Rate my SIPP - ITV high conviction

Juno_Moneta

A note about diversification: 

I know it’s important. I’ve done it all my life. Had plenty of bits and pieces of ETFs like VWRL. But sometimes you have to just go for it. That’s what high conviction means to me. 

“Diversification may preserve wealth, but concentration builds wealth.

- Warren Buffett 

A note about dividends: 

No dividends are guaranteed- that’s clear. 

ITV currently pays 5p a year. 

That means I receive £52,566 py. 

Enough to retire on one day if it continues…!
(EDIT: Due to later posts - I should clarify I don’t actually expect to own just this ITV position for the rest of my life! I simply mean that around £50k is an eventual natural income level in drawdown that I am striving for - yes my current holdings happen to already pay more than this right now(!) - but my future SIPPs income may be more or less than this, depending on the yield of whatever investments I hold once in drawdown, I can’t predict that. For me ITV is a pre-drawdown growth opportunity). 

penners324

All your pension in ITV?

Why? The value of the company isn't going to go up much.

Juno_Moneta

Define ‘much’. 

It went up almost 5% today! 

Also I should add - most of my purchases were around 60p taking advantage of weakness. So I’m already up about 30% or about £188k. This gives me a comfort buffer - I’ve held firm through many dips. 

I consider that a successful investment so far. And have been quietly collecting dividends for a short while…

Obviously I’m hoping for a full takeover or partial sale/merger of the ITV Studios division. Definitely heating up in the press since Nov last year…

My target is a £1m+ SIPP (that comes at about 96p) and / or enough dividends to live on. That’s mainly why. 

Will continue to update on divs and any corporate actions

pterri

This is making my palms sweat

pterri

Imagine if your entire pension was in BlackBerry shares…. Amazing, until it wasn’t 

dunstonh

I remember all the bank staff with their SAYE and profit sharing.  Some of the millionaires who held the lot in a single share.   Decades of great performance until the credit crunch.

Single company holding is just silly.

Aretnap

Juno_Moneta said:

concentration builds wealth.

So does putting it all on red.

Sometimes, at least.

Juno_Moneta

Loving the comments. ))

QrizB

pterri said:

Imagine if your entire pension was in BlackBerry shares…. Amazing, until it wasn’t 

There were lots of world-leading companies that aren't any more.

I'm not sure ITV ever was one, though.

Sarahspangles

There was someone on the Motley Fool site who had all their investments in, I think Lloyds TSB, in 2008. It was life-changing….

FIREDreamer

Absolutely 100% bonkers.

No offence, you are very brave. You are like jimsusan of TMF fame who held a large value of Lloyds shares, until he didn’t!!!