Having reported a depressing 42 per cent fall in my portfolio last year, I am pleased to say that, to date, 2009 has delivered a 19 per cent gain – in spite of a blow from Dawson Holdings, as its share price has slumped from 80p to 10p.

This happier tale has played out against the backdrop of a strong recovery in equities which took many investors and commentators by surprise. Looking back, I took the view that the collapse in values presented one of life’s great buying opportunities and acted accordingly, but cautiously. I maintained a useful liquidity reserve, and still do. Of my 2008-9 purchases, particularly pleasing have been the performances of BBA Aviation, Fenner, Interior Services, Marshalls, Vitec, and Victoria. All have appreciated substantially.