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The wider stock market portfolio (August 08)
What has happened over the past month to my two new shares? First,
the bank Lloyds TSB. Soon after I purchased it took a dive but with
better news on the housing front, a partial recovery has my holding
showing a 9.2% decline but bearing in mind this share has one of the
largest yields in the whole market, I do not see this as a problem.
The second new boy Luminar Leisure is a very different story. I
managed to purchase the shares at £1.99 and now they sit at £2.47 an
increase of 24.5%, so at least for the present I have at last done
something worthwhile.
Last month I promised to cover some of the other shares I hold. I
have a stake in British Land which is the second largest property
company listed on the London market. My strategy for this one was a
"value” share giving a high yield and hoping to buy towards the
bottom of the trough. Unfortunately the timing was premature and
currently the value is 23% down on the purchase price. However my
intention is to hold on and await developments noting that the
principal investment arm of the Government of Singapore has taken a
sizeable stake in the company.
Next I hold Diageo the largest drinks business in the world and
famous inter alia for Johnny Walker scotch whisky. Here I am 2.5%
positive on the purchase price.
My belief that humble "water” is the precious commodity of the
future is backed by a holding in Northumbrian Water the smallest of
the 5 listed water utilities. To date my holding is 10.4% below the
purchase price.
The largest of the telecommunication businesses, namely Vodafone, is
also in my portfolio but shows a loss of 19.8%. This really is a big
disappointment and seems to be due mainly to the regulated downward
pressure on "roaming” tariffs across Europe. Since this is also a
long-term investment, the present price of the share is not a worry
to me.
Overall, my whole portfolio lags the market by 19.4% but I do stress
that all my big successes prior to last year where liquidated before
the current crises occurred
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