Rate my SIPP - ITV high conviction

Bravepants

I suppose it's akin to anyone relying on running their own business for an income. Only in this case you are a silent partner, with voting rights. 

Roger175

k6chris said:

In honour of this thread I am going to buy 100 ITV shares on Monday.  #YOLO

Well, I have just bought 2444 ITV shares at 81.75p. I've been following this thread and it piqued my interest in ITV. As someone who holds a reasonable size portfolio of high yield shares, ITV sits comfortably within this, with the dividend being non too shabby at 6.1%.

These will be a long term buy and hold, so I'm happy to have some skin in the game and will follow with interest.

QrizB

If people keep buying shares for the fun of it, ITV is going to be the next GameStop

Maybe that was OPs plan all along?

Roger175

QrizB said:

If people keep buying shares for the fun of it, ITV is going to be the next GameStop

Maybe that was OPs plan all along?

Not for fun on my part. I have a high-yield portfolio of around £220k in individual shares, all bought for the income. ITV will sit very comfortably with it's current yield.

TheTelltaleChart

Juno_Moneta said:

Well I’d have to be brave and watch Channel 4 a lot more I guess. 

lol but seriously ... what is the bigger picture here?

In post 1, you mentioned a target of £50k drawdown income from this SIPP, probably after switching from ITV to other investment(s). If ITV goes bust, there will be nothing to switch to other investments. So where would that leave you?

E.g.

1) you were hoping for a total retirement income of £62k, viz. £50k from this SIPP + £12k from State Pension. So you'd be down to £12k income. In which case, you might well be staying at home all the time and watching a lot more TV.

or

2) you are also on track for £50k from various DB pensions, and also have a £1m S&S ISA which is sensibly diversified, so you'd be close to £100k income even without the SIPP. Perhaps you'd have to have to make your 3rd or 4th holiday each year a bit less luxurious without the SIPP.

or something else …?

What you're doing makes no sense at all, but the bigger picture makes a difference to just how bad an idea it is. Because the consequences for you could range from extremely bad to minor irritation.

Juno_Moneta

You’re absolutely right - a bigger picture would of course provide more context. 

However that would require detailing all my assets, liabilities, plans, age, family details, etc etc.

I think you hope for too much. This thread is “Rate my SIPP”, not “Rate my life”.

Thanks for your concerns and I promise to keep providing updates on just my SIPP.

DT2001

Context is important. I took redundancy from Barclays in the mid nineties and by the start of 2000 my shares were worth £80k, my flat £60k and I had £80k in a business breaking even for the first time. First child under a year. Sold the whole lot over 3 tax years utilising OHs CGT allowance as well. They kept climbing for a while and then ….
Now I have a global ETF

Good luck as it appears a very bold move

TheTelltaleChart

Juno_Moneta said:

You’re absolutely right - a bigger picture would of course provide more context. 

However that would require detailing all my assets, liabilities, plans, age, family details, etc etc.

I think you hope for too much. This thread is “Rate my SIPP”, not “Rate my life”.

Thanks for your concerns and I promise to keep providing updates on just my SIPP.

Of course it's entirely up to you how much infomation you want to provide.

Sticking to the topic, my rating is 0/10.

By holding just one individual share, you are taking on uncompensated risk. Expected return is no higher than (e.g.) a global equities tracker. Risk (of large or total loss) is much higher.

kempiejon

I'm not sure I'm in agreement with the idea that holding just one share the expected return is no higher than (e.g.) a global equities tracker. Presumably this a researched position, I've looked at the proprosition of ITV and the valuations seen in a certain light looks attractive. I've no idea what @Juno_Moneta sees as potential upside (i've not checked back) finger in the air >50% say? There's downside protection as the valuations of the studio could be mispriced. Going into what I'd called a value trade it's worth having an exit strategy and know when to fold as the song says. Meantime if the fundamenals look good collect the dividends waiting for the value to unfold or circumstances change. I tried value, worked hard with the accounts, assets and valuations, it's risky but buying shares is, can be stressful but either luck or dilgence makes some people reckon they make money some of the time.

Obviously a single share portoflio has a non-zero probability of total loss, a global tracker I'd say vanishingly small.

TheTelltaleChart

kempiejon said:

I'm not sure I'm in agreement with the idea that holding just one share the expected return is no higher than (e.g.) a global equities tracker.

I'm using "expected return" in the mathematical sense, where it means the sum of each possible return multiplied by the probability of that return.

For an individual share, those possible returns cover a wider range, i.e. more chance of huge gains and more chance of huge losses.