NEWBIE to stockopedia, would appreciate any advice.

Sunday, Apr 29 2018 by
9

Hi there,

My names Alex, I'm new to Stockopedia and relatively new to investing. I think Stockopedia is an amazing website, just what im looking for. I've never posted on the internet before so i apologise if I'm breaking any etiquette's or anything. 

I'm trying to start a portfolio of about 8 shares, trying to emulate the NAPS style. High Stockranks, different industry sectors and equal weighting. High Stockranks, different industry sectors, various market caps and equal weighting. The reason I'm only going for 8 to begin with is because I think with the amounts I'm investing the fees become too much if I go for more than 8 right now. But I'd like to get it up to 20 within a year. 

I've also tried to incorporate a growth element as well as QVM and the portfolio I've got so far(only 7) is. 

5ae5c06915a5achart.png

and 3 of these are ones that I already owned and still meet my new criteria as well.

I feel it leans a bit towards the adventurous side which is what I want. I already have a long term strategy in the form of dollar cost averaging into some index tracker funds which I feel is far from adventurous. So this portfolio is aiming to be something a bit riskier. 

Setting my stop loss has been a bit of a tricky one for me to decide. Initially I was leaning towards 7% but now I'm thinking that with the growth element of the portfolio I'd be better of giving stocks more of a chance, so I'm thinking 10-15%. The reason for this is Morgan Sindall which looks like a good stock to me so I bought with a stop loss of 7% and it was gone in less than 4 days....WTF!

I'd appreciate any opinions including criticisms. 

Regards

Alex


p.s. opinions on my bubble chart would also be appreciated.

5ae5c0a43e2dastock_bubble.png



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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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BP p.l.c. is an integrated oil and gas company. The Company owns an interest in OJSC Oil Company Rosneft (Rosneft), an oil and gas company. The Company's segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is engaged in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. The Downstream segment has global manufacturing and marketing operations. The Rosneft segment has a resource base of hydrocarbons onshore and offshore. The Other businesses and corporate segment comprises the biofuels and wind businesses, shipping and treasury functions, and corporate activities around the world. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. more »

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Change
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Mkt Cap (£m)
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P/E (fwd)
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Yield (fwd)
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EVRAZ plc is a steel, mining and vanadium business with operations in the Russian Federation, Ukraine, the United States, Canada, the Czech Republic, Italy, Kazakhstan and South Africa. The Company's principal activities include manufacturing steel and steel products; iron ore mining and enrichment; coal mining; manufacturing vanadium products, and trading operations and logistics. Its segments include Steel; Steel, North America; Coal, and Other Operations. The Steel segment is engaged in the production of steel and related products at all mills except for those located in North America. The Steel, North America segment is engaged in the production of steel and related products in the United States and Canada. The Coal segment includes coal mining and enrichment. Other Operations include energy-generating companies, shipping and railway transportation companies. more »

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Mkt Cap (£m)
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P/E (fwd)
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Yield (fwd)
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GlaxoSmithKline PLC is a global healthcare company. The Company operates through two segments: Pharmaceuticals and Vaccines. The Company focuses on its research across six areas: Respiratory diseases, human immunodeficiency virus (HIV)/infectious diseases, Vaccines, Immuno-inflammation, Oncology and Rare diseases. The Company makes a range of prescription medicines and vaccines products. The Pharmaceuticals business discovers, develops and commercializes medicines to treat a range of acute and chronic diseases. The Vaccines business provides vaccines for people of all ages from babies and adolescents to adults and older people. It has a portfolio of medicines in respiratory and HIV. Its Pharmaceuticals business includes Respiratory, HIV, Specialty products, and Classic and Established products. Its Vaccines business has a portfolio of over 40 pediatric, adolescent, adult, older people and travel vaccines. more »

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54 Posts on this Thread show/hide all

Mechanical Bull 3rd May '18 35 of 54
5

In reply to post #360258

Andy

These are my annual and average returns for the past four years.

2014 20.6%
2015 38.3%
2016 15.0%
2017 21.5%

Average 23.8%

This includes dividends and all costs. However, it also includes the cash holdings in my trading account which can often be quite large and obviously return nothing. I estimate I am about 70% invested on average. If one was happy being 100% invested then even better results could be expected.

