Introduction

My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing,  is part of a series of posts about adopting the Stockopedia StockRanks into a £20K starting cash balance portfolio. 

The following links provide the journey so far with the most recent first.

  1. My StockRanks £20k Portfolio 1 year on (Part 1)
  2. My Stockopedia 20k Farmed Portfolio - The PLUS500 effect and why I am happy
  3. My StockRanks Farming Approach - a 20k Real Money Test Portfolio

As followers of this series are aware the portfolio is now 12 months old and it is now time to rebalance the portfolio.  

I have to admit that I have found the process of rebalancing a bit of an emotional struggle.   By sticking to the rules I have had to sell many of the stocks that 'I love' .  This was something that I struggled to accept.  Twelve months ago I had selected some stocks that as an 'old fashioned stock picker' I knew quite well and felt a little confident that they would do well.   The high StockRanks seemed to me to confirm my confident biases.

This year I have found less stocks to choose from in my screeners as quality stocks have become high in value.  The real test for me has been my emotions and thus sticking to the rules.

I created a you tube video here, where you can see me starting to tackle the rebalancing.  in this video my lack of confidence in my new selection is evident.  But that is the challenge.  To trust the StockRank system, stick to the rules and keep emotions at arms length.  So this is what I have done.

My Rules

  1. The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66)  
  2. Dividend Yield 12 month rolling > 0
  3. Market Cap > £20m
  4. Spread (bps) < 500
  5. Sector includes - One screener for each sector (10 sectors in total)
  6. Rebalance every 12 months *new rule

 Exit Plan

A stock will leave the portfolio when it goes below StockRank 90 and a more suitable qualifying stock can take its place. Once the Stock is part of the portfolio the Quality, Value or Momentum figures may go below 66.  That is ok as long as the Stock remains above 90 at the time of rebalancing.

The Portfolio

So here it is, my portfolio rebalanced and…

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