Cotswold Link (West Oxfordshire) Nov-Dec 2022

– Warren Buffett

This famous quote by the world’s most successful long-term investor neatly sums up why some people struggle to make decent returns from investments.

Investing is indeed ‘simple’ in principle. An investment is an exchange of your cash for some other type of asset in the expectation that it will either return you more cash, increase in value, or ideally, a combination of the two. One way to think of an asset is something that can put money in your pocket, as opposed to a liability, which takes money out of your pocket (i.e. debt).

The ‘not easy’ part is deciding what assets to buy, and when. There are any number of possibilities; some investments will

WHAT IS INVESTING?

In the short term, that can drive prices up further, sometimes causing a bubble, and investors can lose significant amounts when the bubble bursts. In the meantime, better opportunities are ignored.

The three most commonly held assets, besides keeping your money in the bank, are, traditionally, company shares (aka equities), fixed interest (sometimes called Bonds) and property. Each of these may provide you with a cash return now – in the form of dividends, interest or rent – as well as the potential to increase (or decrease) in value. Then there are assets which might collectively be dubbed ‘alternatives’ –commodities (metals including precious metals, oil & gas, wheat, sugar, you name it), currencies, art, wine, and classic cars, amongst others. You might also add cryptocurrencies to the list. None of these would normally pay you a cash return now, but they might rise (or fall) in price.

Over the decades any number of investment styles and strategies have been developed, from the mainstream – ‘value’, ‘growth’, ‘quality’, to the more technical – ‘momentum’, ‘event-driven’, ‘arbitrage’, ‘macro’, ‘shorting’, ‘options’ etc.

Given this complexity and jargon, how do we decide what to invest in? At Wise, we tend to avoid investing in the alternatives mentioned above. Why? Because we have

They don’t make any profits or generate any cashflow, and there’s no scope for them to increase those non-existent profits or cashflow, they just fluctuate in price. Your return depends on whether you can sell them on to someone else at a higher price – sometimes called the ‘greater fool’ theory of investing. Also, the likes of art, wine and classic cars are not regulated financial products. They might be desirable to own, but as professional advisers, we do not recommend them.

So, we mainly invest in the traditional assets of shares, property and fixed interest, and amongst those, we predominantly invest in shares. Companies can increase their revenues and profits over time, sometimes significantly, while many pay you a return almost immediately in the form of dividends. By investing in those listed on stockmarkets, we can easily sell them if needed, although that ‘liquidity’ also means their prices can fluctuate significantly in the shorter term. It is this volatility that leads us to recommend shares only if you are able to leave your money invested for at least 5 years, and don’t invest money you are likely to need in the shorter term.

Remember that buying a share means taking part ownership of a business, and the right to a fraction of its long-term profits. It is not a speculation on the short-term direction of its share price.

‘Investing is simple, but not easy’

Analysing individual companies is highly technical, so that’s why we prefer to invest using funds, which have dedicated management and company research teams, and hold a range of different shares, giving you diversification.

Usually, a fund will have a well-defined strategy and framework for identifying which shares they would like to own. The approaches that have been proven to work over the long term are:

Value – hunting for shares whose market price is lower than the fair valuation of the company’s profits and other assets. Also known as ‘buying a pound for fifty pence’. Often these are found in sectors or regions that have fallen out of favour with investors, causing share prices to fall. Value managers must take care to assess whether a share price fall is justified or not before buying.

Quality – looking for companies with very strong resilient business models, which are resistant to competition due to their brand, market dominance, or the essential nature of their product or service. Often these are mature, well-established businesses that can grow their profits at a perhaps modest but consistent rate over the long term.

Growth – identifying businesses that are likely to grow their revenues and profits rapidly, thus making the company more valuable.

To decide which funds to own, we look for two main characteristics – a sensible stock selection process and strategy that has proven to work over the long term such as those mentioned above, and experienced and dedicated managers, who are likely to manage the fund for the foreseeable future, and stick to their process.

