Merchants Share Discussion Threads

[zac0_4] 22/7/2020 10:58

redponza - I think that’s the point. The FTSE has too little exposure to companies operating in sectors that are growing and, in my opinion, will continue to grow. On that basis the FTSE will continue to lag the DOW.

[redponza] 22/7/2020 10:42

Well, for the share price 500 index, I read somewhere that the bulk of the return has been from the FAANG + microsoft in last few years...

FTSE 100 without these star performers, is doomed to lag behind.

I suspect that if you compare the performance of share price 500 index (SP 494?) excl. FAANG + microsoft to FTSE 100, FTSE 100 is not that poor.

[tim 3] 21/7/2020 23:02

No worries happy sharing some of my own research on the thread.

[zac0_4] 21/7/2020 22:33

I just wonder why the FTSE continues to underperform compared to say the Dow Jones. I’m beginning to think that dividend paying companies, certainly in the uk, return too much profit to shareholders at the expense of business investment. US listed companies return far less to shareholders in the form of dividends. That, and has been pointed out that the uk index lacks technology stocks. 5 year return for FTSE is 13% whilst the Dow has returned 85%. MRCH has returned -0.85% over the same period!

[gateside] 21/7/2020 22:04

Thanks tim 3

I feel part of the problem is that the FTSE has been so poor over many recent timeframes, which means that MRCH is fighting against headwinds all the time.

Regardless of my poor view of MRCH - have to say that there is always good discussion on this bb.

[tim 3] 21/7/2020 19:23

Over 5 years.

Top S&P tracker
Second mrch
Bottom FTSE.

Obviously Dividend reinvestment will be make a considerable particularly over the longer periods.

[tim 3] 21/7/2020 18:58

Over a year.

Same colours as last post,

[tim 3] 21/7/2020 18:49

Top one is vanguard s&p tracker second is ftse bottom is mrch.

[gateside] 21/7/2020 17:05

FTSE up MRCH down againHow much do these people get paid to run this Investment Trust? Too much!

[chc15] 21/7/2020 09:22

Have to agree with u zac, my best investments are mostly tracker funds, only a few of my IT's have outperformed them long term. I'm going to wait till all recovers in maybe 5 years, and then switch all my holdings into vanguard 60,40 fund.

[zac0_4] 21/7/2020 09:05

Agree with most comments. I’ll continue to hold here, and in HHI, whilst I move away from my positions in individual dividend paying shares. However, medium term I’ll need to see a vast improvement here if I’m to remain invested. The performance from 3 of my low cost index type funds puts this to shame! 5 year returns as follows: L&G Global Tech +212%, L&G Global Health and Pharma +73&, L&G International Index +78%. No competition!

[gateside] 21/7/2020 08:40

I agree past poor performance here does not say that such poor performance will continue.
But the current 10 top holdings when combined have a YTD of -11.89%
MRCH has a YTD of -35.48%
The FTSE100 has a YTD of -16.99%
That's some serious underperformance from MRCH which the board here need to turn around.

[panshanger1] 21/7/2020 08:05

Certainly hasn't been the best strategy in the last 5 years but that doesn't mean to say things will be the same in the future.Maybe there's lots of bad news already in the price here and once everyone has bought all the Fangs , Microsoft, Tesla plus a smattering of healthcare doesn't that trade become rather overcrowded and overpriced.

[gateside] 21/7/2020 07:44

Having only recently bought in, I'm having doubts over my purchase. I bought for the yield, but when I look at my portfolio I do agree that chasing dividends is not always the best strategy. Compare the 5 year graph of AZN verses GSK for instance. Serious out performance from AZN which pays a much lower yield. In addition to buying for the dividend, I really like the Investment Manager here, but I think he badly confined by restricted to only buying UK companies. The lack of technology companies is holding this back. Pharmaceutical companies are going to have a good future too.I feel the make up of the portfolio of MYI is far better placed for share price growth. Asia has far less debt and surely has a brighter future.So will most likely switch to MYI just waiting for a small price rise here to sell.

[tim 3] 20/7/2020 23:46

Like others here I am now much less invested in individual shares and have a decent amount of these but I am concerned that these and the ftse too are to reliant on very mature "old school " companies and do not have enough exposure to the companies that will shape our future and their performance will show that.These last few months have shown just how important a part technology and the companies that provide it play in our life and I can only see that trend continuing.

[zac0_4] 20/7/2020 20:00

I’m in a similar situation. Moving away from individually held shares. I hold here, in HHI and HFEL as dividend paying trusts, and have held for some time. My views are changing. I’m not convinced chasing income is the best way to go. I hold a number of investment funds and have started to take a % from them when required. This has proved far more beneficial. Total return, ie including dividend payments, from MRCH over last 5 years is 1.5%. Total return from a low cost international index fund is 79%. Food for thought!

[bluemango] 20/7/2020 17:30

My current preferred ITs are MRCH, DIG, EDIN and SHRS.

Also think Private Equity trusts may be picking up some bargain sales in coming months. Holding PEY and SLPE.

Also holding some defensive non ITs such as AZN, PHNX (7% yield), ULVR, BAE Systems. All for income.

And a speculative punt in Aim listed FRP - one of the few listed insolvency specialists. They are rather busy at present and sadly likely to continue to be in near future.

[dandu69] 20/7/2020 15:25

yes shalder, I agree that stock specific risks are out of my comfort zone. Time to put on my slippers and settle in with this. Put the other half of my capital in IUKD for same reason.

[chc15] 20/7/2020 15:24

Have also topped up today, long term hold for me.

[shalder] 20/7/2020 14:09

dandu:

I have arrived at similar conclsions, at least in part because in my view, stock specific risks right now are the highest I can recall across a whole range of market sectors. I have been looking at ITs more closely than for some years, trying to find managers whose broad philosophy makes sense to me and identifying specific trusts for investment. Let's hope we are both right!

[panshanger1] 20/7/2020 13:28

Added today

[dandu69] 20/7/2020 10:24

Put half my capital in these with a long term 10+ years horizon. Since the crash I`ve really looked at my investment goals and have chosen to come out of individual shares.....this fits my risk profile better having been in the share game for 15+ years. A steady dividend 4 times a year will do for me.

[tim 3] 17/7/2020 23:50

This just cant seem to make much progress only 70p off the "crash" lows.

[mister md] 10/7/2020 15:48

MRCH is the biggest bargain stock (in the 'low risk' category) currently available imho ;)

[panshanger1] 09/7/2020 17:17

Took a few today