Drop since year end

[Dod101]

In the times today there is what is I guess meant to be a helpful article by some fellow who is taken as an example about the need for diversification. WE can all agree or not about that and the extent where it is helpful but I was struck by this man's comment that he was down only 10% since year end, showing I suppose the benefits of diversification. My portfolio is not very diverse. I hold 30 shares normally and am surprised to find that I am down a mere 8.4% since year end and that includes four bond funds which are down rather more than that.

No need to respond if you feel uncomfortable donig that but it would be interesting to know how much others are down.

Dod

[ReformedCharacter]

No need to respond if you feel uncomfortable donig that but it would be interesting to know how much others are down.

Dod

c.2% down since last year end, I had expected a greater drop until I checked.

RC

[Steveam]

Down 6% from 17/Jan (all time high) - my figure is not quite comparable as it’s a net worth (excluding house) calculation rather than a portfolio calculation but most of the wealth is my portfolios.

Best wishes,

Steve

[SalvorHardin]

Down 7.3% since 1st January. I'm not in the least bit bothered about this

[monabri]

From
31/12/21 to Friday 15/07/22 - Down 3.7% (edit: Probably this is the one to use as the next data point is 12th Jan and Dod did say "year end!")
12/01/22 to Friday 15/07/22 - Down 6.4%

(The value briefly ramped up at the start of this year - I've quoted the values anyway).

Portfolio comprises (all figures are idpickering 'ish' values. )

54% HYP individual shares (n=28 holdings)
Biggest committments being 6% LGEN & ULVR, 5% HSBA, 4% DGE & ADM, 3% IMB,BATS & SHELL).

27% Income ITs (UK & Foreign)

16% Growth ITs (mainly a foreign focus but with some UK small companies)

4% "Other" - high yield bond funds.

All dividends received have been reinvested. All dividends that are ex-dividend are included in the calculations as though paid (chickens/eggs but it is only 0.34% of the portfolio value)

Would a global tracker have been easier/cheaper/safer? - definitely. However, a comparison over a very short time period from the start of this year,with Vanguard's global tracker VWRL, shows a drop of ~10% (graph plotted on a total return basis).

source: https://www.hl.co.uk/funds/fund-discoun ... ion/charts

[Lootman]

Down 7.3% since 1st January. I'm not in the least bit bothered about this

Not only am I not bothered by it but I positively welcome it. It enables me to put some new money to work at a better price. It also enables me to sell off some winners and pay less CGT.

That said I don't keep track of my total portfolio value, so I cannot answer Dod's question. I have five accounts across 3 brokers and to merge them all for valuation purposes would not be a worthwhile effort for me. I suspect I am down more than many here as I have a lot of US investments which are down more than UK shares. On the other hand being mostly denominated in USD has worked well recently and long term as well.

[Breelander]

.... I was struck by this man's comment that he was down only 10% since year end, showing I suppose the benefits of diversification.
... it would be interesting to know how much others are down.

My HYP's Income unit value is down 9.3% since year end. My Trailing Twelve Month yield is up 6% though.

[Darka]

Investments down 3%, but retirement funds in total only down 1% as I've been building some cash.

Dividends received so far when compared to the same period last year up 6.8%.

[Lootman]

For comparison the global index fund VWRL is down 11.22% YTD.

The FTSE-100, as represented by VUKE, is down 4.5% YTD.

I can only assume that the out-performance versus the global index cited by everyone here is based on a significant over-weighting of UK equities. Or else significant holdings in cash and bonds.

In other words, exactly what has delivered under-performance for years and decades.

[XFool]

For comparison the global index fund VWRL is down 11.22% YTD.

The FTSE-100, as represented by VUKE, is down 4.5% YTD.

I can only assume that the out-performance versus the global index cited by everyone here is based on a significant over-weighting of UK equities. Or else significant holdings in cash and bonds.

In other words, exactly what has delivered under-performance for years and decades.

I wouldn't mind some under-performance of the current performance.

(I haven't looked so far this week.)

[monabri]

For comparison the global index fund VWRL is down 11.22% YTD.

The FTSE-100, as represented by VUKE, is down 4.5% YTD.

I can only assume that the out-performance versus the global index cited by everyone here is based on a significant over-weighting of UK equities. Or else significant holdings in cash and bonds.

In other words, exactly what has delivered under-performance for years and decades.

Is that 11% on price (I suspect so) or 10% TR?

[88V8]

Don't monitor values, but my income is up.

Where's Arb... he could produce some tangled chart knitting down to the last decimal...

V8

[monabri]

It came to me that Dod is drawing an income from the fund whereas I'm reinvesting, so the comparison needs to try to take this difference into account as we are not unitising here.

Let's guess that half a year of dividends equates to 2% of portfolio value. Maybe I should add another 2% reduction to my numbers to be more broadly comparable with an investor who is drawing income?

[Itsallaguess]

Where's Arb... he could produce some tangled chart knitting down to the last decimal...

He's not logged on for 6 weeks now, which is an unusual break for him even with his regular summer boating activities.

I asked in the Snug a couple of weeks ago - https://www.lemonfool.co.uk/viewtopic.php?f=29&t=34974

I hope he's OK.

Cheers,

Itsallaguess

[SalvorHardin]

Down 7.3% since 1st January. I'm not in the least bit bothered about this

Not only am I not bothered by it but I positively welcome it. It enables me to put some new money to work at a better price. It also enables me to sell off some winners and pay less CGT.

That said I don't keep track of my total portfolio value, so I cannot answer Dod's question. I have five accounts across 3 brokers and to merge them all for valuation purposes would not be a worthwhile effort for me. I suspect I am down more than many here as I have a lot of US investments which are down more than UK shares. On the other hand being mostly denominated in USD has worked well recently and long term as well.

