Lowland Investment Share Discussion Threads

[goldpiguk] 31/12/2022 17:51

Hi, and Happy New Year.

Over the last few years my ISA has evolved from gambling on speculative ‘penny’ shares, to focusing on building a strong and growing income stream, first through FTSE 100 companies, and during the pandemic moving the portfolio 100% into Investment Trusts.

IT’s are the ideal investment for ISA’s and my intention is to construct a portfolio of about twelve Investment Trusts in total, and then add to those positions. (Buy, Build and Hold Indefinitely.) I was pleased to recently read that a high proportion of ISA millionaires have Investment Trusts in their portfolios. After 7 years since my first IT purchase, I can see why!

My current portfolio comprises:
10,000 AAIF (Abdrn Asian Income)
20,000 DIG (Dunedin Inc. Growth)
15,000 EDIN (Edinburgh Investment Trust)
5,000 HFEL (Henderson Far East)
25,000 LWI (Lowland Investment Company)
10,000 MRCH (Merchants Trust)
3,000 MYI (Murray International Trust)
Cash < 1%

In the 22-23 tax year my main addition has been Lowland Investment Company, where I now hold 25,000 shares. The valuation is currently £29,937, slightly below book cost of £30,859. The high dividend payout at LWI is now covered, so in the next year or so it should be able to rebuild the dividend reserves it dipped into as a result of the pandemic.

Ironically, the investment I am most troubled by is HFEL. It was my first IT purchase and sits at a £721 paper loss. The dividend looks too high, so I will not be adding further. For the moment I will continue to hold, but it may turn out to be the exception to the rule and I might eventually replace it.

Below is my ISA valuation on Dec 31st with dividend income for the calendar year. Due to the timing of xd purchases, even without further additions income should be over £14,000 in 2023.

(£) ISA valuation: (£) Income
2015: 113,980......... 4,450
2016: 156,795..........7,293
2017: 186,636..........9,619
2018: 193,414.........10,124
2019: 242,159 ........12,557
2020: 221,475.........10,560
2021: 285,587.........12,002
2022: 315,241.........13,377

I am now witnessing the magic of compounding and although the last few years have been a bumpy ride, 2023 should see a strong uplift in dividend income.

I have started my search for my 2023 ISA investment, with more candidates than usual. I will decide at the start of April, but several areas look to offer real value. Inflation, interest rate outlook, the conflict in Ukraine and the reopening of China will all be deciding factors.

Wishing all on the IT boards at ADVFN a very happy and prosperous New Year.

Goldpig

[goldpiguk] 08/4/2022 09:32

Hi,

Glad to see the Edison research note on LWI published this morning, confirming my own views on this company. I purchased an opening position in LWI a couple of days ago, from my list of 3 Investment Trusts I shortlisted for possible inclusion in my 22-23 ISA IT portfolio.

Link to research note below:

hxxps://www.edisongroup.com/wp-content/uploads/2022/04/Lowland-Investment-Company-Patient-diversified-and-ripe-for-consideration-1.pdf

Goldpig

[wad collector] 07/2/2022 23:25

Ooh that's a relief , thought for a moment this had turned into a Ponzi!

[scottishfield] 07/2/2022 10:42

Tks longshanks, I'm a holder; I've missed that news somehow. See it now (14/12/21)

[longshanks71] 07/2/2022 10:41

Yes there is Scottishfield. I had a few kittens first thing until I remembered.

[scottishfield] 07/2/2022 10:11

Is there a 10 for 1 going on here?

[lizafl] 17/1/2022 15:15

This is finally getting back towards pre-covid levels. Whether it can break up towards the 1550-1600 level or not is a different matter. I'm still hanging on to these for now, but keeping it under review.

[emptyend] 10/9/2020 17:44

Already have exposure to those sectors, thanks.

[spectoacc] 10/9/2020 06:54

Messaged you @orinocor.

[superadams] 09/9/2020 21:33

That divi appears to be paid out of revenue account i.e. divis received without dipping into reserves.

[orinocor] 09/9/2020 16:51

At a stretch. KIT and IPU look much better if you are looking at buying an IT.

[emptyend] 09/9/2020 16:41

1029p net NAV, buyable at c.935p (cum a 15p quarterly dividend), looks rather more attractive, no?

[orinocor] 15/5/2020 13:33

NAV of 945p with the buy price at 905p. It's no bargain.

[essentialinvestor] 19/3/2020 11:54

Got to do better?.

[orinocor] 11/3/2020 11:58

This is priced at NAV now but people are still buying it for some reason

[orinocor] 09/3/2020 10:41

I was poised to buy this then I realised the NAV is 2 trading days old!
The NAV will only be about 1200p now

[topvest] 18/11/2019 19:57

Yes, fair point. Personally, I wouldn't touch construction companies as I don't hold companies that I'm not prepared to hold long term on quality grounds. Construction companies are always marginal businesses with very low returns on capital.

[essentialinvestor] 18/11/2019 18:33

Well perhaps had an off day buying in to the Kier RI late last year
then, following CLLN and Interserve.

Tullow Oil last week, would not touch that with a bargepole.

We all make mistakes, the idea is to learn from them, seeing patterns
of mishaps in the same sector is not great. Anyway, let's see how 2020 develops.

[topvest] 18/11/2019 17:44

Hopefully not, making new year investment resolutions is not the sign of a professional investor. Lowland has a very good record under James Henderson and I can’t see that changing in the long term.

[essentialinvestor] 18/11/2019 12:55

Against my better judgement, had a few at 1285 on Friday.

James needs to make some New Years resolutions!.

[essentialinvestor] 11/11/2019 13:09

Luck with your holding.

[topvest] 10/11/2019 08:15

James Henderson has an excellent long term record, so I am more than happy to stick with him through tougher times.

[essentialinvestor] 09/11/2019 13:38

Well it was a nicely timed sale by the Hiscox underwriting officer!.

Many of the businesses Lowland hold appear to have a significant cyclical element.

I've held LWI in the past and also hold some LWDB, which unfortunately James Henderson also manages.

[topvest] 09/11/2019 13:16

Hiscox is top quality. Just a bump in the road this week.

[essentialinvestor] 09/11/2019 12:59

Would question the quality of some of the portfolio.

Hiscox and Senior are top 10 holdings, both with disappointing updates this week.