I have traded more during the last two months (May and June 2020) than I expected to. Since I last updated on my trades and portfolio holdings – in mid-April – the market has largely done ok, although not presented a lot of new buying opportunities as far as I have seen.
My strategy has evolved a little to include some growth shares as shown by my purchases of Team17 shares which I think have great potential. I bought the shares between 528p and 579p. I have also just this week added an S&P500 ETF to my portfolio meaning I now have two trackers.
A few other growth shares are on my radar. I’m thinking about AB Dynamics, Polar Capital and Hollywood Bowl as future investments. Fundamentally though I maintain a value and income lens when it comes to the majority of my investments. The current situation of dividend cuts and suspensions though is creating an evolution rather than a revolution in my investment style.
What I’ve been buying and selling
Looking firstly at my sells since mid-April, I banked profits in my investments in Persimmon (14% gain) and Admiral (9.5% gain) and banked some profit in Intermediate Capital Group which had risen very strongly. I expect to add both shares again if markets drop and I’ll add some Intermediate, on top of the shares I already hold. It still seems cheap.
The only reason for selling my positions, or reducing my position in the case of Intermediate, was to bank profits in an uncertain market. I was fortuitous in my timing buying the shares and the ones I still hold are up over 50% despite the most recent market pullbacks.
Especially given Persimmon doesn’t pay a dividend right now and I already own the shares in my other portfolio (the one that should be back with me soon as the SVS Securities administration process ends), it seemed prudent to sell up and bank profits.
The other sell was for a loss. I mistimed buying WPP shares (loss of 28%), as the market fell in March. I think now there are better shares to put my money into. In terms of lessons learnt, I think it’s to wait longer between buys in a share that’s a long-term turnaround to benefit from averaging down, or up. Potentially it’s also that turnarounds are a specialist kind of investing that’s tricky to get right and might be better suited to a fund manager, at least rather than me.
Moving onto buys, I added to my position in Moneysupermarket. I also added to my holding in DS Smith and the value-focused Scottish Investment Trust which now has significant investments in gold miners including Barrick Gold. I added a small amount of another investment trust – Murray International late in June. Throughout this period I’ve been buying Diageo shares on continued share price weakness and given the long-term potential in my view. The shares have been purchased four times for prices ranging from 2703p to 2850p.
These are just my investments in individual shares. I have kept adding to my holdings in funds which I hold via Hargreaves Lansdown and which can be seen below. Most notably however I cut down my holding in Artemis Global Growth as it accounted for too large a percentage of my SIPP and I felt it was underperforming.
If you have enjoyed this article please do check out some of my other articles. If you think there will be another bear market, please read my blog on how I invested through my first one when the markets plummeted back in March this year. If you are interested in investing for dividends read about the dividend stars here.
I have also just set up a Facebook group this month which I’m looking for serious investors to join so it can grow and become a useful resource – you can find a link to the group here. Wishing everyone all the best in what seems to me like a pretty uncertain market.