#jicportfoliotrade 8/12

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

K3 Capital - Position sold

K3 Capital - Position sold

K3 Capital - Position sold

#jicportfoliotrade

Dec 16, 20221 min read

JIC Portfolio Trades - K3 Capital goes up to 7.3%, funded by Biotech Growth Trust going down to 2.5%

JIC Portfolio Trades - K3 Capital goes up to 7.3%, funded by Biotech Growth Trust going down to 2.5%

JIC Portfolio Trades - K3 Capital goes up to 7.3%, funded by Biotech Growth Trust going down to 2.5%

#jicportfoliotrade

Dec 12, 20221 min read

Glencore up to 5.0%, Harbour Energy up to 4.0% - funded by reducing Ecofin Global Utilities to 5.0%

Glencore up to 5.0%, Harbour Energy up to 4.0% - funded by reducing Ecofin Global Utilities to 5.0%

Glencore up to 5.0%, Harbour Energy up to 4.0% - funded by reducing Ecofin Global Utilities to 5.0%

#jicportfoliotrade

Nov 9, 20221 min read

Move to targets in mining and oil & gas funded by reducing NextEnergy Solar Fund to 5.0%

Move to targets in mining and oil & gas funded by reducing NextEnergy Solar Fund to 5.0%

Move to targets in mining and oil & gas funded by reducing NextEnergy Solar Fund to 5.0%

#jicportfoliotrade

Nov 2, 20221 min read

Harbour Energy added to JIC Portfolio

Harbour Energy added to JIC Portfolio

Harbour Energy added to JIC Portfolio

#jicportfoliotrade

Oct 27, 20224 min read

Glencore added to JIC Portfolio

Glencore added to JIC Portfolio

Glencore added to JIC Portfolio

#jicportfoliotrade

Oct 27, 20222 min read

Commodity Exposure - Trades

Commodity Exposure - Trades

Commodity Exposure - Trades

#jicportfoliotrade

Oct 26, 20221 min read

Kistos - increased to 2.5%

Kistos - increased to 2.5%

Kistos - increased to 2.5%

#jicportfoliotrade

Oct 20, 20221 min read

JIC Portfolio trade - Increased IOG position to 2.5%

JIC Portfolio trade - Increased IOG position to 2.5%

JIC Portfolio trade - Increased IOG position to 2.5%

#jicportfoliotrade

Sep 30, 20221 min read

Added to two positions in JIC Portfolio

Added to two positions in JIC Portfolio

Added to two positions in JIC Portfolio

#jicportfoliotrade

Sep 27, 20222 min read

Bioventix increased to 5.0% of the JIC Portfolio

Bioventix increased to 5.0% of the JIC Portfolio

Bioventix increased to 5.0% of the JIC Portfolio

#jicportfoliotrade

Sep 14, 20221 min read

SDI Group - Added to position

SDI Group - Added to position

SDI Group - Added to position

#jicportfoliotrade

Aug 31, 20221 min read

IOG - Added to position, taking it back up to 2.5% target weight

IOG - Added to position, taking it back up to 2.5% target weight

IOG - Added to position, taking it back up to 2.5% target weight

#jicportfoliotrade

Aug 31, 20222 min read

Busy Monday morning - New holding added to both portfolios

Busy Monday morning - New holding added to both portfolios

Busy Monday morning - New holding added to both portfolios

#jicportfoliotrade #fundsportfoliotrade

Aug 22, 20223 min read

Biotech Growth Trust - Position trimmed in both portfolios

Biotech Growth Trust - Position trimmed in both portfolios

Biotech Growth Trust - Position trimmed in both portfolios

#fundsportfoliotrade #jicportfoliotrade

Aug 12, 20222 min read

JIC Portfolio Trades - Serica trimmed to 10.0% and IOG increased to 2.5%

JIC Portfolio Trades - Serica trimmed to 10.0% and IOG increased to 2.5%

JIC Portfolio Trades - Serica trimmed to 10.0% and IOG increased to 2.5%

#jicportfoliotrade

Jul 25, 20221 min read

JIC Portfolio trade - Kistos to 2.5%

JIC Portfolio trade - Kistos to 2.5%

JIC Portfolio trade - Kistos to 2.5%

#jicportfoliotrade

Jul 25, 20221 min read

Two new holdings - Kistos and IOG

Two new holdings - Kistos and IOG

Two new holdings - Kistos and IOG

#jicportfoliotrade

Jul 22, 20223 min read

JIC Portfolio trade - Added to Lucara Diamond

JIC Portfolio trade - Added to Lucara Diamond

JIC Portfolio trade - Added to Lucara Diamond

#jicportfoliotrade

Jul 8, 20222 min read

JIC Portfolio trade - added to Polar Capital Holdings

JIC Portfolio trade - added to Polar Capital Holdings

JIC Portfolio trade - added to Polar Capital Holdings

#jicportfoliotrade

Jul 7, 20221 min read

bottom of page