My first SNAPS portfolio

Tuesday, Jan 16 2018 by
26

This summer I spent some time vacationing in the UK and bought some investing magazines at the airport on the way home to Norway. One of the magazines had an insert about Stockopedia and I was curious enough to register for a free trial period. I was very interested to read about Ed’s NAPS and SNAPS portfolios, so interested that I decided to try for myself. I decided to use real money to keep my interest engaged…

My stock broker offers easy access at a reasonable cost to the following markets: Norway, Sweden, Denmark, Finland, Germany. I pretty much copied the screen that Ed presented in his articles, spending quite a bit of time reading about the different factors on the Stockopedia site. I only had enough money for 7 stocks for the first round and decided to diversify as best I could on sector and market cap. The most daunting task was to make my choice between the stocks selected by the screens (one for each sector) and I tried to choose shares that looked to be in a positive trend. In the end I made my choice and bought 7 stocks end of July/beginning of August as listed below aiming for equal weighting (spending about the same amount on each stock).

I am very pleased with the results and I sold off my first SNAPS portfolio first week of January (keeping one stock to transfer to my second SNAPS portfolio) and thought it might be interesting to share my results on the forum.

I have indicated both the percentage change in stock price (the actual price I bought and sold at) and my relative gain/loss which includes transaction costs and takes into account exchange rates etc. As can be seen from the numbers I had quite a bit of help from the changing exchange rates over the period, but my next vacation will be more expensive so not really something I am too happy about…

CompanySectorStock price changeMy gain/loss
£ALVFinancials4.8%7.3%
£BMAConsumer cyclicals-14.9%-15.9%
£EUZHealthcare-1.3%1.9%
£FIA1SIndustrials57.0%62.1%
£KNOWTechnology28.5%29.8%
£SWAConsumer defensives13.9%17.6%
£UPMBasic materials9.2%12.9%

In total my result was a gain of 17.1% including transaction costs and exchange rates. Including the dividend I received (before tax) from Schloss Wachenheim my total gain was 17.5%. Of course, if I take into account the cost of the Stockopedia subscription, the numbers will not look as good (but still positive).

I didn’t use stop loss, and spent a lot of time agonizing over whether or not to sell BMA as it fell quite a bit, I need to learn more about stop losses and work on my rules for selling off underperforming stocks. I am glad I used real money for this portfolio as I would not have struggled with these issues in a fantasy portfolio. I still wonder about how a SNAPS portfolio will perform in a bear market, and that question is still to be answered. If anyone have tips about resources for learning more about stop losses (especially how to determine at what level to set them) and strategies for bear markets I would be grateful. 

I have already bought my second SNAPS portfolio and if there is any interest I may write about that at a later time.


Filed Under: StockRanks,

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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Allianz SE is a financial service company. The Company is the holding company of the Allianz Group (Allianz SE and its subsidiaries). The Company's segments include Property-Casualty, Life/Health, Asset Management, and Corporate and Other. The Company provides a range of reinsurance coverage, primarily to Allianz insurance entities, as well as to third-party customers. Property-Casualty segment offers a range of products and services for both private and corporate clients. Life/Health segment offers a range of life and health insurance products on both an individual and a group basis. Asset Management segment provides institutional and retail asset management products and services to third-party investors, and provides investment management services to the Allianz Group's insurance operations. Corporate and Other segment includes Holding & Treasury, Banking and Alternative Investments. more »

GER Price
€187.54
Change
0.2%
Mkt Cap (£m)
72,132
P/E (fwd)
10.6
Yield (fwd)
4.7

Byggma ASA is a Norway-based company that manufactures and sells construction products to the Scandinavian and Northern European markets. The Company is operational through production units including: Fibo-Trespo AS, a producer of wall panels and display walls; Huntonit AS, a producer of hard wood fiber; Uldal AS, a windows and doors manufacturer; Scan Lamps AS, a producer of home illumination products; Respatex, producer of wall panels; Masonite Beams AB, specializing in wood-based I-beam systems; Forestia AS, manufacturing construction components, and Aneta Belysning AB, which offers lighting solutions. It operates through numerous subsidiaries, including Huntonit AB, Sasmox Oy and Birkeland Eiendom AS, among others. more »

