Chris and Clem Meet Up #19

"Chris and Clem Meet Up
- Friday Night 7th. May 2021"

"Chris and Clem's Story So Far ..."

 "Chris a young engineer and Clem an "old" hand meet up regularly (every two/three weeks) for a few beers and a chat - mostly about Chris' retirement savings.

Chris' late Dad was a good friend of Clem's - that's how the two came to know each other.

These regular meetings started purely by chance.  Chris just happened to mention that he was living beyond his means and his financial prospects did not look good.

Clem knew exactly what the solution was for Chris and set about giving Chris some sound advice.  Clem was not a financial advisor but had spent a lot of time amongst people that were financial experts.  He wanted to share his knowledge with Chris.

This is the 19th. article in that series.

The story continues ...

"Chris Pours Out His Emotions"

 "Hi Clem, it's so lovely to see for what I hope is the very last time under these restrictive lockdown rules."

"Yes" admitted Clem, "I too will be more than pleased on the 17th. when we can all get back to some sort of normality.

"For an old-timer like me, it might not be long before I can't get out and about - so at my age freedom of movement is important to me."

"Yep!" agreed Chris "I remember my Dad being confined 'to barracks' just before he pased away.  Not a pretty site.  It's important that you get out and about and I know that our little meets every two or three weeks are a good release for you Clem."

Clem said, "I'll not lie to you.  I love our little gathering every couple of weeks.  I try to get out most days but I usually sit in a coffe bar, or bookshop, while the Missus does her thing.  And her thing is wandering around shops.  That's definitely not my thing. Never has been - and it's too late for me to change now.

"Enough about our sanity - what, if anything, have you done in the markets this last couple of weeks?"

"Not a lot" replied Chris, "I'm kinda short on resources and even if I wasn't I don't have many shares that's appearing attractive right now.  Everything has risen quite nicely and the shares that I have identified are too expensive - but I have done some dealing."

"Oh, please enlighten us." said Clem sarcastically.

"Chris' Own Share Selections"

"I have finally lost patience with both Countryside Property and Morrisons." said Chris rather sadly.

"They are both under-performers - especially Morrions.  In the case of Countryside, their last figures were in the red which excludes them using my criteria.

"Morrisons have a lot going for them but their share price isn't keeping up.

"I'm baling out with a tiny profit on Morrisons of £360 (11% gain) and £1420 (36% gain) on Countrywide.

"I shall keep my powder dry and await a suitble buying opportunity for my next share which could be more of what I already hold or one of the four companies I mentioned last time we met.

"Just remind me" interrupted Clem, what are those four companies?"

"Telecom Plus, Bunzl, Hargreaves Lansdown and Hilton Foods." replied Chris.

"However, none of them look particularly cheap.  But in this market, very little is.

"I now have a 'war chest' of just under £12,000

"I'm tempted to buy more BT, ITV, and Lloyds.  All of which I think have further to go.

"Clem Suggest That Chris Stays Fully Invested"

"I can't advise you one way or the other" said Clem, "But this market may have more steam left in it.  Everybody knows how 'talked up' the economic recovery is going to be.

"Question is - is that recovery already factored in.  Remember, the markets always look 9 months ahead.

"For me, that would suggest caution.

"My thoughts are to stay fully invested, but watch the market closely - like every day."

"That's more good advice coming from you" said Chris excitedly.

"Take a look at my portfolio now.  When Glaxo begin to perform and I weed out the underperformers - it'll begin to look really good.

"Overall I've achieved a 40% gain in a lot less than a year.  Getting rid of the poor performers and investing in something better should keep the ball rolling.  And - most of the remaining holdings pay a decent dividend.

"For example, Glaxo as we already know yield 6%, Aviva 5%.  BT, ITV and Lloyds may get back to paying decent dividends this year - but as mentioned many times - a share's dividend yield is not a reason on its own to buy.

"It's time again for me to try and find some more companies that fit my criteria.  It's not going to be easy.  If the pandemic hadn't hit, there might have been many more - but like we said last time we met - the pandemic has really sorted out the good companies from the really good ones.

"Warren Buffett is spot on when he said that a consumer monopoly type company should do well in good times and bad.  How right he was with that statement."

"Chris and Clem's Next Meet Up"

"Let's meet up in another three weeks" said Clem rather more seriously.

"It won't be long now before we can meet like we used to in the 'old' days.  Pre-lockdown that is" said Chris. "That'll be from the 17th onwards.

"Yeah" agreed Clem, "By our next meet-up we can actually be inside the pub - although this meeting in the beer garden is pretty good - weather permitting "

"That's it then - 28th. May - see you then.  

Disclaimer:  Any individual shares discussed on this website are NOT recommendations.  They may, however, be the actual portfolio of the writer.

This website is not authorised to give financial advice of any kind.

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