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.
Wanting to invest for her future, Sally Morgan raised her initial investment capital by selling her UK property and redeploying the funds into a value-focused portfolio.
She was given a STRIDE global subscription in exchange for reqular, transparent reports on her progress and experiences, warts and all. The rules were simple: select any stock picks from STRIDE's 3D value investing targets, hold as long as possible and sell when the platform recommends it.
Sally’s Value Investor Profile
This is how Sally started her value investing journey:
To make the most of the effects of compound interest, Sally is reinvesting any dividend gains.
Little Acorns Portfolio Asset Pie: Slice Number, Size & Diversification
At the start, Sally had 17 businesses on her list. She planned to work with 20 equity slices, all with an equal investment of $4000 (subject to minimum trading restrictions and exchange rates).
2 Weeks Later: Value Stocks 1.3% Up After Costs
14 days after setting up her portfolio, taking into account all fees, 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: Expanded Diversification
Sally now had a highly diversified portfolio:
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
At three months in, the portfolio was 8.8% up and 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. Realistically though, she was hoping for 15% gains in the first year.
Having hit her 15% target early, Sally's portfolio suffered along with the global markets in 2015 and it went back down to 10.5%. This slump was temporary, however, and at the eighteen month mark, Little Acorns had hit 20.5%. At just shy of two years, the portfolio was 24.5% up
While the portfolio isn't immune to the chaos of global financial fluctuations (none are), its diversification and the benefits of negative correlation have offered protection. 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 novice investor, build a 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 gains, several of those were now over $5,000. So, she increased her slice size to $5,000 for any new purchases. Any profits from stocks sold or dividend gains were reinvested into the appropriate number of whole new $5000 slices.
Around the one-year mark, Sally increased her slice number to 30 (still of $5,000). This allowed her to re-enter the UK property market post-Brexit, but strictly on her terms - by buying shares in Persimmon, one of the UK's largest house builders.
Little Acorns is now approaching three years old. At the time of writing, it is 63.2% up. It's made over $18,000 in realised gains and still has a cash pile of $30,000. Mighty oaks from little acorns grow, indeed.
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.