Yes, falling markets often throw up bargains. I've bought heavily in the last couple of weeks; putting 5 out of my 6 years living expenses cash reserves into the market. Mostly Central London property companies (e.g. Derwent London), Carlyle Group, Brookfield Asset Management and Games Workshop. Most were some 30% to 50% off their peaks.

My Americans and Canadian shares have done better than my British shares in 2022! Helped greatly by the big fall in the pound and my having a lot in railroads (Canadian Pacific is up by over 12%, mostly due to Canadian Dollar strength), Berkshire Hathaway (up 6.4%), no tech and quite a bit in Farmland Partners (about 25% up since I bought in earlier this year)

[CliffEdge]

I only look in July each year so I don't know.

[Lootman]

Down 7.3% since 1st January. I'm not in the least bit bothered about this

Not only am I not bothered by it but I positively welcome it. It enables me to put some new money to work at a better price. It also enables me to sell off some winners and pay less CGT.

That said I don't keep track of my total portfolio value, so I cannot answer Dod's question. I have five accounts across 3 brokers and to merge them all for valuation purposes would not be a worthwhile effort for me. I suspect I am down more than many here as I have a lot of US investments which are down more than UK shares. On the other hand being mostly denominated in USD has worked well recently and long term as well.

Yes, falling markets often throw up bargains. I've bought heavily in the last couple of weeks; putting 5 out of my 6 years living expenses cash reserves into the market. Mostly Central London property companies (e.g. Derwent London), Carlyle Group, Brookfield Asset Management and Games Workshop. Most were some 30% to 50% off their peaks.

My Americans and Canadian shares have done better than my British shares in 2022! Helped greatly by the big fall in the pound and my having a lot in railroads (Canadian Pacific is up by over 12%, mostly due to Canadian Dollar strength), Berkshire Hathaway (up 6.4%), no tech and quite a bit in Farmland Partners (about 25% up since I bought in earlier this year)

BRK.B was $300 at the start of 2022 and is at $278 as of now. So is presumably only up because of FX gains?

I am in CG, BAM and CP as well. Games Workshop is a tad too speculative for me, but good luck to you.

My Ag shares were up a lot in response to the Ukraine situation but have fallen back recently (MOS, AGRO, NTR, CTVA, ADM).

Re property take a look at home builder Greenbrick (GRBK) - large land banks in the desert south-west of the US. Nice bounce recently from $19 to $24.

[Dod101]

It came to me that Dod is drawing an income from the fund whereas I'm reinvesting, so the comparison needs to try to take this difference into account as we are not unitising here.

Let's guess that half a year of dividends equates to 2% of portfolio value. Maybe I should add another 2% reduction to my numbers to be more broadly comparable with an investor who is drawing income?

That is true. I do not extract capital and neither do I add any so my figure is based on the ‘closed end’ capital value. From the numbers so far there seems to be quite a bit of variation. In asking the question I am not implying that I am particularly concerned. Like some others I am more concerned about my income which is somewhat ahead of last year, about 5% for the half year to 30 June.

Dod

[SalvorHardin]

BRK.B was $300 at the start of 2022 and is at $278 as of now. So is presumably only up because of FX gains?

I am in CG, BAM and CP as well. Games Workshop is a tad too speculative for me, but good luck to you.

My Ag shares were up a lot in response to the Ukraine situation but have fallen back recently (MOS, AGRO, NTR, CTVA, ADM).

Re property take a look at home builder Greenbrick (GRBK) - large land banks in the desert south-west of the US. Nice bounce recently from $19 to $24.

Yes, Berkshire is due to foreign exchange gains. I have $299 for Brk.B year start; I've just noticed that several websites have slightly different prices as of 1st January for my American and Canadian shareholdings.

In return for Greenbrick, I'll put up Patria Investments. It's essentially Blackstone in South America (mostly Brazil), so it's a bit lively and not a widows and orphans share. Blackstone has strong ties with Patria and still owns 14% of it. Yield is 6.4%, though this fluctuates wildly as it pays out 85% of "distributable income" every quarter.

Games Workshop has been thumped recently, which enticed me to buy some. My friends, and their associates, who are well into Warhammer have not let the easing of lockdown restrictions and the cost of living crisis affect their purchase of Games Workshop products (I'm not a Warhammer fan, instead boardgames and Dungeons & Dragons)

[Newroad]

Hi Dod et al.

Our six sub-portfolio's measure from -11.26% (best) to -14.71% (worst) since 31/12/2021 at last point of measure - new one coming this Wednesday.

I guess this (vs say, the FSTE100 or similar) reflects a proportionate weighting to world (and hence US) equities, some increases in Investment Trust discounts and bonds being hit a bit as well. However, that is mainly educated guesswork - I haven't analysed it in detail per se.

A bit like Lootman says though, I can't have it both ways - all my family made lots on the way up (mainly since 2008) from being 100% in global equity investment trusts until the last few years - considerably more than any UK index. Indeed, if I'd simply kept those holdings rather than doing something I thought was better, I suspect* we'd be better off now

Regards, Newroad

*PS I've just checked, if I'd stayed in those Investment Trusts, then from 31/12/2021 they would have been (circa)

MYI: +5%
ATST: -10%
FCIT: -11%
WTAN: -17%

thought there may have been some dividend payments to partially mitigate the above (or improve MYI further).

More broadly, my switch a while back from WTAN to MWY (within the ISA's) was good, but from MYI to MNP (within the JISA's) was bad