Share Portfolio: June Update

My current share portfolio and a brief discussion of it. Please comment if you have an opinion on my analysis. I am young and need a lot of help and guidance as to how to buy and sell stocks.

Reasoning for declaring my positions

In the past I wrote a couple of posts on investing such as Warren Buffett's Stock Formula and on Value Investing. I decided to use these forms of investing to test out these strategies and some of my own ideas. I declared my initial portfolio in a previous post. The previous post laid out my reasoning for each share chosen and why I felt the need to declare my portfolio.

I plan on making this type of article updating my share portfolio a monthly post. I want to declare my modest share portfolio because I want to be honest and accountable to my readers. I am sure that I have made many mistakes. I also want to have an updated record of my share portfolio. Tracking my portfolio monthly should encourage me to focus more carefully on my portfolio. This article does not contain shares that I have bought and sold in the past, only my current portfolio. Please comment on the post using the comments box below. All opinions are encouraged. I hope that this post will become a forum for ideas. All people of varying investor experience should comment. All shares were bought in the UK stock-market but I hope the logic still applies to investors in most economically developed countries.

Current Share Positions

Very little has change since I last declared my portfolio. I still hold all the same shares as can be seen in the table below.

As can be clearly seen in the Profit column (last column) there has been quite a decline in my portfolio in the last 3 months. It has gone from a value of £3580 to £3168.76. That's an overall portfolio loss of £411.24. On the one had this isn't so bad as there have been large recent falls in the UK FTSE 100. However, take a look at the diagram below:
Whilst the FTSE 100 has fallen 7% in the last 3 months my portfolio has fallen a worrying 21%. An explanation for the fall in the FTSE 100 seems to have been because of the Eurozone Crisis and the fact that there seems to be no end in sight. Hence, finance-related stocks have fallen in value, hence the falls in the banks and insurance companies.

Most of the fall in my portfolio came from the fall in Barclays PLC. Previously Barclays was us 32%, and now is up by only 3%. I will look in a future post as to why this may be and as to what I expect the share to do. Interestingly, this drop seems to have been totally unexpected by the majority of the market as shown by the recent shareholder uprising.

Furthermore, I am incredibly disappointed by Aviva. The second largest UK insurers has also experienced a recent shareholder rebellion after the extremely poor results. However, I do receive a healthy dividend from Aviva. I recently recieved £41 in May and should be receiving another set of dividends in the next 6 months.

As I already knew RBS and Lloyds were punts and I won't really know if they were worth it at least for another few years, or at least until the Eurozone crisis is settled once and for all (in my opinion this is when Greece leaves the Euro or else the whole Eurozone becomes much more integrated).

Lonhro was a mistake as I already mention in the previous post. I'm really not sure what to do about it. Do I cut my losses and sell it? Do I hold on and hope that it is a long term future investment in African infrastructure? All-in-all I really don't know what to do about it. Any advice is welcomed.

Future Changes and Aims

  • I need to sell my position in Lonhro. But I want to wait until it is in profit again.
  • Priority in future is to check the financials for myself
  • Ignore tips and news
  • Find more large dividend paying stocks
  • I'm going to post articles in future on each of my current holdings to look more in depth at what I should do
What is good/bad about my portfolio? What else do I need to take into consideration when picking stocks?
If you've got an opinion I want to hear it.

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