After a thorough clear-out of my DIY Income Investor portfolio dogs (poor performers) earlier this year there was only one pooch left. But, much as I have grown attached to him, he had to go.
The long-term under-performer is Home Retail Group (LSE:HOME), which (I now realise) I have held on to for longer than anything else in the portfolio - since January 2006, in fact. It used to have a good dividend; now the yield is a paltry 1.7%, with no dividend cover and future prospects don't look too rosy.
He had a younger sibling that I sold off in April, just about retrieving my initial stake.
My rationale for holding out was my expectation that the business model of Argos would be more successful, particularly when they provided a pick-up service for other suppliers. Sadly this service is now offered by many other chains, so there was no great advantage to be had by being on the High Street.
So, off it goes, taking a 28% loss with it. But it has underlined for me the need to consider more carefully the sustainability of business models of any future investments.
[Sale price: £1.856]
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