‘There is nothing wrong with optimism…’ Thoughts of Saltydog Investor
There is nothing wrong with optimism, as long as you do not get your hopes up.
The recent twelve months has seen a change to my personal investment approach and mentality.
I have become greedy. If my portfolios are not giving me percentage returns in the high teens, I have become dissatisfied.
I have altered my pie-chart up into the more volatile groups and sectors including a larger percentage of shares than ever before. Investing into technology, green clean funds, and hydrogen shares along with the back-stop of renewable funds, has for the moment produced, and continues to produce astonishingly good results, if somewhat more volatile.
It has however introduced more tension into my daily look at the portfolio results. The question is, do I need this extra stress?
I have survived major surgery and reached the age where everybody seems to whisper. I have sufficient money to supply my family’s needs, even the occasional demands of my wife and grandson!
So perhaps now is the time to revisit the purpose for which Saltydog Investor was created, and get a grip.
- It was designed to supply weekly fund information that could be used by the average person to run their own investments and pension, and it achieves this.
- It should demonstrate the importance of a pie-chart split into the Saltydog groups and Investment Association sectors, designed around the risk aversion of the user, and it does this.
- It should remove the necessity to pay a financial advisor to run your stock market investments (even monitor if you are lucky), and it achieves this.
- It was hoped that the demonstration portfolios would, through good and bad times, achieve an annual average growth rate significantly better than cash ISAs and bank saving accounts. Over the last ten years they have done this in spades! They have achieved average annual returns of over 6%.
- The beauty and importance of compound interest should be frequently demonstrated. For example, a £10,000 principle backed up with £2000p.a. at a rate of gain of 6% p.a. will over twenty-five years result in a pension pot of £145,000, and an annual payout at 6% of £8700. Not bad for a total layout of £60,000. (Inflation of course effects the value of this return)
So with the above in mind, I have decided to gracefully accept the higher returns coming through at the moment, and stay invested in the “Slow Ahead” renewable, technology, and green/clean funds, which are currently giving annual returns of above 20%.
I will also continue to dabble in the Hydrogen shares (which seem to be taking a breather at the moment), whilst retaining some cash in case the markets and my portfolios turn south in the future. After all, it would seem foolish to bail out of a winning situation before it becomes necessary. I have China and the UK small company funds under observation and have already started to make small steps into these sectors.
So I will man-up in these times of Covid and the lock-down, and enjoy rather than worry about the ride. This may mean spending more time folding sheets and towels with the wife, where I get one corner and she gets three. But so be it!
Best wishes and good luck with your investments.
Founder & Chairman