Rules should be broken

What did I say about not buying any more Vodafone?

On Thursday I did just that! Out when BAA (made just 3% on that one) and I doubled up on Vodafone, bringing my average purchase price down to 137p.

I have now broken one of the rules of this portfolio as I have over 25% tied up in one company. Why did I do this? I just couldn't bear the thought of watching VOD crawl back up to 140p in the constant knowledge that I had missed a very easy quick 5%.

I believe that the downside from 128p is very limited whereas Arun just needs to work his charms on the investment industry for a few months to bring the share price back to its previous levels.

Vodafone is a great company. Revenue growth is slow but this cash cow is as solid as a rock. Communication is a basic human need and until that need disappears Vodafone is going to keep generating cash.

Now sit back and watch this oil tanker turn North.