End of Year Portfolio

[BT63]

Significant update to portfolio holdings.
The cash is in the process of being used to accumulate precious metals and their miners (via funds) on this bout of extreme weakness.

Current holdings:
Cash: 4%
28% gold bullion
12% PM mining funds
8 - 9% (approx) in each of AZN and GSK
6 - 7% (approx) in each of NG., SSE and IMB
13% in various other large-cap dividend paying shares
7% UK index funds

[BT63]

End of 2022 portfolio summary:

Current holdings:
Cash: 3%
30% gold bullion
15% PM mining funds and other precious metals
6-8% (approx) in each of AZN, GSK, NG., SSE and IMB
16% in various other large-cap dividend paying shares
1% UK index funds

During 2022 Q3, most of the UK index funds and cash rotated into additional precious metal investments after the summer sell-off in precious metals.

Portfolio value increased by +7% during 2022.

No major changes are planned for 2023.

[1nvest]

Calendar 2022 RPI to the end of November = 17.5% (December RPI figure not yet released)

[monabri]

Calendar 2022 RPI to the end of November = 17.5% (December RPI figure not yet released)

Nasty!

[1nvest]

Calendar 2022 RPI to the end of November = 17.5% (December RPI figure not yet released)

Nasty!

Subjectively. If you're drawing income using RPI based SWR then great!

[Adamski]

Up 7% last year. That's fantastic, well done!

[Spet0789]

I just casually mentioned woodland in my earlier post. Reading deeper however and I note that you can fell around 210 modest sized trees/year (4m tall, 15cm diameter) without requiring a licence and some reasonable sized woodlands are available for around £50K. More than enough to fuel quite a number of 5KW log stoves i.e. potentially replace a number of otherwise £2K/year and rising average home heating costs. Potential 20%+/year type dividend(wild guess), but involving some effort/time, maybe 4 weekends/year. Perhaps not surprising upon looking around at availability to see many woodlands having been sold.

Other choices of 'land' might be buying/selling ground rents, or garages/storage spaces.

Just a case of preferred lifestyle. I'm a pure townie whose closeness to nature is picking apples out of supermarket trays. My grandfather on my mothers side was much more self sufficient, grew vegetables, went shooting for game, salmon and mackerel fishing, mushroom picking, even kept chickens and a turkey ... etc. Fond memories of when I was a young lad of spending some time during summer holidays with him. Both he and my mother lived into their 90's (mum turned 90 this year). Me, I suspect will be more like my father and be lucky to get to mid 70's.

Similarly art wise my ability is limited to drawing match-stick-men and what others prize I would be inclined to throw-away in absence of knowing the value placed upon such. I suspect much of ownership of such art may be via 'tax/cost efficient' private title transfers. Just going by films and even some open auction purchases seem to be by 'anonymous'.

Fundamentally just stores of value against surplus capital, only being sold when liquid cash is necessitated. I've heard some say that the rich don't ever sell, just use assets to cover taking out debts that are used to fund cash spending - such that when they pass they were in debt, whilst ownership of assets may have been redirected to others in the background. Some even say inheritance tax is a optional tax/donation.

By your own admission you’re a townie so i think you’re underestimating the graft involved in felling, logging, splitting, stacking, seasoning and finally delivering 210 trees worth of logs to a burner.

I live on 20 acres (mostly grass) and so we are nicely self sufficient in logs for 4 burners (2 of our own, 2 for family) but it does take a fair bit of work and kit (chainsaws, trailer, splitter and so on.)

[BT63]

End of 2023 portfolio summary:

Current holdings (very similar to last year):
Cash: 3%
31% gold bullion
17% PM mining funds and other precious metals
47% in various other large-cap dividend paying shares, similar holdings to last year.
2% UK index funds

Portfolio value increased by +10% during 2023. Opportunistic top-ups (especially PM miners) during autumn weakness flattered the total return which would otherwise have been approximately +8%.

I think the interest rate/economic cycle turning could cause significant moves up or down in the year ahead which could result in me making some portfolio changes/opportunistic buys/taking profits etc.
If I had to make a projection, I would say that markets are likely to do well in the next few months as interest rates reach a plateau but if/when interest rate cuts arrive from the Fed it will probably be signalling the beginning of a nasty global recession and bear market.
I don't like bonds and cash but they might become attractive options next year.