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Sold out of NGrid

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Walrus101
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Sold out of NGrid

#236180

Postby Walrus101 » July 12th, 2019, 1:27 pm

Today I sold the last 25 percent of my National Grid Shares. I'm now officially out of UK utilities apart from any index holdings.


Taken quite a hit to my future income effectively halving the NG portion by swapping it for a combination of L&G global infrastructure Index/ I Shares clean energy and Utilico holdings. I know I'm not supposed to fall in love with a share but the sales of NG and UU are my longest held positions and were my first ever single share investments.

Holding very few HYP holdings now. Down to 7, These will prob be retained and can see a forray into Lloyds if the price comes to me.

Shell
BP
L&G
IMB
BAT
HSBC
VOD

My HYP returns over the 5 year period have been pedestrian in comparison to my Global Buy and hold portfolio, it has probably had an opportunity cost to me but have enjoyed running it.

idpickering
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Re: Sold out of NGrid

#236196

Postby idpickering » July 12th, 2019, 2:12 pm

Thanks for sharing that Walrus. I can understand people doing as you have, and can see how some might like having a mini HYP alongside an array of other investments. I’ve still got NG., and UU. On board my30 share HYP, and am in no rush to sell unless a Corbyn win looks certain.

Ian.

Dod101
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Re: Sold out of NGrid

#236222

Postby Dod101 » July 12th, 2019, 3:21 pm

With no great enthusiasm I still hold National Grid. It is my only utility and I decided just to keep it but you never know.

Dod

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Re: Sold out of NGrid

#236224

Postby Bouleversee » July 12th, 2019, 3:29 pm

It's not just Corbyn HYPers have to fear, Ian. The regulator is planning to clamp down on dividends in favour of reducing water bills and I expect that will apply to other utilities as well. Having said that, I still hold several utilities inc. NG and UU as I don't know what else to do with the money and already have far too much uninvested cash in my ISA and several thousand more to be added any time now from the RPC takeover. I did buy some SMDS recently, upon which they immediately fell but are now back to slightly more than I paid.

Walrus101
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Re: Sold out of NGrid

#236230

Postby Walrus101 » July 12th, 2019, 3:40 pm

idpickering wrote:Thanks for sharing that Walrus. I can understand people doing as you have, and can see how some might like having a mini HYP alongside an array of other investments. I’ve still got NG., and UU. On board my30 share HYP, and am in no rush to sell unless a Corbyn win looks certain.

Ian.


Thanks Ian

My original plan if one could call it that was to have a global total return portfolio, and as I saw what I considered opportunities to lock in good income for my retirement to buy into those out of the global portfolio through my life. My original purchases of Both N Grid and UU from 2008 up until now have performed and if you'd asked me 12 months ago I'd have laughed if you said I would go on to sell them. Both were/are at what I would call pretty fair valuations but I have become increasingly nervous at regulatory risk to these.

As it is in my late 30s I've come to the conclusion that having 10 percent of my portfolio in UK utilities is prob a gamble I don't need to be taking right now and have swapped it I guess for currency risk on the global side.

monabri
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Re: Sold out of NGrid

#236245

Postby monabri » July 12th, 2019, 4:11 pm

It's a real shame about the perceived threats, even the CEO of SSE mentioned them earlier this week (*).

https://www.ft.com/content/26b58272-a17 ... 1c6ab5efd1

Just imagine how well the share price of NG (and SSE) might have been doing if the political threats weren't hanging over the company. All those electrical charging points required and the infrastructure to support it for when we are running around in electric vehicles with a charging point on every doorstep... ( :? )

I'm in half a mind (an improvement then!) with NG so I'll think I'll hang on. The main threat being that Labour get off the fence, declare their "Remain" credentials, form a coalition with the Lib Dems and get the keys to No 10.



(*) although I think their,SSE, problems might be due to their balance sheet.

Walrus101
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Re: Sold out of NGrid

#236477

Postby Walrus101 » July 13th, 2019, 5:39 pm

Walrus101 wrote:Today I sold the last 25 percent of my National Grid Shares. I'm now officially out of UK utilities apart from any index holdings.


Taken quite a hit to my future income effectively halving the NG portion by swapping it for a combination of L&G global infrastructure Index/ I Shares clean energy and Utilico holdings. I know I'm not supposed to fall in love with a share but the sales of NG and UU are my longest held positions and were my first ever single share investments.

Holding very few HYP holdings now. Down to 7, These will prob be retained and can see a forray into Lloyds if the price comes to me.

