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.


5 responses to “Mumdex

  1. “She will ask me for advice at times, but I refuse to give a view”

    Looks like you’re the one who should be asking her for advice ;o)
    But seriously, I’ve seen this before. It is due to the fact that she doesn’t *have* to win/make money. Her relaxed attitude (what LaoTse may have meant when he said ‘wanting without wanting’) contributes much to her success.

    Give her my best regards and inquire politely if she would be interested to guest blog for you sometime :o)

  2. Hi Carravaggio,

    Well, the solution is simple. Just get her to call you every time she makes a buy. Then just make sure to share the good news with the rest of us nickel and dimers….

  3. Hi Caravaggio…

    My mother has herown theories about stocksmarkets also…

    For example…. “People always take profits on fridays…” lol,

    She watch sometimes the ticker of Blomberg Television…


  4. Babak – There is definitely something to be said for having the capacity to wait around for the really attractive trade. If it comes, it comes, and if it doesn’t, well, current accounts in the UK are paying around 5.5% anyway. Myself, I am always in there, trying to grind out a living, but I know the real winner here is the broker…I can almost hear them ringing up my bill in laughter!

    Phileo – It should be that easy, but I feel I’d curse the magic if I did anything other than keep at arm’s length.

    Ratifax – LoL, I love these observations. You know, people like Niederhoffer actually test things like this. Also, I wonder if this inquisitiveness about the market was passed on to us at the genetic level. Yes, I like that. It wasn’t my fault I lost all my money, it was my genes!

    …can’t believe it, the stock is up another 20p today!

  5. Mums always now best.

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