Portfolio reviews

Hi,

Given UK companies only report 3 or 4 times a year (including AGM updates, and profit expectation rns), isn’t the best way to review a portfolio (in total with charts/ROCE,EPS,ROE trends etc), perhaps twice a year, and just go through the relevant rns as and when they appear?

Or, am I missing something - it seems to me quite a few private investors tend to look at their portfolio much more frequently, on a daily or weekly basis (ref, Twitter!).

@MaynardPaton, or anyone else?! - what is your portfolio review process, please?

Regards,

Ben

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Hi Ben,

I suppose my review process is an ongoing activity albeit with not much trading action. I review each set of results for each share, and make a judgement as to whether I wish to keep holding or buy more. Most of the time the verdict is ‘keep holding, do nothing’. So it’s all rather dull, but keeping on top of your companies can make you a more informed investor and more likely to spot things the crowd has not and lead to better decisions.

I review my portfolio formally every three months to keep track of performance, weightings etc. But I look at share prices multiple times a day and track my portfolio value weekly. I know I shouldn’t, but I can restrain myself from overtrading and becoming too emotional during the highs and lows (or so I tell myself!)

And from what I can tell, you are not missing anything from many private investors on social media!

Maynard

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Interesting question… I have shares that I like to track frequently and shares in the “every so often” pile. So my core holdings I just allow to run unless something obviously bad is going on. Other more risky shares, such as holdings in Ferrexpo or Atalaya, I tend to monitor according to the metal price, which means I sold out of both this year - Atalaya probably well before the peak, but Ferrexpo in time to book nice profits before political and price instability jigged things up again. It seems a step too far to call it a risk-weighted approach but I guess it is heading that way

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Thanks Diogenes,

As you say, miners seem to be a play on the the commodity which they are mining rather than anything else-their market caps change to a greater extent than the commodity itself!

This kind of gearing means they have much higher (upside and downside) risk than a ‘traditional’ business, imo, and therefore they do deserve a different approach for monitoring purposes.

I would agree with your risk-weighted process!

Regards,

Ben

I “keep an eye” on news etc… to see if investment thesis has changed.

I review once a year with the annual report. This involves pluging numbers in a spreadsheet and writing bullet point notes for management questions or further research. I need to plug numbers and write my thoughts down, otherwise I am inclinded to skate over the annual report.

I have wrestled with social media and am cutting back massively. I find it distracting and often repetitive. I don’t have a enough time to research my targets as it is.

M

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Hi MTIOC,

Yes, I have to make notes also - I can’t get any value from company reports otherwise. I am trying to have a Word file for each company held and watched, which includes the history of the company and notes from previous rns.

I tend to use Sharepad and Stockopedia for metrics rather than an excel file, but I do see the attraction of keeping your own spreadsheet (said the ex- accountant!)

Regards,
Ben

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