The Mitre Investment Club funds have been liquidated following agreement with the members to mitigate the risk of very poor FTSE performance in the next economic cycle.
Tuesday, 29 December 2009
Mitre Investment Club - funds liquidated
Tuesday, 20 October 2009
Ladbrokes Plc Rights Issue
The Club has decided to take up the Ladbrokes Plc Rights Issue open to shareholders with share in the company at the opening of Business on 09 October 2009.
For every 2 qualifying shares held, 1 new share can be applied for at 95p per share.
For every 2 qualifying shares held, 1 new share can be applied for at 95p per share.
Sunday, 18 October 2009
Stop loss counter measure against market freefall.
Following the Club meeting at the Ye Olde Mitre Inn on Thursday 15 Oct, the members have agreed to set a portfolio stop loss level on the FTSE100 of 4900.
If during the period between 15 Oct 2009, and the next club meeting the FTSE100 drops below 4900, the portfolio will be liquidated as a counter measure against the potential of a market freefall predicted by some commentators.
If during the period between 15 Oct 2009, and the next club meeting the FTSE100 drops below 4900, the portfolio will be liquidated as a counter measure against the potential of a market freefall predicted by some commentators.
Sunday, 11 October 2009
Mitre Investments Club - The Formula
I mentioned in my first post the formula used by the club in selecting shares. Below, I paraphrase the formula from the Club's Partnership Agreement.
On a predetermined day of each year [5 April]. All Mitre Investments assets will be reinvested, in equal currency amounts, in the top 10 high dividend yield [dividend / share price * 100] companies, in the FT 30 index.
On a predetermined day of each year [5 April]. All Mitre Investments assets will be reinvested, in equal currency amounts, in the top 10 high dividend yield [dividend / share price * 100] companies, in the FT 30 index.
When the cash holdings reaches a predetermined level following the payment of month subscriptions or the receipt of dividends, it shall be invested in the lowest value stock holding .
Bide time patiently and one year later, repeat the process.
The club have made 2 exceptions from the rule above in Royal Bank of Scotland Plc and Lloyds TSB Group Plc. The club decided to hold these shares when they fell out of the top 10 in April 2009.
The current portfolio [with the div yield as of 29 March 09] is as follows.
BT - 20.1, Man Group - 16.0, BP - 9.0, Tate and Lyle - 8.9, M&S - 8.5, Ladbrooks - 7.5, 3i - 6.6, GKN - 6.6, Vodafone - 6.5 and National Grid 6.4.
So, If the share club had assets of £100, it would buy £10 worth [less dealing costs] of each of the 10 shares selected by the formula.
At the end of the year all shares not in the formula any more are sold, and the assets are again distributed evenly across all 10.
Bide time patiently and one year later, repeat the process.
The club have made 2 exceptions from the rule above in Royal Bank of Scotland Plc and Lloyds TSB Group Plc. The club decided to hold these shares when they fell out of the top 10 in April 2009.
The current portfolio [with the div yield as of 29 March 09] is as follows.
BT - 20.1, Man Group - 16.0, BP - 9.0, Tate and Lyle - 8.9, M&S - 8.5, Ladbrooks - 7.5, 3i - 6.6, GKN - 6.6, Vodafone - 6.5 and National Grid 6.4.
So, If the share club had assets of £100, it would buy £10 worth [less dealing costs] of each of the 10 shares selected by the formula.
At the end of the year all shares not in the formula any more are sold, and the assets are again distributed evenly across all 10.
Tuesday, 8 September 2009
Monday, 7 September 2009
Thursday, 3 September 2009
Purchase 03 Sept 2009
MAN Group Plc $0.34 @ 254.5650
The Man Group joined the FT30 index in June 2007, as the replacement for Alliance Boots following its takeover by KKR, and was added to the Mitre Investment Club Portfolio in April 2009 as the second highest ranking stock in the Mitre Investment Club Formula with a 16.0 dividend yield [increased from 3.4 the previous year].
The reason for purchase: Mitre Investment Club lowest value stock.
Club History for MAN Group Plc
#2 - Buy 200909 @ 254.5650 [to-date : Gain 0.44%]
#1 - Buy 200904 @ 250.6900 [to-date : Gain 2.00%]
Sunday, 23 August 2009
Wednesday, 12 August 2009
Friday, 7 August 2009
Purchase 05 Aug 2009
BP Plc $0.25 @ 500.7250
British Petroleum joined the FT30 Index in March 1977, replacing Cavenham Control which left the
Club History for British Petroleum
#3 – Buy 200909 @ 500.74 [to-date :Gain 7.10%]
#2 – Sell [40% of holding] 200904 @ 465.30
#1 - Buy 200704 @ 552.80 [to-date : Loss -2.98%]
Thursday, 6 August 2009
The Mitre Investment Formula
All investment decisions made by the club are based on the "Mitre Investment Formula". The formula orgininated from the Motley Fool UK Investment Guide "Beating the Footsie" which itself originated from Michael O'Higgins book entitled Beating the Dow.
The Mitre portfolio is formed from 12 stocks from the FT30 index. More of the formula and stocks in later posts!
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