2015 Stock and Fund Purchases

Investment Trust Purchase – WPCT

So yes, I bought into the hype of the largest IPO for an Investment Trust in years. This really is a fire and forget one to see what happens over the years. I particularly like the fee structure they use – if they don’t make money they don’t earn any. Given I, as with many others, are against a lot of the Financial Services charges, I thought I should put my money where my mouth is, so I did buy in. I am toying with topping up my holdings further so I can earn more than £10 in dividends as this means that I can then keep the portfolio growing by reinvesting the dividends (my brokers minimum reinvestment is £10) to see how it performs. I will add some more once I have a suitable level of cash and the right balance in the overall portfolio.

I will get around to adding more at some point.

Investment Trust Purchase – SMT

Ok, so who here hasn’t heard of SMT? They are one of those ITs that have been going for years and always provided good returns (future returns are no guide etc…), so I thought I would try a mini experiment. I purchased some, and some more in 2016 as well, and I automatically reinvest the dividends in more shares in them.  To date I am doing quite well with them, lets see how they go over another 5 to 10 years. I will continue to buy more of them in the Go T’ Pub portfolio when I start it I expect. For now, I will continue to add in and lets see how it grows over time – and of course always reinvesting the dividends.

I will continue to add to the portfolio over time.

Stock Purchase – BLT

So I knew I was light on the mining / commodities side, and there seemed to be a lot of negative sentiment to the big miners, so I took the plunge and bought in when it was low. Ok I didn’t time it perfectly and buy right at the bottom, but since then it has gone up considerably from what I have paid but the dividends are continuing to pop in. I will probably sell out when things get a bit higher and take the profits, and look to put the money to better use somewhere else. The dividend yield isn’t great at the minute, although it will generate 30p a share in 2017 is the plan, however with the mining disaster they had in South America last year there are still some unknowns here. At the minute it’s doing well, and I will keep it for now.

Hold

Stock Purchase – PAF

So, another one of my gambles, combining my other two – mining and Africa – what could possibly go wrong?!

From memory I think I saw a report on them so I dug in a little to find out what it was all about, and decided I would take a small punt on them. I bought in at 6.5p which turned out to be almost perfectly timed at the bottom, and just in time to also collect the December dividend – result! 3 months after purchasing I sold out 50% of my original stake, as it had doubled in value, so in effect the money in there is now all free money. I had my original investment back. Right now I am holding on, collected the December dividend again in 2016. Given how far it’s gone up, I am considering selling out and banking the profit – if I sell at the right point I will have trebled my original investment, so lets see. Either way, my free money in the shares is throwing off more free money – how cool is that?!

Hold

Tracker Purchase – VHYL

So, I decided it was time to remove some of the volatility in my portfolio and start adding some trackers as well to try and balance things out. I also topped up heavily in 2016 when my broker had a “trade ETFs for free” month – I was able to buy some on a weekly basis at zero commission. Thank you very much!  Not only is it throwing out some reasonably sized regular little dividends, but the price has climbed as well. I have a problem buying more at the current valuation as its up so far on what I paid for it. Yes, this is me trying to time the market. No, I shouldn’t be doing it – but I do. Naughty me.  I did add further to my holdings after TD recently put an offer of £1 trading costs. I suspect this will be a drag on the portfolio in terms of performance given its only tracking, but will add some to the dividends as well as some good diversification in the portfolio.

Add at the right price

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Author: fireinlondon

Fighting the high cost of living in London

4 thoughts on “2015 Stock and Fund Purchases”

  1. I stay away from investment trusts, mainly because of the spread. The only one I’ve contemplated was RCP, but then they started about a merger with Alliance Trust, so I decided against it as to me that merger idea smacked too much of bored management. There are few things more dangerous (to any business) than bored management, IMHO 😉

    Liked by 1 person

    1. Hi Hosimpson,

      Thanks for stopping by again! Yes, the spread can be a bit of a pain at times, and also I would really prefer not to buy them when they are at a premium as well. I know some people who have done very well from IT’s over the long term with the buy and hold, and this was partly my approach with the SMT side of things – no timing the market just buy, reinvest the dividends, and watch, I do like the steadily increasing dividends as they are able to put aside money in the good times.

      I am with you on the bored management, that is very bad news. The other thing I am not a fan of is EPS targets for the board – its very easy to just buy back the shares and boost EPS to hit their targets without delivering any value…
      FiL

      Like

  2. Still not pulled the trigger on WPCT, even though I too was swayed by the hype! Maybe at some point this year. Have small holdings in BLT, VHYL and SMT – must have bought the latter at a good discount as they’re showing +31% not including divis.

    Like

    1. Hi Weenie,

      Thanks for sharing your thoughts and your approach. I thought why not – I am trying to level my investments (even if that hits my overall returns). I have thought about buying some more WPCT but at the minute not yet pulled the trigger…

      I have to say I am so far doing very well on all of those you mention – SMT seems to be doing a very good job, so I will continue… good luck and seems like you had a good returns so far!
      FiL

      Like

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