In summary, there are many factors involved in achieving good long-term investment returns. We believe the most important ones are:

• Careful research and selection of good quality, robust investments

• Only investing in areas that look reasonably valued at the time of purchase

• Moving out of investments or sectors that have become expensive

• As far as possible, avoiding investments that can suffer a permanent loss of capital (as distinct from a temporary decline in market value)

• Avoiding investment fads and fashions, which tend to be expensive and often lead to significant losses (e.g. technology in the late 1990s, commodities in 2005-2007)

• Ignoring short term market and media ‘noise’

Accepting that price volatility is

Prices of assets, especially shares, can fall sharply in difficult times, even if there’s nothing much wrong with the company itself. Many people have lost money by selling shares in bad markets to prevent further declines, and therefore missed the subsequent recovery. You need to be willing to stay the course, even through the most difficult of circumstances.

Which leads us back to Buffett

‘Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it’

• ‘The stock market is designed to transfer money from the active to the patient’.

We very much prefer to be patient.

wise@wiseinvestment.co.uk www. wiseinvestment.co.uk 01608 695100

Important Information

The information contained in this article is not a personal recommendation and should not be construed as investment advice. If you are unsure about the suitability of a particular investment you should speak to an authorised financial adviser. Every effort is taken to ensure the accuracy of the information provided but no warranties are given. HMRC tax rates and allowances are subject to change and tax treatment may depend on individual circumstances.

Wise Investments Limited is authorised and regulated by the Financial Conduct Authority, reference number 230553.

Advertising -

www.cotswoldlink.co.uk

Registered Office: The Great Barn, Chalford Park Barns, Oxford Road, Chipping Norton, Oxfordshire, OX7 5QR. Registered in England 4970458.

Bum B le & Fawn

We are a Local Family run Houseplant shop; we specialise in helping you create a greener home and love to promote healthy living by introducing beautiful Houseplants to your home.

With the air around us getting more and more polluted, now is the perfect time to let the plants in to clean your air and look beautiful while they’re at it!

Not only do plants help us with the air we breathe, they also help our mental health. Taking a small amount of time a week to clean, feed and care for plants can be enormously rewarding and can help you on the bluest of days.

We opened our shop so we could share our passion with you. We strive to provide only

the best, healthiest plants and accessories and as much variation and colour as possible.

We have spent a long time building relationships with our suppliers so that we can offer a much more extensive selection of items than our shop’s size should be able to provide! We stock a fantastic variety of outdoor items, including outdoor furniture and fire bowls, all of which can be delivered to your door!

Pop in and see us in-store next time you’re in Chipping Norton. We are always available to advise on plant care or any product we sell.

Our Collections: Exotic Houseplants

Cacti & Succulents

Plant Care

Pots and Accessories

Smart Gardens and Terrariums Gifts and Homeware Fire bowls and Outdoor furniture

Cotswold link annual Family Christmas Quiz

Relax and chill out, these questions are for the young and not so young. You may not even agree with some of the answers but the quiz is for the family to take part and enjoy.

1 - You receive 10 Christmas Cards from places in Europe; each one wishes you a “Merry Christmas” –Identify where the cards comes from.

a) joyeux Noël

b) buon Natale

c) Feliz Navidad

d) Nadolig Llawen

e) καλά Χριστούγεννα

f) Wesołych Świąt

g) Fröhliche Weihnachten

h) feliz Natal

i) vrolijk kerstfeest

j) felicem natalem Christi

2 - Match the quotes with the follow ing sources:

Anonymous, The Bible, Robert

Burns, Winston Churchill, Charles Dickens, David Lloyd George, Albert Einstein, Abraham Lincoln, Picasso, William Shakespeare

a) “I have nothing to offer but blood, toil, tears and sweat”

b) “You can fool some of the people all of the time, and all of the people some of the time……”

c) “What is our task? To make Britain a fit country for heroes to live in”

d) “God is no respecter of persons”

e) “Oh my Love is like a red red rose …”

f) “Shall I compare thee to a summer’s day ……”

g) “My mother said to me, “If you are a soldier you will become a general.

If you are a monk you will become the Pope.” Instead, I was an ……… and became ………..”

h) “There’s a genius in all of us”

i) “When you fall, I will be there to catch you – With Love, the floor”

j) It was the best of times, it was the worse of times, it was the age

of wisdom, it was the age of foolishness ……..”

3 - What date is St. Stephen’s Day?

4 - In Charles Dicken’s Christmas Carol, who was Scrooge’s dead business partner?

