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Growth Portfolio 2

December 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

A superb month by any standards with nine constituents reaching new highs and helping us to end the year at an all time record for the second year running. The gain over the month is 12.9% (versus +9.9% for the FTSE) which makes the gain since operations started 273%. To recap for new subscribers, the framework for managing the portfolio has been tested over the past 12 years and continues to be a search for growth companies on moderate price-earnings ratios and even though we don’t often shout about it, the one key ‘prop’ is the visibility to earnings. For instance, Mears, which maintains social housing, has now risen almost six-fold and even six months into 2005, it had secured 72% of its sales for 2006. Tarsus ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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