APRIL 2023
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Let’s not rewrite what has been written, but learn from it. Let’s not rewrite what has been written, but learn from it. My boy, Humphrey, has just finished reading Roald Dahl’s “Boy”, the first book he has been My boy, Humphrey, justsure finished reading Dahl’sthe “Boy”, the first book heplaces has been properly invigorated has by. I’m many of youRoald remember chapter where Dahl a dead properly invigorated by. I’m sure many of you remember the chapter where Dahl places dead mouse in a jar of gobstoppers which is the latest anecdote in Humphrey’s repertoire! We aare all mouse in a jar of gobstoppers which is the latest anecdote in Humphrey’s repertoire! We are aware that Dahl’s masterpieces are being re-written, as are Blyton’s, for fear that these wordsall aware that Dahl’s masterpieces being are Blyton’s, for fear that these words will will skew children’s minds, givingare them an re-written, inability to as behave in an appropriate way in the current skew children’s minds, giving them an inability to behave in an appropriate way in the current times. The irony is that these children can, in a world of virtual reality, walk around a city killing times. The in irony is that these children in a world of virtual walk around a city killing everything sight (more on AI later). can, The pace of change as toreality, ‘acceptability’ is frightening and tampering what has been or written doesn’t just extend to children’s literature. Indeed, everything with in sight (more on AIsaid later). The pace of change as to ‘acceptability’ is frightening and the rugby anthems synonymous with Millennium and to Twickenham, namely Delilah tampering with what has been said orthe written doesn’tStadium just extend children’s literature. Indeed, and Swing anthems Low Sweet Chariot, have brought under scrutiny of their lyrics. Delilah Of course the rugby synonymous withbeen the Millennium Stadium andbecause Twickenham, namely times change and within ‘language’ certain words or phrases which mightlyrics. have Of been and Swing Low Sweet Chariot, havethere been are brought under scrutiny because of their course used by our grandparents which would make even the ‘least progressive’ wince today. times change and within ‘language’ there are certain words or phrases which might have been used by our grandparents which would make even the ‘least progressive’ wince today. You might think this is a spurious start to a newsletter, but it is more than that. When making investment decisions we seek lessons from history. Indeed, to learn from the past is to grow and You might think this is a spurious start to a newsletter, but it is more than that. When making so, to reinvent what has been, by casting a tinted light on it, is counterproductive when trying to investment wedifferent, seek lessons from history. to learn it’s from the past is to cheating grow and make better,decisions or at least judgements in theIndeed, future. Frankly, fraudulent and so, to reinvent what has been, on it, as, is counterproductive when trying ourselves. I wish I hadn’t givenby upcasting history asotinted earlylight at school day by day, I understand its to make better, or at least different, judgements in the future. Frankly, it’s fraudulent and cheating significance as the greatest tool in the armoury for life. ourselves. I wish I hadn’t given up history so early at school as, day by day, I understand its significance as the greatest in the armoury life. Indeed history, albeit recenttool history, has helped for us a little with regard to portfolio construction over the last few months. The 2007/8 banking crisis was an unpleasant experience for investors Indeed history, albeit history, has helped us a little with was regard toof portfolio and it was horrible for recent Investment Managers. Arguably income a bit a ‘trap’ construction with the major high banks paying huge dividendbanking yields, so of course had someexperience exposure to sector, over street the last few months. The 2007/8 crisis was anwe unpleasant forthe investors almost all Wealth did. Despite beingArguably significantly underweight universal and it was horribleManagers for Investment Managers. income was a bit the of aFTSE ‘trap’100 with(athe major benchmark at the paying time) with about 7% portfolio banks the index high street banks huge dividend yields, soexposure of coursetowe had (versus some exposure towhich the sector, had over weManagers would have better to have been divested entirely. On the 100 back(a ofuniversal this almost all20%) Wealth did.been Despite being significantly underweight the FTSE experience, and changes to our investment principles, we didn’t quite say “we benchmark at the time) with about 7% portfolio exposure to banks (versus thewould indexnever whichever had own a banking share again” but not far off. Instead, we chose to position our financial sector over 20%) we would have been better to have been divested entirely. On the back of this exposure across areas with durable, predictable stock and experience, and changes to more our investment principles, revenues we didn’tsuch quiteas say “weexchanges would never ever payment processors. own a banking share again” but not far off. Instead, we chose to position our financial sector exposure across areas with more durable, predictable revenues such as stock exchanges and BARRATT & COOKE IS THE TRADING NAME OF BARRATT & COOKE LIMITED REGISTERED IN ENGLAND No. 5378036 REGISTERED ADDRESS: FIRST FLOOR SUITE, 2 HILLSIDE BUSINESS PARK, BURY ST. EDMUNDS, SUFFOLK IP32 7EA payment processors. BARRATT & COOKE LIMITED IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY who are based at 12 ENDEAVOUR SQUARE, LONDON E20 1JN BARRATT & COOKE IS THE TRADING NAME OF BARRATT & COOKE LIMITED REGISTERED IN ENDLAND No. 5378036 REGISTERED ADDRESS: FIRST FLOOR SUITE, 2 HILLSIDE BUSINESS PARK, BURY ST. EDMUNDS, SUFFOLK, IP32 7EA BARRATT & COOKE LIMITED IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY