2013 Stock and Fund purchases

Stock Purchase – RDSB

Another regular in most of the funds, high yields etc. for a good solid payer. As with BP there are some long term concerns about if they can actually afford to pay their current dividends (at present Shell do not have enough free cash flow to cover their dividends), but are banking on a rise in the price of oil to get back to profitability. For me its a nice steady payer, although not rising which is annoying, but as long as it keeps firing into the pool of dividend returns, I am ok for now. I also topped up my holdings in both 2015 and 2016. With the takeover of BG (which I also used to hold) this increased my holdings further so is now one of my larger holdings.

I will continue to hold

Stock Purchase – RMG

So I tucked in on the IPO for this, and was lucky that I didn’t get too greedy and ask for too many, so I got an allocation. I watched the share price soar up to about £6, but I didn’t sell, I held on. I’ve reinvested the dividends for a couple of years (reflected in the average price) as I think long term this should give reasonable returns despite some of the challenges. Whilst letters are diminishing (apart from junk mail!), parcels are only going to get higher, and they have the backbone infrastructure in place. They do have some modernisation to do which is a challenge for them.  Short of a major overhaul to the way parcels are distributed, for me now its a hold. Will Amazon get the licence to use drones, who knows. For now the regular and increasing dividend I will hang on for.

Again, I will continue to hold.

Stock Purchase – HGM

One of the ones you have all been waiting for!

My first major foray into the AIM market, and what could possibly go wrong with a Russian gold mining company?! I did a fair bit of digging through the accounts that were available which gave a reasonable, but risky, ok to investigate further. I also found out that both Putin and Abramovich are shareholders, and it was helped more recently by a commitment from Putin to extend credit to the company. I topped up multiple times in 2013 and 2014 whilst the price was low (it didn’t occur to me that it would go bust) – committing another cardinal sin of doubling down. Now I don’t recommend this for most people (if any!). I must have spent over a year sitting with a paper 50% loss on my original stake as the share price languished around the 40p mark (prior to increasing my holdings). The way I got through was to look at the dividend I was receiving. It’s paid out consistently reasonable amounts, and last time they doubled the dividend so I got just over 5p a share – and plans to maintain this. My challenge is when to sell, and I don’t know. I should maybe have sold some when they hit 160p, but I didn’t. I guess as long as they still pay out a good dividend that is above the trackers payout, then I will keep the money in them. I did actually top slice off some of my holdings recently and take a significant profit to reinvest in other shares. As it stands, it is pretty much joint largest holding in my ISA EVEN NOW, and the combination of the recent top slice and dividends means I have taken out more money than I put in originally, the additional money still in shares is pure profit. Scary!

I will continue to hold.

Advertisements

Author: fireinlondon

Fighting the high cost of living in London

2 thoughts on “2013 Stock and Fund purchases”

  1. Man… a Russian gold miner. That cracked me up. It also made me fell a bit better about my own past financial blunders.
    Political risk in emerging markets is high in general, but especially so in Russia. (Case in point: Yukos Oil). Russian oligarchs maintain their wealth at Putin’s leisure. The problem with medium-sized listed companies in emerging markets is that the agency problem there is reversed. It’s not shareholders vs management (the Anglo-Saxon model) but rather large shareholders (which often control these companies de facto if not de jure) vs small shareholders. In any Russian company where Putin is invested, he’s the controlling shareholder. And he’s one shady individual, who also happens to be above the law. No, not with a barge pole. I have no choice about what my low cost EM tracker invests in, but I recon it’s sufficiently diversified and the entire class only has a 5% allocation, so it’s not mission critical.

    Liked by 1 person

    1. Hi Hosimpson,

      Yes – it was a bit risky 🙂 As you say the political risk is huge in Russia, and pretty much at the discretion of Putin and his cronies, so it really is a gamble. I put some moeny in from my “gamble pot” to see what would happen – and to be honest, although I sat at a loss for a long time it has been my best performing stock this year – its more than treble what my original purchase price was, so I have taken back all my original investment, and it is still one of the largest positions in the portfolio, so I really need to sell down more, the problem being I am strangely emotionally attached to it!

      It all comes down to risk / reward you are willing to take. For me, I set aside an amount that was “pure gamble”, and as it grows I gamble more with it, but I am slowly recovering it so that I will have only profit in that gamble section. It also gives a bit of pleasure!

      FiL

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s