MB

Blog: Mechanical Bull Blog
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kuronagi 3rd May '18 36 of 54
4

Alex,

I am a retired investment professional who manages his own pension fund (almost 20 years now) . Essentially I am a "long term buy hold" investor.

My 8 largest holdings in descending order are Daigeo, Apple, Unilever, GSK, Rio Tinto, United Utilities, Royal Dutch Shell and Rolls-Royce.

1) Note that these are all in different sectors.

2) All my stocks and funds (except Apple) are UK listed. Easier to follow and better corporate governance.

3) I have around 25% in small companies (mainly AIM)

4) I don't invest in financial stocks, retail stocks, property stocks and housing construction stocks.

Looking at your list of 7 stocks, I would only consider 2 myself. I hold GSK and would regard BP as OK but I prefer Shell.

Evraz, GLTR, MHPC I would not touch with a bargepole. All three have Russia or East Europe business.

Redrow I would not buy as I don't invest in construction or housing. Too cyclical and you have to get the cycle right. Better to invest in steady businesses (mainly manufacturing) with are easier to understand. Also commodities (oil and mining) and utilities.

But investing is essentially personal. Have a plan and stick to it.

Kuronagi

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Alex Clarke 6th May '18 37 of 54
2

Again, thank you all for the very helpful comments and the time you have taken to write them, Key takeaways so far.

Get reading! I've got hold off and working my way through the Naked Trader (just realised how that sounds), seems like a good read well suited for me. I've also read Peter Lynch's one up on Wall Street, which I'm sure most of you will probably already have read, I enjoyed it and would recommend it. I will be expanding my library more than my portfolio for the time being.

The general consensus seems to be that the Russian stocks are not recommended so with that in mind I've decided to focus on UK based companies only. My portfolio will no longer be a NAPSICHOK strategy.

For now, I will be changing my strategy on stop losses as well, I agree with the comments that with a NAPS style strategy a 7% stop loss is too tight and I will aim to hold the stocks for longer and re-balance if I feel it is necessary after 6 months.

I'm quite lucky in that I have some experience in analysing companies after doing a stint as a credit analyst a few years back and having studied accounting and finance at university so it's time to put this knowledge to good use and hopefully have some fun and make plenty of money to boot.

Thanks all

Alex

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Edinburgh Investor 6th May '18 38 of 54

Does anyone have a good way to track performance against the market? My broker shows me only ave weighted return. So I just have to export all transactions onto a spreadsheet and try to work it out my performance within a time period, on an ongoing basis. However I don't yet have a good way to track this against the market performance.

Some brokers may give you all this so isn't an issue for others. Or does anyone have a good excel template?

Maybe there are other threads on this subject?

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doug2500 6th May '18 39 of 54
3

In reply to post #361323

Last year I unitised my portfolio. I actually made it into 3, trading accounts, ISA's and funds.

As I understand it this is exactly how a fund would do it, so this means you can compare directly to any fund, or as I've done assign the same starting unit value to my portfolio and my chosen benchmark. I think trackers are also commonly used benchmarks and are easy to get prices for.

I wish I'd started when I started investing as it's the best approach I've found, but hard to do retrospectively.

These might help:
http://monevator.com/how-to-unitize-your-portfolio/

And a thread on the lemon fool where I review my portfolio and unitisation is discussed:
https://www.lemonfool.co.uk/viewtopic.php?f=56&t=4511&sid=cd9a2f1527c83f6332d9b8a9ce56062b

And a screenshot of my excel spreadsheet:
https://i.imgur.com/6O5802y.png

There's more on lemon fool if you do a search.

Hope that helps.

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The Third Man 6th May '18 40 of 54

Perhaps I am missing your point but Stockopedia gives FTSE 100, 250, All Share, and AIM 100 data every day. You could measure your performance against this on, say, a weekly basis.

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timarr 6th May '18 41 of 54
2

In reply to post #361373

The point is that it's actually quite tricky to measure actual portfolio performance, especially if it's split across accounts and involves investing new cash. I've known people claim to be beating the market when they're actually pouring tons of cash into their accounts - we hate admitting we're terrible investors, even to ourselves.

