Reviewing the problem shares in my portfolio

[bluedonkey]

My portfolio has some shares in it that have been under review for years but I have done nothing about. Benign neglect was the intention but it has perhaps been more like malign neglect.

The broad strategy over several years has been to move towards collectives. Yield is not a great issue for me any more, though it has driven my purchases in the past.

Here are the problem shares.

LITTLE DOGS
Lloyds, Currys, International Personal Finance, and International Distribution Sservices.

“Little Dogs” because they have performed poorly and in fact, so poorly, that they amount to a very small part of the portfolio value. Portfolio value 0.5% in total (not per share) for these shares.

My inclination is always LTBH. The value is so small that it is irrelevant to portfolio performance in future. One advantage of getting rid would be to tidy up the portfolio somewhat for anyone taking over the portfolio from me.

ABRDN
About 0.5% of the portfolio value.

VODAFONE
About 1.3% of the portfolio value.

HFEL
About 2.3% of the portfolio value. The regular falls in the share price are striking. I’m tempted to wait on this one on the basis that the shares and markets it invests in are bound to come back into favour eventually. Aren’t they?

BAT and IMB
These are more sizeable holdings, combined they amount to about 5% of portfolio value. My approach to high yield shares has been to wait for a temporary improvement in the price and then sell, and then move the funds into collectives. I did this with Pearson and HSBC for example. BATS appears to be near a low at present, IMB might be on a short term uptrend.

[Arborbridge]

My portfolio has some shares in it that have been under review for years but I have done nothing about. Benign neglect was the intention but it has perhaps been more like malign neglect.

The broad strategy over several years has been to move towards collectives. Yield is not a great issue for me any more, though it has driven my purchases in the past.

Here are the problem shares.

LITTLE DOGS
Lloyds, Currys, International Personal Finance, and International Distribution Sservices.

“Little Dogs” because they have performed poorly and in fact, so poorly, that they amount to a very small part of the portfolio value. Portfolio value 0.5% in total (not per share) for these shares.

My inclination is always LTBH. The value is so small that it is irrelevant to portfolio performance in future. One advantage of getting rid would be to tidy up the portfolio somewhat for anyone taking over the portfolio from me.

ABRDN
About 0.5% of the portfolio value.

VODAFONE
About 1.3% of the portfolio value.

HFEL
About 2.3% of the portfolio value. The regular falls in the share price are striking. I’m tempted to wait on this one on the basis that the shares and markets it invests in are bound to come back into favour eventually. Aren’t they?

BAT and IMB
These are more sizeable holdings, combined they amount to about 5% of portfolio value. My approach to high yield shares has been to wait for a temporary improvement in the price and then sell, and then move the funds into collectives. I did this with Pearson and HSBC for example. BATS appears to be near a low at present, IMB might be on a short term uptrend.

It can be a real problem, vaccillating between clearing out and sitting tight. I've also been looking at one or two laggards today, as it's Halifax cheap dealing day - and that includes HFEL. I was sorely tempted to reduce my holding, but haven't. I am not convinced about selling because I have a horrid feeling that the timing could be awful. Maybe hanging on is the thing to do in this case especially as the discount to NAV is worse than for some time. Although against that argument is that the nature of the increase in discount is more insidious looking than previously, when it has been a question of sudden spikes. This episode look more serious.

But aren't always told never to sell in a dip?
There's nothing much else in my Halifax account I feel needs attention.

As for my Lloyds dog, well it is paying a well covered dividend, so it may as well stay for the moment.

Arb.

[Tedx]

Well in the coming days of diminshing CGT allowances, dog shores might turn out to be more useful and the decsion to sell slightly easier.

[kempiejon]

I occasionally have a similar ponder. I guess it'll tell us something about personality. All of my tidying has been tax driven, selling unsheltered holdings. In sheltered holdings I have a handful of runts, I hold IPF and Lloyds. I'm not doing anything. Those two, for example, are showing double digit income increases this year and last. I have at least one where the holding is only a few percent of the costs, no dividend. I could tell the tale that those idiot picks remind me not to try and be clever, cept they probably don't.
I thought BATs and HSBC had been accumulating in share price post Covid, but I see BATS looks a bargain at these prices..

One advantage of getting rid would be to tidy up the portfolio somewhat for anyone taking over the portfolio from me.

Currently I'm too inconsiderate for that plan, also not expecting to die this decade. Will you also be leaving maintenance instructions or performing more drastic portfolio management as time beckons reaper? My flippant advice to the SO is to sell the lot, swap for a distributing world tracker and spend the natural yield, selling some more when you fancy having stuff.

When I change mind set stop accumulating and start to extract from my ISAs and SIPPs would be a good time to let the runts go. In the meantime I don't care if I hold a handful of unproductive pointless trivial capital sinks. Perhaps if the amounts were greater? I think today is cheap selling day on Halifax, have I just missed a chance to unload?

[kempiejon]

. I've also been looking at one or two laggards today, as it's Halifax cheap dealing day - and that includes HFEL. I was sorely tempted to reduce my holding, but haven't. I am not convinced about selling because I have a horrid feeling that the timing could be awful.

I forget which fool it was that put me onto the suggestion of looking at a holding value, fee saving and cost of a limit order. I think Halifax charge an extra £2 and the limit order stays in for 90 days, Previous years I have applied it for tax tidying looking at recent price trends and picking a comparative high. It uses price as the trigger for selling rather than a discount to selling fees.
Vanquish banking was in the frame, down 95% since my 2016/8 buys, 12/2023 annual dividend to be cut from 15.3p to 6p, price looks like an all time low I could sell to release a few hundred quid, but that's not going to amount to a whole hill of beans to my worth and would incur a fee.

