This the editorial of our monthly Shareholder Yield Letter published on 2023-06-12. Sign up here to get it in your inbox the first Tuesday of every month.
More information about the newsletter can be found here: The best large cap investment strategy ever
In this issue you can read how you can best get started with the newsletter.
But first the portfolio changes.
Portfolio Changes
Buy Five
Five new recommendations this month as the MSCI World index is above its 200-day simple moving average.
- The first is a Germany-based automobile and motorcycle manufacturer with a shareholder yield of 10.4%, share buybacks of 2.6%, and it pays a dividend of 7.9%.
- The second is a UK-based tobacco company with a shareholder yield of 11.3%, share buybacks of 2.8%, and a dividend yield of 8.4%.
- The third is a UK-based international manufacturer and distributor of drinks with a shareholder yield of 12.1%, share buybacks of 9.7%, and pays a dividend yield of 2.3%.
- The fourth is a US e-commerce company with a shareholder yield of 10.6%, share buybacks of 8.6%, and a dividend yield of 2.0%.
- The fifth and last recommendation is a Japan-based general trading company with a shareholder yield of 10.1%, share buybacks of 7.3%, and a dividend yield of 2.8%.
How to get the most from your subscription
We have received quite a few emails asking:
“What is the best way to get started with the newsletter?”
So, I thought it is a question you have perhaps also had.
Invest only if you feel comfortable
The most important thing with any investment is, you must feel comfortable buying and holding it.
If not, you may have an uneasy feeling and perhaps even start sleeping badly.
This is NEVER a good thing.
It is not worth sacrificing your piece of mind with any investment.
So, we recommend that once you have read the newsletter, buy the ideas you feel comfortable investing in. Then slowly increase your investments with future newsletters – again only if you feel comfortable.
What if the price has gone up or down?
We don’t set a maximum buy price when we recommend ideas. This is because when we recommend them, they all have a high Shareholder Yield.
If the share price moves a bit the Shareholder Yield may change slightly, but not by much.
If the price has however moved more than 15% up or down since we recommended the company ignore it and move on to the next idea.
We recommend that you invest in ideas close to the time the newsletter is published - the second Tuesday every month. That way you can be sure the company fits with the investment strategy, and you have the best chance of a big return.
Keep your investment positions small
Remember to not make the size on any one investment too big, stay with the suggested portfolio weighting for each investment.
This makes sure you are well diversified and get the full benefit of the strategy, not large movements – up or down – of individual companies
When do I sell?
We have tested a lot of selling strategies and we still recommend the one year holding period the newsletter follows.
We will tell you to sell a company after a year if it is not still in the investment model, if it is the investment is held for a further year.
Stop loss strategy
As you know the newsletter follows a STRICT 20% trailing stop loss strategy. We look at this loss level once a month (this keeps your trading costs low) when the newsletter is published.
Should a stop loss be triggered we will of course also let you know to sell.
As always let me know if you have any questions.
PS The Shareholder Yield newsletter is published on the second Tuesday of the month so look out for your next issue on Tuesday 11 July 2023.
P.P.S. Here is information that can help you get the most from your subscription
How we find ideas for the Shareholder Yield investment newsletter.
