An obvious cautionary tale.

letspretendforaminute

The nearly six year return on two SIPP pension funds is £49k to £140k and £8.5k to £20k respectively, not bad and all made possible by the freedoms within a SIPP. A few months back the largest portfolio was touching £170k and the smaller one bubbling along at £30k+ To get these gains I’ve for want of a better word gambled on the AIM and came unstuck this week when a copper miner i’d invested in failed to deliver on promises made (water ingress that hadn’t been properly addressed, more to to with the mines feasibility itself). While I had invested long before one internet tipster built a sizeable stake his confidence led me to hold as they climbed to a paper profit of £40k my gut was telling me to exit at 3p but didn’t and realised 0.214p

Well I’m going to steer well clear of AIM and look forward to the £2.5k (eSure loaded up at 212p selling down to 7,500 ex div at 228p) of dividends already in the pipeline from my refreshed portfolio.

This is how my portfolio looks now...
26000 Sainsbury's
2500 GSK
1250 SSE
7500 Esure
1250 Britvic
5000 Lloyd’s
325 Merlin

While the Sainsbury’s shares are a substantial allocation my weight purchase price is only £1.75 a share as I bought and sold when they were 2.25-2.55 range bound. I’ll soak up any volatility from here on by matching dividends with my own income and hope to grow this fund by 7% (yield plus 3.5%) for the next 18 years.

A mine is a whole in the ground with a liar on top.

letspretendforaminute

Should read hole in the ground.

Simple_Man

letspretendforaminute wrote: »

The nearly six year return on two SIPP pension funds is £49k to £140k and £8.5k to £20k respectively, not bad and all made possible by the freedoms within a SIPP. A few months back the largest portfolio was touching £170k and the smaller one bubbling along at £30k+ To get these gains I’ve for want of a better word gambled on the AIM and came unstuck this week when a copper miner i’d invested in failed to deliver on promises made (water ingress that hadn’t been properly addressed, more to to with the mines feasibility itself). While I had invested long before one internet tipster built a sizeable stake his confidence led me to hold as they climbed to a paper profit of £40k my gut was telling me to exit at 3p but didn’t and realised 0.214p

Well I’m going to steer well clear of AIM and look forward to the £2.5k (eSure loaded up at 212p selling down to 7,500 ex div at 228p) of dividends already in the pipeline from my refreshed portfolio.

This is how my portfolio looks now...
26000 Sainsbury's
<snip>

A nice topical investment!

Asghar

Sainsbury's are in talks to buy Asda from the massive Walmart.

letspretendforaminute

Depending on how the market responds it!!!8217;ll either be £2 a share or £3 on Monday, not entirely convinced about the deal but the competition from the likes of Aldi and Lidl should allay fears from the competitions and mergers authority. It!!!8217;d be mighty unfair not to rubber stamp the deal after the Tesco/Booker tie-up.

Prism

Do you have your whole SIPP in individual shares or is this a proportion of it and the rest is in funds? Although I can in my SIPP I have never strayed outside of funds as I have never felt confident I know anywhere near enough about company finances to risk it. I have a friend who improves his dividends by selling options, but this isn't held in a SIPP. I'm not sure thats possible in a SIPP

Officer_Dibble

I'm not sure that a SIPP with individual shares forming a large proportion (especially shares like Weatherly International, but even main market) is a recipe for a relaxing and secure retirement. I've done very nicely out of them in my ISAs (stars like ZOO digital outweighing the WTI type duds) but that's icing on the cake money, not something I'm relying on for care home fees or whatever.

It depends how much you need the money, but at least if you leave SIPP funds to the professionals, you've got someone else to blame!

AnotherJoe

Ouch re the mine.. re the rest of your portfolio, stating the values rather than how many shares would be more useful.

Also, the cost you paid doesn't matter in terms of whether you should keep or not. And aside that I don't understand how your average cost of Sainsbury is £1.75 if you bought them when they were in the range of £2.25-£2.55 ?

letspretendforaminute

AnotherJoe wrote: »

Ouch re the mine.. re the rest of your portfolio, stating the values rather than how many shares would be more useful.

Also, the cost you paid doesn't matter in terms of whether you should keep or not. And aside that I don't understand how your average cost of Sainsbury is £1.75 if you bought them when they were in the range of £2.25-£2.55 ?

The value of the SIPP is less important to me than the income element and for me shares held rather than overall value provides more clarity, i.e. 2,500 GSK x 80p provides £2k per annum income, sainsburys £2k,. ad infinitum. With regards to Sainsbury's i’ve traded the whole position numerous times, buying low, selling high. Occasionally being the wrong side of the trade but more often gaining 5p, 10p or 15p along the way, recycling the gain. I started with 15,000 shares and ended up with 26,000 this way, so effectively 11,000 free shares, taking into account Sainsbury’s dividend income as well they’d need to drop below 155p for me to see a loss.

The SIPP is entirely invested in individual shares while our £108k funds account is more conservatively invested in vanguard trackers, income funds etcetera £40k in a Stocks and Shares ISA, currently only 2/5ths invested as this is a new position. £50k in a NS&I bond yielding a smidgen over 2% and finally £15k invested in Ratesetter last year that has a 5 year maturity value of £20k all being well.

AnotherJoe

letspretendforaminute wrote: »

The value of the SIPP is less important to me than the income element and for me shares held rather than overall value provides more clarity, i.e. 2,500 GSK x 80p provides £2k per annum income, sainsburys £2k,. ad infinitum.

.

I understand that but for someone else reading it, and you published it for people to read it, no one other than you knows that "2,500 GSK x 80p provides £2k per annum income, sainsburys £2k," because they dont know the value, offhand, of those shares nor the dividend without having to go and look it up. Indeed thinking about it what would be more useful would be the %.Eg
35% Sainsbury's
10% GSK
8% SSE

and so on.

Your numbers as you published them for others to read dont mean anything without them having to do some work. I dont know for example if your 325 Merlin makes up 1% or 99% of your portfolio.

letspretendforaminute

I sold 16,000 shares in SBRY this morning as I believe they!!!8217;ve overpaid for ASDA by a county mile. I have £50k to split across three companies for dividend income and would welcome ideas. I!!!8217;ll add legal and general on a pull back so two more to pick.