#Fundsportfoliotrade 3/6

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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!

#jicportfoliotrade

#portfoliothoughts

#fundsportfoliotrade

#fundsportfoliocomment

I recommend downloading the Substack App and following JIC. As well as on this page, I post all my diary entries on Substack

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Trade in both the JIC and Funds' Portfolio following "Falling Price Review"

Trade in both the JIC and Funds' Portfolio following "Falling Price Review"

Trade in both the JIC and Funds' Portfolio following "Falling Price Review"

#jicportfoliotrade #fundsportfoliotrade

May 24, 20232 min read

Consolidation into Argonaut Absolute Return "R" Shares completed

Consolidation into Argonaut Absolute Return "R" Shares completed

Consolidation into Argonaut Absolute Return "R" Shares completed

#fundsportfoliotrade

May 24, 20231 min read

Confirmation of Funds' Portfolio trade posted on Wednesday

Confirmation of Funds' Portfolio trade posted on Wednesday

Confirmation of Funds' Portfolio trade posted on Wednesday

#fundsportfoliotrade

May 19, 20231 min read

Funds' Portfolio Trade - tidying up!

Funds' Portfolio Trade - tidying up!

Funds' Portfolio Trade - tidying up!

#fundsportfoliotrade

May 17, 20232 min read

Funds Portfolio Trade

Funds Portfolio Trade

Funds Portfolio Trade

#fundsportfoliotrade

May 11, 20232 min read

Funds' Portfolio trade

Funds' Portfolio trade

Funds' Portfolio trade

#fundsportfoliotrade

May 10, 20231 min read

Funds' Portfolio - Confirmation of recent trades

Funds' Portfolio - Confirmation of recent trades

Funds' Portfolio - Confirmation of recent trades

#fundsportfoliotrade Confirmation of my allotment of shares in the BH Macro Limited placing. My £1,000 order bought me an extra 231...

Feb 17, 20231 min read

Funds' Portfolio trade

Funds' Portfolio trade

Funds' Portfolio trade

#fundsportfoliotrade

Feb 15, 20232 min read

All change to my exposure to biotech/healthcare

All change to my exposure to biotech/healthcare

All change to my exposure to biotech/healthcare

#fundsportfoliotrade #jicportfoliotrade

Feb 14, 20233 min read

Funds' Portfolio Trade: BH Macro Limited - I have applied for new shares in the offer

Funds' Portfolio Trade: BH Macro Limited - I have applied for new shares in the offer

Funds' Portfolio Trade: BH Macro Limited - I have applied for new shares in the offer

#fundsportfoliotrade BH Macro Ltd (BHMG.L, FTSE Mid 250, Market Cap £1.4bn, £43.70p, 6.6 per cent of Funds’ Portfolio, (7.5 per cent...

Feb 7, 20231 min read

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

#fundsportfoliotrade

Dec 13, 20221 min read

Schroder UK Mid-Cap Fund sold

Schroder UK Mid-Cap Fund sold

Schroder UK Mid-Cap Fund sold

#Fundsportfoliotrade

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

#fundsportfoliotrade

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

#fundsportfoliotrade

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

#fundsportfoliotrade

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

#fundsportfoliotrade

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

#fundsportfoliotrade

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

#fundsportfoliotrade

Aug 18, 20221 min read

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