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.

Close, but not quite

About six months since I've put anything here. Well, it's been quite eventful: just under 27% up for the year so far - that is about double what the FTSE All-Share has managed. Very close to a tax-free £100,000.

Tuesday is a big day as my second largest holding, SCS Upholstery, reports its full-year results. Fingers crossed. This company (unusually with its HQ in Sunderland in the north-east of England) has been a most profitable investment.

Two weeks of turbulence

Two weeks ago I was more than 20% up for the year: a nice tax-free £75,000. But, my portfolio is down slightly more than the market over the last two weeks - over £45,000 gone. That leaves me 9% up for the year-so-far, as against 1.5% for the FTSE AllShare. Well, I'd have settled for that, if offered it, on Jan 1st!

I've reacted to the turbulence by being a net buyer of: Aminex (AEX), GUS, Highway Insurance (HWY), Lloyds Bank (LLOY), Royal Bank of Scotland (RBS), SCS Upholstery (SUY) and Soco Petroleum (SIA). Some of this has been rotation from other stocks - such turbulent periods usually throw up some strong changes in relative prices, and this creates profit opportunities. We'll see! This week I may buy more GUS and RBS.