Fantasy Portfolio - Annual Report 2016

Wednesday, 4th January 2017 10:39 - by Moosh

Briefly, the highlights from 2016 are:

-          Portfolio value up 0.9476% compared to the initial starting amount of £10000

-          Profit made in 16 investments

-          Returns on investments were between 3.4% and 30.6%

-          Average return on investment was 12.69%

The fantasy portfolio manager would like to thank the following companies and their directors:

ARS, CRX, EME, GGP, OMI, PEL, PPS, RED, SEV, SIM, SML, SRT, UKOG, VLK

Evidence for a Robust Investment Strategy

I have been monitoring my real portfolio value for a number of years and in 2016 I decided to slightly change the way I did things regarding selling my investments. In previous years I often hung on too long on the words and deeds of the directors only to watch the value of my portfolio fall when companies failed to come up with anything at the appropriate time or when the political/economic worlds sneezed and the markets caught a cold from it. This year, I trusted myself. I banked profits (usually well before prices really started motoring up!) with the aim of portfolio growth. Despite the challenging political events of 2016 – the EU Referendum and the US Presidential Election – which caused short-lived downward blips to my portfolio value, I feel that NOT trusting companies this year has served me well since my portfolio has withstood the uncertainties from various political events as well as the investing myth of ‘Sell in May’. I sell when I am in profit, and that can happen at ANY time of the year so don’t be surprised if I don’t follow the ‘Sell in May’ herd – I know better!

Figure 2: The difference in real portfolio value (%) during 2016 and the various events which created little turbulence to the portfolio, suggesting I have succeeded in adopting a robust investment strategy.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.