Monday 18 May 2015

Sitting Tight!

No posts recently - but then there have not been any changes to the DIY Income Investor portfolio. In any case, with summer on the way there are lots of things more interesting than watching the markets (like Bluegrass festivals!).

And isn't that the Holy Grail of DIY investing - a portfolio that ticks over nicely, while you have fun?

There have been some developments, though...

The markets have been bouncing around with a lot of domestic and international news - but nothing that has triggered any 'sell' signals. So the portfolio remains fully invested, quietly generating a 6% income yield. And the capital value isn't doing too badly, either - bouncing around just under the all-time high of a month or so ago. However, the portfolio return for 2015 is not shaping up to be terribly impressive, with only a 4.2% total return so far - implying that income has provided most of the gain so far. Hopefully this will improve as the year goes on.

Regular reader may recall that recently I put aside my normal caution and piled into Anglo Pacific Group (LSE:APF), the UK-based international mining royalty company. It's still early days but there does seem to be something positive happening to the price

Another holding that is moving upwards is Berkeley Group Holding (LSE:BKG), the luxury builder. Motley Fool thinks they are going places - with an interesting insight:

 "... it is reliant upon foreign buyers for a sizeable chunk of its sales and, with lower interest rates meaning a weaker sterling, the UK should remain a popular place to invest for foreign buyers over the medium to long term."

Wheels within wheels...

However, on a negative side, Huntsworth (LSE:HNT), the mainly medical PR firm has continued to disappoint - perhaps indicating that I should have listened to my own loss-taking 'sell' signal. Still, I'm betting that the tie-up with China's BlueFocus will pay off - eventually.

So, some short-term winners and losers - but nothing that requires immediate attention.

Now, back to having fun...

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.


  1. Hello,
    Thank you for your blog.
    I share with you many shares ;) (GSK, HNT, CLIG...)
    I will buy more HNT at 30/35.
    Now I am looking at funds and trusts.
    What do you think about these ones yielding almost 6%?
    CQS New City High Yield Fund Ltd
    City Merchants High Yield Trust
    TwentyFour Select Monthly Income Fund

  2. I wondered what you thought about Shell (RDSB). It is yielding nearly 6% and has survived the crash in oil price. It is a proven operator and good for holding medium to long term?

    1. I haven't looked at it recently. I've been holding BP for a while at a similar (but slightly lower) yield - but this was kind of a 'holding situation', waiting for the price to recover after the Gulf of Mexico disaster (which it has); I'll have to think about whether I want to keep holding it. If you can work out why the market is undervaluing it - i.e. what is the key risk that underlies the high yield - and you think that risk is unlikely to materialise, then go for it! I try to use high(ish) yield as a tool to flag up potential opportunities rather than the reason to invest.