My Approach to Investing
Summary
I focus my efforts on small and mid-sized companies searching for those where the growth prospects are not reflected in the share price. I am disciplined about the valuation I am prepared to pay; I don’t like to pay over 20x forecast earnings and favour companies that are paying a growing dividend and have a prospective dividend yield of at least 2.0%. I search for companies generating strong cash flow and if not having net cash, then debt levels that is low to moderate. Where possible I like to meet management and understand what makes them tick and if they have a decent stake in the business so much the better; our interests are aligned! I like companies that are beating expectations and earnings forecasts are being upgraded. Ultimately I am looking for the “double whammy” that comes from a re-rating and from faster than expected earnings growth. Having found a potential investment I look at the share price chart as it can help with timing; so often resistance and support levels work. I size a position based on my assessment of the potential Risk and Reward of the stock. I hold between 20 and 30 holdings, making use of investment trusts for overseas or thematic exposure.
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The most important number to me is the return of the Portfolio! I try not to get too emotionally involved with individual companies; if I cut a holding and it immediately bounces, so be it. All that matters is the return of the Portfolio, each month, each year, each decade!
I invest principally in the UK
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I invest mainly in UK stocks as that is where I have gained my experience. There are clearly opportunities to invest in overseas companies, and it is fair to say that it is now much easier to get the information you need. I think that for a private investor, such as myself, with limited time resources, it is better not to spread my net too wide. For me, it makes sense to focus my efforts on a market where I have experience and familiarity.
I focus on mid and small-sized companies
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I focus on mid and small-sized companies but not exclusively.
The FTSE 100 Index comprises the largest 100 companies and by value accounts for around 70% of the UK market, The FTSE 250, (the next 250 companies) accounts for about 25% of the market by value, and the FTSE Small Cap, FTSE Fledgling and FTSE AIM, the remainder.
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The table below shows the percentage returns over 1, 3, 5, and 10 years to 31st December 2020
My Approach to Investing
Summary
I focus my efforts on small and mid-sized companies searching for those where the growth prospects are not reflected in the share price. I am disciplined about the valuation I am prepared to pay; I don’t like to pay over 20x forecast earnings and favour companies that are paying a growing dividend and have a prospective dividend yield of at least 2.0%. I search for companies generating strong cash flow and if not having net cash, then debt levels that is low to moderate. Where possible I like to meet management and understand what makes them tick and if they have a decent stake in the business so much the better; our interests are aligned! I like companies that are beating expectations and earnings forecasts are being upgraded. Ultimately I am looking for the “double whammy” that comes from a re-rating and from faster than expected earnings growth. Having found a potential investment I look at the share price chart as it can help with timing; so often resistance and support levels work. I size a position based on my assessment of the potential Risk and Reward of the stock. I hold between 20 and 30 holdings, making use of investment trusts for overseas or thematic exposure.
​
The most important number to me is the return of the Portfolio! I try not to get too emotionally involved with individual companies; if I cut a holding and it immediately bounces, so be it. All that matters is the return of the Portfolio, each month, each year, each decade!
I invest principally in the UK
​
I invest mainly in UK stocks as that is where I have gained my experience. There are clearly opportunities to invest in overseas companies, and it is fair to say that it is now much easier to get the information you need. I think that for a private investor, such as myself, with limited time resources, it is better not to spread my net too wide. For me, it makes sense to focus my efforts on a market where I have experience and familiarity.
I focus on mid and small-sized companies
​
I focus on mid and small-sized companies but not exclusively.
The FTSE 100 Index comprises the largest 100 companies and by value accounts for around 70% of the UK market, The FTSE 250, (the next 250 companies) accounts for about 25% of the market by value, and the FTSE Small Cap, FTSE Fledgling and FTSE AIM, the remainder.
​
The table below shows the percentage returns over 1, 3, 5, and 10 years to 31st December 2020
ABOUT ME
I launched this website in January 2012 so that I could share with other investors how I manage my investment portfolio; the JIC Portfolio.
There is complete transparency with the current portfolio and all transactions shown. I explain all trades through my blog and hope the site provides food for thought to more experienced investors as well as helping those who are new to managing their own portfolios. I believe JohnsInvestmentChronicle is unique: There are plenty of “tipsters” who will remind you of the “good ones” and quietly forget the disasters; I do not have that luxury as the Portfolio is there for all to see, backed with real money; mine! I have to confront my mistakes and deal with them; there is no hiding place! Above all, this is a true expose of the trials and tribulations of a private investor!
JOHN'S INVESTMENT CHRONICLE
THE INVESTMENT DIARY OF A PRIVATE INVESTOR
JIC Portfolio +341.4% (+12.4% per annum)
vs +150.6% FTSE All-Share (TR)
From January 2012 to 30 Sept 2024
JIC Funds' Portfolio +39.3% (+8.1% pa)
vs +63.3% FTSE All-World £ (TR)
From July 2020 to 30 Sept 2024
JohnsInvestmentChronicle is edited by John Rosier, a former City fund manager with 40 year’s investment experience.
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He writes a monthly column, "The Private Investor's Diary", for the Investors' Chronicle Magazine.
John shares his investment diary so you can follow the progress of two live portfolios. You see all trades in real-time and the rationale behind every investment decision. You receive timely commentary on the latest company news, portfolio strategy, topical issues and performance.
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JIC PORTFOLIO: Started on 1st January 2012. It uses the power of compounding to grow the portfolio's value over time. It holds around 25 stocks, including investment trusts, to gain overseas and thematic exposure. He eats his cooking – his SIPP and ISA replicate the JIC Portfolio.
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JIC FUNDS' PORTFOLIO: Started on 1st July 2020. It invests only in funds (investment trusts, OEICS and ETFs). It is diversified across geographic regions and is currently invested only in equity funds. Mrs R’s SIPP replicates the JIC Funds' Portfolio.
HOW TO SUBSCRIBE
TWO SUBSCRIPTION PLANS ARE AVAILABLE
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£250 ANNUAL MEMBERSHIP
£25 MONTHLY MEMBERSHIP
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Fourteen Day Free Trial
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MEMBERSHIP INCLUDES:
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Access to the JIC and JIC Funds' Portfolios
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Blogs explaining every trade and investment decision
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Access to the entire transaction history
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Weekend Roundup, including the week ahead
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Monthly and annual reviews
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To find what you gain as a member and to learn more click here!
To read a free blog post click here!
Or
WHAT YOU GET AS A MEMBER
MY PROMISE TO YOU
​​Total transparency: Portfolios, trades, every holding and performance is shown
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A sensible approach aimed at achieving long term portfolio growth
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A calm and consistent approach. Especially important during periods of increased volatility
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I eat my "own cooking": The JIC and JIC Funds'
Portfolios reflect my portfolios
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A total commitment to improving my investment skills and sharing my thoughts and observations
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Fourteen days free trial
Access to the ”JIC Portfolio” and the “JIC Funds Portfolio”
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Email alerts of every trade and website updates
An explanation of every investment decision
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Access to full transaction history and company blog archive going back to January 2012
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Weekend Roundup including week ahead
Monthly and annual reviews
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A one-month money-back guarantee. If you decide it’s not for you, cancel within one month and I will return your subscription immediately
To read a free blog post click here!
JIC Donates 10% of All Membership Income to Charity Each Year
Over the last ten years, it has donated £46,000
