#jicportfoliotrade 7/12

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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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JIC Portfolio Trade - New position

JIC Portfolio Trade - New position

JIC Portfolio Trade - New position

#jicportfoliotrade

Apr 17, 20234 min read

JIC Portfolio Trade

JIC Portfolio Trade

JIC Portfolio Trade

#jicportfoliotrade

Apr 3, 20231 min read

JIC Portfolio Trade

JIC Portfolio Trade

JIC Portfolio Trade

#jicportfoliotrade

Mar 31, 20234 min read

JIC Portfolio Trade - Added to an existing holding

JIC Portfolio Trade - Added to an existing holding

JIC Portfolio Trade - Added to an existing holding

#jicportfoliotrade

Mar 10, 20232 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

Mar 9, 20232 min read

Five trades in JIC Portfolio - Tidying up and rejigging! Forecast dividend income increases

Five trades in JIC Portfolio - Tidying up and rejigging! Forecast dividend income increases

Five trades in JIC Portfolio - Tidying up and rejigging! Forecast dividend income increases

#jicportfoliotrade

Mar 2, 20232 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

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Feb 22, 20231 min read

JIC Portfolio trade - Added to existing position

JIC Portfolio trade - Added to existing position

JIC Portfolio trade - Added to existing position

#jicportfoliotrade

Feb 21, 20231 min read

JIC Portfolio Trade - added to existing position

JIC Portfolio Trade - added to existing position

JIC Portfolio Trade - added to existing position

#jicportfoliotrade

Feb 20, 20231 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

JIC Portfolio Trades - An old position added back, funded by the complete sale of another position

JIC Portfolio Trades - An old position added back, funded by the complete sale of another position

JIC Portfolio Trades - An old position added back, funded by the complete sale of another position

#jicportfoliotrade

Feb 13, 20234 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

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Feb 3, 20231 min read

JIC Portfolio Trade

JIC Portfolio Trade

JIC Portfolio Trade

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Jan 27, 20231 min read

JIC Portfolio Trade - Somero Enterprises sold

JIC Portfolio Trade - Somero Enterprises sold

JIC Portfolio Trade - Somero Enterprises sold

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Jan 19, 20231 min read

JIC Portfolio Trade - IOG cut

JIC Portfolio Trade - IOG cut

JIC Portfolio Trade - IOG cut

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Jan 18, 20231 min read

New Position added to JIC Portfolio

New Position added to JIC Portfolio

New Position added to JIC Portfolio

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Jan 13, 20236 min read

JIC Portfolio Trade - Next Energy Solar Fund reduced to 2.5%

JIC Portfolio Trade - Next Energy Solar Fund reduced to 2.5%

JIC Portfolio Trade - Next Energy Solar Fund reduced to 2.5%

#jicportfoliotrade

Jan 13, 20231 min read

New Position - Shoe Zone

New Position - Shoe Zone

New Position - Shoe Zone

#jicportfoliotrade

Jan 11, 202310 min read

New Position: Me Group International

New Position: Me Group International

New Position: Me Group International

#jicportfoliotrade

Jan 9, 20233 min read

JIC Portfolio Trades - Polar Capital Holdings and Harbour Energy up to target

JIC Portfolio Trades - Polar Capital Holdings and Harbour Energy up to target

JIC Portfolio Trades - Polar Capital Holdings and Harbour Energy up to target

#jicportfoliotrade

Dec 16, 20222 min read

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