Investment strategy #investments #finance
Different people view investments differently, some think long term and some think short term. Greed drives some people to invest and the need for financial security drives others. As a small investor I keep an open mind, but favour companies that are basically good companies, but going through a difficult time.
Tesco got a lot of criticism in the financial press recently and so I bought Tesco at 172.7 and that has proved to be a wise investment with the price rising to 241.55 at the time of writing. That’s not a bad return, but things could change very quickly. I’m not greedy, I aim at a 10% return on my investments; Tesco will probably give me more than that and make up for the ones that haven’t done so good.
Balfour Beatty had some bad press and caught my attention last month and so I bought at 207.9 and they stand at 237.9 today, so I’ve made my 10% and a bit more in just a month.
Taylor Wimpey was an easy one to pick out at 100.375 and today that’s up at 143.6, so more than 40% on the price I paid in August 2013.
I bought Solo Oil around the same time as Taylor Wimpey and although Solo is up 50% and giving me a good return on paper. That company has a lot of potential. They are involved in oil exploration in the UK and Tanzania. The play in Tanzania will change them from an exploration company to a oil producer in the near future. The companies plans are to keep reinvesting and so long term prospects are good. Both good news from Horse Hill in the UK and Ruvuma in Tanzania could send their share price soaring. It’s at 0.56 today, but I’ve seen it soar to 1.1 and more last year and it could easily go to 10p a share. It’s a risky one, but a fun one too.
My other AIM company is Graphene Nanochem. They are still making a small loss, but keep winning new contracts and setting up new joint ventures. This is another one that could soar if the research they are doing comes good or the oil industry recognises the value of it’s products and they get a contract to supply a large oil producer. Again, it’s another fun share to watch.
I think Lloyds Banking Group has been hovering around the 75p mark for a while because that’s the price the government is trying to dump it’s shares at. Once George Osborne’s name is no longer associated with Lloyds I think the shares will have good long term prospects. I bought at 29.9 so I’m laughing all the way to Barclay’s…
TSB isn’t doing so good. I bought at 260 (the IPO price) and they’re 265.9 today. I would be eligible for free shares if I keep them, so that’s one reason to keep them. The main reason I think they could come good is M&A speculation.
Royal Sun Alliance under the leadership of Steven Hester is another one that seems to be boring and not moving, but again at least it’s not making a loss. I think a merger between RSA and TSB would be nice!
Future Investment strategy
What will I buy next? I have a lot on my watch lists. Oil companies look cheap and San Leon although risky is worth watching. Premier Oil is less risky and Afren is another worth looking at. Signs the oil price is going to go up would mean those companies are worth a serious look. I would really like to invest in pharmaceuticals to increase my diversification. Skye Pharma is on my watch list, as is Alliance Pharma. Part of my investment strategy is to keep diversifying. I also want my investment strategy to take into account political change which might be forthcoming in the May general election.
I nearly forgot to mention Premier foods. That has been part of my investment strategy since October 2011. I’ve seen them soar and drop below 30p. I’m making a loss now, but they will soar again. The directors all paid around 80p for their shares so I think they will be doing their best! Most news from the company has been good lately and I expect to get to my break even price soon. Buying Premier Foods began my investment strategy and despite the ‘death or glory’ outlook then, the company is coming back and embracing new ways of promoting it’s products through social media.
Today’s post is information only; not investment advice. Invest on the stock market at your own risk.
Do you have a comment or question to share? Please use the comments box. You can also follow me on Twitter for updates. Afren went up 7% while I was writing this! My little pile went up 1%, but I’m not complaining! Do you have an investment strategy?