Sally Morgan, a freelance writer and working parent, began a live case study in November 2014 documenting her journey as a value investor, using the STRIDE engine to manage her portfolio strategy. This is how she's fared, thus far.
Wanting to invest for her future, Sally Morgan gained her initial investment capital by turning over a UK property (a flat) and redeploying this income into a value-focused portfolio. A humble, but good, starting point for any new investor.
She was given a STRIDE global subscription for one year in exchange for total transparency in how she manages her portfolio. Investing solely in businesses that the platform recommends and reporting her experiences (warts and all). She was to receive no advisement or outside help of any kind in managing her portfolio, besides the STRIDE engine.
Sally’s Value Investor Profile
This is how Sally started her value investing journey:
To make the most of the fabulous effects of compound interest, Sally is reinvesting any profits for as long as possible.
Little Acorns Portfolio Asset Pie: Slice Number, Size & Diversification
At the start, Sally had 17 businesses on her list. She had planned to be working with 20 equity slices, all with an equal investment in each of $4000 (subject to minimum trading restrictions and exchange rates).
2 Weeks Later: Value Stocks 1.3% Up After Costs
Black Friday came exactly 14 days after setting up her portfolio. After all the costs that were included, Little Acorns had 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!” - Sally Morgan
Portfolio Strategy Tweaks: Expanded Diversification and Redeployment
Sally also began to expand her diversification across more currencies, territories, and sectors from a month in (after seeing her first drop of 1.37%), by redploying her profits.
Currencies: USD; GBP; EUR; KRW; TWD; MYR; SGD; JPY; AUD; CAD; SEK
Territories: 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
The Incredible 2-Year Rise of Little Acorns' Value
Like a gift that just keeps on giving, Sally's portfolio is proving succesful, even if its only been a short run. We see at 3 months in, the portfolio was 8.8% up and still climbing. If Little Acorns continued to perform like this for the rest of the year, in the simplest forecasting terms, Sally was on track for 35% by November 2015. Let's be honest, this would be very, very nice. Realistically, though, she was hoping for 15% gains in the first year.
It's ironic that at the 1 year mark she couldn't see this 15% gain, as her portfolio's value has grown remarkably from even it's first week in. Although the year mark didn't hit it's objective of 15% up, she's well on her way to surpassing this objective at the 2-year mark.
While the portfolio wasn't immune to the chaos of the fluctuation (none are), it's fared far better than most at weathering the storm. Throughout its course, Little Acorns has beaten the FTSE 100, the S&P 500 and the UK housing market.
"Sitting tight with my STRIDE companies has paid off every time so far and, while it's been nail-biting at times, I am starting to feel very safe in my choices." Sally Morgan
You've got to be asking "How?" at this point. How did Sally, a entrepreneur and only part-time investor, build an increasingly valuable portfolio that's 24.5% up in under 2 years? The answer lies in the fact that she's following 3D Value Investing principles in collaboration with STRIDE's resources. Sally's been using STRIDE's tools to aid her fundamental analysis, valuation, and timing, while applying her discoveries to her portfolio strategy. This has seen her portfolio's value compound immensly.
Lots of Acorns in Lots of Baskets: New Slice Model
If you remember, Sally's original slice model was 20 slices of $4,000. But, at 4 months in, she already had 23 slices and, with her recent gains, several of those were now over $5,000. So, she increased her slice size to $5,000 for any new purchases (bought by redploying her profits).
Then, at about the 1 year mark, Sally decided to increase her slice number to 30 (still of $5,000), as her profits allowed. This allowed her to enter some markets that she'd been holding back on, such as the UK property market post-Brexit, which allowed some fantastic buys at the beginning of 2016.
Sally is well on her value investing journey, and it seems like the fun is only just beginning for her. With the progress of her portfolio, her continued reliance on the STRIDE engine and 3D value investing principles, I predict 10% more annual gain than her initial objective. Perhaps soon we'll see her portfolio begin to look 25-30% up.
If you're a fellow value investor who's looking for an easier way to manage their portfolio, or simply want to experience the engine that helps Sally manage such a successful portfolio, then book a free live demo with STRIDE's CEO by clicking below.