I made 600pc gains during the financial crisis. Forget gold, buy these stocks instead

Telegraph

26-04-2025

Black Swan events have historically provided great buying opportunities.
My first experience of this was the secondary banking crisis of the early 1970s. The stock market fell to such a level that so-called blue chips were yielding 20pc and nobody was buying – London & County Bank collapsed as did housebuilder Northern Developments and Ronald Lyon Estates.
There were even rumours about the stability of the NatWest Bank. Finally, a number of institutions started to buy and turned the market, which recovered sharply.
I learnt two lessons from all of this. Firstly, unforeseen 'left field' events can arise, sending prices plummeting – thus never invest on borrowed money, which forces one to sell at distressed prices to repay.
Secondly, stay aboard, sit the crisis out, and, most importantly, seize the opportunity to buy. Over the years, all severe downturns have been followed by recovery. Of course, if you believe Armageddon has come and the end of the world is nigh, then I suppose you either climb a mountain and pray, or hide under the bed with a bar of gold and a crate of whisky!
owning gold or gold shares during crises, but this has never appealed to me as timing entry and exit are never easy, and, perhaps it is my accountancy training, but I like a flow of dividends.
So it was with the 'sub-prime' crash in the 2000s, I seized the opportunity to buy shares in excellent established businesses like BBA Aviation and Fenner, on double-digit yields. Both were subsequently and profitably taken over, the latter delivering exceptional 600pc appreciation.
Turn to the current 'Trump tariffs' sell-off and virtually all portfolios – mine included – have lost a significant value slice, but I used what limited liquidity I had to buy.
I added Treatt, following its 30pc fall on a disappointing trading statement; Christie, where I have commented before on its ridiculous under-valuation; property group Workspace, at less than half Nav plus a 7pc yield; and small oversold actionable data deliverer Vianet.
Capital values ebb and flow, and of course I seek long-term growth, but at virtually 83, dividends are a prime focus. They help with school fees, family holidays and so on, but more importantly provide the wherewithal for compounding reinvestment.
Thus, not surprisingly, my largest holding is 10pc yielding M&G, with other significant high yielders Aviva, Legal & General and Phoenix well represented.
I also like plant hire Vp on a 7.5pc yield and Anpario with its near 20-year record of annual dividend increases. Anyone with any experience of historical investment must surely recognise how attractive those aforementioned high yielders are.
This year has been a traumatic time for investors, predominantly caused by Trump creating the global uncertainty which markets hate. Then, we have the dangerous Iranian nuclear dilemma, plus the continuing Ukrainian conflict.
While obviously concerned by the world scene – and barring apocalypse when yields and PE ratios would be somewhat academic – I am looking forward to the remainder of the year, hoping for positive developments from many of my holdings, specifically Christie, MSI, PZ Cussons and Treatt.
With Christie disposing of its loss-making stocktaking business, I see investors appreciating the potential for a bottom-line bounce as its professional services business increasingly delivers.
The disposal has transformed the balance sheet into a cash-positive one. One day Christie's worth will be recognised but many shareholders, probably including me, will have died waiting!
Additionally, MSI, where I sat on the board years ago, has three main operating divisions: garage forecourt canopy manufacture, forklift blades manufacture and its major defence business. Although the share price had an excellent run, they have been largely ignored in the recent upward re-rating of defence stocks.
They are the major suppliers of small calibre naval weaponry to the US, Germany and our own navies, and possess valuable anti-drone technology. With a bulging order book and very strong liquidity, I see the value of its global defence business likely to be increasingly recognised.
Thirdly, PZ Cussons, where again I was once on the board has seen its capitalisation slump from a £1.8bn peak to only £320m today.
News could arrive any day of its intended divestment from Nigeria, and then investors will surely realise that its UK brands like Carex, Imperial Leather, Sanctuary, Morning Fresh and Childs Farm, plus valuable business in Australia and Indonesia, and leading US tanning brand San Tropez – if not sold – must have a combined 'brand' worth well north of the current abysmal capitalisation.
Finally, to my dear friend, flavours and fragrances firm Treatt. Thankfully, I am still well in profit, having bought at the equivalent of 31p in 1999, but how galling to see its shares slump from £12 peak to only £2 and change today.
With superb state-of-art plants in Bury St Edmunds and Florida, and now debt-free, Treatt is clearly vulnerable to private equity/trade predatory interest.
Surely, recovery or a bid, we shall see an improvement!