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Market Comment - July 09

July 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

 Are you an investor or a punter? The 40th anniversary of the M&G Recovery fund is a good point for some soul searching. The fund, which has enjoyed the benefit of just three managers over its entire history, has always had an average holding period for any stock of 3-5 years and they find themselves owning many stocks for 10-15 years.  This contrasts markedly with an average holding period of about 10 months for most investors and fund managers.Some will sneer at the apparent “buy and hold†strategy of M&G but this misses the point. They don't buy and hold. Following in-depth research at a stock level they act very deliberately to buy stocks as committed long-term investors. They have clear parameters for buy ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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