KraneShares China Internet

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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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Holding sold in both Portfolios. Happy to let cash increase up towards 20%. Canaries in the coal mine?

Holding sold in both Portfolios. Happy to let cash increase up towards 20%. Canaries in the coal mine?

Holding sold in both Portfolios. Happy to let cash increase up towards 20%. Canaries in the coal mine?

I have sold Kraneshares China Internet (KWEB) from both Portfolios. In the JIC Portfolio, it is part of my plan to focus purely on individual stocks and leave funds to the Funds' Portfolio. In the Funds' Portfolio, I am focusing my China exposure on Fidelity China Special Situations. I am happy to increase cash in each portfolio. The start to the year has been terrific for those exposed to commodities and precious metals. Are there some canaries in the mine appearing? I think

3 days ago1 min read

Funds' Portfolio: Review of Positions - Conclusions

Funds' Portfolio: Review of Positions - Conclusions

Funds' Portfolio: Review of Positions - Conclusions

Inching towards +20% YTD - Now +19.7%. Gold Mining ETF: This is what I wrote on 11 August: " I'm reluctant to take profits, though, as I...

Sep 9, 20254 min read

Funds' Portfolio - Review of Positions (II)

Funds' Portfolio - Review of Positions (II)

Funds' Portfolio - Review of Positions (II)

China: Fidelity China Special Situations: 10.2% of JIC Portfolio and up 17.3% since purchase in March. Kraneshares China Internet ETF: ...

Sep 1, 20252 min read

JIC Portfolio: Short Review of each of my positions (II)

JIC Portfolio: Short Review of each of my positions (II)

JIC Portfolio: Short Review of each of my positions (II)

KraneShares China Internet ETF . Up 1.6% on my average purchase price (which was admittedly poorly timed). 4.8% of the JIC Portfolio. I'm...

Aug 13, 20254 min read

Funds' Portfolio Trade - Added to existing position

Funds' Portfolio Trade - Added to existing position

Funds' Portfolio Trade - Added to existing position

KraneShares CSI China Internet ETF (KWEB.L, 1850p, 5.0% of JIC Portfolio, 5.0% of Funds’ Portfolio) Position increased to 5.0% from...

May 12, 20251 min read

Four buy trades in JIC Portfolio - Added to existing positions.

Four buy trades in JIC Portfolio - Added to existing positions.

Four buy trades in JIC Portfolio - Added to existing positions.

I have just added to four of my positions. In most cases they have sufferred big falls in the last week and are now in oversiold...

Apr 7, 20251 min read

JIC Portfolio Trades - Go East theme!

JIC Portfolio Trades - Go East theme!

JIC Portfolio Trades - Go East theme!

#jicportfoliotrade

Mar 11, 20251 min read

New position in both Portfolios - Go East!

New position in both Portfolios - Go East!

New position in both Portfolios - Go East!

KraneShares CSI China Internet ETF, (KWEB.L, 2085p, 3.0% of JIC Portfolio, 4.0% of Funds’ Portfolio) KWEB tracks the CSI Overseas...

Mar 6, 20251 min read

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