DIY Investor Magazine
| Oct 2017
50
‘you can argue that if you’re not willing to react with
equanimity to a market price decline of 50% two or
three times a century you’re not fit to be a common
shareholder, and you deserve the mediocre result you’re
going to get...’.
Personally I don’t have the patience or the stomach to
sit through large or even medium drawdowns; my trade
either triggers or it doesn’t.
Besides, to my mind the US and N Korea are both mad
enough to push the big red button and in the ultimate
worst-case scenario as Fagin’s gang and I live in
London, I can look forward to the great stock market
in the sky and holding my longs for all eternity. As my
friend would say ‘There are no pockets in a shroud!’
The thing is, I don’t think Humbug has the stomach for
those kind of drawdowns either and as I love him, I told
him so. I hate to see him lose money - he is one of the
wisest, kindest and most generous men I know!
While his strategy is certainly not as flawed as Lil Kim’s
and Trump’s, I think Humbug could be putting his head
in the sand here and I am worried for him; here’s what I
have observed....
HUMBUG’S POSSIBLY FLAWED STRATEGY:
1
He set up a longer term investment portfolio
(not necessarily an inherent problem)
2
I may be wrong but it looks like he’s treating
it like a short term proposition; selling positions
early (You need a stomach for the drawdown
if you trade for the longer term as discussed)
3
He’s taken a volatile leveraged gold position
(a reasonable potential fix if you keep a
hawk - like eye on things)
4
He’s now gone on holiday for two weeks
and won’t look at the market
(where is the trade management?!)
I too have a gold position in
HGM (Highland Gold)
but
I have to watch it carefully as it can move 5% in either
direction in a day or two! If I am away from the markets
with no internet I believe it’s prudent to go flat.
Anyway, I hope I am not gloating just because I am
winning and I hope he has set hard stops!
I wish Humbug all luck and he has time yet to win
the competition - however for me; rules is rules. I am
nervous for him and wish he’d asked me to look after
things while he’s away! :-)
I took a position in
ASHM (Ashmore Group)
this morn
at 340p, initial target
360p
, and I still hold
HGM, KAZ,
AMS, LGEN, HLMA and GVC
. I cashed out of
PMO
and I have given back last two days with
KAZ
.
I am around 70% invested and I’m up £122,211.65, a
22% gain before costs thus far.
Yours Fagin
‘I HATE TO SEE HIM LOSE MONEY - HE IS ONE OF THE
WISEST, KINDEST AND MOST GENEROUS MEN I KNOW!’