Shell
BP
L&G
IMB
BAT
HSBC
VOD

My HYP returns over the 5 year period have been pedestrian in comparison to my Global Buy and hold portfolio, it has probably had an opportunity cost to me but have enjoyed running it.


Jumped the gun a touch here. I still hold property through Marstons, British Land and NRR which I guess could also be considered HYP. NRR being viewed as taking off Neil's hand at a good price/ British land I feel is fairly priced and Marstons I am considering trimming after it's good run.

Wizard
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Re: Sold out of NGrid

#236531

Postby Wizard » July 14th, 2019, 7:05 am

Walrus101 wrote:
Walrus101 wrote:Today I sold the last 25 percent of my National Grid Shares. I'm now officially out of UK utilities apart from any index holdings.


Taken quite a hit to my future income effectively halving the NG portion by swapping it for a combination of L&G global infrastructure Index/ I Shares clean energy and Utilico holdings. I know I'm not supposed to fall in love with a share but the sales of NG and UU are my longest held positions and were my first ever single share investments.

Holding very few HYP holdings now. Down to 7, These will prob be retained and can see a forray into Lloyds if the price comes to me.

Shell
BP
L&G
IMB
BAT
HSBC
VOD

My HYP returns over the 5 year period have been pedestrian in comparison to my Global Buy and hold portfolio, it has probably had an opportunity cost to me but have enjoyed running it.


Jumped the gun a touch here. I still hold property through Marstons, British Land and NRR which I guess could also be considered HYP. NRR being viewed as taking off Neil's hand at a good price/ British land I feel is fairly priced and Marstons I am considering trimming after it's good run.

How long have you held Marstons? A one year chart presents a good run, but 3 or 5 years don’t.

Walrus101
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Re: Sold out of NGrid

#236549

Postby Walrus101 » July 14th, 2019, 9:55 am

Wizard wrote:
Walrus101 wrote:
Walrus101 wrote:Today I sold the last 25 percent of my National Grid Shares. I'm now officially out of UK utilities apart from any index holdings.


Taken quite a hit to my future income effectively halving the NG portion by swapping it for a combination of L&G global infrastructure Index/ I Shares clean energy and Utilico holdings. I know I'm not supposed to fall in love with a share but the sales of NG and UU are my longest held positions and were my first ever single share investments.

Holding very few HYP holdings now. Down to 7, These will prob be retained and can see a forray into Lloyds if the price comes to me.

Shell
BP
L&G
IMB
BAT
HSBC
VOD

My HYP returns over the 5 year period have been pedestrian in comparison to my Global Buy and hold portfolio, it has probably had an opportunity cost to me but have enjoyed running it.


Jumped the gun a touch here. I still hold property through Marstons, British Land and NRR which I guess could also be considered HYP. NRR being viewed as taking off Neil's hand at a good price/ British land I feel is fairly priced and Marstons I am considering trimming after it's good run.

How long have you held Marstons? A one year chart presents a good run, but 3 or 5 years don’t.


Hi Wizard

My initial purchase was at 118 in Dec 17. Then topping up three times in the summer of 2018 at 94, 92, and 95p. My spreadsheet notes were good summer, world cup, good licensing agreements underpinned by property around the UK primarily Midlands where I see upside.

I'm finding myself increasingly leaning towards collective global investments because as enjoyable as running my share portfolio is, it is very time consuming. Tbh im also wondering if im taking more risk than i need to by being in single name shares (25) in total.

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Re: Sold out of NGrid

#237378

Postby ElectronicFur » July 17th, 2019, 10:08 pm

Walrus101 wrote:I'm finding myself increasingly leaning towards collective global investments because as enjoyable as running my share portfolio is, it is very time consuming. Tbh im also wondering if im taking more risk than i need to by being in single name shares (25) in total.


It doesn't need to be time consuming. There have been periods where I haven't touched or looked at my HYP for months, even up to 6 months at certain times, due to other priorities, and it just kept ticking along.

Itsallaguess
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Re: Sold out of NGrid

#237382

Postby Itsallaguess » July 17th, 2019, 10:16 pm

ElectronicFur wrote:
Walrus101 wrote:
I'm finding myself increasingly leaning towards collective global investments because as enjoyable as running my share portfolio is, it is very time consuming. Tbh im also wondering if im taking more risk than i need to by being in single name shares (25) in total.


It doesn't need to be time consuming. There have been periods where I haven't touched or looked at my HYP for months, even up to 6 months at certain times, due to other priorities, and it just kept ticking along.


