TUK020 wrote:the problem with super reliable growth shares, that have a lower yield (but which is tolerable due to earnings growth) is when the growth stops, and they fall off their 'quality earnings' pedestal, and then get de-rated by the market.
thinking RR, RB, Tesco, Cobham, etc as some of my own scar tissue.
I like TJH's top slicing method, and have managed to top slice NG at 1100, BA at 650, AZN at 6000, MARS at 125. Sure I could run the whole stack for longer, but take comfort in 'banking some profits' for redeployment.
Having said that, don't have Unilever - wife has a stack from employee sharesave which gives us more than enough exposure
This stirred me to have a look at the shares which I have trimmed back over the years. I make it 33 of the shares which I have held have been trimmed at some time or other. 1997 was the first occasion, Lloyds and Zeneca being the shares. Then in 1999 BT, Marconi and Prudential got the treatment. In 2000 Blue Circle (twice) and Marconi again. In 2002 it was the turn of Imperial Tobacco (twice) and Tate. In 2003 Stagecoach, RSA and Mitchells & Butler's turn. In 2005 Whitbread and intl. Hotels. In 2006 Pilkington and Scottish Power, followed by Vodafone in 2007. Then, in 2008-9, all hell was let loose, with 14 trimmed in 2008 and 10 in 2009. I will refrain from listing more, but I think IMT holds the record with 7 interventions, including selling rights to avoid the need for trimming.
Unilever has never been trimmed, but Reckitt Benckiser was in 2016. Diageo has been close to it, but fell back. A lot of the trimmings have been down to takeover approaches, where I have trimmed at least once before the final disposal.
The movements are often fairly rapid, and contrary to the market. You cannot predict them, and often it comes to nothing. It makes life interesting.