As doug2500 suggests the simplest way is to unitise. Even that's quite tricky, because you need to account for new funds and dividends in order to be comparing like-for-like. Broadly speaking, don't do it very often (I do it twice a year) and don't worry about calculating it to serious levels of accuracy (if it's even close you'd be better off investing in an index tracker and doing something less pointless).

timarr

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clarea 6th May '18 42 of 54

In reply to post #360248

Hi Ricky

Just wondered if you were still going to pen s bit on your trading story no probs if its delayed due to the nice weather.

Cheers Andy

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DaviStoVest 6th May '18 43 of 54

It would not be especially difficult (albeit a little fiddly) to work out and track the IRR (internal rate of return) for your own portfolio (based on the assumption that you could always cash in your holding at quoted market prices). And you could fairly simply make that calculation over a spread of time (lets say for every month end).

But making the same calculation for the market so that you can perform the comparison ... that would seem to me to be very hard! How do you know how much money entered or exited the market and when?

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DaviStoVest 7th May '18 44 of 54

Thinking about this some more, you don't need to know the flows of money into and out of the market to make this calculation ... you just need to calculate what your return would have been if you had put/withdrawn the same cashflow into, say, the FTSE 100 or whatever you want to make your preferred comparator. Dividends would be an issue, though, I guess.

Can anyone more expert than me say if there is a standrad way of going about this calculation?

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Bonitabeach 7th May '18 45 of 54

In reply to post #361408

Using function (XIRR) in excel you only need two figures, the date spread and your preferred comparator (total return to include dividends) avaialable here: FTSE INDICES

Hope this helps.

Bonitabeach

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DaviStoVest 7th May '18 46 of 54

In reply to post #361418

Thank you ... that should do it. Perhaps, when I have a quiet day, I'll put together a little model to compare my performance in managing my own portfolio against how things would have turned out if I had just put the same funds into tracking the FTSE 100.

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doug2500 7th May '18 47 of 54

I used to use XIRR and as you've highlighted it can get difficult accounting for cashflows and comparisons with a benchmark. In fact I still use it a bit as it I think it's not a bad figure to have in isolation. I never knew quite how to deal with money movement and so always found comparisons to be flawed. I can see where you're coming from replicating all cashflows as if you'd bought a tracker, but then if you're going that far it really wouldn't be more effort to unitise and have a perfectly comparable figure.

I have found unitisation to be far better for comparing with other investments, and negating the influence of cash movements into and out of the portfolio.

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ricky65 7th May '18 48 of 54

In reply to post #361383

Hi Andy,

Yeah, I hope you've been enjoying the nice weather as I have, BBQ today!

It's been a tough write (over 4000 words atm). I aim to get it done by no later than 14th May, next Monday.

I hope it will be worth the wait!

Regards,

Ricky

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Nuke 7th May '18 49 of 54
1

In reply to post #361458

Hi Ricky

BBQ this end also, you can't beat England when the sun is out, looking forward to the ramble got a feeling you have an interesting story to tell and you seem to have the whats my plan before i get into a trade mind set sorted also.

Enjoy the burger and sausages your end.

Regards Andy

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Nuke 7th May '18 50 of 54
1

In reply to post #360813

Hi Mechanical,

Impressive average return for sure, may i ask how many stocks do you normally hold and do you hold single stocks or investment trusts or even both.

Kind Regards

Andy

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ricky65 14th May '18 51 of 54

In reply to post #361383

Hi Andy,

I don't think my post is in good enough shape to put on here yet. Going to be a bit longer. Apologies.

Regards

Rick

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Nuke 14th May '18 52 of 54
1

In reply to post #363499

No sweat Ricky looking forward to your trading story when it's ready to go.

Regards

Andy

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gregpark 22nd Jul '18 53 of 54

In reply to post #359028

thats a great comment Phil I'm finding its like drinking from the fire hose there is loads of information out there and deciding the best route for you is tricky, however once you have done that then stick to your rules

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gregpark 22nd Jul '18 54 of 54

In reply to post #360363

great response thanks for posting.

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