#jicportfoliotrade 11/12

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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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Lloyds Banking Group - Back in the JIC Portfolio

Lloyds Banking Group - Back in the JIC Portfolio

Lloyds Banking Group - Back in the JIC Portfolio

#jicportfoliotrade

Jan 14, 20222 min read

New position in JIC Portfolio - Circassia

New position in JIC Portfolio - Circassia

New position in JIC Portfolio - Circassia

#jicportfoliotrade

Jan 12, 20225 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

JIC Portfolio Trade - New Holding

JIC Portfolio Trade - New Holding

JIC Portfolio Trade - New Holding

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Jan 5, 20224 min read

JIC Portfolio Trade - Added to Lundin Energy

JIC Portfolio Trade - Added to Lundin Energy

JIC Portfolio Trade - Added to Lundin Energy

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Dec 22, 20211 min read

Lundin Energy reduced to target 5.0%

Lundin Energy reduced to target 5.0%

Lundin Energy reduced to target 5.0%

#jicportfoliotrade

Dec 14, 20211 min read

Time to wield the knife - Cash up to 11.8% - Calnex, Venture Life and Capita sold

Time to wield the knife - Cash up to 11.8% - Calnex, Venture Life and Capita sold

Time to wield the knife - Cash up to 11.8% - Calnex, Venture Life and Capita sold

#jicportfoliotrade

Dec 14, 20212 min read

JIC Portfolio -Two Trades

JIC Portfolio -Two Trades

JIC Portfolio -Two Trades

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Dec 9, 20212 min read

SDI Group - Position reduced to 2.5%

SDI Group - Position reduced to 2.5%

SDI Group - Position reduced to 2.5%

#jicportfoliotrade

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

JIC Portfolio Trade

JIC Portfolio Trade

JIC Portfolio Trade

#jicportfoliotrade

Dec 1, 20211 min read

Three Trades in JIC Portfolio

Three Trades in JIC Portfolio

Three Trades in JIC Portfolio

#jicportfoliotrade

Nov 18, 20212 min read

New Holding added to JIC Portfolio

New Holding added to JIC Portfolio

New Holding added to JIC Portfolio

#jicportfoliotrade

Nov 9, 20215 min read

JIC Portfolio Trade - Added to Venture Life Group

JIC Portfolio Trade - Added to Venture Life Group

JIC Portfolio Trade - Added to Venture Life Group

#jicportfoliotrade

Nov 1, 20212 min read

Bioventix - Difficult decision but reduced to 2.5%

Bioventix - Difficult decision but reduced to 2.5%

Bioventix - Difficult decision but reduced to 2.5%

#jicportfoliotrade

Oct 19, 20212 min read

CentralNic - Added to position

CentralNic - Added to position

CentralNic - Added to position

#jicportfoliotrade

Sep 20, 20211 min read

SDI Group - Positioned trimmed to 5.0%

SDI Group - Positioned trimmed to 5.0%

SDI Group - Positioned trimmed to 5.0%

#jicportfoliotrade

Sep 20, 20211 min read

CentralNic - New Holding in JIC Portfolio

CentralNic - New Holding in JIC Portfolio

CentralNic - New Holding in JIC Portfolio

#jicportfoliotrade

Sep 14, 20215 min read

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