DIY InvestorMagazine
/
March2014
DIY InvestorMagazine
/
March2014
34
35
DIY.....Q&A
LIFE IS SWEET....DIY INVESTOR INCONVERSATIONWITH
SMALLBUSINESSOWNERTONYMOXON
Tony 68, was a disc jockey and radio presenter for
most of his working life starting on commercial radio
and finishing at the BBC. Semi-retired in the late
nineties, he now divides his time between running
the famous Britcher & Rivers sweetshop in Rye,
East Sussex and looking after his property and stock
market investments.
HOW LONGHAVEYOUBEENA
DIY INVESTOR?
I’ve invested in themarkets for 14 years, I first got
interested listening to a good friend tellingme about
all themoney he was making in shares that doubled
in value in a week (the dot com bubble). I almost
lost interest shortly after whenmost of his halved in
value week after week until they were worth nothing.
your money down themine shaft at least that way
you get a holiday out of doing themoney. Doubling
down, if it was good value at £1 now it’s halved in
a week to 50p it must be twice as good value. As it
then goes to 25p in short order you think ‘er no’.
The list of mistakes I made is endless and when I
read Robbie Burns’ superb Naked Trader book about
investing that, amongmuch else, lists the common
mistakes...............................
I’dmade them all and some. I’m now a very calm,
calculating investor with neither pride nor shame.
However I still make plenty of mistakes.
WHATAREYOURKEY
CONSIDERATIONSWHENYOU
CONSIDERAN INVESTMENT?
I only invest in things that I understand, so no indices
or FX. I like small cap shares that make real profits
that don’t have large debt and trade on sensible
earnings multiples. I use level 2 to try and work out
where the price is going in the very short term to
get a good entry point and I use charts to see what
has happened in the past and to take a view on what
might happen. I am happy to be either long or short
and depending onmy ‘current’ view of themarket
adjust the ratio of long to short.
ISAOR PENSION?
Both, in the past more ISA than pension, however
the recent budget nowmakes Sipps amuch better
proposition for someone likeme.
GEORGEOSBORNE’S BUDGET
DELIVEREDAREAL SHOT IN
THEARM FOR SAVERSAND
INVESTORS,WHATELSE
WOULDYOU LIKETO SEETHE
GOVERNMENTDO?
The pension reformwas a good start as was the
increase in the ISA allowance. Since 2008 it’s been all
about staving off an almighty financial collapse. This
has been done by in effect takingmoney from prudent
savers and giving it to feckless borrowers...........................
This has got to change, the population is aging in front of
our eyes, people have to be given a reasonable chance to
make provision for their own old age.
The tax raid that Gordon Brown inflicted on pensions (the
abolition of basic rate tax relief on dividends) should be
reversed, the ‘life time’ cap should be revised upwards,
the ISA allowance should be increased at a rate above
inflation each year from now on.
Oh, and don’t even think about taxing large ISA pots if
you ever want to be re-elected again. If people have been
clever enough to turn the relatively small amounts they
have been allowed in invest in ISAs intomillion pound
pots............................... Good for them.
WHATTYPEOF INVESTORARE
YOU?
To beginwith I was an ‘uneducated’ investor, there are
long lists of mistakes that most new investors make,
and I made them all.
Things like buying penny shares, you think that if a
5p share goes to £5 you’ll be rich, trouble is the ones
you buy never do. Inmy opinion buying the ‘next
great idea’ is not a good idea, buying small mining
companies, youmight as well go to Africa and throw
WHATHAVEBEENYOURBEST
ANDWORST INVESTMENTS?
Jarvis was my worst ever. The price collapsed and I
doubled up not once, not twice, not thrice but yes,
four times. Cost me £8000. The best has been sticking
at it through thick and thin, spending thousands of
hours trading, investing, learning and slowly getting
better at it.
WHATADVICEWOULDYOU
GIVETOANYONECONSIDERING
SELF-DIRECTED INVESTING FOR
THE FIRSTTIME?
Not sure I’m qualified to give advice to be honest.
I think themost important lesson I’ve learnt is to
makemoney slowly. Take small positions that you can
afford to lose if all goes wrong, that takes all the stress
and emotion away, only enter trades with a good risk
reward ratio, cut losses very quickly andmove on when
you call it wrong, and don’t snatch profits too soon
when you call it right. Finally, markets are amind game.
Never forget, you’re not a punter, you’re in business
running your own investment fund.
THE PRICE COLLAPSEDAND I DOUBLEDUP
NOTONCE, NOT TWICE, NOT THRICE BUT
YES, FOUR TIMES. COSTME £8000.
