It is said that wisdom comes with age, but sometimes age comes alone

It is said that wisdom comes with age, but sometimes age comes alone – thoughts of Saltydog Investor

Now I may not be the fastest fox in the forest, but no sane person drives fast in a fog and today’s investment climate is definitely murky. There appears to be no obvious direction to the markets and no particular sector is standing out with any strong upward momentum, or at least not recently, nor for any length of time.

Watching the movement of the dollar is just as confusing. One month it is strengthening and then the next it goes into reverse when the tyranny that is the media and their experts start beating their chests about inflation, over-valued stocks, and the arrival of the Four Horseman of the Apocalypse.

Under these circumstances I have been reducing the amount of money I have invested in the market and moved into holding more cash.

By and large I have done this by reducing the amount in most of the funds that I hold, but very few have been totally sacrificed. This is because I still believe in the future of technology and that the UK will be one of the first countries to recover economically from the effects of the pandemic.

I just do not have any idea when this might happen, but I gain hope when Liz Truss returns to the UK indicating progress is being made in securing new trading contracts with the Pacific and Asian nations. I also like the fact that foreign companies see value in, and are trying to buy up British businesses, although I am uncertain about the wisdom of losing our security in some of these cases. Still, fortunately that is not my call!

The following are the UK funds that I am hanging my hat on at the moment.
 

*     Franklin UK Smaller Companies.

*     ASI UK Smaller Companies.

*     Aberforth UK Small Companies.

*     Chelveton Growth Trust
 

Please remember that these are not recommendations, just my own take on the numbers that we produce at Saltydog.

I am well aware that there are many subscribers with more experience than me, who will successfully choose different funds to follow, and also have a better take on the future of the investment markets. I just feel more comfortable not taking the risk. If the markets do go up, then not having so much invested, does mean I lose out, but if it goes the other way, I do not lose as much. Younger investors might choose to ride it out, but as an older one, that is not for me. Still as Frank Sinatra said “That’s Life”.

Even though I have written the above, the bulk of my investments basically follow the Ocean Liner portfolio percentages. I very rarely invest into individual companies, preferring to use fund managerial and research teams to give me a spread of businesses.

There is one exception as most of you will know, and that is the hydrogen company ITM Power.

However, the price volatility of this company is really getting on my nerves. It goes up and down like a “Lady of the night’s underwear”. Fortunately, it now looks as if I can escape this problem.

There is a recently formed Trust fund called Hydrogen One Global Growth which has stated that it intends to hold in excess of thirty-six companies involved in the production and use of hydrogen worldwide. I am expecting to see ITM inside this fund’s portfolio. Then I may divest myself of this troublesome share, and buy the Trust. I would be very interested to hear from any of you that know anything about this fund.

At the age of fourteen when I first went to sea on Icelandic trawlers as a “Decky Learner” my mother gave me two of those plasticised cards bearing words of wisdom which were intended to help me stay on the straight and narrow.

One was “If” by Rudyard Kipling and the other was “Desiderata” by Max Ehrmann. Recently, I rediscovered these long-forgotten cards in an old box.  “If” I recalled instantly, but “Desiderata” came back afresh. It is a wonderful piece of prose, with superb advice for life. I would heartily recommend it as reading for youngsters starting out in life, and for that matter people of all ages, especially those able to exert influence on others – I’ve typed it out in full at the bottom of this email.

Over the last couple of years, time and hospital has made me realise that I am growing older. The evidence of that is when I now fall over, I look to see what I can do whilst I am down there. Surely a bad sign!
 
Best wishes and good luck with your investments.

Douglas.

Founder & Chairman
 

 
Desiderata.
 
Go placidly amid the noise and the haste, and remember what peace there may be in silence. As far as possible, without surrender, be on good terms with all persons.

Speak your truth quietly and clearly; and listen to others, even to the dull and the ignorant; they too have their story.

Avoid loud and aggressive persons; they are vexatious to the spirit. If you compare yourself with others, you may become vain or bitter, for always there will be greater and lesser persons than yourself.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

Exercise caution in your business affairs, for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals, and everywhere life is full of heroism.

Be yourself. Especially do not feign affection. Neither be cynical about love; for in the face of all aridity and disenchantment, it is as perennial as the grass.

Take kindly the counsel of the years, gracefully surrendering the things of youth.

Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness.

Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe no less than the trees and the stars; you have a right to be here.

And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be. And whatever your labors and aspirations, in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.

By Max Ehrmann © 1927

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