All I can say is WOW! - I was blown away by the response to the last post. I started this blog this really as a record for me and expected 1 or 2 people to read it. Instead there was over 800 hits in under 24 hrs. I know many will have clicked straight off straight away, but needless to say 9 people took the time to write both thought provoking and encouraging comments - I'll taking these ideas on board.
Managed Portfolio Revealed
So, there is a story behind this... I started this back in April when I originally bought the book. I was so enthused that I bought 4 out of the 6 stocks before the book had even arrived. My thoughts were along the lines of "The CANSLIM -esque screen looks to do well, I'll buy some shares I like the look of while I wait for the book to arrive! Woo hoo!" Now, I didn't think I'd be sharing the results 3 months later so I broke all the rules on when to buy (in case other people who study CANSLIM are reading thinking why did he buy that then??)
For the purposes of the blog, I'm investing £2000 in each stock, but in reality, it is was different ratios but I guess you don't need to know that. Why £2000? I think this is a nice minimum amount to invest - with a £10 dealing fee and 0.5% stamp duty, it means your costs are no more than 1%. A lot of people don't agree with me and that is fair enough, but I don't like to handicap myself too much before I've even started.
Below is the portfolio and the current values as of today. Overall 4.2% up since 21/4/2017 - by my calculations that makes for 21% annualised. I haven't bought every share that qualifies for the CANSLIM-esque screen and over the long term, the screen has achieved a 25.8% annualised return, so I'm well below target, however, it is early days and it has been a difficult couple of months for the screen.
The portfolio needs a bit of a shake up - this is the main reason why I started writing the blog. O'Neil emphasises learning from mistakes and cutting losses early. He stresses that losses must under…