[Arborbridge]

One dog share I divested Mrs Arb of today was Ashmore. I've done that stupid thing of realising a big loss on what I thought would be a sensbiel investment a decade or more ago.

Still, it's gone, and the proceeds will probably go into an IT or world tracket EFT.

I am definitely getting to the age when I feel the inclination to let other people (ie managers of ITs) have the hassle.

Also gone today Blackrock world mining and Henderson European. The latter was for the purpose of getting it in to her ISA. I might well buy HEFT is place of HNE. Basically swapping like for like.


Arb.

[88V8]

Well in the coming days of diminshing CGT allowances, dog shores might turn out to be more useful and the decsion to sell slightly easier.

I think with the regrettably likely change in govt, some uncrystallised losses could indeed be jolly useful.

So I tell myself, looking at VOD, Atlantis, Centrica, Sancus, HFEL, NRR, etc etc.

I only sell dogs to crystallise a loss, after all if they're trivial they're trivial. Unfortunately some of them were originally... whatever the opposite is.

Also gone today Blackrock world mining and Henderson European. The latter was for the purpose of getting it in to her ISA.

That's been the kiss of death. I originally sold NRR - at a nice profit - to move it into OH's ISA. Then phutt...
Likewise VOD.
And Admiral.
And Aberdeen.
And IMPs.

I don't do that any more

V8

[JohnW]

Yield is not a great issue for me any more

‘ Yield is a return measure for an investment over a set period of time, expressed as a percentage.
Yield includes price increases as well as any dividends paid, calculated as the net realized return divided by the principal amount (i.e. amount invested).’ https://www.investopedia.com/terms/y/yield.asp
What are the investment issues that have replaced yield?

[AJC5001]

Yield is not a great issue for me any more

‘ Yield is a return measure for an investment over a set period of time, expressed as a percentage.
Yield includes price increases as well as any dividends paid, calculated as the net realized return divided by the principal amount (i.e. amount invested).’ https://www.investopedia.com/terms/y/yield.asp
What are the investment issues that have replaced yield?

Well, that may be one definition of Yield, but Investopedia also has another one, https://www.investopedia.com/ask/answers/difference-between-yield-and-return/
"Yield
Yield is the income returned on an investment, such as the interest received from holding a security. The yield is usually expressed as an annual percentage rate based on the investment's cost, current market value, or face value. Yield may be considered known or anticipated depending on the security in question, as certain securities may experience fluctuations in value."

I believe this definition is the one bluedonkey is using, as I suspect go most posters on TLF

Adrian

[bluedonkey]

Yield is not a great issue for me any more

‘ Yield is a return measure for an investment over a set period of time, expressed as a percentage.
Yield includes price increases as well as any dividends paid, calculated as the net realized return divided by the principal amount (i.e. amount invested).’ https://www.investopedia.com/terms/y/yield.asp
What are the investment issues that have replaced yield?

To elaborate, what I meant was that a yield at or above the market average was what I looked for, but no more.

[kempiejon]

To elaborate, what I meant was that a yield at or above the market average was what I looked for, but no more.

A dividend yield I guess? By market average do you mean the FTSE100?
So what do you look for now? Some other factors of shares like momentum or growth?
There's a lot of ways to sort shares for investment, how do we compare them and which ones we like best?

As I said up thread I have a handful of stinkers but I'm not that bothered to do anything with them.
As for what I look for with new money - in my SIPP global collectives to match a market average is good enough.
I have a HYP in an ISA, no new money but currently the income from dividends or capital from takeovers or other corporate activity is usually recycled into those already in the portfolio.

[Dod101]

My portfolio has some shares in it that have been under review for years but I have done nothing about. Benign neglect was the intention but it has perhaps been more like malign neglect.

The broad strategy over several years has been to move towards collectives. Yield is not a great issue for me any more, though it has driven my purchases in the past.

Here are the problem shares.

LITTLE DOGS
Lloyds, Currys, International Personal Finance, and International Distribution Sservices.

“Little Dogs” because they have performed poorly and in fact, so poorly, that they amount to a very small part of the portfolio value. Portfolio value 0.5% in total (not per share) for these shares.

My inclination is always LTBH. The value is so small that it is irrelevant to portfolio performance in future. One advantage of getting rid would be to tidy up the portfolio somewhat for anyone taking over the portfolio from me.

ABRDN
About 0.5% of the portfolio value.

VODAFONE
About 1.3% of the portfolio value.

HFEL
About 2.3% of the portfolio value. The regular falls in the share price are striking. I’m tempted to wait on this one on the basis that the shares and markets it invests in are bound to come back into favour eventually. Aren’t they?

BAT and IMB
These are more sizeable holdings, combined they amount to about 5% of portfolio value. My approach to high yield shares has been to wait for a temporary improvement in the price and then sell, and then move the funds into collectives. I did this with Pearson and HSBC for example. BATS appears to be near a low at present, IMB might be on a short term uptrend.

Your problem shares amount to about 10% of your portfolio. That is worth being bothered about in my book. I would however keep BATS and IMB because I think there is still life in them yet. Even excluding these two the problems still amount to 5% of your portfolio. To me that is worth doing something about. They could be replaced with one collective such as a big generalist like Alliance or maybe F & C.

Dod