Tuesday, 19 December 2017

June 2016 - Investment No 11

We had the referendum and the results are out!  The UK voted to leave the EU.  Of course as predicted the market panicked and share prices dived! One of the comments made was "house prices would drop" as people sold up and left the UK.  Of course this meant the stock market prices of the  house builders dropped. And did they drop.

My old favourite Persimmon fell.  And boy did it fall. Just over a year ago I sold my 56 shares  in Persimmon for a  15% profit after holding them for 6 months, and the share price had actually gone up a little more in the following months. Now they were more than 30% down.  Now if you remember from my last investment I had used up the cash I had previously created by purchasing 229 Anglo American plc shares.  What I had not mentioned was 2 days before the referendum they were showing a 11% profit after dealing costs - so I sold them.

Additionally Centrica plc paid a dividend of £37.93 so I actually had over £1,500 in cash available in my dealing account.  However due to all the uncertainty about the future, I chickened out, and only used £1,250 of the cash to purchase 78 shares in Persimmon plc.  This was 22 more shares than I had purchased back in March 2015 so I was happy. At the back of mind I was trying to hedge my bets slightly. By holding back a little money, if the market did carry on down I could look at purchasing more, and if it stablised and went back up, well it did not matter as I would just find something else to purchase!  I think you could safely say I was an optimist.


I shall be taking a break over Christmas and the new year from posting the next installment about my share portfolio.  This means it will be 2 weeks before you will find out about my next investment.

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