#weekendroundup 9/10

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

Weekend Roundup - twitchy markets

Weekend Roundup - twitchy markets

Weekend Roundup - twitchy markets

#weekendroundup

Dec 4, 20212 min read

Weekend Roundup - An uncomfortable end to a difficult week

Weekend Roundup - An uncomfortable end to a difficult week

Weekend Roundup - An uncomfortable end to a difficult week

#weekendroundup

Nov 27, 20212 min read

Weekend Roundup - Inflation!

Weekend Roundup - Inflation!

Weekend Roundup - Inflation!

#weekendroundup

Nov 20, 20212 min read

Weekend Roundup - US Inflation Shock

Weekend Roundup - US Inflation Shock

Weekend Roundup - US Inflation Shock

#weekendroundup

Nov 13, 20212 min read

Weekend Roundup - Federal Reserve delights equity markets

Weekend Roundup - Federal Reserve delights equity markets

Weekend Roundup - Federal Reserve delights equity markets

Returns of selected markets; over one week and since 1st January. (Sorted by one-week column)

Nov 6, 20212 min read

Weekend Roundup - Portfolios end month in the positive

Weekend Roundup - Portfolios end month in the positive

Weekend Roundup - Portfolios end month in the positive

#weekendroundup #monthend

Oct 30, 20212 min read

Weekend Roundup - still no clear direction

Weekend Roundup - still no clear direction

Weekend Roundup - still no clear direction

#weekendroundup

Oct 23, 20212 min read

Weekend Roundup - Commodity prices surge

Weekend Roundup - Commodity prices surge

Weekend Roundup - Commodity prices surge

#weekendroundup

Oct 17, 20211 min read

Weekend Roundup - Inflationary fears

Weekend Roundup - Inflationary fears

Weekend Roundup - Inflationary fears

#weekendroundup

Oct 9, 20212 min read

Weekend Roundup - Skittish markets

Weekend Roundup - Skittish markets

Weekend Roundup - Skittish markets

#weekendroundup

Oct 2, 20212 min read

JIC Weekend Roundup

JIC Weekend Roundup

JIC Weekend Roundup

#weekendroundup

Sep 25, 20212 min read

Weekend Roundup - Markets thrashing about!

Weekend Roundup - Markets thrashing about!

Weekend Roundup - Markets thrashing about!

#weekendroundup

Sep 18, 20213 min read

Weekend Roundup

Weekend Roundup

Weekend Roundup

#weekendroundup

Sep 11, 20211 min read

Weekend Roundup - Positive start to September

Weekend Roundup - Positive start to September

Weekend Roundup - Positive start to September

#weekendroundup

Sep 4, 20211 min read

Weekend Roundup - A much better week

Weekend Roundup - A much better week

Weekend Roundup - A much better week

#weekendroundup

Aug 28, 20212 min read

Weekend Roundup - Another testing week!

Weekend Roundup - Another testing week!

Weekend Roundup - Another testing week!

#weekendroundup

Aug 21, 20212 min read

Weekend Roundup - It was going well until Friday 13th

Weekend Roundup - It was going well until Friday 13th

Weekend Roundup - It was going well until Friday 13th

#weekendroundup

Aug 14, 20212 min read

Weekend Roundup - Going nowhere fast!

Weekend Roundup - Going nowhere fast!

Weekend Roundup - Going nowhere fast!

#weekendroundup

Aug 7, 20211 min read

Weekend Roundup - Another month!

Weekend Roundup - Another month!

Weekend Roundup - Another month!

#weekendroundup #monthend Returns of selected markets; over one week and since 1st January. (Sorted by one-week column) Equities gave up...

Jul 31, 20212 min read

Weekend Roundup - A better week all round

Weekend Roundup - A better week all round

Weekend Roundup - A better week all round

Returns of selected markets; over one week and since 1st January. (Sorted by one-week column)

Jul 25, 20211 min read

bottom of page