No doubt about it, going to Eton makes you grow up fast. Aged thirteen you choose what newspapers and magazines you want delivered, open a bank or, in my case, a Post Office account and pick a tailor.
My tailor was Welsh and Jefferies, still extant on Eton High Street; an excellent choice, made for me by my cousin Richard. It was run by the appropriately named Mr Boddy, who could not pronounce his Rs, so scraps of material were consigned to his wag-bag. Once a whole brand new suit was accidentally cut up and consigned to the rag-bag.
Mr Boddy differed from the other tailors along the High Street in that he would make what a boy asked for. Tight trousers, flares, velvet collars – you name it – Mr Boddy made it. Other tailors had more of an eye on the parents who would have to foot the bill.
Many amateur investors, of which I am one, end up with a portfolio that is a rag-bag. Too many small holdings in individual stocks bought on a whim after reading tips in The Investors’ Chronicle or the FT. Although I have insight into my condition I have not completely cured myself of this affliction. I see that in 2015 I bought Brunner and, the following year, Edinburgh investment trusts. There’s nothing wrong with either except that they are largely duplicating other investment trusts I already hold. I should be building up larger holdings in core stocks in my portfolio and I’m trying to do this.
So what have I bought that I’m pleased with and have added to? In 2014, on Investec Trevor’s advice, Worldwide Healthcare. Last year I picked out Monks because of the Plowden Effect. It was trading at a double-digit discount to Net Asset Value and now the value of new manager, Charlie Plowden, is having an impact – the discount has narrowed to 3.5%.
Another investment trust I chose last year is Pacific Assets. Although the market has gone up that hasn’t been reflected in their price. They take a long term view and if they are right it will be jam tomorrow. I will wait and see. I think their country allocation and the sectors they are in should both prove winners.
More than twenty years ago I bought British Gas and eventually switched into BP. This seemed a good move as the price rallied from £4.50 to £6.50 but the oil spill in the Gulf of Mexico sent the shares back down and I made another switch- into Shell. So far this has been rather a success.
An old holding, dating back to 2003, that has perked up is Caledonia. It has improved from a discount of 21% last year to less than 15%. This is a very long term Hold.