Hi everybody! I’m a long term reader of this community but have only just now signed up.
I’ve been quite enthused by how open and transparent everybody is here and also quite inspired by how some of the people here share their investment journeys on YouTube. This is my attempt:
I’m not new to investing, I have previously held funds with Hargreaves Landsdown in the past but I’m certainly new to holding individual companies. I’m planning on being as transparent as possible and hopefully that provides some confidence or motivation for others.
Any and all feedback is welcome & apologies for the poor quality (I’ll work on this over time)
It seems we had similar thoughts on Legal & General. I thought they were fairly priced. Good business. Great dividend. Would have been happy with a static capital price and just pocketing the dividend.
Turns out I got them at nearly the best time of the year!
I think there is definitely capital appreciation to be made but thats not my primary driver for sure. You picked up some shares at good prices there so it will make some of the hard times that bit easier.
Thanks, appreciate the comment about the video. I’ll make future updates a bit more concise & then start to share my plans for next year
Thanks for the video, Grainger are my research list but haven’t got around to it yet. Since you’ve been digging into them a little, what do you consider are the key potential downsides/ risks related to Grainger?
Thanks @Sleepy. Yeah some fairly big risks, mainly around recession. Rents/mortgages are typically paid in recessions but this is still a risk the knock on effect is the breaching of debt covenants etc although Grainger does have a fairly strong balance sheet and also a modest 30-40% LTV. Property valuations coming down is a secondary risk here but given the strong underlying demand for housing and the lack of supply it should be mitigated quite well.
Operationally, any delays in projects (build to rent) coming online can delay cash flow and therefore future investment in the next projects. I do see this as quite minor as Grainger doesn’t have a lot of projects running concurrently and they’ve not reported any major delays so far - however I would expect some delays with any TfL projects.
Political and legislative risk is also present, the Private Rented Sector has a bad rep and although Grainger has done great work managing this, its a long term risk that they could have new laws & regulation placed on them that negatively impact returns. There is little that can be done to pre-empt this too.
One thing I think is worth pointing out is that GRIP was a joint venture between Grainger and APG, and as far as I understand was simply an investment vehicle for (some of?) the PRS assets which Grainger was already operating - so it’s not the same as if they were buying an until-then separate company on the open market. That point perhaps wasn’t clear in your presentation.
I’m talking about hitting the £1k mark, election uplift, a few performance updates as well as some new stocks added
Updates will be more regular (at least once per month now) and I’ll start covering things like company results, reasons for investing in certain stocks as well as going a bit more generic and discussing what I do with my money (eg where does it go & why).