Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Gadge GIP Xmas Review 2019

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
Gadgeisbackagain
Posts: 32
Joined: January 15th, 2019, 11:24 pm
Has thanked: 1 time
Been thanked: 11 times

Gadge GIP Xmas Review 2019

#193877

Postby Gadgeisbackagain » January 16th, 2019, 12:20 am

GIP Review Jan 2018 to Christmas 2019

Well, 2018 was an interesting and challenging experience, to say the least.

When I started GIP it got off to a massive jump start.
I thought I was the UK's answer to Warren Buffett.
Well, maybe not that good!

This year though proved that Warren's old adage:

Only when the tide goes out, do you get to see who wasn't wearing any trousers!

So let’s take a look at where we are today…
Brexit is a minor matter by comparison :D

GIP was started with £100k of notional capital.
It tracks dividends received then spends them at the Xmas review.

This year:

Gadge GIP lost 9.84% or £12,210.82 notional pounds!!! EEK!
This leaves our Portfolio today still positively ahead and now valued at £112,174.97

We earned £5656.38 this year.

Not a bad result after 2 years but not as nice as it looked at the end of last year, for sure.

Our rival benchmarks:

Vanguard 80/20 Life Strategy has been ahead most of the year but not today (Yay)
It has lost £6611,22 or 5.56%
It is valued at £112,200.96

Personal Assets (PNL) is still bringing up the rear but has lost far less money this year than either GIP or Vanguard 80/20
PNL lost £3526.55 or 3.44% and could yet take the lead if there is a serious bear market in 2019.

Sadly, this is all too real a prospect with the trade talks between China and USA threatening to cause chaos in the markets.
If the USA were to stop ALL Chinese imports, then the Chinese economy could not stand the blow.

A trade war could then easily escalate into a real War.
Not at all a happy prospect, so let's hope and pray that a deal is done and the sooner the better, for all our sakes.

NEW Benchmarks:

I have added some new benchmarks for the coming year.
We need a full year's figures to really start to get a feel for these

but results to date show this:

VWRL Vanguard Global Tracker (100% in equities) lost £16,984.65 or 13.59%
It is valued today at £107,351.79

It was started at £124.9k on 18/09/2018 (the value of GIP on that day, I think)


SMT Scottish Mortgage IT / PNL Personal Assets lost £5332.89 or 5.33%
This is valued today @ £94,318.00
It was started with £100k on 17/10/2018

Why didn’t I start this with the same value of GIP as of that day to keep everything nice and even….because I am a dumb ass sometimes!

The idea behind the last one is to operate a very simple 50/50 portfolio on a dumb-bell approach with risk on one side (SMT is an aggressive Global growth, equity only IT). and Defense on the other. Personal Assets is a very cautious, protect your capital at all costs Global IT.
Whatever the outcome, each year we will then rebalance back to 50/50 at the Xmas review.

So that concludes the benchmark navel gazing which brings us on to ...

What am I going to spend the Dividend money on, that we earned this year?

There are a number of things that I like the look of at this time.
However, I am restricted by GIP's mandate to earning some income and to not buy individual stocks.

I feel that building up our defensive moat is the way to go so I am going to go fixed income
and have chosen an ETF to also help lower our overall admin costs.

I have chosen Lyxor Core IBoxx 1-3 year ETF (U13G.L) and spent the money on that.

This has low running costs and currently yields over 2%.

It is invested in US treasuries with only 1-3 year duration, so less likely to be massively affected by any US interest rate hikes.

That concludes the annual review

Have a great New Year one and all.

Gadge

Return to “Investment Strategies”

Who is online

Users browsing this forum: Adamski, RaspDave and 6 guests