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    • sorcerer
    • By sorcerer 9th Jan 18, 1:32 PM
    • 840Posts
    • 400Thanks
    sorcerer
    Woodford Equity Income
    • #1
    • 9th Jan 18, 1:32 PM
    Woodford Equity Income 9th Jan 18 at 1:32 PM
    So after holding Woodford Equity Income since the start I have decided to sell it and move on. Two reasons it poor dividend for this year and its poor performance.

    I am thinking of replacing it was Merchants Trust, and despite having to pay stamp duty on top, I think in the longer term it will hopefully be better. I will save about £22 a year in Platform fees, the dividend is nearly double of woodfords, and performance over the last year is about 14% ish, compared to woodfords 0% ish.

    With it being a trust, it can also hopefully grow the dividend each year, currently dividend growth is about 1.4% a year.

    What do you guys think?
Page 4
    • bowlhead99
    • By bowlhead99 11th Jan 18, 11:28 AM
    • 7,138 Posts
    • 12,958 Thanks
    bowlhead99
    When I read threads like this I quietly despair that Iím tracking the effects of your ill informed ill judged and fundamentally random trades.
    Originally posted by TheTracker
    Well, for every ill informed mug punter making ill judged fundamentally random trades in one direction there will probably be another ill informed mug punter making fundamentally random trades in the opposite direction, and the overall effect on asset pricing might be neutral.

    Really, people like Sorceror are just creating a small amount of noise in the price (of either a share like MedicX, or of the underlying investee share holdings of a Woodford fund or a City of London IT); the core of the price is driven by the wall of money from institutional participants who are more savvy when deploying their funds.
    • firestone
    • By firestone 11th Jan 18, 11:50 AM
    • 108 Posts
    • 40 Thanks
    firestone
    When I read threads like this I quietly despair that Iím tracking the effects of your ill informed ill judged and fundamentally random trades.
    Originally posted by TheTracker
    one of the complaints of experts ( of which i am not ) is that the popularity of trackers has caused money to be fed in a random way into good companies as well as bad within a tracker.In a downturn you will be tracking and so will i in my pension ill judged and bad trades with a tracker so it can work both ways
    • sorcerer
    • By sorcerer 11th Jan 18, 1:51 PM
    • 840 Posts
    • 400 Thanks
    sorcerer
    I am not sure why you think this is random, I have a portfolio over about 30 investments, in which I try to complement each other, in terms of risk , volatility, yield and dividend distribution date's . Removing woodford and buying MedicX , reduces my duplication of stocks and allow for a different kind of income.


    Together with a number of rules I have placed about what I can and can't buy for the portfolio. To pick random would suggest I would choose anything, bitcoin tracker perhaps, or a gold ETF, or a high risk share that produces no dividends.


    The point is to try to produce a stable and growing income with perhaps a little of capital growth,evenly spread across the year.
    Last edited by sorcerer; 11-01-2018 at 1:55 PM.
    • bostonerimus
    • By bostonerimus 11th Jan 18, 4:30 PM
    • 1,431 Posts
    • 847 Thanks
    bostonerimus
    That's a nonsense, because you're comparing apples to oranges. It's not the case that US REITs can typically buy, develop, manage and let out property with operating costs of an eighth of a percent of the value of that property
    I accept the comparison is not ideal....I'd describe it as comparing apples and pears......MedicX and Woodford Equity Income is apples to oranges.......maybe even apples to cabbages.
    Misanthrope in search of similar for mutual loathing
    • bowlhead99
    • By bowlhead99 11th Jan 18, 6:15 PM
    • 7,138 Posts
    • 12,958 Thanks
    bowlhead99
    That's a nonsense, because you're comparing apples to oranges. It's not the case that US REITs can typically buy, develop, manage and let out property with operating costs of an eighth of a percent of the value of that property
    by bowlhead99
    I accept the comparison is not ideal....I'd describe it as comparing apples and pears
    Originally posted by bostonerimus
    Really the misconception that the headline prices of your REIT tracker versus someone's individual REIT would be comparable is like someone saying , "in Boston my weekly shopping cart of apples, pears and other groceries costs $100" and then someone from London popping up and saying, "that's outrageous, I'm used to paying European prices and wouldn't touch your expensive shopping cart with a bargepole. I would never pay $100 every weekend for a shopping cart, over here at Tesco you just put a pound coin in as a deposit and then you can use it for a couple of hours, and you even get the pound back at the end. $100 for a shopping cart is outrageous."

    In one case of course they are pricing up the cost of the contents and the other person is just looking at the cost of using the metal container to carry the contents.

    ......MedicX and Woodford Equity Income is apples to oranges.......maybe even apples to cabbages.
    A friend of mine compares toads to grandmothers. Not professionally, he's just Serbian and they have different idioms to make the same point.
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