scrumpyjack wrote:I added to my holding this morning. It is a solid long term investment and I like the exposure to unlisted stocks (67%) as a counterbalance.
It may be the large unlisted element in the portfolio that accounts for the high discount to NAV (nearly 20%). I see that they are looking at reducing that a little.
Obviously not a fashionable share in the city with that level of discount.
I do not think it is fashionable mainly I suspect because of the very large holding of the Cayzer family which controls it. The outside shareholders need to go along with whatever they want and do. There is no chance of buying in a meaningful amount of the shares because that would take the Cayzer holding to a level where they would be obliged to make a full offer. The City does not like this sort of 'closed shop'.
I bought it in 1992 at £3.48. It has had no rights issues or any thing else in that time so I can compare that price directly with its price today of just over £30. It is a forever share for me. The dividend steadily increases and it has an occasional 'special' to help things along.
I don't have all the divi info before year 2000 for Caledonia but based on a share price of £3.48 one can do some quick sums......
The annualised internal rate of return is approx 10.7% (not including the divis pre-2000). That compares favourably to TJH's HYP return (9.8%).
The share price has increased by £30.4/3.48 = 8.75 times and there have been more than £9.36 of divis returned per share on top.
(From early 1992 to October 2019, RPI has increased from 137 (baseline 100 in 1987) to 291....a factor of 2.12). Comments
- I assumed an investment of £5k but that's just for convenience.
- Of course I don't have the actual purchase date in 1992 but that doesn't matter to any great extent over the time frame.