Woodford Patient Capital - Why?

[starquake]

Hi, First post

So I'm quite new to this - but thought I'd add why WPCT is 5% of my SIPP at moment.
1/ Like others it's a way of getting exposure to non-stock asset classes in early stage - I see this as a future potential outperformer, likely to do NIL for a year or more.
2/ I will only buy in at 8-10% discount to NAV.

Brought in when NAV was 85p or so, at an average of 79p. (ie decent discount). It's made me a small sum since and NAV is currently around 97p. However NAV on "unquoted" assets is really a worry sometimes - hence needing a discount for me to buy in.

The other thing not mentioned in this thread is the actual costs though - the overall management costs will be low until Woodford manages 10% a year gains. Therefore, I see this as a "lower" risk than many other assets in this class due to this "non-fee" arrangement until performance achieved.

Good luck to any of us also in this trust!

[OhNoNotimAgain]

Woodford's even more Patient Capital

https://www.fool.co.uk/investing/2019/0 ... s-25-drop/

[DavidM13]

Woodford's even more Patient Capital

https://www.fool.co.uk/investing/2019/0 ... s-25-drop/

Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio

[OhNoNotimAgain]

Woodford's even more Patient Capital

https://www.fool.co.uk/investing/2019/0 ... s-25-drop/

Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio

That's a huge position, the equivalent of BATS in FTAS tracker fund.

[DavidM13]

Woodford's even more Patient Capital

https://www.fool.co.uk/investing/2019/0 ... s-25-drop/

Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio

That's a huge position, the equivalent of BATS in FTAS tracker fund.

It was massive headline news but the NAV is only down 0.44% off the back of it (and purplebricks bounced back 7% today). I really do not see it as a big deal personally.

[OhNoNotimAgain]

Thankfully it hardly even touched the dial on the NAV as only 2.3% or so of its portfolio

That's a huge position, the equivalent of BATS in FTAS tracker fund.

It was massive headline news but the NAV is only down 0.44% off the back of it (and purplebricks bounced back 7% today). I really do not see it as a big deal personally.

After a 25% drop shares need to recover by 50% just to get back to where they were. But as the business prospects have changed the valuation will also be different.

[DavidM13]

Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?

Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed

[toofast2live]

Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?

Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed

Correct.

[Itsallaguess]

After a 25% drop, shares need to recover by 50% just to get back to where they were.

I think we're going to have to ask you to show your working on that one.....

And from a fund manager too.....

Itsallaguess

[OhNoNotimAgain]

Am I being dense here?
Surely if a stock drops 25% then to get back to even it only needs to rise 33%?

Ie. If 100p drops to 75p then based on your example of needing to go up 50% then it would be on something like 112.5p. I feel I have that right but do tell me if my logic or maths are flawed

Correct, my schoolboy error, was thinking of the old down 50% then up by 100%.