Rate my SIPP - ITV high conviction

FIREDreamer

Juno_Moneta said:

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…!

Can you show the column that gives the book value of your holdings?

OldScientist

According to https://finance.yahoo.com/quote/ITV.L/ the 5 year performance of ITV has been -26%, while the 5 year performance of the FTSE100 has been +17% (these figures "may include dividends or other distributions"). In the same 5 year period HSBC FTSE all-world has grown by about 75%. The price return on ITV has been rather unfortunate over the last 25 years falling from 450 in 2000 to 75 today (although anyone buying at the lowest price of 25 in 2009 would have seen their investment triple).

However, the point of diversification is not so much about performance as it is about reducing uncompensated risk and downside risk since company failure can result in a value of zero. While the SP500 or FTSE all-world indices may, or may not, be overvalued, it would be an unusual set of circumstances that saw apple, microsoft, facebook, amazon, tesla, etc. all fail simultaneously.

Hoenir

OldScientist said:

While the SP500 or FTSE all-world indices may, or may not, be overvalued, it would be an unusual set of circumstances that saw apple, microsoft, facebook, amazon, tesla, etc. all fail simultaneously.

Broadly money has been flowing out of these stocks and into financials more recently. 

pterri

Not sure what the point of the post was really (and I’m guilty of posting stuff with no obvious point if I’m honest) 

Can you make a packet by putting all your £££ on a single investment? Of course. Is that a sensible position if it’s funding your retirement for 99% of people? No, it really isn’t and any financial advisor who suggested that would be insane. 

Juno_Moneta

Hoenir said:

Juno_Moneta said:

There are probably many other investors with unconventional SIPPs, but rarely any sharing the details. 

For some entirely unknown reason those Forum Members tend to disappear never to be seen again. Never provide long term updates on how their ideas pan out. 

I promise to provide updates every few months!

Juno_Moneta

FIREDreamer said:

Juno_Moneta said:

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…!

Can you show the column that gives the book value of your holdings?

I think you mean the Cost column?

Unfortunately this is not worth sharing as it would be misleading - as I have bought and sold a number of tranches. It’s a known HL issue discussed here:

https://forums.moneysavingexpert.com/discussion/6459952/beware-hargreaves-lansdown-customers-incorrect-valuation-of-stocks

FIREDreamer

Juno_Moneta said:

FIREDreamer said:

Juno_Moneta said:

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…!

Can you show the column that gives the book value of your holdings?

I think you mean the Cost column?

Unfortunately this is not worth sharing as it would be misleading - as I have bought and sold a number of tranches. It’s a known HL issue discussed here:

https://forums.moneysavingexpert.com/discussion/6459952/beware-hargreaves-lansdown-customers-incorrect-valuation-of-stocks

Ah, didn’t know that. I only sell holdings in their entirety.

Juno_Moneta

Yea selling entire holdings makes the numbers easier. I just use Excel to track mine and ignore HL. 

One of my investment approaches is to sometimes sell a tranche at (what I personally consider to be) a short term peak hoping to reinvest on further weakness / pullback. 

Sometimes this is just a hunch based on eg annual reporting periods or sometimes just bluntly the RSI. 

It’s been a successful tactic so far - helping me to grow my holding size. 

However I am fully aware many
would call this over-trading and might perhaps keep the gasps of horror coming if I detailed my turnover in this stock over the last year and a half!

Appreciate long term buy and hold with no churn is better for most people, and that’s fine. 

Hoenir

Juno_Moneta said:

FIREDreamer said:

Juno_Moneta said:

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…!

Can you show the column that gives the book value of your holdings?

I think you mean the Cost column?

Unfortunately this is not worth sharing as it would be misleading - as I have bought and sold a number of tranches. It’s a known HL issue discussed here:

If all your holding is on the same platform. Then the base cost price is correct. Unless there's been corporate actions. 

Bostonerimus1

OldScientist said:

According to https://finance.yahoo.com/quote/ITV.L/ the 5 year performance of ITV has been -26%, while the 5 year performance of the FTSE100 has been +17% (these figures "may include dividends or other distributions"). In the same 5 year period HSBC FTSE all-world has grown by about 75%. The price return on ITV has been rather unfortunate over the last 25 years falling from 450 in 2000 to 75 today (although anyone buying at the lowest price of 25 in 2009 would have seen their investment triple).

However, the point of diversification is not so much about performance as it is about reducing uncompensated risk and downside risk since company failure can result in a value of zero. While the SP500 or FTSE all-world indices may, or may not, be overvalued, it would be an unusual set of circumstances that saw apple, microsoft, facebook, amazon, tesla, etc. all fail simultaneously.

ITV looks like a dog over recent years, but the ROI on it is going to depend on the buy and sell dates which gets complicated. If the OP has a buy and hold strategy it will be easy to see the gains...or losses...but the real issue is the future performance and as the OP claims this is their SIPP I'd give it 0% for common sense. I get agitated when I see portfolios with too many funds, but just ITV shares is criminal even if trading is in the plan which I also think is dumb. But OP's posting style smells of troll to me, which is what I hope they are because the alternative is quite scary and sad.