Rate my SIPP - ITV high conviction

Linton

Surely with just holding one share the key      issue is not expected return but rather single point of failure. The chance of one company going bust or being taken over for significantly less than its current value cannot be  ignored. Holding a broad global set of funds will only fail if the world as we know it collapses, a situation  that  could render loss of savings one of your lesser concerns.

if you are investing with an amount of money whose loss  would really matter then just choosing one company is madness. On the other hand if you are chasing high returns why little regard for the consequences of a loss why not buy lottery tickets?

cfw1994

Linton said:

Surely with just holding one share the key      issue is not expected return but rather single point of failure. The chance of one company going bust or being taken over for significantly less than its current value cannot be  ignored. Holding a broad global set of funds will only fail if the world as we know it collapses, a situation  that  could render loss of savings one of your lesser concerns.

if you are investing with an amount of money whose loss  would really matter then just choosing one company is madness. On the other hand if you are chasing high returns why little regard for the consequences of a loss why not buy lottery tickets?

But Juno made it appear just now that the risk of that doesn’t matter to them!
Unwilling to share a bigger picture, which of course is their choice, but makes the thread rather less useful or interesting 🤷‍♂️

More interesting would be if anyone else has a single share as their MAIN constituent in their DC pot.

MeteredOut

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.

But without context of your overall financial position, how can you expect anyone to seriously rate your SIPP. If its 1% over your net worth, its fun. If its 90%, its crazy.

It looks to me this is more of a humble-brag post rather that you really expecting anyone to provide any useful feedback on your SIPP.

Juno_Moneta

MeteredOut said:

It looks to me this is more of a humble-brag post rather that you really expecting anyone to provide any useful feedback on your SIPP.

Not entirely sure I agree, there have been about 200 replies now and I've found many of them interesting and thought provoking so on balance it was worth making the post to benefit from those.

Cobbler_tone

MeteredOut said:

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.

It looks to me this is more of a humble-brag post rather that you really expecting anyone to provide any useful feedback on your SIPP.

Well they’ve got 21 pages out of it.
Common sense says there are a 1,000,001 other single share holdings that would be more stable and almost guaranteed more profitable (even buy gold) but the OP clearly loves the telly.

Juno_Moneta

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. 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.

Hi Kempiejon, thanks for your views. I think your post has summarized a lot of my thinking much more clearly than perhaps i have!

Yes it is a very researched position, and this is definitely one area where a single share portfolio has an edge.
If I held 20 shares, I would be pretty stretched to have the knowledge and insight about them all that I think I have on ITV.
And obviously if i held trackers with many more the task is impossible, you just follow the herds view on the tracker eg "VWRL is a core holding, blah".

Yes this is a valuation play. Without boring everyone about ITV specifics - I agree there is an element of downside protection from assets like ITV Studios, and yes I am collecting (and reinvesting) over £55k of dividends (not guaranteed, but consistent for last 3 years) - which is compounding my position perfectly.

There is risk in all things we do in life and I am comfortable with what I'm doing here, and feedback good or bad remains insightful and thought provoking, thanks all.

cfw1994

Juno_Moneta said:

MeteredOut said:

It looks to me this is more of a humble-brag post rather that you really expecting anyone to provide any useful feedback on your SIPP.

Not entirely sure I agree, there have been about 200 replies now and I've found many of them interesting and thought provoking so on balance it was worth making the post to benefit from those.

A lot of replies doesn’t stop this from being a humble-brag post, but fair play to you for stimulating the conversation 👍

Juno_Moneta

That's fine you're entitled to your opinion.

What I am hoping to be able to share with this post in future is some insight into what happens if there is some kind of corporate action here - something that perhaps not everyone has experienced in their investing lives, and how I navigate my way forward from a portfolio focused on one core holding.

Honestly - at the moment it's a very boring SIPP with very little to report other than things like my 6 monthly dividend reinvestment events changing the holding size, but I hope to provide more interesting updates one day!

Hoenir

TheTelltaleChart said:

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.

Just takes that one unexpected event to tank an individual share.  Deepwater Horizon immediately springs to my mind.  Permanently damaged BP.  Over the years there's been Polly Peck, Maxwell Publishing, Enron, Wirecard, RBS,  Northern Rock , Paterissie Valerie to name a few. All highly regarded. Yet totally mismanaged in their own right.  With the financial information presented not to be found worth the paper it was printed on. 

Juno_Moneta

Wow - how did you find out all my other investments?