5 - In the song “12 days of Christmas” …. My true love brought to me….?

6 - What colour are the berries of the mistletoe plant?

7 - Who wrote “Auld Lang Syne”?

8 - How many points does a snow flake have?

9 - In which country were Christmas trees fist used to decorate homes?

10 - During the First World War on which Christmas Day did the soldiers of Great Britain and Germany stop fighting and greet each other?

11 - There are two Christmas Islands and they are located in which oceans?

12 - What did Captain James Cook discover on Christmas Day 1777?

13 - Which famous scientist born on Christmas Day is buried in

Diddly Squat Farm Shop joins The Local Trove

The local Trove are excited to announce that Diddly Squat Farm Shop products will now be available via their online ordering and delivery platform.

Recently featured on Prime Video’s hit series, Clarkson’s Farm, Diddly Squat Farm Shop offers a wide range of its own food and drinks, as well as those supplied by fantastic local growers, producers and artisans such as North Cotswold Dairy, Hook Norton Butchers, Sourdough Revolution, OX7 Sauces and many more. Established in 2020, Diddly Squat Farm Shop was the brainchild of Jeremy Clarkson after he realised that potatoes did indeed grow well on his farm and he had accidental ly produced 40 tonnes of them. From there, with his partner Lisa, he bought hives and began to produce and sell bee juice, along with apple juice and cow juice from a local dairy.

From the delicious Sourdough Revolution to Jeremy’s pork pies and the famous “Bee Juice”, Diddly Squat Farm’s curated local produce is now just a few clicks away.

By partnering with The Local Trove, Diddly Squat are ensuring the local community has easy access to their fantastic range of items with the convenience of home delivery.

The Local Trove is an online platform that al lows customers to order from their favourite local independent retailers and receive a single delivery. They work with retailers including Hook Norton Butchers, Bruern Farm Shop, Chadlington Quality Foods and Chippy Flower Farm to customers across the Cotswolds.

Westmin ster Abbey?

14 - The North Pole is said to be Santa’s home. In which Ocean is the North Pole located?

15 - What is the chemical formula of snow?

16 - What British spacecraft was lost on Mars Christmas Day 2003?

17- Who banned Christmas Day in Britain?

18 - Who was the first British monarch to broadcast a Christmas message to the nation?

19

- In what year did Queen Elizabeth II deliver her first televised Christmas message to the nation?

20 - “So this is Christmas” are the first words of which John Lennon song?

(Answer p14)

May I wish all our readers A Merry Healthy Festivities Season followed by a Happy Healthy 2023.

Stay Safe – John Harris

www.thelocaltrove.com

Contact: Victoria Ayres 07747 037769/020 7867 3967 Tor@thelocaltrove.com

The Cotswold Sky

Why does the New Year begin on January 1st?

Perhaps surprisingly, New Year’s Day is not determined by any natural astronomical event.

It is a manufactured day by our ancestors who were aware of the daylight hours extending each day from what we refer to as the Winter Solstice which occurs; this year; on Wednesday 21st December some 10 days prior to the New Year.

New Years Day and the month of January derive from the ancient Ro man god Janus (image) who was the god of beginnings.

Janus was depicted as having two opposite faces. One face looking back into the past and the other looking forward towards the future.

To celebrate the New Year the Ro mans made promises to Janus from which the tradition of New Year’s resolutions originate. It was the custom to exchange cheerful words of good wishes followed by the “rex sacrorum” a priesthood associated with the Roman Senate who offered a sacrifice of a ram to Janus.

Reference: www.earthsky.org

Diary

Winter Solstice: Wednesday 21st December 21.47 hours GMT.

Mercury: Unobservable throughout November. Can be observed from mid-December and lies close to Venus towards the end of the year

looking towards the south west at sunset.

Venus: As with Mercury, Venus is unobservable during November but emerges in the south west at sunset during December.

Mars: Observable during November quite bright as you look East from around 20.00 hours working its way southwards so that by Christmas Day easily observable high to the right of Orion at 22.00 hours.

Jupiter: Look high and southerly during November around 20.00 hours Jupiter can be observed brilliantly bright. By Christmas Day Jupiter will have journeyed more

towards the south west.

