The STRIDE Blog

#2 Little Acorns Portfolio: Value Stocks 1.3% Up After Costs

stride-2-little-acorns-portfolio-no-black-friday-for-me-1.3-up-socialThe Little Acorns portfolio is slightly up on where it started two weeks ago and I still have some funds to spend. 

I am aiming for twenty equity slices and so far, I've bought sixteen. I can already see the effects of diversification and currency hedging at work, despite it being extremely early days.

I'm obviously delighted to have seen gains already and if it continues upwards at this rate that would be smashing. I do realise, however, that it's only been two weeks and my acorns are barely in the ground. We are not even into the realms of value investing yet, but it's a great start.

T + Two Weeks – summary

It's Black Friday and the world seems to be going crazy for bargains. For me, Black Friday is exactly fourteen days after setting up my portfolio. After all the costs that entails, Little Acorns has risen by 1.3%.

I wasn't expecting to see any gains so quickly. While it's been very gratifying to feel I may have invested in some real bargains of my own, I'm not letting myself get excited yet!

In my first blog I rounded my portfolio value up to $110,000. The exact figure settled at $108,000 (I was clearly a little optimistic) and my fees came in at $1600. Furthermore the spread on the shares cost me nearly $1100. So, after all my purchases, my portfolio was $105,300.

All the value stocks I picked were STRIDE rated 70 or above and timed to buy - I chose them all straight from the target list. You'll see on the portfolio report below that some of the ratings have since fallen - this is due to price rises, reflecting that the STRIDE engine no longer considers these businesses a buy.

Out of my sixteen stocks twelve pay dividends. Two have been declared. One has already come in from Svolder B and the other from Diamond Hill Investment Group is due shortly.

Biggest gainer so far is C-QUADRAT - up 19.26%

Biggest loser so far is Cenkos - down 16.24%

Current overall portfolio value - $106,693.34

Diversification 

Currencies: USD; GBP; EUR; KRW; TWD; MYR; SGD; JPY; AUD; CAD; SEK

Countries: USA; England; Germany; Korea; Taiwan; Malaysia; Singapore; Japan; Australia; Canada; Sweden

Sectors: Chemicals; Capital Markets; Internet and Catalogue Retail; Real Estate Management and Development; Commercial Servies; Household Durables; IT Services, Banks; Software; Electronic Equipment, Instruments and Components; Machinery; Financial Services

Thoughts

A matter of hours after I selected Avant (Japanese Micro Cap), the announcement came in that Japan had fallen back into recession. The country has also just experienced an earthquake, following the volcanic eruption in September. I was concerned, I don't mind admitting, when I saw these undiversifiable risks in action. And yet Avant, so far, has been one of my gainers. Just shows how unpredictable share prices can be, I suppose.

At the other end of the scale, Cenkos, my biggest loser, has been a surprise. This business shows really strong financials so I researched why its price could be taking such a hammering. I didn't have to look far to find a series of news stories linking Cenkos' by association with Quindell, a controversial insurance outsourcer. There is no hard evidence anywhere on STRIDE to suggest Cenkos deserves its recent price erosion. My feeling is that once the news moves on to the next thing, Cenkos' price will recover. We'll see.

My new obsession is researching portfolio management. I want to get my head around rebalancing so that when the time comes, I'm ready for it.

Full Little Acorns email notification received 28th November 2014

28.11.14_report

Topics: Asset allocation, Little Acorns Portfolio

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