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I just think you like working in spreadsheets
Fabulous reporting btw.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Another interesting update JohnRo, keep up the good work! :T
Question for you. I also hold an investment trust that falls within the 'specialist' category; BlackRock Commodities Income IT, which has done very well for me since I purchased it in February 2016 at around 52p a share.
I have been thinking about either adding another specialist IT or replacing BRCI with a REIT that specializes in warehouse properties/logistics to try capitalize on the boom in internet shopping and therefore the sustainable demand in warehouses... The most obvious contender is Tritax Big Box REIT PLC which does look very interesting, another one (which is relatively new to the market) is Warehouse REIT PLC.
Just wondering if you have considered these types of REITs as a potential investment and would welcome your thoughts on them?
Thanks in advance."If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett
Save £12k in 2021 - #027 £15,268 (76%)0 -
Not sure what this means, if it means anything, the thread seems to still be working or you wouldn't have been able to enlighten everyone. MSE may of course have other ideas at some point.
Sustainable income forever is desired, from a globally oriented, equity based portfolio of investment trusts.
In what way is that unrealistic? I'm keen to acquire this knowledge.
A poor attempt at humour... I was mocking an earlier reply saying achieving £150/month would be "very hard to do".
Great thread - keep up the good work.0 -
A poor attempt at humour...
Completely misread the context not to mention the humour, apologies for the curt reply.george4064 wrote:Just wondering if you have considered these types of REITs as a potential investment and would welcome your thoughts on them?
Short answer is yes, I have.
I did intend adding BRCI for a long time and dithered before deciding to leave it since I felt there was enough exposure to energy and commodity stocks already in the other holdings.
It's been a similar story with BBOX, Bowlhead suggested it a while ago and I did really give it some thought before rightly or wrongly thinking I probably have enough exposure to the property and retail sectors already.. but it's got to be said the property aspect of BBOX and other similar vehicles is only half the story.
The driver for these warehousing rental vehicles is obviously the quantum shift taking place in online retailing, demand for distribution facilities, centralised logistical operation and expertise and how that's only going to grow in the future.
The question for me about holding BBOX or similar, long term, is does it capture something new about that phenomenon that also provides an additional boost and that can't be captured by simply investing in the retailer's operations themselves.
I think it probably does although how that boost could be quantified is beyond me, it isn't coming cheap to the warehousing companies themselves either, with debts piling up to acquire the required real estate. I will in all likelyhood add BBOX or something similar at some point, I'm just not convinced it's going to add much to the growth or the income bottom line that's not already being provided.
It falls into the category of 'trying to resist'. To avoid temptation and the desire to just keep buying anything and everything that looks different and interesting, then end up with a huge list of holdings which, although individual and distinct, aren't really improving the bottom line, which I think is all that really matters.
That said this whole retail distribution hub rental malarkey does look really interesting, it clearly has a solid future although just how profitable that future proves to be is yet to be really well established in the UK imo.
What I would find compelling if it existed would be something like BBOX global.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
the need for big warehouses (to deliver internet shopping) is a real theme, but i do wonder whether, by the time the theme is being packaged up in a handy ticker (BBOX), that's a sign that it's a bit late to join the party. perhaps the big gains have already been made.
also, the mandate of buying big box warehouses and nothing else feels a bit inflexible to me. the property managers are going to be paid a lot whatever the mandate, so why not give them a bit more discretion to decide what looks like good value in property? perhaps they can make a few decent calls and justify (some of) their fees.
BBOX itself seems to be on a 3% premium to NAV, and a yield of 4.4%, which doesn't exactly scream "value".
i did hold londonmetric property (LMP), which is partly in big box warehouses. they have sold a few recently, though - perhaps they think there is less value there now. they also have some smaller, urban warehouses - useful for the "last mile" of delivery, so also related to the growth of internet retail. i prefer their more flexible approach to BBOX.
i still like LMP, but sold mainly because it was on an excessive premium to NAV of c. 15% (NAV will probably increase, but still ...).
i replaced that with regional REIT (RGL), which at c. 8% yield perhaps looks too good to be true. and perhaps it is, but the dividend is covered by earnings, it's on a small discount to NAV, and occupancy is only about 85% so has room for improvement. so i fancy my chances. all the property is outside london; the majority is offices.
all this is as usual just food for thought, not recommendations, of course
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grey_gym_sock wrote: »the need for big warehouses (to deliver internet shopping) is a real theme, but i do wonder whether, by the time the theme is being packaged up in a handy ticker (BBOX), that's a sign that it's a bit late to join the party. perhaps the big gains have already been made.
Automated warehouses are the next generation. Shop Direct's announcement this week (Littlewoods and Very) is an indication of how far this has to run. Not necessarily just linked to online retailing either. As these types warehouses are built to service all sorts of industries. Holding stock costs business money.0 -
It really doesn't bode well for the future of shop workers.
Of the 3 million plus employed in the retail industry I do wonder how many are going to be at risk and eventually replaced by automation in the coming years and what impact that will have on the wider economy and how the communities those workers live in will be affected.
It's not difficult to imagine the upheaval caused by the robotics revolution creating dystopia for displaced workers, where's the upside for manual labour roles lost to machines and automated processes?'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
Automation is the second industrial revolution...
http://www.bbc.com/future/story/20170522-how-automation-will-affect-you-the-experts-viewIf you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
I don't think I'll ever be able to do what you have achieved, but I enjoy the updates immensely, and the charting. :TSave 12 k in 2018 challenge member #79
Target 2018: 24k Jan 2018- £560 April £26700 -
Excellent updates John, enjoy these a lot and well done with it all. I am working more on my IT's and adding in some REIT as well at the moment. Great job look forward to the next one.0
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