The STRIDE Blog

#6 Little Acorns Portfolio: Up 8.8% After Three Months

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I just read last week's STRIDE blog post about how women are emotionally better equipped to become successful value investors than men - apparently we are less likely to over-trade and incur profit-eroding fees than the boys. Certainly, even with my limited investing experience, I know 8.8% gains after only three months is pretty good.

I really wish I could take all the credit for this first quarter success but all I've done is decided on a strategy and stuck to it. The hardest part so far has definitely been sitting tight when the markets dropped before Christmas. I wasn't tempted to sell anything but I could totally understand why an impetuous or nervous investor might act on a whim. It was disheartening and I did feel disappointed - but only for a while. Because sure enough, just as the strategy said should happen, the market rebounded. If I'd have panicked when the reds stacked up I would definitely be regretting it now. 

How to Invest Like a Girl

I've waited years to find the right investment strategy for my savings and I intend to do everything by the book. Something I've read over and over again is that emotion has no place in investing. Switching emotion for logic is not just part of STRIDE's strategy, it's part of every value investing strategy. But when some of my stocks dropped 30% in value before Christmas, dragging the overall value of my Little Acorns portfolio with them, I had to remind myself of this golden rule. 

Nobody wants to be the last one clinging to a sinking ship so the 'cut and run' emotion is a universal survival instinct. Just remember that cutting and running as an investor can solidify short-term stock price dips into realised losses when, providing you selected them well, those stocks are more likely to end up as gains in the long term. Value stocks are so called for a reason: because they hold intrinsic value that will eventually be reflected in the share price. The market will recover (and some!) if you give it time and trust in the strategy you chose to follow but needs time to work.

As yet, none of my stocks have hit STRIDE's consider sell price so I've sold none. I don't expect to sell any either for at least a couple of years, because 3D value investing is a long term strategy that takes years to fulfill its potential. I'm not in a rush, I'm happy to wait. If I'd have panicked and sold during the down time in December, I'd definitely be regretting it now. The experience has strengthened my resolve and next time there's a market dip - because it's bound to happen - I'll find it easier to sit it out, knowing gains like these can happen on the other side.

Three Months In - Full Summary

Overall portfolio value: $114,692.93

Total percentage gain on holdings: 8.8%

Total costs including fees: $76,803.16

Unrealised gains: $6401.91

Realised profit: $370.74

Cash still to deploy: $31,487.86

8.8% up on my holdings after three months is a great result so far. If Little Acorns continues to perform like this for the rest of the year,  in the simplest forecasting terms, I'm on track for 35% by November 2015, which would be very, very nice. Realistically, I'll be delighted to see 15% gains this year and I'm already half way there. 

I still have $31K in cash to spend and I'm looking out for new opportunities on the target list every day. 

I finally got my chance to buy Being Co Ltd. *muted cheer*. It's muted because as soon as I got it, the share price went down a bit. Typical, after watching it soar for weeks! But never mind: it's a great company and I'm very happy to own some of it. 

Other additions:

Lannett Company Inc (NYSE : LCI) develops, manufactures, packages, markets, and distributes generic versions of branded pharmaceutical products in the United States. It offers solid oral, extended release, topical, and oral solution finished dosage forms of drugs that address a range of therapeutic areas.

Nick Scali Limited (ASX : NCK) is engaged in sourcing and retailing household furniture and related accessories in Australia. The company offers dining chairs and tables; regular, modular, and recliner lounges; entertainment and TV Units; coffee tables; side tables; occasional chairs; recliner chairs; and bar stools, as well as outdoor furniture and floor rugs. It operates 34 Nick Scali furniture stores and 5 Sofas2Go stores. Nick Scali Limited is headquartered in Lidcombe, Australia.

Micro-Mechanics (Holdings) Ltd (SGX : 5DD) designs, manufactures, and markets high precision tools, parts, and assemblies for the semiconductor, medical, aerospace, and other high technology industries. The company operates in six segments: Singapore, Malaysia, Philippines, Thailand, USA, and China. It has a portfolio of semiconductor tools for the assembly and test process, including high-temp plastic tools, tungsten carbide tools, sensor assembly, and vacuum wand tools; dispense nozzle adaptor, dispense nozzle, pen dispense assembly, writing pen nozzle tip, and epoxy stamping tools; and ejector needles, needle holders/pepper pot, and needle holder seals. The company also offers thermosonic bonding products, such as clamps and electronic flame off products; ultrasonic bonding products, including wire clamps, bearing base assembly, anvils, and wire cutters; and encapsulation products comprising BGA dispensing nozzle, dispensing manifold, pump screw, O-ring, and mylar film/glass slides. In addition to semiconductor tools, the company manufactures precision parts and assemblies on a contract basis for OEMs. Micro-Mechanics (Holdings) Ltd. was founded in 1983 and is based in Singapore.

Biggest gainer: C-QUADRAT  +59.81%

Biggest loser: Polar Capital Holdings -22.69%

Compare with my last post here.

Average cost is the purchase cost of the shares including fees. Current performance is the gain to date from time of purchase.

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Topics: 3D Value Investing, Portfolio Management, Little Acorns Portfolio

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