SHARE TIP – Blackrock Smaller Companies Investment Trust

January 23, 2018 Dick Morris
(Last Updated On: February 12, 2018)

BRSC (LSE: BRSC Currently about £13.50 to BUY) is an investment trust I cannot recommend too highly. (The trust is up about 36% over one year.)

I’ve only held it for about three years, and simply wish I could turn back the clock to 1990, when I inherited some money, and put all of that into BRSC instead of a building society (D’oh!). (The fund has risen about 1400% in that period – 1600% with income reinvested.)  In addition to this tremendous performance, the dividend of this trust (currently about 1.69%) has been doubling every five years. The past, as they say, is no guide to the future (but with the future being unknowable it’s all we’ve got), but if this rate of growth continues, the trust will be paying 3.38% in five years’ time on todays investment, and 6.76% in ten years’ time. And, of course, 27% in twenty years’ time, on today’s money, whilst still being a tremendous growth fund. BUY. And, KEEP BUYING.

For: Tremendous record; dividend doubling every five years; skilled managers.

Against: Can be volatile (the s.p. plunged on the Brexit vote, but, luckily, I held my nerve); Could be hit by a bad Brexit (although, the managers are aware of this and are already adding to companies that are not reliant on the UK economy.  ;   .

See also (website):

and (BSC.VCT):

and (JEFI):

and (RLE):

and (JEFI):

and (HNE):

 

The comments here represent my own personal views, and readers should make up their own minds as to the wisdom (or otherwise) of what I suggest, and do their own research to ensure that the moves I recommend would be right for their own personal circumstances. I can take no responsibility for the subsequent performance of my recommendations, but ensure readers that I have do in fact have holdings in the shares and trusts I recommend.