Portfolio construction

ChilliBob

Eyeful said:

Its not rocket science, though a lot of vested interests would like to make you think it is.

It doesn't have to be complicated, correct, but it can be. It depends on what you want to achieve, how much you are willing to invest into the process, and, what kind of person you are. I'm my view the latter can be one of the most complex bits! 

ChilliBob

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

Bobziz

ChilliBob said:

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

DM home bias, wouldn't have expected anything else. Why are you overweight ?

ChilliBob

Bobziz said:

ChilliBob said:

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

DM home bias, wouldn't have expected anything else. Why are you overweight ?

Lockdown hasn't been kind? He he I jest,

Because I see it as a good opportunity, and thus far its been my best return... Marlborough micro cap. It may not continue, but I'll jump out of it if I think it's going bad.

Most of my investments are seen as buy and hold, but this UK portion may see some trimming back over time. 

I'm about 10-15% I think

Thrugelmir

Bobziz said:

ChilliBob said:

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

DM home bias, wouldn't have expected anything else. Why are you overweight ?

Because there was money to be made perhaps. Would you decline 50%+ returns in the past 6 to 9 months?  Though the boat may sailed until the future becomes less clouded. 

Some of the mantra's written recently about the UK economy show how little some "investors" actually know. Soundbites without substance. 

Bobziz

Thrugelmir said:

Bobziz said:

ChilliBob said:

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

DM home bias, wouldn't have expected anything else. Why are you overweight ?

Because there was money to be made perhaps. Would you decline 50%+ returns in the past 6 to 9 months?  Though the boat may sailed until the future becomes less clouded. 

Some of the mantra's written recently about the UK economy show how little some "investors" actually know. Soundbites without substance. 

I wouldn't and I didn't. Like the OP I hold Marlborough micro cap. As always, I'm interested in the ' because the UK is good value at the moment' thinking and what's behind it ? E.g. is it extensive research into the fundamentals of the invesment environment or following the crowd or as a result of the political climate or something else entirely. As you say, what's the substance ?

I could ask the same questions about other geographies and I only single out the UK because that's my home country. 

ChilliBob

Don't get me wrong, I'm not rushing to buy a ftse 100 tracker.. I'm carefully watching the price of Herald for example and just missed out on 2250 a few times last week, which seems an okay price.

Thrugelmir

Bobziz said:

Thrugelmir said:

Bobziz said:

ChilliBob said:

As always, Google is stalking mehttps://www.thisismoney.co.uk/money/isainvesting/article-9513309/How-allocate-assets-Isa-investment-portfolio.html

Quite interesting, especially the UK allocation! I'm overweight UK at the moment, in small caps, but 25 odd percent, seems quite high! 

DM home bias, wouldn't have expected anything else. Why are you overweight ?

Because there was money to be made perhaps. Would you decline 50%+ returns in the past 6 to 9 months?  Though the boat may sailed until the future becomes less clouded. 

Some of the mantra's written recently about the UK economy show how little some "investors" actually know. Soundbites without substance. 

I wouldn't and I didn't. Like the OP I hold Marlborough micro cap. As always, I'm interested in the ' because the UK is good value at the moment' thinking and what's behind it ? E.g. is it extensive research into the fundamentals of the invesment environment or following the crowd or as a result of the political climate or something else entirely. As you say, what's the substance ?

I could ask the same questions about other geographies and I only single out the UK because that's my home country. 

Bottom line is the price that you pay to acquire potential future growth (profits).  Micro companies for example, are too small in terms of market capitalisation to be of interest to large funds and institutional investors in terms of direct investment. Often they use the specialist boutique funds and investment trusts to obtain their overall exposure.  As a consequence direct investment in the companies themselves is reduced. Resulting in share prices languishing until something or someone triggers a price correction. There's little investment analyst coverage of micro caps. Meaning that those that have the time and resource can identify an opportunity to exploit. Might take months or even years for others to agree. As one investment manager on a presentation I listened to recently said. "We like to park our tanks on the lawn then wait for others to join us".  An anomaly that arose last year. 










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IvanOpinion

ChilliBob said:

Don't get me wrong, I'm not rushing to buy a ftse 100 tracker.. I'm carefully watching the price of Herald for example and just missed out on 2250 a few times last week, which seems an okay price.

I can't remember where I read it but I remember once reading that one of the most detrimental things to investor returns is too much pontification and over analysing.

ChilliBob

IvanOpinion said:

ChilliBob said:

Don't get me wrong, I'm not rushing to buy a ftse 100 tracker.. I'm carefully watching the price of Herald for example and just missed out on 2250 a few times last week, which seems an okay price.

I can't remember where I read it but I remember once reading that one of the most detrimental things to investor returns is too much pontification and over analysing.

Yeah, I think that can be a problem sometimes, and I can be guilty of that from time to time, but I could go a whole deal deeper!