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Some skin back in

Honest reporting on shorter-term trading activity and ideas
PrincessB
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Some skin back in

#53524

Postby PrincessB » May 15th, 2017, 12:09 pm

After a change of plan, I'm in a position to rebuild portfolio.

I have in the region of £100k in cash within ISA along with my non ISA holdings worth in the region of £60k.

The plan is to spend the cash in £5000 chunks once a week for the next 20 weeks.

I would be more than happy to (time permitting) attempt to write up my considerations on what I'm going to buy. For the time being, I'm interested in:

Low & Bonar (~LBW) specialist materials

Ibstock (IBST) bricks

As a general point, left to my own devices, I would have a portfolio comprising of little other than engineers and pharma. To hedge myself against the kind of disasters this much focus on sectors could do to me, I'm veer towards a combination HYP/Growth strategy. I try to aim for a total portfolio 3% dividend yield and if the wind is in the right direction a combined return (capital growth + dividends) of about 20% (barring market meltdowns).

I don't target the capital gains as I've found that by trying to reach a performance level, you are often inclined towards companies with a risk profile higher than your comfort zone. If I get 20% it's nice, but I'm not going to chase it, it's my fund and they can't sack me so I can play a longer game than the employed fund managers.

So to get the party started. What would you buy £5k this week and why?

Regards,

B.

dspp
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Re: Some skin back in

#53537

Postby dspp » May 15th, 2017, 12:43 pm

If it was £5k as part of a balanced £100k + £60k portfolio then I would stick the £5k in HUR.

That would be a high risk high excitement punt into a small oilco with a string of exploration wells into an unusual reservoir in the West of Shetlands area, and you could lose the lot. It is after all a hole in the ground territory and a loss making company. Shareprice is marking time right now whilst various financing etc discussions are going on for what is called an Early Production System (EPS), but when they conclude then the price could swing wildly. Or the whole company might get taken over with no warning as it is possible that there is a game of takeover chicken being played behind the scenes. Take a read through the HUR thread viewtopic.php?f=16&t=796 and you'll see what I mean. Not for the faint-hearted, and it may require you to pay enough attention to the inner workings of the business. My view is that the time-horizon for an exit might be up to 4-years, or as early as 4-weeks.

Or you could do something very boring ...........

regards, dspp

GoSeigen
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Re: Some skin back in

#53615

Postby GoSeigen » May 15th, 2017, 5:06 pm

PrincessB wrote:After a change of plan, I'm in a position to rebuild portfolio.

I have in the region of £100k in cash within ISA along with my non ISA holdings worth in the region of £60k.



It's not really such a challenge to get from £160k to one million, is it?

I thought the idea of this board was to turn about £3,000 into a million...


GS

PrincessB
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Re: Some skin back in

#54238

Postby PrincessB » May 16th, 2017, 2:12 pm

It's not really such a challenge to get from £160k to one million, is it?


Large amounts of capital have gone into the house which is why I'm stuck with this wimpy portfolio. My plan before said house became ever more dependent on my ability to pay for upgrades was to run the £235k portfolio I had to the million mark and retire.

Fast forward four years and I've got more house and less money - Admittedly my 'cottage' is now worth around the 600k mark, but I can't retire on a property value and will have to consider downsizing or moving somewhere cheaper in the near future.

By some metrics, I'm three quarters of the way there, by mine I've got no income stream.

I thought the idea of this board was to turn about £3,000 into a million...


I suppose it depends on your appetite for risk and your ability to win at high odds. I have always considered 20% per annum to be as good as the best of the fund managers (with the obvious point that a smaller scale investor can dip into companies that folks like Buffet and Woodwards cannot)

I've known a number of people who have been given some money (usually by the death of a relative) and have chosen to aim for the highest risk factor they could find - In each instance their career in investing lasted less than two years. One lad at work had a sure fire system by following the experts on the currency markets with his own punts and burned out when his punt at 4000% gearing wiped him out.

I'm quite happy to allocate 50% of portfolio (ungeared, so £80k) on a single share at this time. I have no idea what the company will be at present but a fast four bagger over a couple of years would be huge fun.

Incidentally, what are you buying and why?

B.

Spent some time looking at Low and Bonar (LWB) and rejected them. Not keen on the CEO, numbers look like could fall of cliff after Brexit and a bit too much restructuring for my liking. Not a bad call for a very diverse HYP as dividend is noted (from memory) at 3.7%

moorfield
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Re: Some skin back in

#54329

Postby moorfield » May 16th, 2017, 8:18 pm

GoSeigen wrote:It's not really such a challenge to get from £160k to one million, is it?

I thought the idea of this board was to turn about £3,000 into a million...


GS


Well that depends on your timeframe?

£160k to one million in 10 minutes is the 21/4 at Kempton Park - accessories of steel needed

£160k to one million in one year is xirr 525% - unrealistic / unlikely with HYPish shares

£160k to one million in 5 years is xirr 44.3% - someone using leverage might fancy a crack at that ...

andyalan10
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Re: Some skin back in

#54475

Postby andyalan10 » May 17th, 2017, 2:17 pm

Funnily enough when I read the opening post my first thought was Rockhopper RKH, another small oilie. Very close to all time lows, but slowly building a production portfolio to fund G&A expenses and getting closer to Falklands production. Again only suitable for a side bet.

Or, as of this morning British Land, off 3%, still raising the dividend slowly, and could be useful to tuck away for a while without too much risk.

Andy

mlc2010
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Re: Some skin back in

#54813

Postby mlc2010 » May 18th, 2017, 10:12 pm

GoSeigen wrote:
PrincessB wrote:After a change of plan, I'm in a position to rebuild portfolio.

I have in the region of £100k in cash within ISA along with my non ISA holdings worth in the region of £60k.



It's not really such a challenge to get from £160k to one million, is it?

I thought the idea of this board was to turn about £3,000 into a million...


GS


I don't know, My S&S Isa is worth £130k atm, to turn that into a million quid would be quite an achievement

GoSeigen
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Re: Some skin back in

#54958

Postby GoSeigen » May 19th, 2017, 2:10 pm

mlc2010 wrote:
GoSeigen wrote:
PrincessB wrote:After a change of plan, I'm in a position to rebuild portfolio.

I have in the region of £100k in cash within ISA along with my non ISA holdings worth in the region of £60k.



It's not really such a challenge to get from £160k to one million, is it?

I thought the idea of this board was to turn about £3,000 into a million...


GS


I don't know, My S&S Isa is worth £130k atm, to turn that into a million quid would be quite an achievement


For those who don't realise: this board is the successor of the similarly named board at fool.co.uk, which was set up with the challenge of investing/gambling £3000 to make one million pounds in twelve years.

Here's the original post:

http://boards.fool.co.uk/trading-my-way ... sort=whole

To achieve that you have to double your money every two years approximately, a compound return of c34%pa. To get from £130,000 to a million requires a compound return of around 17%, which is far easier -- close to what I have achieved at minimal risk and drawdown with some of my portfolios over 12 years.

Let's try to keep to the original premise of the board shall we?


GS

moorfield
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Re: Some skin back in

#55022

Postby moorfield » May 19th, 2017, 8:21 pm

Ah thanks for the clarification GS. The xirr of my options trading project is 53.4% tonight after 16 months.


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