Saturn: To the right of Jupiter throughout the months of November and December but will be setting by 21.00 hours during November and needs to be observed early evening during December before setting.

May I wish all our readers A Merry Healthy Festivities Season followed by a Happy Healthy 2023.

Stay Safe – John Harris

Higher volumes of intruder incidents...

Crime statistics have increased significantly with the UK conomy on the brink of recession, this combined with the cost-of-living crisis, has resulted in homes, businesses and construction sites being actively targeted.

With the dark nights approaching, this now creates an extra window of opportunity for potential thieves to target property & assets.

Opalstone provides cost-effective high-quality security solutions and operates in all sectors, from domestic, commercial, public, construction, in frastructure, and vacant property. We offer a friendly service with consistent communications to deliver effective security solutions.

Our reputation for being hands on, flexible, and our attention to detail has seen many companies and individuals turn to us as their trusted security provider.

Our comprehensive system design process ensures our client’s needs are met from the initial consultation

right though to installation handover. CCTV, Intruder Alarms and Physical Security can be deployed promptly with optional NSI Gold Monitoring & Emergency Response, and we provide pre-planned, tailored services within 1-2 weeks from initial consultation.

We are proud to be trusted on highprofile projects, including security for Amazon, Premier Inn`s, Retail Parks, Rail Stations, and Major Construc tion.Our team often gets asked – do you protect homes as well? Yes, we do. We have a comprehensive range of market leading products to help secure your property giving you total peace of mind.

If you require more information, please get in touch and we will be happy to support.

T: 0333 772 0555 E: info@opalstonegroup.com W: www.opalstonegroup.com Unit 9, Elmsfield Industrial Estate, Worcester Road, Chipping Norton, OX7 5XL

Bathrooms

Chris Smith Plumbing: p5

Country Bathrooms: p4

Blinds

Associated Blinds: p16

Builders & Contractors

Country Roofing & Building Contractors: p13

Garolla Garage Doors: p15

SJP Builders: p14

Children’s Services

Cotswold Tutor: p11

Cleaning

Emoobe: p15

Clearances

Oxfordshire Clearances: p2

Education Burford School: p1

Cotswold Tutor: p11

Sibford School: p3

Electrical Services

Aerial Solutions: p13

Finance & Legal

Wise Investments: p6-7

Furniture

Amanda Hanley By Design: p1

Andy Bennett Upholstery: p15

Bob Dadge Carpentry: p4

Garage Doors

Garolla Garage Doors: p15

Gardening & Outdoors

Stockwell Davies Tree Contractors: p13

Tom Negus Tree Care: p13 Waterside Landscaping: p13

Gifts

Alain Rouveure Galleries: p9

Bumble & Fawn: p8

Cotswold Frames: p9

Glass

Chips Away: p15

Healthcare & Wellbeing

Alain Rouveure Galleries: p9

Andrew James Dematology: p11

Cotswold Deep Tissue Massage: p11

Cotswolds Foot Clinic: p11

Footworx Clinic: p11

Home & Interiors

Alain Rouveure Galleries: p9

Amanda Hanley By Design: p1

Andy Bennett Upholstery: p15

Associated Blinds: p16

Bob Dadge Carpentry: p4

Burford Kitchens & Interiors: p5

Country Bathrooms: p4 Paul Dadge: p5

Rooflight Company: p3

Kitchens & Bathrooms

Burford Kitchens & Interiors: p5

Country Bathrooms: p4

Motoring

Chips Away: p15

Painting & Decorating

Paul Dadge: p5

Stephen McNally Painting & Decorating: p4

Plants

Bumble & Fawn: p8

Plumbing

Chris Smith Plumbing: p5

Gas & Oil Heating: p4

Property Maintenance

Country Roofing & Building Contractors: p13 Garolla Garage Doors: p15

Mossinator: p1 Recruitment

Opalstone Group: p12

Security

Opalstone Group: p2 & p12 Sport & Leisure

GLL/Better: p9

Tree Surgery

Russell Nicholls Tree Surgery: p13

Stockwell Davies Tree Contractors: p13

Tom Negus Tree Care: p13

Tuition

Cotswold Tutor: p11

Windows Rooflight Company: p3