Dogs of The FTSE and Dogs of the Brew

It’s been around 9 months since I set up my experimental Dogs of the FTSE portfolio, so time for another update.

So how have the flea-bitten canines done?

As at close of trading on 20th October 2017, the portfolio was showing a 4.12% gain from its starting value.

Including dividends received, it’s a 8.45% gain.

Over the same period, the FTSE 100 Total Return was 6.28% so the Dogs are looking good only when dividends are thrown in.

Intu Properties as well as a couple of others aren’t looking very clever at the moment – I hope they will pick up before the end of the year.

Nothing to do really except to keep track of dividends as they roll in and see how things look in another 3 months’ time and then, it’ll be time to get rid of dogs that didn’t make the grade and bring in some new ones!

Until the next Dogs of the FTSE update!

Still on the subject of Dogs…

Dogs of the Brew

Back in 2010, I was on the mailing list to invest in a small Scottish craft brewery via crowdfunding. However, my love for beer didn’t translate at the time into my desire to invest (although chances are I couldn’t spare the cash back then!) so I didn’t apply for any shares. Had I done so, I would have done quite well from those shares.

Anyway, BrewDog’s Equity for Punks* initiative is back on and I think this time, I’ll purchase a few shares.

I’m not going to go into any detail here as I’m not recommending that anyone should buy these shares but if anyone’s interested in the company or in craft beer in general, they can always check out the website*.

I’m going to invest as it’s a company I like, I buy and drink their beer and it’s one stock which I wouldn’t mind mentioning to my non-investing friends that I owned as they would probably be impressed, haha! Also, as a shareholder, I will be able to get a small discount in BrewDog pubs (I go to the one in Manchester).

As with other crowdfunding ideas I’ve ‘invested’ in in the past, I class these as a ‘novelty’ and I’m not counting on them adding anything/much to my early retirement fund – it’s likely that I’ve missed the boat on reaping rewards for the shares anyway.

Still, I’d love to share in the company’s growth and success and the AGM’s look like fun so perhaps I’ll get the chance to travel up to Scotland to attend one day.

Investing in BrewDog shouldn’t affect my purchases of more ‘serious’ ie proper investments – I intend to use some matched betting profits as ‘fun money’ 🙂

So on that note, ‘cheers with beers’ and have a great weekend all!

[* EDIT – included my referral link]

18 thoughts on “Dogs of The FTSE and Dogs of the Brew

  1. Hi Weenie,

    Always interesting to see progress on the dogs – and a reasonable performance I guess, but of course the FTSE would also kick out dividends, so not sure how much variance there is. I will continue to watch with interest!

    On Brewdog – it’s an interesting one. They have some corking beers, and a pub not that far from me here in London. Not that cheap, so actually I am wondering about buying in for the discount now that you have mentioned it as it may save it. They still hold the record for the most expensive beer I have ever tried – one of the cans in the pub… 14% proof… £19 for the can.
    Incredibly nice and smooth, but not cheap!
    Cheers!
    FiL

    • Hi FiL
      That £19 beer must be one of their exclusive beers, not had the desire to sample any yet! At a recent works raffle, I won a bottle of their Abstrakt beer which retails at £10 a bottle (330ml)!

      They’re planning on building a ‘BrewPub’ in London, situated in the Minster Building at the corner of Great Tower Street and Mark Lane – perhaps you could check it out when it’s open!

    • Hi Jim
      I’ll be keeping SSE as long as it abides by the ‘Dogs of the FTSE’ criteria, which is to remain in the top 10 FTSE 100 highest yield shares. This is looking likely at the moment. Thanks for reading and stopping by.

  2. I stopped buying single shares a long time ago, but the Brewdog one is interesting. The owners sold out recently for a stack of cash, so I wonder if the drive behind the business will have gone? £100 million in the bank might make it harder to head into the office with the same fervour. I recently sank a hundred quid into our village’s attempt to save my neighbourhood pub being sold off by Enterprise Inns, so I might end up being a shareholder in that. Predicted returns, zero, but it’s one share purchase I won’t be worrying about if I can still nip in for the odd pint or two!

    • Hi Jim
      Yes, the Brewdog shares are different, won’t get any dividends from them, may not make any money from them either. The £100m investment doesn’t appear to have diminished the company’s ambitions, the prospectus highlights big plans for expansion.

      Good luck with the local pub and hope you can continue to enjoy that pint or two!

  3. Hi Weenie,
    A few months is nothing in investing. Todays laggards can be next years winners… Astra Zeneca a dog? noooo! A class company that’s hit a short term bump in the road I reckon. As for Shell.. That has given amazing returns for decades, and is still doing ok in this prolonged oil price slump. I am confident the price and dividends will be many times higher in a few years. Its a long term winner, a year or two is nothing. Keep the faith, and enjoy that 6%+ yield 🙂

    • Hi Nick
      AZ and RDSB are only classed as a ‘dogs’ in the sense that they were among the top ten highest yield shares in the FTSE 100. By the end of Jan/beginning of Feb, if either of them drop out of the top ten, then following the ‘dogs of the FTSE’ strategy, I will be selling regardless. Yes, it does seem a bit daft but I’m following the strategy to see how/if it works…

  4. I recommend Brewdog’s brilliantly named Nanny State low alcohol beer. By mixing it 50:50 with real beer I can drink a pint containing the alcohol of only a half pint. I accept that not everyone will share this ambition.

    • Hi dearieme
      I’ve not tried mixing Nanny State with real beer as I think it actually tastes quite good on its own. It’s a beer I go to on Sundays if I fancy a drink but don’t want to start Monday on the wrong foot!

  5. I saw that a few years ago and very nearly invested but didn’t as a friend was really quite bearish about the company. Wish I’d followed my gut instinct.

    I feel now is too late to get in on the action but if as you say the expansion plans are ambitious then maybe worth a couple of hundred for fun (depends what the minimum investment is I guess?!) 🙂

    I haven’t tried nanny state yet, must give that a go!

    • Same here TFS, I wish I had jumped on board years ago but it was obviously not to be. The minimum investment is just 2 shares for £47.50, which will get you 5% discount off BrewDog bars (via a BrewDog ID card) and 10% off online orders, amongst some other stuff (including a free pint on your birthday, I believe!). Yeah, for a non-alcoholic beer, Nanny State’s not bad!

  6. Hi there. I bought 4 shares in Brewdog’s 2015 round for £200. I’d been a fan for years before that and am actually from Ellon, where they’re based. I must say, given the relentless marketing and global expansion, their small independent craft brewery claims are really starting to grate. The 100 million sell out doesn’t sit well either. At the 2016 AGM in Aberdeen they started their business presentation with a lengthy wind up about how they’d sold out to Diageo or one of those companies. They went on to say they’d never ever do that and would always be independent.

    Still, excellent beer. Can’t argue with that. And still undoubtedly a good investment.

    Andrew

    • Hi Andrew

      Thanks for stopping by! I did wonder how the ambitious expansion plans would sit with the small independent craft brewery ethos – looking to start brewing in China will be tapping into a massive market and you do wonder how they will maintain their independence. There’s price for every business…

      I’m not really investing for any real return but if there is a return, then it’s a bonus. I’m looking forward to attending an AGM at some point, not been to Aberdeen before!

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