#jicportfoliotrade 3/12

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

JIC Portfolio Trade - Long-standing holding sold

JIC Portfolio Trade - Long-standing holding sold

JIC Portfolio Trade - Long-standing holding sold

#jicportfoliotrade

Nov 4, 20243 min read

JIC Portfolio trade - Added to existing position

JIC Portfolio trade - Added to existing position

JIC Portfolio trade - Added to existing position

#jicportfoliotrade

Oct 29, 20241 min read

JIC Portfolio Trade - Added to existing position (Capita)

JIC Portfolio Trade - Added to existing position (Capita)

JIC Portfolio Trade - Added to existing position (Capita)

#jicportfoliotrade

Sep 20, 20242 min read

Two more trades - Added to existing positions (Lundin Mining and NGEX Minerals)

Two more trades - Added to existing positions (Lundin Mining and NGEX Minerals)

Two more trades - Added to existing positions (Lundin Mining and NGEX Minerals)

#jicportfoliotrade

Sep 17, 20241 min read

JIC Portfolio Trade - Added to an existing position

JIC Portfolio Trade - Added to an existing position

JIC Portfolio Trade - Added to an existing position

#jicportfoliotrade

Sep 17, 20241 min read

JIC Portfolio Trade - Position sold

JIC Portfolio Trade - Position sold

JIC Portfolio Trade - Position sold

#jicportfoliotrade Hvivo (HVO.L; AIM All-Share. Market capitalisation: £191m, 28.5p, 0.0% of JIC Portfolio. Medium Risk/High Reward =...

Sep 16, 20241 min read

JIC Portfolio Trades - Added to three of my commodity positions with the cash raised this morning

JIC Portfolio Trades - Added to three of my commodity positions with the cash raised this morning

JIC Portfolio Trades - Added to three of my commodity positions with the cash raised this morning

#jicportfoliotrade

Sep 4, 20241 min read

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

#jicportfoliotrade

Sep 4, 20241 min read

JIC Portfolio Trade - Another sale to fund the purchase of a company, which, I believe, has better prospects

JIC Portfolio Trade - Another sale to fund the purchase of a company, which, I believe, has better prospects

JIC Portfolio Trade - Another sale to fund the purchase of a company, which, I believe, has better prospects

#jicportfoliotrade

Aug 22, 20244 min read

JIC Portfolio Trade - I have just increased the new holding, added yesterday, to my target weight of 3.0%

JIC Portfolio Trade - I have just increased the new holding, added yesterday, to my target weight of 3.0%

JIC Portfolio Trade - I have just increased the new holding, added yesterday, to my target weight of 3.0%

#jicportfoliotrade

Aug 21, 20241 min read

JIC Portfolio Trades: Trimmed a position and added to another

JIC Portfolio Trades: Trimmed a position and added to another

JIC Portfolio Trades: Trimmed a position and added to another

#jicportfoliotrade

Aug 21, 20241 min read

JIC Portfolio Trade - New position added - funded by selling (taking a loss) in Glencore

JIC Portfolio Trade - New position added - funded by selling (taking a loss) in Glencore

JIC Portfolio Trade - New position added - funded by selling (taking a loss) in Glencore

#jicportfoliotrade

Aug 20, 20245 min read

JIC Portfolio Trade - added to an existing position

JIC Portfolio Trade - added to an existing position

JIC Portfolio Trade - added to an existing position

#jicportfoliotrade

Jul 30, 20243 min read

JIC Portfolio Trades - Revisiting an Old Position - funded by trimming another turnaround story and cash

JIC Portfolio Trades - Revisiting an Old Position - funded by trimming another turnaround story and cash

JIC Portfolio Trades - Revisiting an Old Position - funded by trimming another turnaround story and cash

#jicportfoliotrade

Jul 16, 20243 min read

JIC Portfolio Trades - Increased a position to target weight, funded by reducing another

JIC Portfolio Trades - Increased a position to target weight, funded by reducing another

JIC Portfolio Trades - Increased a position to target weight, funded by reducing another

#jicportfoliotrade

Jun 13, 20241 min read

JIC Portfolio Trade

JIC Portfolio Trade

JIC Portfolio Trade

#jicportfoliotrade

May 15, 20241 min read

JIC Portfolio Trade - Holding reduced

JIC Portfolio Trade - Holding reduced

JIC Portfolio Trade - Holding reduced

#jicportfoliotrade

May 15, 20241 min read

JIC Portfolio Trade - New position bought

JIC Portfolio Trade - New position bought

JIC Portfolio Trade - New position bought

#jicportfoliotrade

May 8, 20245 min read

JIC Portfolio Trades - Four positions trimmed to provide funds for new investment

JIC Portfolio Trades - Four positions trimmed to provide funds for new investment

JIC Portfolio Trades - Four positions trimmed to provide funds for new investment

#jicportfoliotrade

May 8, 20241 min read

Buy trades in both Portfolios

Buy trades in both Portfolios

Buy trades in both Portfolios

#jicportfoliotrade #fundsportfoliotrade

Apr 16, 20241 min read

bottom of page