#jicportfoliotrade 9/12

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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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New Position - Polar Capital Holdings -Being paid to wait!

New Position - Polar Capital Holdings -Being paid to wait!

New Position - Polar Capital Holdings -Being paid to wait!

#jicportfoliotrade

Jul 4, 20223 min read

New position in JIC Portfolio - Lucara Diamond

New position in JIC Portfolio - Lucara Diamond

New position in JIC Portfolio - Lucara Diamond

#jicportfoliotrade

Jun 16, 20225 min read

Big Shift Monday! Non-oil commodity exposure reduced.

Big Shift Monday! Non-oil commodity exposure reduced.

Big Shift Monday! Non-oil commodity exposure reduced.

#jicportfoliotrade #fundsportfoliotrade

May 30, 20222 min read

Serica Energy - Added again at 260.8p

Serica Energy - Added again at 260.8p

Serica Energy - Added again at 260.8p

#jicportfoliotrade

May 27, 20221 min read

Serica Energy - Added to position on share price reaction to higher North Sea tax

Serica Energy - Added to position on share price reaction to higher North Sea tax

Serica Energy - Added to position on share price reaction to higher North Sea tax

#jicportfoliotrade

May 26, 20222 min read

Serica Energy increased to 7.5%

Serica Energy increased to 7.5%

Serica Energy increased to 7.5%

#jicportfoliotrade

May 24, 20221 min read

Added to Lloyds Bank, Biotech Growth and SDI in JIC Portfolio and Biotech Growth in Funds' Portfolio

Added to Lloyds Bank, Biotech Growth and SDI in JIC Portfolio and Biotech Growth in Funds' Portfolio

Added to Lloyds Bank, Biotech Growth and SDI in JIC Portfolio and Biotech Growth in Funds' Portfolio

#jicportfoliotrade #fundsportfoliotrade

May 12, 20222 min read

Renew Holdings - Position halved to 2.5%

Renew Holdings - Position halved to 2.5%

Renew Holdings - Position halved to 2.5%

#jicportfoliotrade Renew Holdings (RNWH.L; Aim UK 50. Market capitalisation: £544m, 682p, 5.0% of JIC Portfolio. Medium Risk/Medium...

May 12, 20222 min read

SigmaRoc reduced to 2.5% - Reducing risk in the portfolio

SigmaRoc reduced to 2.5% - Reducing risk in the portfolio

SigmaRoc reduced to 2.5% - Reducing risk in the portfolio

#jicportfoliotrade

May 5, 20221 min read

Blackrock World Mining trimmed in both portfolios

Blackrock World Mining trimmed in both portfolios

Blackrock World Mining trimmed in both portfolios

#jicportfoliotrade #fundsportfoliotrade

May 5, 20221 min read

Gulf Keystone Petroleum - Increased position to target 5.0%

Gulf Keystone Petroleum - Increased position to target 5.0%

Gulf Keystone Petroleum - Increased position to target 5.0%

#jicportfoliotrade

May 5, 20221 min read

New position in JIC Portfolio - Gulf Keystone Petroleum

New position in JIC Portfolio - Gulf Keystone Petroleum

New position in JIC Portfolio - Gulf Keystone Petroleum

#jicportfoliotrade

May 4, 20224 min read

Serica Energy - Added to position

Serica Energy - Added to position

Serica Energy - Added to position

#jicportfoliotrade

Apr 28, 20221 min read

Added to NextEnergy Solar Fund in both portfolios

Added to NextEnergy Solar Fund in both portfolios

Added to NextEnergy Solar Fund in both portfolios

#jicportfoliotrade #fundsportfoliotrade

Apr 26, 20221 min read

Lundin Energy - Remaining position sold

Lundin Energy - Remaining position sold

Lundin Energy - Remaining position sold

#jicportfoliotrade

Apr 25, 20221 min read

NextEnergy Solar Fund added to JIC Portfolio - If boring is good enough for Funds' Portfolio.....

NextEnergy Solar Fund added to JIC Portfolio - If boring is good enough for Funds' Portfolio.....

NextEnergy Solar Fund added to JIC Portfolio - If boring is good enough for Funds' Portfolio.....

#jicportfoliotrade

Apr 19, 20221 min read

Lundin Energy reduced to 5.0%

Lundin Energy reduced to 5.0%

Lundin Energy reduced to 5.0%

#jicportfoliotrade

Apr 19, 20221 min read

Lundin Energy - Position trimmed again!

Lundin Energy - Position trimmed again!

Lundin Energy - Position trimmed again!

#jicportfoliotrade

Apr 8, 20221 min read

Serica trimmed again to 7.5%

Serica trimmed again to 7.5%

Serica trimmed again to 7.5%

#jicportfoliotrade

Mar 25, 20221 min read

Serica Energy - Trimmed to 7.5% (Risk control/pragmatism)

Serica Energy - Trimmed to 7.5% (Risk control/pragmatism)

Serica Energy - Trimmed to 7.5% (Risk control/pragmatism)

#jicportfoliotrade

Mar 17, 20221 min read

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