Tuesday, 21 April 2015

Looking to Buy! Your Candidates Please! (My Full Comments)

Thread is here http://boards.fool.co.uk/looking-to-buy-your-candidates-please-13197188.aspx?sort=whole#13200205

Good morning all,

I've got the money to buy some more HYP shares now. Looking around for candidates, the only one I've seen that is potentially close that I like now is BLT. I was thinking of buying that at 1416p recently but couldn't because investing money when you know VERY little about the company is not something I do! I know more about it now and would probably buy if it came down to around that level.

Anyway I'm interested in your potential candidates for buying now! The main consideration for me is... that the share price goes UP and I'm paid a nice dividend. In terms of 'diversification' people would def say that I am over exposed to financial shares... and I also have quite a lot in GSK and BP. More than HYP purists would like. But being a share investor for over 10 years now, and having written share articles for the past year... it hits home to me that all matters is how much you make (overall, taking both yield and capital rise into account.) I don't think any of the shares I currently own are at 'buy' prices now, so candidates will probably not be 'main' shares...

Another thing that's hit home to me lately is just how much better shares are than cash as long as you can keep the money in shares for at least a year! Over the past 18 months I've been putting much more of my cash into shares.

I'm still long term buy and hold and haven't sold any shares in over 8 years.

So I'm ready to hear your suggestions... details of what you think of the companies and their 'strategic plan' will be good too! Thanks!

Thanks again for reply.

Please bear in mind that I am a long term buy and hold investor. I have not sold for over 8 years and that strategy is set to continue.

Instinctively at the moment of all the shares (and one investment trust) that I have looked at none look to be great value. However I think it is fine to put shares on a watchlist and then buy them if/when the time is right. At the moment I have BLT and Royal Dutch Shell on my watchlist. I am also currently looking at BlackRockWorld Mining Trust on my father's advice. Don't know whether this will be on my watchlist properly but looks quite interesting. Long term I think mining shares will do quite well.

With long term high yield shares it's all about buying the right company at the right price... then holding. Often silly fears that the market throws up can lead to a buying opportunity.

Thanks all for replies.

If you check out my blog and articles etc you will have seen what shares I have... but have copied and pasted here for your benefit.



9813 LSE

This is the vast majority of my shares but I also have Centrica and a LGEN all share ftse tracker...

I do like these boards because they get my mind thinking.

In some ways my approach IS HYP. Fool got me onto it really. I do long term buy and hold (haven't sold in over 8 years) and judge share selection mainly on FTSE 100 shares with a good yield and low PE.

At the end of the day though I don't TOTALLY believe in 'strategic ignorance' and over the past say 2 years I have been watching the prices and charts more aiming to get in at a good price when buying a share.

Because with shares all that matters to ME is how much money I make. I think of money as kind of like a score in a computer game really. I'm not a consumerist person but I do like getting more in a kind of high score way. There's no point getting a share which looks like it has a low PE and a high yield... if that yield is cut the profits drop and the prices go down. I have made that mistake in the past to an extent with LLOY and SBRY.

But overall I think getting a share with a low PE and a high yield is USUALLY a good way of making money in the long run!

OK time to blast out a quick reply...

The 'for your benefit' bit was meant as a jovial remark :)

I've thought about this more...

It's interesting to see how a lot of people said... "But what shares do you have now??"

Here's reply I sent to someone who LIKED MY POST.

"I actually have more to add aka... it doesn't MATTER MUCH what shares you currently have... what matters is the TOTAL RETURN of the shares you buy now make in the future."

That's all that actually matters now in terms of my decision.

I know a lot of people like to have 'diversification'. AKA SPREADING THE RISK. And that's fine if that's what they need/want.

But what matters to me is HOW MUCH MONEY I MAKE.

If I already have a lot of a share... but I believe it will go up and it does go up it would be the right decision to buy more of that share at the right price before it goes up... for me anyway. And I would suggest it would be to anyone who... LIKES MAKING MORE MONEY :).

Anyway may publish my other replies to this thread along with selected quotes on my blog because it's interesting thanks all for reading and replying!

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