Re: Admiral exceeds weight
Posted: July 17th, 2021, 4:16 pm
Dod101 wrote:However the point about this thread is surely that if things are looking good leave them alone and stop fretting if a share's value gets above some magical percentage of the portfolio. It is there for good reason.
Dod
Hmmm...
I did that with Stobart (aka. Esken). It went up and up and up, and backed by dividend rises to boot - (iirc) still yielding around 6% even after the huge rises.
At one point, my holding was heading seemingly unstoppably to £30K - I seriously considered either selling or at least trimming, concerned at how big it was in proportion to all my other holdings and how much gain I was sitting on, but held off doing so, feeling reassured that the capital gains were being supported by very substantial dividend rises - it was still yielding a good yield.
In both 2017 and 2018 it contributed the highest cash flow in portfolio from dividends - accounting for over 8% of my dividends both those years - that's more than any other of my holdings, and all coming about because the company increased the dividends substantially... iirc doubling them, then doubling them again (or something like that).
Today, that same holding, kept all this time, has a capital value of barely scraping over £2K and yield 0.0%.
That drop in both yield and capital has had quite an effect on my average monthly dividend income - not for the better.
It's gone from being my highest total (absolute) return share, to now returning a loss in total returns - even with dividends included.
While I admit, that my AstraZeneca shares have done particularly well recently - and the yield now quite low as a result - I am wondering whether I should sell or not... but given the life sciences area they are in, and substantial IP and R&D, I'm being a bit tardy in doing anything about them just yet.
But I'm not sure that I'd do the same with an insurer or other financial share. There's no real IP there, and the financial markets are quite competitive.
Arborbridge wrote:Sorry, I don't see any read across here at all. There's nothing to link the two thoughts is there? and certainly not in any particular case like this in which the clearest choices would lead to a reduction in income.
Your sarcasm is hardly warranted - and unless you can explain some genuine rationale behind your comment which I haven't spotted, what you are saying is nonsense.
I thought MDW1954 was just trying to make a good natured, light hearted observation, and I could see - and agree with - what he was saying.
I think you may be a little overreacting. I didn't see it as sarcasm.
In essence he was (imv, gently and good natured) pointing out that you had previously referred to how your returns haven't matched TJH's returns but you weren't sure why... all MDW was pointing out was that hey, you acknowledge that TJH would likely do one thing here, but you are not sure and are thinking of doing something different.
It's just an observation. At the end of the day, we each need to do what feels right for ourselves, and if you don't feel right yourself doing what you believe TJH would have done, then there's absolutely nothing wrong with that.
But in general, if you do something and get a different result to someone else, the difference is more than likely going to be in where you do things differently to that someone else. No problem with that. Just an observation.