However, I do try to control my animal urges a little with my 'sell rule', although I don't pretend that it is a definitive answer. Anyway, a portion of my NWS shares from my DIY Income Investor portfolio has gone back to Mr Market for a nice 50% profit.
- the share price has risen so that the capital gain is equivalent to at least 5 years' income (i.e. dividends or coupon)
- the current yield is lower than the portfolio average (currently running at about 5.5%)
The logic (such as it is) is that I want my money to work hard generating income and if the above conditions are met I can effectively bank 5 years income (or more) and put the money straight back to work at a higher yield.
Over the holidays, one of my bundles of Smiths News shares (my then largest shareholding) hit a multiple of over 6 times annual income and its yield fell to 5.2 (not a bad yield but I can probably do better) - so I hit the 'sell' button.
- Newspapers and magazines - the traditional core business (but where like-for-like sales are falling)
- Physical and digital books, including acquisition of Bertram Books and latterly Dawson and Houtschild, with a focus on educational books
- Educational and care products, including the recent acquisition of Hedgelane a distributor of education products
- Media and marketing, including what might be a risky adventure into providing rail and airline in-journey entertainment
[Sale price: £1.65]
A version of this blog appeared previously on Citiwire Money.
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.