#Fundsportfoliotrade 5/6

top of page

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

Search

Funds' Portfolio - New position

Funds' Portfolio - New position

Funds' Portfolio - New position

#fundsportfoliotrade

Feb 10, 20222 min read

Funds' Portfolio Trades - Cash to 16%

Funds' Portfolio Trades - Cash to 16%

Funds' Portfolio Trades - Cash to 16%

#fundsportfoliotrade #portfoliothoughts

Feb 8, 20222 min read

Funds' Portfolio- Further shift to "Value"

Funds' Portfolio- Further shift to "Value"

Funds' Portfolio- Further shift to "Value"

#fundsportfoliotrade

Jan 26, 20222 min read

Added to Biotech Growth Trust in both portfolios to 3.7%

Added to Biotech Growth Trust in both portfolios to 3.7%

Added to Biotech Growth Trust in both portfolios to 3.7%

#jicportfoliotrade #fundsportfoliotrade

Jan 24, 20221 min read

Fundsmith trimmed to 6.0% in Funds' Portfolio

Fundsmith trimmed to 6.0% in Funds' Portfolio

Fundsmith trimmed to 6.0% in Funds' Portfolio

#fundsportfoliotrade

Jan 21, 20221 min read

Two trades in Funds' Portfolio

Two trades in Funds' Portfolio

Two trades in Funds' Portfolio

#fundsportfoliotrade

Jan 19, 20221 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

New Funds' Holding - Temple Bar Investment Trust

New Funds' Holding - Temple Bar Investment Trust

New Funds' Holding - Temple Bar Investment Trust

#fundsportfoliotrade

Jan 12, 20222 min read

Trades in both Portfolios - Worldwide Healthcare Trust reduced

Trades in both Portfolios - Worldwide Healthcare Trust reduced

Trades in both Portfolios - Worldwide Healthcare Trust reduced

#jicportfoliotrade #fundsportfoliotrade

Jan 10, 20221 min read

Biotech Growth Trust reduced in both portfolios

Biotech Growth Trust reduced in both portfolios

Biotech Growth Trust reduced in both portfolios

#jicportfoliotrade #fundsportfoliotrade

Jan 7, 20221 min read

Baillie Gifford Shin Nippon - Reduced in both the Funds' and JIC Portfolio

Baillie Gifford Shin Nippon - Reduced in both the Funds' and JIC Portfolio

Baillie Gifford Shin Nippon - Reduced in both the Funds' and JIC Portfolio

#jicportfoliotrade #fundsportfoliotrade

Jan 6, 20221 min read

Funds' Portfolio Trade - Value Factor ETF up to 6.0%

Funds' Portfolio Trade - Value Factor ETF up to 6.0%

Funds' Portfolio Trade - Value Factor ETF up to 6.0%

#Fundsportfoliotrade

Jan 5, 20221 min read

Partial sale of Premier Miton UK Smaller Companies confirmed

Partial sale of Premier Miton UK Smaller Companies confirmed

Partial sale of Premier Miton UK Smaller Companies confirmed

#fundsportfoliotrade

Dec 21, 20211 min read

Funds' Portfolio Trade - Reducing Premier Miton UK Small Companies

Funds' Portfolio Trade - Reducing Premier Miton UK Small Companies

Funds' Portfolio Trade - Reducing Premier Miton UK Small Companies

#Fundsportfoliotrade

Dec 20, 20212 min read

Funds' Portfolio Trades - Three changes - cash up to 6.0%

Funds' Portfolio Trades - Three changes - cash up to 6.0%

Funds' Portfolio Trades - Three changes - cash up to 6.0%

#fundsportfoliotrade

Dec 15, 20213 min read

Funds' Portfolio Trade - Biotech Growth Trust down to 5.0%

Funds' Portfolio Trade - Biotech Growth Trust down to 5.0%

Funds' Portfolio Trade - Biotech Growth Trust down to 5.0%

#fundsportfoliotrade

Dec 6, 20211 min read

Worldwide Healthcare Trust reduced in both Portfolios

Worldwide Healthcare Trust reduced in both Portfolios

Worldwide Healthcare Trust reduced in both Portfolios

#jicportfoliotrade #fundsportfoliotrade

Dec 3, 20211 min read

Funds' Portfolio Trades - Out of semiconductors back into gold

Funds' Portfolio Trades - Out of semiconductors back into gold

Funds' Portfolio Trades - Out of semiconductors back into gold

#fundsportfoliotrade

Nov 12, 20213 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

JIC Funds' Portfolio Trades - Cloud Computing ETF sold - Value Factor ETF bought

JIC Funds' Portfolio Trades - Cloud Computing ETF sold - Value Factor ETF bought

JIC Funds' Portfolio Trades - Cloud Computing ETF sold - Value Factor ETF bought

#fundsportfoliotrade

Sep 27, 20212 min read

bottom of page