Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

A few musings.

A helpful place to also put any annual reports etc, of your own portfolios
Avantegarde
Lemon Slice
Posts: 269
Joined: January 29th, 2018, 10:13 pm
Been thanked: 159 times

A few musings.

#393684

Postby Avantegarde » March 8th, 2021, 5:22 pm

A month ago my S&S Isa was moved from The Share Centre to Interactive Investor because last year the latter bought the former. At the time of the move, the Isa was worth about £215,000 in a collection of 12 investment trusts and 3 trackers. Two thoughts occurred to me at the time 1): haven't my shares gone up in value a lot! and 2): this is due mainly to my holdings in Scottish Mortgage and Edinburgh Worldwide (both Baillie Gifford trusts). In the past couple of weeks, the value of both trusts has fallen sharply (by about 25%), contributing most of the 10% fall in the value of my whole portfolio in the last month (cash drop: about £25,000). At the time of the Isa transfer I did ponder if I should top-slice those two Billie Gifford holdings as they were easily my biggest ones and the ones that had risen the most in the past year or so (both more than doubling in that time). I decided not to bother. I reckoned that even if they halved in value I'd still be showing a decent profit on their original purchase costs. How do I feel now? Well, not that bothered. Their recent sharp rise was always likely to be "corrected" at some point, and I like the very long-term investment case made by the managers of those two trusts. So, If you had been in my shoes (before the share price falls), would you have sold some of your holdings? I know some posters on this website did. And would you now reinvest those crystallized profits back into the trusts at their current lower levels?

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: A few musings.

#393703

Postby Dod101 » March 8th, 2021, 5:55 pm

Avantegarde wrote:A month ago my S&S Isa was moved from The Share Centre to Interactive Investor because last year the latter bought the former. At the time of the move, the Isa was worth about £215,000 in a collection of 12 investment trusts and 3 trackers. Two thoughts occurred to me at the time 1): haven't my shares gone up in value a lot! and 2): this is due mainly to my holdings in Scottish Mortgage and Edinburgh Worldwide (both Baillie Gifford trusts). In the past couple of weeks, the value of both trusts has fallen sharply (by about 25%), contributing most of the 10% fall in the value of my whole portfolio in the last month (cash drop: about £25,000). At the time of the Isa transfer I did ponder if I should top-slice those two Billie Gifford holdings as they were easily my biggest ones and the ones that had risen the most in the past year or so (both more than doubling in that time). I decided not to bother. I reckoned that even if they halved in value I'd still be showing a decent profit on their original purchase costs. How do I feel now? Well, not that bothered. Their recent sharp rise was always likely to be "corrected" at some point, and I like the very long-term investment case made by the managers of those two trusts. So, If you had been in my shoes (before the share price falls), would you have sold some of your holdings? I know some posters on this website did. And would you now reinvest those crystallized profits back into the trusts at their current lower levels?


I am one who has been selling at intervals over the last year and in fact my last sale was at £14.10. SMT is now my second biggest holding. I will not be buying in again in the foreseeable future because I still hold enough for my liking.

Dod

tjh290633
Lemon Half
Posts: 8209
Joined: November 4th, 2016, 11:20 am
Has thanked: 913 times
Been thanked: 4097 times

Re: A few musings.

#393727

Postby tjh290633 » March 8th, 2021, 7:21 pm

I hold neither of those, but I have a policy of trimming any holding that increases in value above a certain multiple of my median holding value. That has been 10% in the first place when I had about 20 holdings, then twice the median and currently 1.5 times the median. I am aware of the policy of "Run your winners and cut your losers", but I believe that my policy has paid off. I reinvest the cash released in the share which has the combination of the highest yield and lowest value, since my objective is to maximise dividend income.

This started in 1997 when Lloyds TSB rose to about 16% of portfolio value and Zeneca was chasing after it. Since then I have always imposed a strict limit on holding value.

TJH


Return to “Portfolio Management & Review”

Who is online

Users browsing this forum: No registered users and 7 guests