#jicportfoliotrade 12/12

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!

If for some reason you are not receiving email alerts about new diary entries

Add your email address HERE

#jicportfoliotrade

#fundsportfoliotrade

#fundsportfoliocomment

#portfoliothoughts

Search

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

WisdomTree Cloud Computing ETF sold from JIC Portfolio to fund new addition

WisdomTree Cloud Computing ETF sold from JIC Portfolio to fund new addition

WisdomTree Cloud Computing ETF sold from JIC Portfolio to fund new addition

#jicportfoliotrade

Sep 14, 20211 min read

Surface Transforms - Increased to 2.2%

Surface Transforms - Increased to 2.2%

Surface Transforms - Increased to 2.2%

#jicportfoliotrade

Sep 2, 20211 min read

JIC Portfolio Trades - Added to Supreme, funded by selling Robotics & Automation ETF

JIC Portfolio Trades - Added to Supreme, funded by selling Robotics & Automation ETF

JIC Portfolio Trades - Added to Supreme, funded by selling Robotics & Automation ETF

#jicportfoliotrade Supreme: (SUP.L: AIM. Market Cap £239m, 210p, 5.0% of JIC Portfolio, Medium Risk/High Reward, 5.0% target) Following...

Aug 11, 20211 min read

Three trades - Trimmed Venture Life, Added to Serica and SigmaRoc

Three trades - Trimmed Venture Life, Added to Serica and SigmaRoc

Three trades - Trimmed Venture Life, Added to Serica and SigmaRoc

#jicportfoliotrade

Jul 30, 20212 min read

Sylvania Platinum - Added to position

Sylvania Platinum - Added to position

Sylvania Platinum - Added to position

#jicportfoliotrade

Jul 27, 20211 min read

Bioventix - Increased to target 5.0%

Bioventix - Increased to target 5.0%

Bioventix - Increased to target 5.0%

#jicportfoliotrade

Jul 26, 20211 min read

Renew Holdings - Position trimmed to 3.2%

Renew Holdings - Position trimmed to 3.2%

Renew Holdings - Position trimmed to 3.2%

#jicportfoliotrade

Jul 26, 20211 min read

Serica Energy - Holding increased to 4.0%

Serica Energy - Holding increased to 4.0%

Serica Energy - Holding increased to 4.0%

#jicportfoliotrade

Jul 13, 20211 min read

JIC Portfolio Trades - Added to Central Asia Metals, sold JP Morgan Emerging Markets

JIC Portfolio Trades - Added to Central Asia Metals, sold JP Morgan Emerging Markets

JIC Portfolio Trades - Added to Central Asia Metals, sold JP Morgan Emerging Markets

#jicportfoliotrade

Jul 8, 20211 min read

Trade: De La Rue up to target

Trade: De La Rue up to target

Trade: De La Rue up to target

#jicportfoliotrade

May 26, 20211 min read

New Holding - Supreme PLC

New Holding - Supreme PLC

New Holding - Supreme PLC

#jicportfoliotrade Supreme: (SUP.L: AIM. Market Cap £224m, 189p, 2.5% of JIC Portfolio, High Risk/High Reward) New Holding: Supreme...

May 25, 20215 min read

Syncona sold - cash raised will be invested in a new prospect this afternoon

Syncona sold - cash raised will be invested in a new prospect this afternoon

Syncona sold - cash raised will be invested in a new prospect this afternoon

#jicportfoliotrade

May 25, 20211 min read

De La Rue - increased to 6.5%

De La Rue - increased to 6.5%

De La Rue - increased to 6.5%

#jicportfoliotrade

May 24, 20211 min read

Renew Holdings - Reduced to 4.0%

Renew Holdings - Reduced to 4.0%

Renew Holdings - Reduced to 4.0%

#jicportfoliotrade

May 24, 20211 min read

Baillie Gifford Shin Nippon - added to the position in JIC Portfolio

Baillie Gifford Shin Nippon - added to the position in JIC Portfolio

Baillie Gifford Shin Nippon - added to the position in JIC Portfolio

#jicportfoliotrade

Mar 25, 20211 min read

bottom of page