Edinburgh Investment Share Discussion Threads

[essentialinvestor] 03/9/2019 12:08

Value investing?, It looks more like value trap investing.

True value investing is holding unloved but financially robust
stocks, the later proviso is key.

I sold completely out of Next this morning as increasingly concerned
about a UK economic hit.

[bizzybrizzy] 03/9/2019 12:03

EDIN has gone from weak to life support status. There are almost daily share buybacks. Is the dogged attachment to so-called value investing worth it? Bad calls have been made in a relatively short space of time on businesses like Provident Financial and now Burford Capital. Burford being an AIM stock should not even be considered as a holding, let alone a top 10 holding.

[spectoacc] 02/9/2019 10:23

Ducked back out of just over half of my EDIN, profit's a profit & discount come back in a bit.

@1oughton - absolutely :)

[1oughton] 02/9/2019 06:57

Spec. A claim on beating Woodford really isn't much of a claim. He's beyond useless.

[spectoacc] 02/9/2019 06:54

@andyj - all good points. I'd certainly not go more than 10% in any one share, and in truth more like 1%, with much of the rest in REITs, ITs etc up to 10%+ individually.

No shortage of value traps - CNA, VOD, GFRD, CNA.

The other arguments for ITs are discounts & size of portfolio.

[andyj] 01/9/2019 17:56

That is what I adjusted my portfolio towards several years ago, but it sounds easier than it is. High yields are too often due to negative sentiment and a market that wants out cares not for the increasing yield. Take a look at the 20 year history of many blue chips and you will find that buying and holding them has been a recipe for disaster in many cases.My portfolio was reinvigorated when I subsequently capped my exposure to individual shares at 10% and instead moved into a basket of trusts and ETFs like MIDD, JAI, PCGH, CGT, WLDS, SSON, BRNA and HFEL, etc. Not only has volatility reduced, but for the second year running I have comfortably outperformed the market. It is not as much fun as picking individual companies, but it is more profitable! I have 25% in income like AEWU and preference shares. 40% in growth, like SSON, WLDS 25% in income and growth, like here and BRNA 10% in individual shares like CAML.With similar geographic diversity...

[topvest] 01/9/2019 11:55

Might be worth adding this trust if the discount gets much bigger in my view. With the benefit of hindsight moving from Fidelity to Invesco a decade back was a very poor decision. If this was still using Fidelity as Investment Manager I suspect that the share price and NAV would be closer to £10.

[spectoacc] 01/9/2019 10:05

Agreed, and the debt is a good point - that eliminates utilities to begin with.

Plenty of traps out there - VOD was one, CNA's another - but not rocket science to set stops, sell out, move on.

Plus even if you were the worst investor in the world, you'd still beat Woodford :)

[contrarian joe] 31/8/2019 21:24

Definitely the way forward for experienced investors,doing your own portfolio for income,starting of with the highest yielders from the ftse100 & working down,picking established companies with dividend track record,(eliminating utilities at the moment on a potential labour government),diversify with equal amounts,ideally you want 15 to 20 holdings,avoid to much debt,your very likely to beat 90% of numpty fund managers who fleece you!!.

[spectoacc] 31/8/2019 20:03

"..Of course that issue has now solved itself, the yield has doubled and its percentage of the portfolio halved!"

LOL - sadly too true.

Barnett following the Woody "barbell" method - a load of value traps coupled with holdings in smaller racier cr*p. He's largely avoided the unlisteds & the biotechs of Woody, but has had similar terrible performance. He feels like "Woody, but two years behind", and can see no reason why the likes of EDIN, PLI etc stay with him.

@wskill - even just copying the large-cap picks would keep you out of the AIM rubbish and AMGO rubbish, but you'd not be buying on a big discount... But not hard to pick a basket of very high yielding, potentially decent co's. The REITs can go lower but are hardly expensive, financials are possibly the new "value" (eg AV., LGEN, BARC, LLOY). Tobaccos? Dirt cheap but arguably dirt. Oils? Cheap but not yet out of favour enough IMO. Pharmas? Not for me. But a rich picking ground in the FTSE100 atm.

[wskill] 31/8/2019 11:23

I have been looking at buying in here but after the very poor stock picking will instead buy a basket of high yielding ftse stocks.
It would be difficult to pick worse than these clowns.

[cynicalsteve] 31/8/2019 10:06

And of course a few weeks ago we had Burford. It was strange that almost 4% of an income fund was invested in a low yielding AIM stock. Of course that issue has now solved itself, the yield has doubled and its percentage of the portfolio halved!

[spectoacc] 31/8/2019 07:44

Definitely needs a change - Amigo, honestly! Who on earth would buy into a listing like that, where the founder is selling down at peak of cycle? Madness. Has Woodford/Barnett written all over it - mug's money, just not their own.

[topvest] 31/8/2019 07:24

35 years ago this was one of the original members of the FTSE-100
[...]
It does appear to need a change to bring this trust back to life.

[steve3sandal] 30/8/2019 23:19

Amigo crash on higher defaults (who’d have guessed), Eddie Stobart Logistics suspended for some irregularities, Thomas Cook equity severely diluted. Not bad for a weeks work Mr Barnett. It can’t be just down to luck.

[steve3sandal] 30/8/2019 23:08

And pop goes another of Mr Barnett’s high quality equity income stocks, amigos.

I knew they were in the portfolio, 1.2%, amongst other bin end items, when I bought in here lately for special situation reasons. Not at all surprised that if you lend to people with poor credit histories they will more than likely default and their amigo can’t pay either. Another example of having a pi55 poor investment process. The Board must act to restore the reputation of this trust. I mean why hold 14% of that stock? I bet it would have failed your process, it was certainly a barge pole for me.

[essentialinvestor] 16/8/2019 10:46

Really, seriously ?.. Think Invesco may be the only ones laughing all the
way to the bank.

NXT giving up recent gains as thought may happen.

[orinocor] 16/8/2019 08:10

Doing very nicely here SpectoAcc thanks very much. Laughing all the way to the bank with this one.

[essentialinvestor] 15/8/2019 12:46

NRR, mentioned by Mike in that article looking ill share price wise.

[spectoacc] 14/8/2019 14:32

Are you out again yet @Orinocor? ;)

Come on, don't be shy.

[essentialinvestor] 14/8/2019 11:24

Mentioned Next the other day as hold some. Quality longer term stock but takes
a hit on any UK recession. I try to sell a few following sharp share price gains as
happened recently, then buy those back lower down if available.

NRR is only for the brave. Tobacco stocks, perhaps Mike could educate us on
how much net profit BATS and IMB are making from their innovative new generation products .. the answer for IMB is not a penny, loss making atm and would guess
it's similar with BATS(although have not looked at the detail).

[steve3sandal] 13/8/2019 19:03

hxxpS://moneyweek.com/512606/four-attractive-uk-income-opportunities/

Same old same old....not mentioned buying NRR well above current price and lots of if..and should... it might be the journalism overlay but there’s not much conviction in fundamentals here. I like Next but he seems short of non Woody ideas.

[contrarian joe] 13/8/2019 16:03

If only you posted earlier Orinocor, before the US bounce!!.

[essentialinvestor] 13/8/2019 15:34

Nicely timed purchase!.

[orinocor] 13/8/2019 15:21

Haha. I bought at 532p. Oh how they laughed.