Over the years I've come to the stark conclusion that the very real alignment of my periods of inactivity with the periods of positive HYP performance cannot easily be explained away....

It really is quite clear to me that time itself does the heavy lifting, long term......

Cheers,

Itsallaguess

Dod101
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Re: Sold out of NGrid

#237386

Postby Dod101 » July 17th, 2019, 10:30 pm

I think that may well be the answer. I make strategic changes more or less in January after my year end analysis and then just leave it unless there is an obvious thing to be done. (Such as trimming Unilever once it hit £50)

Dod

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Re: Sold out of NGrid

#237410

Postby idpickering » July 18th, 2019, 6:09 am

Itsallaguess wrote:
Over the years I've come to the stark conclusion that the very real alignment of my periods of inactivity with the periods of positive HYP performance cannot easily be explained away....

It really is quite clear to me that time itself does the heavy lifting, long term......

Cheers,

Itsallaguess


Well said. I'm trying to be a well behaved HYPer, and be more 'hands off' nowadays. I'm not as fickle (Pickering) as I used to be, and am content to leave things be. Hence me having UU., NG. and VOD on board still, despite the chats that have occurred here, for whatever reason, about the merits, or lack thereof, of continuing to hold them.

Ian.

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Re: Sold out of NGrid

#237453

Postby tjh290633 » July 18th, 2019, 10:07 am

Dod101 wrote:I think that may well be the answer. I make strategic changes more or less in January after my year end analysis and then just leave it unless there is an obvious thing to be done. (Such as trimming Unilever once it hit £50)

Dod

My main activity is reinvested accumulated dividends, once they get to a suitable level. Alternatively letting them accumulate until there is enough to pay for the next cruise and then withdrawing it.

Maybe 2 or 3 times in a typical year a share will go heavyweight and need trimming. Sometimes one gets taken over and a replacement is needed. Then we get demergers like South32, Indivior and the expected GSK/Pfizer spin off. Twist or stick? I have done well with S32 and INDV, having dumped the latter when things looked very dodgy. The new one? Let's see the whites of its eyes first.

TJH

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Re: Sold out of NGrid

#237508

Postby ADrunkenMarcus » July 18th, 2019, 12:59 pm

Dod101 wrote: I make strategic changes more or less in January after my year end analysis and then just leave it unless there is an obvious thing to be done. (Such as trimming Unilever once it hit £50)


Why was trimming Unilever at £50 obvious?

Best wishes

Mark.

Dod101
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Re: Sold out of NGrid

#237522

Postby Dod101 » July 18th, 2019, 1:27 pm

Well it was obvious to me at the time because within my portfolio at £50, Unilever was a good bit over 8% by capital and £50 seemed a nice target to sell some.

Dod

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Re: Sold out of NGrid

#237528

Postby OLTB » July 18th, 2019, 1:45 pm

tjh290633 wrote:My main activity is reinvested accumulated dividends, once they get to a suitable level. Alternatively letting them accumulate until there is enough to pay for the next cruise and then withdrawing it.



There's my ideal retirement income plan summed up in one paragraph!

Maybe not the cruise though, I'm not great on boats.

It probably wont be possible as I'm sure I'll need all of the accumulated dividends to spend on other things, but you have to have a dream.

Cheers, OLTB.

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Re: Sold out of NGrid

#237898

Postby ADrunkenMarcus » July 19th, 2019, 9:01 pm

Dod101 wrote:Well it was obvious to me at the time because within my portfolio at £50, Unilever was a good bit over 8% by capital


Thanks.

Best wishes

Mark.

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Re: Sold out of NGrid

#237951

Postby richfool » July 20th, 2019, 9:06 am

I'm still standing by my holding of National Grid, partly because I'm down about 19%, partly because I like what it does, and its US exposure and of course its dividend, but also because I don't think Corbin would get in or successfully get his hands on it. So I think its still undervalued.

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Re: Sold out of NGrid

#237975

Postby ADrunkenMarcus » July 20th, 2019, 10:51 am

Isn't NG. basically eating itself?

Free cash flow seen as negative in 2020, 2021 and 2022; net borrowing in 2022 seen at 8.4 times EBIT; return on capital employed 6.2% (below the cost of capital, surely?); and the most recent year's cash return on invested capital (CROIC) less than 1%. The 49p dividend forecast for 2020 makes a 5.9% yield for someone buying at 835p. (Sharepad), which is not massive compared to some other higher quality HYP companies.

Best wishes

Mark.


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