Never look back #finance #investments
One thing I have learnt about investing is never look back and regret your decisions. You can’t change the past so concentrate on the here and now and of course try to predict the future. I have sold a few shares a little too soon but who knows what will happen to them tomorrow? It is better to sell too soon and make a profit than sell too late and make a loss.
Never look back
We can learn from the past but we shouldn’t be preoccupied with it. I could have held Taylor Wimpey for longer and sold at a higher price or sold Solo Oil when it soared to 0.8 but we don’t know what will happen in the future. We do know that the triggering of Article 50 is coming soon. Will that panic the market?
We can do a SWOT on the Article 50 period and look at our strengths, weaknesses, opportunities and threats. We can look at the economy and our own portfolio. The economy looks quite robust and any panic could simply bring opportunities. What are the economic weaknesses? I would say the low value of the pound is both a strength and a weakness. It is a strength for companies who earn in foreign currency like pharmaceuticals but a weakness for retailers who import most of their goods. I did sell GSK this week, though. I don’t think the price will appreciate anymore on the low value of the pound.
I have watchlists for different sectors of the market and my attention is on commodities and infrastructure. I have just added Morgan Sindall Group to my watch list. They are involved in some interesting infrastructure projects and they came back into profit last year. They also pay a dividend so I’ll try to buy before they go ex-dividend. I have Alliance Pharma on my watchlist and they have some room for growth. I’m reluctant to buy into another AIM company, though.
I’m looking forward and try to never look back. Solo Oil got trashed back down from 0.8 to 0.5 but it looks like that was an over reaction.This morning it has climbed again to 0.57. I think the next good news could easily double the share price again and take it well over 1p. What then? The sensible thing would be to try to do a share issue and a rights issue would allow existing shareholders to buy more at a discount. Being AIM it might mean a 10% discount and maybe 1 new share for every 5 held. That would increase the market capital by up to 20% and fund NT3.
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