#Fundsportfoliotrade 3/5

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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 Trade - Global X Copper Miners ETF bought

Funds' Portfolio Trade - Global X Copper Miners ETF bought

Funds' Portfolio Trade - Global X Copper Miners ETF bought

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Dec 13, 20221 min read

Schroder UK Mid-Cap Fund sold

Schroder UK Mid-Cap Fund sold

Schroder UK Mid-Cap Fund sold

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Nov 16, 20221 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

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Nov 10, 20221 min read

Funds' Portfolio Trade - New position in Schroder UK Mid-Cap Fund

Funds' Portfolio Trade - New position in Schroder UK Mid-Cap Fund

Funds' Portfolio Trade - New position in Schroder UK Mid-Cap Fund

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Sep 30, 20222 min read

Taken my profit in my long gilt position

Taken my profit in my long gilt position

Taken my profit in my long gilt position

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Sep 29, 20221 min read

New position in Funds' Portfolio - UK 30-Year Gilt

New position in Funds' Portfolio - UK 30-Year Gilt

New position in Funds' Portfolio - UK 30-Year Gilt

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Sep 28, 20221 min read

Things are getting silly! Reduced US$ exposure in Funds' Portfolio

Things are getting silly! Reduced US$ exposure in Funds' Portfolio

Things are getting silly! Reduced US$ exposure in Funds' Portfolio

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Sep 26, 20221 min read

Funds' Portfolio - BH Macro added, and JP Morgan Emerging Markets sold

Funds' Portfolio - BH Macro added, and JP Morgan Emerging Markets sold

Funds' Portfolio - BH Macro added, and JP Morgan Emerging Markets sold

#fundsportfoliotrade

Sep 1, 20224 min read

Busy Monday morning - New holding added to both portfolios

Busy Monday morning - New holding added to both portfolios

Busy Monday morning - New holding added to both portfolios

#jicportfoliotrade #fundsportfoliotrade

Aug 22, 20223 min read

Funds' Portfolio Trades - turning more cautious

Funds' Portfolio Trades - turning more cautious

Funds' Portfolio Trades - turning more cautious

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Aug 18, 20221 min read

Biotech Growth Trust - Position trimmed in both portfolios

Biotech Growth Trust - Position trimmed in both portfolios

Biotech Growth Trust - Position trimmed in both portfolios

#fundsportfoliotrade #jicportfoliotrade

Aug 12, 20222 min read

Funds' Portfolio trade - Blackrock Throgmorton sold

Funds' Portfolio trade - Blackrock Throgmorton sold

Funds' Portfolio trade - Blackrock Throgmorton sold

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Aug 9, 20221 min read

Contract notes for Fundsmith and Chelverton UK Equity Growth trades

Contract notes for Fundsmith and Chelverton UK Equity Growth trades

Contract notes for Fundsmith and Chelverton UK Equity Growth trades

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Jul 21, 20221 min read

Funds Portfolio trades

Funds Portfolio trades

Funds Portfolio trades

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Jul 20, 20221 min read

Funds' Portfolio trade posted on Friday, confirmed

Funds' Portfolio trade posted on Friday, confirmed

Funds' Portfolio trade posted on Friday, confirmed

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Jul 12, 20223 min read

Funds' Portfolio trade - Rebuilding position in Chelverton UK Equity Growth Fund

Funds' Portfolio trade - Rebuilding position in Chelverton UK Equity Growth Fund

Funds' Portfolio trade - Rebuilding position in Chelverton UK Equity Growth Fund

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Jul 8, 20223 min read

Funds' Portfolio Trade - Added to Fundsmith

Funds' Portfolio Trade - Added to Fundsmith

Funds' Portfolio Trade - Added to Fundsmith

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Jul 6, 20222 min read

Big Shift Monday! Non-oil commodity exposure reduced.

Big Shift Monday! Non-oil commodity exposure reduced.

Big Shift Monday! Non-oil commodity exposure reduced.

#jicportfoliotrade #fundsportfoliotrade

May 30, 20222 min read

Funds' Portfolio Trade: New position - Argonaut Absolute Return Fund

Funds' Portfolio Trade: New position - Argonaut Absolute Return Fund

Funds' Portfolio Trade: New position - Argonaut Absolute Return Fund

#fundsportfoliotrade

May 20, 20222 min read

Added to Smithson and Fundsmith in Funds' Portfolio

Added to Smithson and Fundsmith in Funds' Portfolio

Added to Smithson and Fundsmith in Funds' Portfolio

#fundsportfoliotrade

May 12, 20221 min read

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