Top Ten Holdings, 23 March 2007

Figures show percentage of portfolio. Top ten holdings accounted for just over 38% of portfolio.

Coffee Republic 6.05
Character Group 4.83
Highway Insurance 4.00
Renold 3.32
E Wood 3.22
Soco International 3.12
RC Group 2.89
BP 2.52
Fayrewood 2.47
Smaller Cos Dividend Trust 2.14

2007: a difficult, but good, first quarter

Quite a lot of profit disappointments and negative trading statements, and I spent the first few weeks underperforming the FTSEAllShare. And yet, I've had a good quarter: at 30 March my portfolio had made 7.0% capital gain compared to the FTSEAllShare's 1.96% and the FTSESmallCo's 2.76%. That's over £32,000 (nearly $60,000) ....* Quite a chunk of the gains are due to strong gains in Character Toys and Coffee Republic ... plus a takeover for E.Wood, one of my top-ten holdings, effectively brought me nearly an extra £5,000 before breakfast one March morning.

* There's none for that greedy bloated socialist Gordon Brown (and I've gifted quite a lot of it to relatives and some friends) ... and, given our stupid inheritance/death tax rate of 40%, I've got nearly half a £million to spend at 40% off!

2006, Goodbye and Thank You

I've almost finished calculating my 2006 gains. They seem to be about £102,800 net*, that is, 28.3% against the FTSE All Share 15.?% for 2006. This is more than satisfactory. The year ended rather slowly with several company results being unhelpful (SCS Upholstery - where has the double-digit growth gone? - I've halved my holding; MSI International). My largest holdings going in to 2007 are:

Highway Insurance (HWY - Nonlife Insurance)
Coffee Republic (CFE - Coffee Bars)
Soco International (SIA - Oil Exploration)
Character (CCT - Toys)

I have also increased holding of Asian investment trusts in the second half of 2006 .... to nearly 5% of my portfolio. I may increase that shortly. Also, if I can overcome my inertia, I will purchase a put-option on the FTSE to serve as insurance against a fall in the markets.


* In Gordon Brown's high(and getting higher)-tax Britain that's the approximate equivalent of a £160,000 gross salary. And I feel better for not giving that greedy so-and-so £50,000+ to waste on hopeless socialist and harmful politically correct causes. There seems to be very little to show, apart from rather-well-off doctors and lots more fatter kids and young people, for all the extra public expenditure.