Our Key Investments this month include only the results from Persimmon Homes,which have come up to our expectations and the company is on course for a record year with profits up 31%at the half way mark. Some press comment suggests the price is overstated based on their theoretical analysis of building being a cyclical industry but they are wrong! Their is enough work to keep our builders busy for the next 20 years in our opinion and we are not sellers of any of our holdings in the building industry.Expect another increased payment being announced next February above forecast

Intercontinental Hotels has denied any deals with Starwood and we must wait until February until we find how the £900 million surplus cash will be utilised. I the meantime new hotels are being added to the group weekly, in all of its various brands and particularly encouraging is to see famous hotels such as the Grand Hotel in Bordeaux as well as new Holiday Inns joining the Intercontinental brands, where IHG management can achieve great improvements. The drop of 20%in its share price is not of any significance in this very successful business which remains one of our main investments in the hotel industry.

Looking ahead to September results for our Key Investment portfolio will include figures from two more of our construction/building holdings viz. GallifordTry and Redrow which should be great and in line with the growth of Persimmon.