DIY Investor Magazine
/
2015 Issue
47
EVENTS DEAR BOY’ BY KEN TURNER.
It seems to have been a great effort to keep up the
momentum of my investment portfolio since mid-April.
The reasons for this are ‘events dear boy,’ as I reminded
myself with the well-known quote from Prime Minister
Macmillan in the nineteen sixties.
The events I was concerned about at the time seemed
to be coming thick and fast with no apparent end
in sight. Translating all of this into strategy with my
portfolio led to a course of action which for me has
been unprecedented.
When the market adjustment came at the beginning
of May, I carried out the biggest sell off into cash that
I have ever done since starting with Saltydog in 2010.
These actions also took me further away from the
published sample portfolios than I had probably ever
been. I am still holding back from a full re-investment.
My main reason for this is that I do not trust EU officials
to deal with the creative negotiating tactics of the
Greek government. It all seems to me like a bank
manager trying to make headway with Del Boy from
the TV show, Only Fools and Horses.
These present tactics are so different from my early
days of investing. Then, as a complete novice, I wrote
here that I would have been rushing about looking for
a quick gain from a fund on the basis of just a couple of
weeks positive performance. As a consequence of this
new approach, I am presently back to within 1.7% of the
best levels achieved this year, and in a way which allows
me to feel more in control.
Or rather, I should say, less out of control, I am also
now, more aligned with the sample portfolios.
However, in another aspect of my recent activity, I am
not without sin Mr Livermore.
I have had a brief skirmish with some shares purchased
in a well-known Supermarket, which has fallen on
hard times. I timed things wrongly, and managed to
come out of it, without loss. Then there was the gold
fund. Same story. With hindsight, it must have been
a reaction to all of that cash sitting around in my
accounts. Old habits are difficult to contend with.
I have therefore learnt two more lessons recently.
The first is not to get distracted and let cash burn a
hole in my portfolio pocket - if market conditions are
uncertain, then cash is as valid an asset class as any
other. The second is not to play the equity speculation
game.
Most importantly, I have confirmed that being
out of the market can be a valid tactic in certain
circumstances. Unlike most professional fund managers
I have the luxury of not having to have a minimum
amount invested at all times. Learning lessons seems
to be a continuous process. Investment history never
seems to repeat itself.
That is one of the reasons why I still find this Saltydog
investing process so interesting and absorbing, as well
as the financial gains.
