A brief update on my dealings within the Tinker portfolio; the last quarterly update was given on 1st November 2016. Firstly a few points regarding the portfolio exercise:
I hold or have held during the period of this folio 80% of the stocks discussed.
When I first but a stock I usually allocate at least a 15% stop loss, could be as much as 20% for a small market cap: I like to give the stock time to breathe as it were.
As the stock appreciated in value, I move to a trailing stop loss which is somewhat tighter at 10-12%.
Four Trades On 15th December 2016:
A rather successful stock, Next Fifteen Communications, had risen nicely but over the last couple of weeks had started to drift back and breached the 12% trailing stop loss. This prompted me to sell just over 75% of the holding for a 36% profit and releasing £12000 to be reinvested in other constituents of the Tinker portfolio.
The reinvestments of £4000 per stock, less fees, were made into each of the following stocks currently held within the portfolio:
Current Tinker Portfolio Performance:
Since the start of the Tinker portfolio on 25th January 2016, it has increased in value from £100,000 to £123,500 i.e an increase of 23.5% compared to the FTSE All Share Total Return (ASX.TR) of 19.0%: who back in January or indeed I after Brexit would have thought that the FTSE ASX.TR would have performed so well?
Decreasing or Increasing Positions:
I really only sell when I see a pre-planned reason to do so as I totally ignore market noise. At least that’s what I tell myself! Remembering that the portfolio exercise rules are that no new stocks may be introduced during a 12 month period starting 27/1/16, the pre-planned strategy for selling is:
The strategy for adding to positions within the portfolio is simply based on really encouraging news released by the company. That could be “profits materially ahead of market expectations” or something happening with the business that is claimed to be transformational.
The next planned update of the portfolio in at the end of January 2017 and for the revisions, I am currently working through my usual cash flow/returns on capital screens.
Welcome to my Blog Page - I hope you find my whittling on to be of some interest. I am a private investor who is happy to share thoughts on the market and individual stocks. Please remember that I am definitely not offering tips or investment advice.