Blackrock Energy and Resources

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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

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!

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Funds' Portfolio Trades - One position sold, another increased

Funds' Portfolio Trades - One position sold, another increased

Funds' Portfolio Trades - One position sold, another increased

#fundsportfoiliotrade

Feb 26, 20241 min read

Funds Portfolio Trades - One position was reduced to 5.0%, and a new holding bought.

Funds Portfolio Trades - One position was reduced to 5.0%, and a new holding bought.

Funds Portfolio Trades - One position was reduced to 5.0%, and a new holding bought.

#fundsportfoliotrade BlackRock Energy & Resources Income Trust: (BERI.L, FTSE Small Cap, Market Cap £138m, 110.5p, 5.0% of Funds’...

Jan 19, 20242 min read

BlackRock Energy & Resources Income - Dividend Increase - Every little bit helps!

BlackRock Energy & Resources Income - Dividend Increase - Every little bit helps!

BlackRock Energy & Resources Income - Dividend Increase - Every little bit helps!

BlackRock Energy & Resources Income Trust: (BERI.L, FTSE Small Cap Index, Market Cap £142m, 110.5p, 9.8% of Funds’ Portfolio (target...

Dec 8, 20232 min read

Adjustments to Funds' Portfolio - Increasing exposure to commodities

Adjustments to Funds' Portfolio - Increasing exposure to commodities

Adjustments to Funds' Portfolio - Increasing exposure to commodities

#fundsportfoliotrade

Nov 10, 20221 min read

Commodity Exposure - How has it performed?

Commodity Exposure - How has it performed?

Commodity Exposure - How has it performed?

#portfoliothoughts #commodities

Oct 24, 20222 min read

Blackrock Energy & Resources Income Trust - Results and dividend declaration

Blackrock Energy & Resources Income Trust - Results and dividend declaration

Blackrock Energy & Resources Income Trust - Results and dividend declaration

Blackrock Energy and Resource Income Trust (BERI.L, Mkt Cap £135m, 114p, FTSE Fledgeling Index, 8.5% of JIC Funds' Portfolio, Target...

Feb 4, 20223 min read

Blackrock Energy & Resources Income - Added to position in Funds' Portfolio

Blackrock Energy & Resources Income - Added to position in Funds' Portfolio

Blackrock Energy & Resources Income - Added to position in Funds' Portfolio

#fundsportfoliotrade

Jan 13, 20221 min read

Sale of BG Positive Change transacted - Funds' Portfolio updated, and two ex-dividends today

Sale of BG Positive Change transacted - Funds' Portfolio updated, and two ex-dividends today

Sale of BG Positive Change transacted - Funds' Portfolio updated, and two ex-dividends today

Yesterday's sale of Baillie Gifford Positive Change Fund confirmed by Hargreave Lansdown 1152.61 shares were sold at 380.1p per share,...

Dec 16, 20211 min read

Funds' Portfolio Trades - Blackrock Energy and Resource Income Trust added - funded by three sales

Funds' Portfolio Trades - Blackrock Energy and Resource Income Trust added - funded by three sales

Funds' Portfolio Trades - Blackrock Energy and Resource Income Trust added - funded by three sales

#fundsportfoliotrade

Oct 18, 20212 min read

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