I cannot outperform my mum. She only trades in UK bank stocks. For information, she uses teletext (a free, text based service that broadcasts off the television signal in the UK), which gives nothing more than the price of a stock along with the high and low for day. She doesn’t use the internet, she doesn’t read the financial newspapers, and she’s learned not to listen to analysts on the business channels. She will ask me for advice at times, but I refuse to give a view; I just emphasise that she shouldn’t risk more than she is willing to lose, because she is very close to retirement. She buys 500 shares at a time, with no regard for the price of the stock, and she thinks June will be a good time to buy.
Every year, my mum turns a profit on these stocks and she is also treated to healthy dividends. She has a knack for timing that I struggle to comprehend, and an approach that flies in the face of rationality. Long may it continue.
The chart below shows my mum’s most recent purchase of Barclays shares.