The Monster PortfolioOTHER PEOPLES PORTFOLIOS The Member who sent us this portfolio is happy for you to see what he has been doing on the basis that “if one person can take note and ‘not be like this Guy’ then something will have been gained from the expense I put into creating this monster”. I am also hoping that his brave transparency, albeit anonymous, gets noted by other members - however good or bad your own portfolio, there is value in allowing other members to see it - and at the same time you get an honest (if brutal) assessment, it just happens to be in public. The idea is not to get entertainment at your expense, the idea is to lift the experience and learning of members to a universally higher level. So here goes. Note: A common request after the first portfolio was to include columns showing how long the stock has been held, I haven’t had time to do that yet but will include it in future when it’s available.
PORTFOLIO SNAPSHOT 2 - “The Monster Portfolio” Factual Observations:
- This portfolio has turned $300,414 into $188,705, a loss of 37.2%.
- This portfolio does not show any other assets, this portfolio could be a small part of total assets which might explain the “punting” nature of most of the holdings. It does not show any stocks sold at a loss or profit in the past.
- Out of 48 stocks, which is an unwieldy number of holdings for an individually managed portfolio, 38 stocks have a market capitalisation of less than $1 billion.
- Out of 48 stocks 35 have lost money, five have gone bust, 20 are down more than 70%.
- Portfolio risk is 7.29% which suggests that the portfolio has moved in a 7.29% range each week on average over the last 14 weeks. By comparison an ETF matching the ASX 200 has a 1.81% range per week. This is a risky/speculative portfolio.
- The yield on the portfolio is 2.85% with a yield of 4.04% including the average franking of 64.1%.
- The portfolio is 20% invested in the energy sector which is a 15% overweight compared to the market average.
- Small speculative stocks are a road to ruin.
- Small resources stocks are worse.
- You have to learn to sell/manage loss-making stocks.
- Buying and holding is a head in the sand approach that only works in hindsight on stocks that went up.
- There is very little value in holding big “obvious” stocks like BHP and the banks when you have a huge loss-making tail of stock market “bets” going wrong.
Note to financial planners and Members If you can think of some way to improve this SNAPSHOT - something else you would like included, something that would add value to the assessment, please contact me - especially if you are a financial planner - imagine going into a meeting with a client to talk about their investments...what would you need or like to see in this report. Please EMAIL ME HERE
- This Snapshot contains facts not opinions
- If you find errors please tell us and we will re-issue the tables
- Tables mostly in market capitalisation order