A year to forget

Okay, if we fine-tune the figures, we can make it look a bit better. We switched from a buy to a sell recommendation for shares in smart-meters supplier Bglobal in November, since when the price has fallen further. Similarly, telecoms operator Cable & Wireless was split into two in March and we posted a sell recommendation on the international telecoms side – C&W Communications – in August, since when its share price has fallen 15 per cent. Switch from long to short positions in these two shares at those moments, and stop the clock at the point where we changed our recommendations for aero-engines maker Rolls-Royce and fashion retailer Ted Baker to fairly priced, and the average performance of the eight would be a 5 per cent gain.

How our 2010 selections performed

But, let's face it, that's all a bit contrived, and it still does not generate a market-beating performance. For 2010, we simply have to hold up our hands, say we're sorry and see what lessons can be learned.

Let's get the worst out of the way first. Everyone is getting used to the idea that smart energy meters are desirable, if not necessary, so their time will come. But not yet, as shown by the poor performance at Bglobal in the first quarter of 2010-11, which prompted the departure of chief executive Tony Barnes. Still, first half results last month indicated that Bglobal has bounced back rapidly. Restoring investors' confidence may take longer, but the company clearly has merits. Don't be surprised if we return to Bglobal at some point during 2011.

The time may also come for Falkland Oil & Gas (Fogl), but delays in securing a deep-water rig to explore the company's oil prospects around the Falkland Islands did for its price. That could change, but quite likely not for a while. The earliest time for drilling in the South Falkland Basin, where the greatest potential lies, looks to be late in the year - and Borders & Southern, which has bet its house on the southern basin, has yet to secure a rig for that purpose. Meanwhile, Fogl's shares are likely to mark time. But, for the patient - and risk-tolerant - they still look worth buying.

Cable & Wireless was a bit of a mess. City analysts expected the split into two operations - C&W Worldwide, which services big corporate customers, and C&W Communications, which runs retail telecoms services - to raise the share price. The City touted a figure of 175p against our buying price of 141p and we accepted it too readily. Now we have sell recommendations on shares in both companies.

Property investor Capital & Regional was a geared play on the recovery of commercial property values, thanks to its structure as a sort of property fund of funds. That recovery has yet to materialise and the company's shares trade even further below net asset value (NAV) than when we tipped them, even though - encouragingly - NAV has increased. Perhaps we should have saved the tip for this year.

The other tips of the year have done decently. Sure, shares in Rolls-Royce ran into turbulence in November when a Trent 900 engine powering a Qantas-flagged A380 Airbus burst into flames. Fears of the fall-out, which still isn't measurable, prompted us to shift our view to fairly priced. Similarly, in October we decided that strong first-half figures from Ted Baker provided the opportunity to take profits. We rate Ted's shares fairly priced, but still like the business enough to switch back to a buy at an opportune moment. As for shares in BG and Chesnara, they just keep motoring along – BG a little faster than Chesnara, but that's how it should be.

So maybe our worst sin this time last year was to forgot that timing an equity investment is the toughest thing of all. True, for an investor that's not just a venial sin. Even so, review the performance of these eight at the end of this year and the result could be completely different.