Finance Friday: Investing for the future
It’s been quite a good week for my investments. Solo Oil has continued to make double digit gains with good news coming from Tanzania.
I think being able to watch the stock market and see the ups and downs on a daily basis is interesting and I learn a lot. Yesterday, I had to wait some time at the hospital and my app on my phone wouldn’t work so I couldn’t check the market. That is a good time to be able to check rather than sit there nervous and bored. I got home to find my portfolio was up by over 2%, which is excellent for one day.
This is my chart for September, up until yesterday. There have been ups and downs, but overall I’m up about 6%. I aim for an average of over 10% annually.
Some of the investments are making a loss. Graphene Nano is a high risk investment that I think will come good eventually. The price dropped after I bought at just under 65p, but has been creeping back up and now at 61p is closer to what I paid. The high price was last December at 129p and so I think it could go to over a pound if I’m patient.
Premier Foods is still a big company, but I’m still waiting for that share to recover. The directors all bought shares at an average price of around 80p. The price today is 40.75, so a lot of potential! I think the run up to Christmas will give them sales for the winter products like Bisto, Sharwoods and Oxo. I bought their cakes last year at Christmas for guests and they could go well at Christmas too. The advertising and social media campaigns seem to be picking up now too. When Premier was deep in debt, I saw their shares go to 185 before dropping badly last October. A rights issue paid off a lot of debts and they are concentrating on ‘power brands’ having sold a lot of weaker brands off.
I’m looking for a new company to invest in now. I would like it to be pharmaceuticals or perhaps retail. I have a watch list and I’ll write about my choice in due course. I’m thinking about opening another account with a cheaper trading fee of about £6 a trade which is better for small deals.
I’m still investing with Zopa too, the returns are lower at around 3.8% over 3 years now and 5% over 5 years. It’s a relatively safe investment and even these low rates beat what the banks are offering.
I think political influence is evident in everything these days. You can see how huge influence is being brought to bear on the Scottish referendum. The banks are making statements, all the major political parties have joined together to form a no campaign. The BBC has been accused of being biased and even the banks have come out on the side of the no campaign. It seems likely all these powerful forces will also come together to keep interest rates low until after next year’s election. Then I think rates will start to rise. I’ll get better returns from Zopa, but what about shares? I think the banks will be a good investment, but any company that has big debts could have a problem.
What do you think? Are you investing for the future? Please share your thoughts in the comments box. You can also follow me on Twitter.