OSL Price
NOK86.5
Change
-5.0%
Mkt Cap (£m)
57.4
P/E (fwd)
n/a
Yield (fwd)
n/a

Eckert & Ziegler Strahlen und Medizintechnik AG is a Germany-based provider of isotope technology for medical, scientific and industrial use with focus on cancer therapy, industrial radiometry and nuclear-medical imaging. The Company operates through three segments: Radiation Therapy, Isotope Products and Radiopharma. The Radiation Therapy segment operates through Eckert & Ziegler BEBIG and produces and distributes medical products for the treatment of cancer using brachytherapy. The Isotope Products segment provides sealed and unsealed radiation sources for medical imaging, industrial gauging, measurement and analysis, reference, calibration and environmental monitoring sources and solutions, as well as bulk radioisotopes for pharmaceutical, therapeutic and industrial product manufacturers. The Radiopharma segment specializes in molecular imaging and nuclear medicine, and supplies various radiopharmaceuticals, radiochemicals and related equipment. more »

GER Price
€37.5
Change
0.4%
Mkt Cap (£m)
173.8
P/E (fwd)
16.0
Yield (fwd)
2.3



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7 Posts on this Thread show/hide all

Irishmanabroad 16th Jan 1 of 7

Hi
Thanks for this, would you mind sharing the name of the broker you use?

| Link | Share | 1 reply
favono 16th Jan 2 of 7

In reply to Irishmanabroad, post #1

Nordnet (www.nordnet.no)

| Link | Share | 1 reply
herbie47 16th Jan 3 of 7
5

That's interest a Euro NAPS. I have not done a NAPS but do or did hold some of those shares. Europe did well last year. Re stop losses it's quite complicated, many different views, I found the Euro ones I sold out of because of share price falls such as UPM have bounced back, some very strongly such as KVAER and BSL, so actually selling fallers has cost me money. I see FIA1S is down 18%, I sold out last week, partly because price was falling but I did not understand the forecast figures. One problem I do have with european shares is the lack of information, it is very sparse indeed, maybe just a one line for a quarterly update, some not even that NOLA B, last quarter is not published anywhere, I only found it after a few days on the company website by then the shares had gone up over 15%. There seems very little coverage unlike UK or USA shares.
NAPS is set up to run for 6 or 12 months and then review, no mention of stop losses. From past NAPS I think a 20% stop loss would save you from the big fallers but not stop you out of the big winners. Remember stop losses are not guaranteed, so if there is a bad profit warning the price will fall through your stop loss and you either will get a lower price or it won't be sold.

| Link | Share | 1 reply
Irishmanabroad 17th Jan 4 of 7

In reply to favono, post #2

Thanks

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Timmytrump 18th Jan 5 of 7
1

Like you I started a SNAPS type portfolio in July, but only buying Euro denominated shares, as I had sold a property in Spain and had spare Euros to invest. Found there was terrific choice of highly ranked shares, spread over the various sectors. 20 shares of €10,000 each.
I have gained about 15% to date and am satisfied with the performance. Only 1 dividend but it seems most € stocks do not pay twice yearly like UK stocks. One stock up 70%, most in range of + or - 15 to 20%.
On stop loss, I have no fixed % in mind but look closely at selling if Stockrank falls below 80.
Will consider rebalancing shortly but might await dividends before finally selling.
Lastly, I have noted that a lot of the stocks chosen are included in the Joel Greenblatt Magic Formula screen. Having just read his excellent Magic Little Book may use this screen alongside Stockranks.

Good luck with 2018.

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Pancero 24th Jan 6 of 7

thanks a lot for sharing!

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BahrainChris 24th Jan 7 of 7

In reply to herbie47, post #3

It is possible to get gauranteed stop losses with a spread bet account (although of course it comes with a cost)

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