Report for November 2008

Despite many ups and downs, we end the month more or less as we started it. The FTSE-100 gained 1% while our portfolio lost 2%. This is a little disappointing, and is largely due to a loss of confidence in Tesco, down 17%. BHP Billiton, which has now abandoned its takeover bid for Rio Tinto, gained 24% over the month.

Island Oil & Gas continue to slip, despite the reorganisation of directors' responsibilities and are now worth a tenth of what we paid for the shares. I think we are agreed that we should hold onto these, to avoid realising the loss which cannot get much worse.



Note that our bonds have fallen in value (see graph), but provided that Next and Dixons/PC World [DSG International] survive the next four years, we will get back the whole of our stake and more, with annual interest on top. I am encouraged to see that our UK and China Growth Funds both gained last month after several months decline.

I have not recommended any further purchases but will continue to plan for the first indications of an upturn.