So 2020, was a year I didn’t really blog about (sorry for lack of these) mostly as I was flat out with non-investment related activities over the year.
That said, overall a success -> annual performance was good and outperformed my market “indicator”, #VVLSRE at on my main SIPP holdings, which is majority of my Funds under management. At this point (Jan 2020) I am 95% invested, 5% cash portfolio wide, however as per 2019 I have cash reserves I can add to both portfolios before April, and expect to do so, it’s just I have other uses for the reserves in meantim.
SIPP was +13% – To caveat I did add some money (around 20% of portfolio by weight) to portfolio in March following the covid downturn. This was planned to happen as my businesses outperformed in 2019, so allowed a larger business contribution that year. This luckily allowed “many” outperformance.
One sale, many purchases -> Purchased then SOLD #SONG (purchased Feb, sold Aug)-> as predicted would be flat after sale, mostly correct (total return ~ 14% over 6 mo). Correctly moved money to #LGEN (the purchase of this trance returned 45% alone)-> which given I have an average of under 200p I’m happy with holding (it’s about where I expect it now, but expect long term growth).
In terms of personal stock picking, I made the correct calls and was rewarded with EOY returns of +25% on > 3 purchases (#LGEN, #BARC, #PZC). I was reasonably happy with this.
Outformance mostly on IT’s -> Very happy with #FCSS purchases over last 2 years returning near 68% on the year. #SMT is now up 132% on my holdings as a whole -> major impact on Oil holdings (#BP), #NG. kept stable. I am still buying #NG. monthly -> as I have a feeling it will be a major part of portfolio returns in 2022->2030. Major detractors on portfolio were #MER, #HUR. I’m keeping #HUR purely as a lesson for not buying small shares you don’t understand. Thankfully the small losses here offset by the rest of portfolio.
Plans for 2020 for the portfolio >>> Continue adding to IT’s that have outperformed (#SSON, FEET, FCSS). I’m going to hold on adding Fundsmith for a few months as suspect smaller funds will dominate.
I’m also buying #JII monthly, along with #NG. And I’m tempted to add some more $BRK.B when the exchange rates make this attractive.
I also need to add more Chinese purchases, and considering adding the Bailey gifford fund to the #FCSS holding I already have, it’s just as former trades on premium at moment and latter usually at a discount, it’s better to add #FCSS for moment.
Performance graph (courtesy Sharepad) over year on SIPP -> Red is cashline (total Cash invested), Green is total portfolio value inc cash (*amounts removed) -> blue is my portfolio, and yellow shows what would have happend if all my money in a FTSE all share total return tracker. As you can see I’ve gone from trailing that particular benchmark to exceeding it (and you can see the fact the cash invested has gone up from a minimum in April to a max around now (95%). I did’t want to invest all the money I had added at once, so dripped it in slowly to catch any future dops.
ISA was +4% -> underperformance versus indicator, disappointing, but better than a “red” year. No positions SOLD during year. Why? Well ISA is mostly FUND + IT’s and my basket of these over the year underperformed, with one holding being -17.5% over the year. I was adding to these holdings during, and they are now “back” in profit since purchase (originally) in 2018/9 -> but down versus start of year. Hindsite was should have sold some of these for similar shares. ISA also held #HUR in a slightly heigher weighting than SIPP. I’m again not leaving this right now, the trading fees to exit the position would hardly justify the return. I havn’t inluded the graph here, but it’s similar to the SIPP, just not as dramatic.
I’m starting a position in ISA in #NG. as one of 3 single stocks I hold here. On ISA I have done better on stock picking this year, however, #AV. is still trading under my valuation and is still a red markert on the portfolio, ditto #LLOY.
New positions for year in portfolio -> #NG., #SAIN, #ULVR (none existed start of 2019).
The big risk factor in the portfolio is diversity from what I can gather from my analysis, I have hardly any asian or chinese stock in play here -> which I need to rectify in 2021. So I expect to add #FCSS here, along with #JII -> as well as build the #NG. and #ULVR direct holdings here. Why these? I am buying stocks direct to portfolio where I see them being long-term plays to 2030 onwards. I see both Unilever and National Grid being both decent bets for this period.
As ever keep up to date on my trades by following myself on twitter, it’s usually far more up to date than blog on my trades. Oh an as an aside, I’m not a very big investor, but my total FUM over all portfolios (including one I don’t blog about) passed 6 figures this year. Thats a major achivement given the same figure end of last year was just over half that. Yes new money was added and then dripped in monthly, but that only accounted for a small portion of the returns over the year. In hindsite my mistake was not investing ALL the money in end April, but I choose to drip in during the year -> my performance on both ISA and SIPP would easily be +20% more if I had been brave or perhaps reckless doing that.