A Close Friend (CF) recently took a walk with An Acquaintance (AA) of mine in the bracing fresh air of the south west of England. AA confided that she has fired her broker and now makes her own investment decisions guided by the recommendations she reads here. Oh dear!
Oh dear! She has broken my first rule; only take tips if you are a waiter. Nevertheless, AA, today’s post is for you. My themes in the lifetime of this website (just over five years) have been to have exposure to emerging markets, to invest in Vietnam, to buy investment trusts and look for juicy discounts and don’t gamble in individual shares. As you know I have broken the last rule a few times. Shell shares doubled and I cashed in. Rolls Royce and Legal and General I still hold; both are doing well now. Marks & Spencer is showing a big loss but may recover as it has integrated with Ocado more smoothly than I expected.
Emerging markets have not done well. I have sold Pacific Assets at a very small profit. I have also sold Murray International because I don’t need its high yield and 3i for the same reason. Both made small gains. I think I have a safer place to deploy my savings.
I bought three Vietnam investment trusts. You cannot pick up a paper without reading about the joys of investing there.
”For investors in Asia, Vietnam looks like a dream come true. Here is a rare country that has managed to escape both the fallout from the pandemic the Sino-US trade war. It is expected to be the sole south-east Asia economy posting growth in 2020.” (Lex, FTWeekend, 21/22 November 2020)
“One forecast I would put serious money on is that America’s most important Asian base and ally becomes Vietnam.” (Jonathan Compton, MoneyWeek, 6 November 2020)
“Two decades after the last generation of Asian tiger economies began to come of age, Vietnam is asserting its place as the latest claimant to the title. The country, home to a low-cost manufacturing base, well-educated workforce and solid infrastructure, has increasingly been displacing China in global supply chains over the last decade.” (Theo Andrew, citywire, 19 November 2020)
I bought my shares in the spring and summer of 2018. They are showing a profit of 2.9% which hardly bears out the optimism in the press. Two reasons I haven’t done better: Vietnam Holding has done badly, eroding the gains from the other two, and all three investment trusts have high fees.
My greatest successes have been Scottish Mortgage, Monks and Worldwide Healthcare. Buying Monks shortly after Charles Plowden took over managing the fund at a double digit discount paid off handsomely, not least because it is now at a 3% premium. Next year Charles will retire but I’m told his successor has been well trained by him and is a safe pair of hands. As I hold some Scottish Mortgage in a pension I feel I must book some profit.
I am going to reinvest in Personal Assets an investment trust I already hold. I’m not expecting fireworks, just single figure annual growth, a low dividend and low fees. Take a look at its past performance – no guide to the future as we are warned.
Another safe and boring pair of hands is McInroy and Wood’s Balanced Fund. I already hold rather a lot so want to build up my exposure to Personal Assets for now. Here’s how they have done.
