Woodford Equity Income
Comments
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Sell low and buy high is a way to lock in losses. A sensible strategy of rebalancing and discipline over a period of years is a better approach.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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It has a decent dividend but I wouldn't want to be in this fund during a crash. Its basically 70% banks, industrials, miners and consumer cyclical. That stuff tends to fall hard. Its also leveraged at 13%.
When you said fund I thought you meant Woodford but OEICs can't leverage so assume you mean Merchants trust?Remember the saying: if it looks too good to be true it almost certainly is.0 -
bostonerimus wrote: »Sell low and buy high is a way to lock in losses. A sensible strategy of rebalancing and discipline over a period of years is a better approach.
Actually I won't be selling it low, I bought it for £1 and selling it for £1.15 + three years of dividends. It's not great off course, but it's not a loss either. And hopefully I can find something that can perform better, and still pay me dividends. At the moment that's pretty much everything in the Equity Income category.
I have always been told the time to get rid of investment that you don't like anymore for whatever reason is now. No point in waiting, maybe Neil will bring it back and it will the best performing fund in his sector maybe he won't. I don't really know, and neither does anybody else.0 -
I have held Woodford from opening too, for me, I am holding as part of my allocation and in my opinion it is far too short a time scale of investing to jump in and out of funds based on short term performance.
Maybe think too, how you would feel if Woodford turned the fund performance around and in 5 years time it was performing well. What happens if your next fund dips after 2 years, do you sell it and move to another and so it goes on. Just some thoughts
:) 0 -
takesyourchances wrote: »I have held Woodford from opening too, for me, I am holding as part of my allocation and in my opinion it is far too short a time scale of investing to jump in and out of funds based on short term performance.
Maybe think too, how you would feel if Woodford turned the fund performance around and in 5 years time it was performing well. What happens if your next fund dips after 2 years, do you sell it and move to another and so it goes on. Just some thoughts:)
I try not to look at the performance of funds I have sold, I see no point, because their is nothing I can do about it. But also whilst I agree with many things Woodford says, such as a outcome for the uk economy. I have issues with his stock picking ability, and risk management style. Some of the problems he had last year, could have been avoided. So what choice do I have when I lost confidence in the fund manager.
I ask myself the question why do I hold a fund manager I no longer believe in?
A good example is P2P he bought it at 1000p and more, I watched it, and always thought it was too expensive at the price he was paying, but he was too busy allocating cash as fast as he could. I bought it at 770p. Off course they are the many other examples, already discussed over last year.0 -
There is a bit more to evaluating the worth of an investment trust than meets the eye.
The NAV of an IT is not calculated the same way as the NAV of an ordinary listed share.
The NAV of an ordinary share is the value of the underlying assets of the company minus it’s liabilities, whereas the NAV of an IT is based upon the quoted prices of the underlying shareholdings minus the liabilities of the IT.
So even buying an IT at a substantial discount to it’s NAV is no guarantee of future out performance or indeed protection because the underlying portfolio of shares – at the point of our investment - may all be significantly over priced and thus subject to drastic rerating by ‘the market’ in the event of a crash.
Further, there is little value in investing in an IT just because it has increased its dividend for x years in a row if the current d/y is significantly lower than that of its contemporaries.0 -
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Actually I won't be selling it low, I bought it for £1 and selling it for £1.15 + three years of dividends. It's not great off course, but it's not a loss either. And hopefully I can find something that can perform better, and still pay me dividends. At the moment that's pretty much everything in the Equity Income category.
I have always been told the time to get rid of investment that you don't like anymore for whatever reason is now. No point in waiting, maybe Neil will bring it back and it will the best performing fund in his sector maybe he won't. I don't really know, and neither does anybody else.
Yes you've run foul of a bad year for an active fund investment and lost ground in a good market, but why have you lost faith in Neil, was the only reason to invest with him his past performance rather than his actual strategy. Let's hope your next choice is better although you seem to be choosing Merchant's Trust solely on short term performance which could take you from the "frying pan into the fire". Sorry if I'm being a bit hard, but you are doing lots of things that might give you very poor returns.“So we beat on, boats against the current, borne back ceaselessly into the past.”0 -
I try not to look at the performance of funds I have sold, I see no point, because their is nothing I can do about it. But also whilst I agree with many things Woodford says, such as a outcome for the uk economy. I have issues with his stock picking ability, and risk management style. Some of the problems he had last year, could have been avoided. So what choice do I have when I lost confidence in the fund manager.
I ask myself the question why do I hold a fund manager I no longer believe in?
A good example is P2P he bought it at 1000p and more, I watched it, and always thought it was too expensive at the price he was paying, but he was too busy allocating cash as fast as he could. I bought it at 770p. Off course they are the many other examples, already discussed over last year.
Understand you will have your reasons and you don't believe in the fund manager any more. I'd like to see Woodfords fund in 5 plus years from now and how he has positioned it for ahead, personally as I said I am holding for my reasons above, but I do have a spread and will keep Woodford as part of it.
If you don't mind me asking how much do you have invested in Woodfords?
If your after steady yield and away from Woodfords, would infrastructure even be an alternative or even a spread of P2P could return higher than the income from Merchants Trust if it's income your focus is for this.
I also hold City of London and have also been investing monthly into this. Interesting reading this as well from other replies 0
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