Please critique my portfolio

KP24

Hi all,

Just started viewing this forum and was hoping some of the experts might help critique my portfolio and suggest some changes:

1) Diageo - Bought 50 shares at around £19, current price around £18.50
2) Fundsmith - Bought 500 shares at £2 each, current price £2.30
3) HSBC Tracker - 375 bought at £4 each, current price £4.50
4) Morrisons - 435 bought at £2.60, current price £1.48
5) Royal Mail - 243 bought at £3.30, current price £4.44
6) Tesco - 250 bought at £1.98, current price £1.49

What this gives me is a current performance of -1%

I also have a Halifax Stocks and Shares ISA which i have around £30k invested in (cautious managed fund i think). I haven't added or removed anything from this for years though so any advice on this would also be appreciated.

Thanks in advance!

Drp8713

For the amounts invested you don't really need individual shares, let alone a random selection of them.

If you like Terry Smith and his concentrated stock picking approach, then why not invest it all with him until it gets to a decent amount, or go with a managed fund like your other investment.

Scarpacci

I would agree with Drp8713. I don't think it really makes sense at those levels to be buying a few individual shares and also outsourcing some of the portfolio to a well regarded fund manager. I mean, if you buy Terry Smith's way of thinking and investing, you probably wouldn't buy most of those stocks (Diageo would be the exception). There's diversification and then there's cognitive dissonance, and that might be the latter.

Now, if you do want to be a stock picker - and I'm personally not against people choosing that route as I do - I don't think two troubled supermarkets, a fairly decent spirits company and a reasonable utility stock (Royal Mail) makes for a sensible portfolio. What's the investment strategy? Tesco doesn't pay a dividend so that wouldn't fit an income investor's objective. There's neither wide diversity nor much of an apparent theme there. People invest for income, for growth, finding value, etc. I would find a strategy that works for your aims and risk tolerance/appetite, then work from there, adding or removing what does and doesn't fit.

Dird

Drp8713 wrote: »

If you like Terry Smith and his concentrated stock picking approach, then why not invest it all with him until it gets to a decent amount, or go with a managed fund like your other investment.

His fund isn't classed as a managed fund?

Morrisons & Tesco are going to get butchered by Aldi/Lidl/Asda. Probably best to sell before you lose more.

While Royal Mail doesn't really have competitors for letters, there's a lot for larger deliveries. Their margins are going to be thinned as people send less letters over time & eventually fuel costs will rise again:

RoyalMail wrote:

- Letters: 5% p.a. decline 2013-18; 4% p.a. decline 2018-23
- Parcels: 3% p.a. increase 2013-18; 2% p.a. increase 2018-23
- Overall: 4% p.a. decline 2013-18; 3% p.a. decline 2018-23
source: http://www.royalmailgroup.com/sites/default/files/The%20outlook%20for%20UK%20mail%20volumes%20to%202023.pdf

Parcel increasing doesn't mean a whole lot as Amazon seem to be using local couriers (i.e. man in a van) lately & for company-to-company you have all the competitors. Hopefully companies will focus their spam mail electronically in the future too

I'd wait for the next earnings report for Royal Mail, hope it's good (low oil cost gives it a good chance) then sell after the increase.

Totton

Take a look at something like RIT Capital Partners Investment Trust (RCP)

redmalc

Tot ton
Is it possible to purchase RIT and include in your Hargreaves S&S isa ?because I like the look of them.
Regards

george4064

redmalc wrote: »

Tot ton
Is it possible to purchase RIT and include in your Hargreaves S&S isa ?because I like the look of them.
Regards

Yes, RIT Capital Partners plc can be bought and held in an ISA.

http://www.hl.co.uk/shares/shares-search-results/r/rit-capital-partners-plc-ordinary-gbp

bigfreddiel

KP24 wrote: »

Hi all,

Just started viewing this forum and was hoping some of the experts might help critique my portfolio and suggest some changes:

1) Diageo - Bought 50 shares at around £19, current price around £18.50
2) Fundsmith - Bought 500 shares at £2 each, current price £2.30
3) HSBC Tracker - 375 bought at £4 each, current price £4.50
4) Morrisons - 435 bought at £2.60, current price £1.48
5) Royal Mail - 243 bought at £3.30, current price £4.44
6) Tesco - 250 bought at £1.98, current price £1.49

What this gives me is a current performance of -1%

I also have a Halifax Stocks and Shares ISA which i have around £30k invested in (cautious managed fund i think). I haven't added or removed anything from this for years though so any advice on this would also be appreciated.

Thanks in advance!

Firstly, why? What are you investing for, income, growth, both, retirement, house purchase, school fees, time span?

Do you know something about the shares over and above anyone else which is why you bought them?

Answer those two questions and you will find an answer..

You can do two things, buy a Lifestrategy fund, or two or three Investment Trusts.

Or you can deal in shares with your superior knowledge with a spread betting account. Because that's what your purchased shares look like.

Hope that helps

fj

Linton

Why are you messing about with apprently random investments in shares plus one highly focussed fund when you have the serious investment in your Halifax S&S ISA? The sensible thing to do in my view is to look again at your possibly cautious managed fund to ensure it is well diversified, meets your capacity for risk, and is appropriate for your timescales. Then buy more using the cash gained by selling your other investments.

KP24

Hi all,

Thanks for the replies.

I agree, my stock picks are a bit random. And they range from personal 'likes' of the brand (i.e. Diageo and Morrisons) to advice from others (e.g. buy tesco shares when they were at an almost all time low. And buy Royal Mail as they were very underpriced when initially offered).

The tracker fund was due to some research i did a while ago which found more often than not, trackers outperform managed funds.

And again, the fundsmith one was due to something i read, did a bit more investigation and it looked like historically it had performed well and i recognised the companies being invested in and they were international.

I stopped making payments on my Halifax ISA because it didn't seem to be performing as well as previously and i figured there might be better funds out there as Halifax aren't really known for their stock market prowess.

To answer some of the earlier questions, the reason i am investing is for school fees which will be hitting me in around 3 years time and a potential house purchase which might be made in around 8-10 years.

Does that provide enough information?

Thanks.

Bazofts_Revenge

Not surprised by the answers so far. What we don't know is-
How old is the OP?
Where this money came from excess wages, inheritance?
Is the OP planning on adding to this small selection? (if so what is currently a random selection 'could' become a more balanced investment portfolio). £1k a month in different investments will soon change it.
Has the OP a pension scheme or two up and running?
OP could be just wanting a bit of fun but sees this as more fun than betting on Horses and Football Scores. Hopefully he will come back and let us know.