Don’t fret about Brexit
A number of people have contacted me with concerns about the fact that I’ve been punting Capital & Counties Properties (Capco), expressing concerns about the fact that Britain could decide to exit the EU in the referendum next month. Make no mistake: an exit would be bad for the pound and the British economy. This would impact Capco in the short term, potentially offering an even cheaper entry. I, however, do not believe that the vote will go in favour of an exit and, that being the case, the pound will improve and the share will rally. So one can wait and get a lower risk but potentially pay a higher price after the vote. Ultimately this is a great stock, regardless of the vote’s outcome next month, and I am of the view (that may end up being wrong) that we’re being offered an opportunity to buy quality at a decent price thanks to concerns over the vote.