I sold my remaining position in Morrison, the UK supermarket group, as this has stayed around book cost for a long time now. Probably got my thesis wrong on this one, so when in doubt, get out.
Trimming stocks that had a good run – my 10% sales were Atomera (30.80) and Roku (424.78). 15% sale of Magnite (38.23)
Watching and waiting
Intel was proving a bit disappointing as an investment, and maybe will take time to get back on track. In the meantime its competitors are doing well. The announcement that their CEO is stepping down in a month or so caused a spike in the stock price which I regarded as a selling opportunity. The reasoning in the short term is that a new CEO can close down divisions, set up new lines of business, etc. Intel has a strong balance sheet, so the company is in a position to pay for all of this, but earnings could disappear until the smoke clears.
Also bought a starter holding in Big Commerce, an e-commerce platform for growing sales. People compare it to Shopify, which is already owned.
A chartist whom I follow has got a few UK bank shares right in the past. Made me a good profit on Standard Chartered some time ago. So now he likes Lloyds and Barclays, and apparently the fundamental guys mostly agree. Bought a starter holding in
Lloyds and will see how this goes.
Another analyst – who got my attention with his write up of CrowdStrike- likes the potential of Opendoor – so another starter position has been added.
Keeping my eye on stocks like Shopify and Zoom. The latter has now had a big fall from its high – might be worth buying soon.
The other part of my investments consists of personal holdings. Unlike the SIPP there are a lot of capital movements in and out, so time weighted performance figures are more important when looking at results. My headline valuation was down 24.4% over the year, but my time weighted figure was plus 11.7%. Much of the decline in the actual value was due to redemption of a property mortgage. I don’t have much of a clue how my benchmark is made up, but see this was up by 3.5%. The benchmark on my SIPP is base rate plus 1%, so this was only up 1.3%.
I mentioned benchmarks because it is important to understand that managed portfolios can be scrutinized by various non revenue earning departments with names like compliance and risk. The effect of this is that investment managers become more attached to index tracking funds that cover all or parts of the benchmark.
The best performing stocks in this portfolio were Roku and Atomera, and Bango also deserves a mention. Doubt that any of these is included in any index of significance !
Unity was recommended as a long term position when the price was a little higher. As luck would have it, I was too busy to trade.
Bought a part holding today at 138 and will be watching to accumulate.
The larger part of my investment portfolio is in a SIPP – self invested pension plan. The actual figure for 2020 is plus 8.0% and the time weighted figure that allows for pension payments received is plus 13.3%.
Best performing holdings during the year were Magnite and Roku, both of which appreciated strongly, adding well over 100% to book costs.
More to follow