 years of Brexit pessimism, 20% decline in the £, UK stock market at levels of 5 years ago against higher stock markets every where else, the UK is basically unloved as an investment field. Many investors don't even realise.
Ayresome -You are correct I do read some of Ian Cowie's articles in different media and we do think a like - its sounds a bit boastful but he tends to follow me so he has bought some Trusts I bought a few years before him. Sadly I have no money to invest, unlike IC.
Ref Rolls Royce - 98p back when mentioned in November now 117p? Risky share to own, because they are living off their borrowings at present and will do in 2021. But how many companies have 50% of the world market of civil aircraft engines. No matter what people say about the decline of air travel. I think it will pick up alot when CV19 has shrank, back roughly to where it was. Airports are expanding not shrinking. RR are reducing costs at present. They are also developing engines for nuclear subs wich should give a steady demand for years to come.
Laughing - I like buying good quality at low prices, very hard to do, but sometimes it appears. At present possibly some retail/office property in getting into that category. Also Frontier markets (countries below Emerging). UK in general is fairly bombed out, 4 years of Brexit pessimism, 20% decline in the £, UK stock market at levels of 5 years ago against higher stock markets every where else, the UK is basically unloved as an investment field. Many investors don't even realise.
Ingleby_Flash
Well-known member
Redwirzel, doesn’t that make the UK market attractive? It does to me.
DS Smith, I had a look but not feeling it, they’ve had a decent year but I suspect all of the feel good is priced in and the dividend situation doesn’t look inspiring. Hope you bought them last year finny.
DS Smith, I had a look but not feeling it, they’ve had a decent year but I suspect all of the feel good is priced in and the dividend situation doesn’t look inspiring. Hope you bought them last year finny.
1finny
Well-known member
Yes they do - currently around 75% of their business but, in normal times around 40%
Currently 25% up. Think it will be bumpy but pretty confident over a 3-5 year horizon.
Suspect they will raise a fair bit of cash for significant investments which will add considerable value.
The real key will be about their sustainability drive, They are miles ahead of others.
Billy Horner
Well-known member
I’m guessing a maximum of two?
Ingleby_Flash
Well-known member
Redwurzel
Well-known member
Very funny - I guessed that was coming after I wrote it - I was trying to illustrate RR were a significant world producer - them and Boeing dominant civil engines.
IngF - Yes I agree UK market is pretty cheap I have listed some cheap areas of quality.
However 95% plus of overseas investors and probably over 75% of UK investors think Brexit will damage the UK economy and the UK stock market. I don't fully agree with them (I am in the "it may" camp), but the weight of money is betting against the UK. The UK stock market has a lot of large unfashionable sectors such as Oil, High Street Banking and not much Technology which is pushing it down.
IngF - Yes I agree UK market is pretty cheap I have listed some cheap areas of quality.
However 95% plus of overseas investors and probably over 75% of UK investors think Brexit will damage the UK economy and the UK stock market. I don't fully agree with them (I am in the "it may" camp), but the weight of money is betting against the UK. The UK stock market has a lot of large unfashionable sectors such as Oil, High Street Banking and not much Technology which is pushing it down.
Zoophonic
Well-known member
My success story is with Xero shares. This is an antipodean company also in the UK that provides accounting software on the move. Very intuitive and easy to operate. Blowing sage out of the water with small business. It’s share price was Aus 40when I got in just 2 years ago. They are now Aus$ 142! Over tripled in value which has been remarkable during the Covid crisis.
johnsmithsno2
Well-known member
I've gambled a little with some solid UK shares in an ISA looking for a short-term boost on announcement of Brexit deal. Not looking the brightest move at the moment. Was convinced it was just brinkmanship and they couldn't be that stupid. It's me feeling stupid now.