Good morning, and happy new year!

For anyone who missed it, I posted my personal portfolio review of 2021 here. Warts & all. A disastrous Q4 wiped out most of my gains for the year, but at least the figures were still positive overall, so it could have been worse. I definitely need a re-think on my portfolio management, but apart from Boohoo (LON:BOO) (I hold) the stock picking generally went quite well. Here it is again, if you've not already expended 39 minutes of your life listening to me waffling on!

The trouble is, I've always tried to shoot the lights out, in terms of chasing very high annual gains, using gearing, and portfolio concentration, which produces violent moves up & down in my portfolio.

However, my SIPP has been quietly chugging away at a fairly pedestrian +17% p.a. for the last 9 years since inception. Sounds boring, but it's actually compounded to +360% in just 9 years (with no new money added - I started it with a transfer in of existing pension policies). Do that for another decade (or even two), and it would produce a spectacular overall result. So maybe I should forget about gearing, and just go for steady, ungeared, lower risk returns over the long term? That's what the best investors do, after all (stating the obvious!)

Outlook for 2022 - We seem to be entering 2022 with covid reaching a climax in terms of case numbers, but with a mild variant - surely the ideal scenario to achieve herd immunity? The main issue now seems to be staff absences, which should be resolved in weeks rather than months.

US markets are once again hitting daily new highs. Sooner or later, I imagine that bullishness should rub off on UK small caps.

So personally, I'm going into 2022 feeling quite positive about my small cap positions. Providing companies can pass on cost increases to their customers, then business should be good. Supply chains sort themselves out over time, although I have no idea when.


Explanatory notes -

A quick reminder that we don’t recommend any stocks. We aim to review trading updates & results of the day and offer our opinions on them as possible candidates for further research if they interest you. Our opinions will sometimes turn out to be…

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