Portfolio Strategy Essential In Current Climate

PUBLISHED: 09 Jul 2012 @ 23:31 | Comments (0) | More info about Clem Chambers

Lighthouse is planning to go private. What a shower!

Going private effectively destroys all shareholder value as far as I’m concerned and as the market has market the company down by 30-40% today, I don’t seem to be the only one that thinks that.

Any company that has gone public owes it to its shareholders to stay there as long as it lives and breathes otherwise, in my eyes, it’s a breach of trust.

Once companies get delisted nasty things can and do happen. Private companies have lower standards, that’s the main reason public companies delist; to have lower and therefore cheaper standards.

The current climate shows risk is at an all-time high. You simply cannot rely on pre-2008 standards, meaning you have to buy less of risky companies across a greater spread. You have to be very sure of yourself to go in big.

For me this means building past my 23 shares toto 30 and downsizing my speculative positions as I go.The trouble is I’m finding it hard to find new stocks because the little punts of old now look too risky to me.

Even so, the wonders of a portfolio mean the Lighthouse right-off makes little difference to my performance. Once again a portfolio strategy shows its metal.

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