Portfolio
Into the oil field
Nephew Wilde
I noticed last week that General Amin had sent all his Cabinet ministers away for a compulsory month's holiday. Returning from the Scilly Islands after just a few days' grace, baffled as I was by the events in the City, the thought occurred to me that perhaps a longer break from the duties of managing a portfolio would be in order. However this is obviously not to be and I feel any investor worth his salt should be on the ball at crucial times like the present. So anxious was I, in fact, about my shares that I made an appointment to see my broker Wotherspool.
"Yes, call round any time," he said unenthusiastically, "I'm under no pressure here."
In fact his office seemed like a morgue, lacking the usual feverish excitement that I have come to notice in recent months. The sight of brokers lolling around waiting for business is not a comforting aspect for someone up to his eyes in shares. I was visibly, shaken.
"Don't sell now whatever you do," was Wotherspool's soothing advice, however. "Once the Chancellor has spoken the City will be far more at ease. As for the currency crisis I agree that we appear to be walking on a tightrope and for this reason the one piece of advice I would give is to be in an international share like Shell."
Now I must admit that the thought of having an in vestment in a major oil group appeals to me. Once before I held BP but was lucky to appreciate the downslide potential and hedged by reinvesting in Burmah.
Shell, however, has much greater strength at the market ing end and I notice that the troubles in the Middle East do not appear to have affected, the group very much. In fact, its North American operations have been doing extremely well. The problem is that even though I have some cash resources I am not particularly happy about some of my existing stocks. British Dredg ing, for instance, has been disappointing and it does not appear that Ready Mixed Con crete will make any move for some time following its acquisition of a large holding in the company from Consolidated Gold Fields. Hill Samuel has also been a poor performer and this leaves the lists as does Savoy. I bought the latter stock on a wave of speculative demand. As nothing eventually happened on the bid front I see no reason to hold on, nursing a large capital loss.
The outcome is that I have slightly more cash, as well as Shell.
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