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Portfolio Creation



Scope

This section is best suited to self-employed or professional people looking to broaden their knowledge of being a private investor.

To become more independent in making your own investment decisions and being comfortable of the risks being taken and the possible outcomes.

You may already have an existing portfolio, or, wish to start for example, by creating your own SIIP or ISA. I wish to work with people as closely as possible, depending on location and availability, to assist creating your preferred portfolio and by using my own investments as an example.

We can discuss and suggest a choice of stockbrokers or an investment manager to purchase or sell securities on your behalf.

Ethos

I believe in being as independent as possible with my own investment decisions to provide a return on any investment held. The rules and regulations for financial service companies are many and are going to increase. Thus being able to discuss the best way of using their advice or services before signing up to their service contracts and fees could prove to be a useful step.

My portfolio

I hold 58 individual stocks in a diversified global equity and bond portfolio. This includes large and small capitalisation companies, government and corporate bonds, investment funds, commodity ETFs and a venture capital portfolio of early stage companies. I use the UK stockbroker Charles Stanley & Co. on an advisory basis. The holdings are held directly through my CREST sponsored membership account or Charles Stanley nominees for the ISA, SIPP or overseas holdings. Hornbuckle Mitchell are my SIPP providers and again Charles Stanley provide the investment management function on an advisory basis.

I maintain a growth and income strategy with a medium risk profile. Although the VC element is most certainly high risk.

Criteria, structure and purpose

My overriding requirement is: have the companies paid their dividends? Are they still businesses with a future or a fund invested in decent companies?

Equity investing is a long-term type of investment. Trading is something else – short and long strategies. Keep looking and researching, take profits or build-up cash if you get frightened. Learn about people and their habits and histories. Apply some philosophy and psychology, and hopefully, with some help and luck, run a profitable portfolio.

My aim is for both income and capital growth. I have an appropriate dividend yield of 5.2% (excluding my SIPP) which is part withdrawn and partly re-invested. I prefer to receive dividends than share buy-backs and the resultant EPS increase as a physical return of cash to my bank account helps me pay bills. Therefore, choosing companies that maintain dividends in volatile markets is important. I research and build-up knowledge of these reliable companies in a number of industries, not just utilities, telecom or pharmaceutical. New areas of technological advancement and these types of stocks tend to end up in my VC or SIPP sections of my portfolio.

The CREST and ISA sections are for use now and the VC and SIPP is for later use basically. I use my ISA allowance each year and contribute yearly to the SIPP.

Portfolio performance (Approx)

The above is more important.


From the market lows of March 2009 where I was showing a -20% loss of the total invested. I then returned +40% in total invested during 2009 along with many others in the strong market rebound that followed. 2010 was about +14% YTD. In 2011 I was pleased to manage a +0.1% YTD return considering the volatility in markets throughout the year. Although this was helped by a large (paper) gain in a VC investment which secured funding from a large multi-national company at a much higher price than the previous round. So basically in 2011 it held its own value in capital terms with income of 5.2% which I withdrew about 90%.

During this period especially from August 2008 into 2009 I was in about 40-30% in cash dropping to 25-15% in 2010. In 2011 I maintained about 9-12% in cash. High cash levels although (supposedly) safe effects performance when there’s no interest being made.


Share thoughts: The ones that got away

There’s always the ones that get away and you wish you had bought or held on to. Mine are: Renishaw, Weir, Rotork and Halma –  which I’ve had and even bought at markets lows during 2009 and then selling later in 2009 or 2010 as the market recovered. Yes, I made a profit on these investments, but as they are good British exporting companies with global sales, I should have held them. They are on my watch list again. Wish to discuss more? Please make at date.

Discussions

I am willing to meet people within a 50 mile radius of Edinburgh, UK during the daytime Monday to Friday to discuss markets and being a private investor. Meetings should be in cafes, hotels or other such public places where we could discuss matters with a degree of privacy and amenity.

Further distances may be arranged to suit both parties. Please make contact first to discuss by email or telephone.

I could also discuss over the telephone or email. Please leave a comment or enquiry.

Contact

Mobile +44-(0)7836-691-241
Use the contact form here on the site to send me a message.

Recommended reading and websites

The Financial Times, The Economist, New Scientist magazine, Moneyweek and occasionally Investor’s Chronicle or share magazine.



www.ft.com

www.iii.co.uk



Disclaimer

For this too work please understand:
This part of the Little Deal Clincher blog and website is for tailored information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this website or by myself may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

I wish only to deal with people who understand the risks involved in equity investing and require some assistance in creating their own investment portfolio.

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