APR 3 – 2016 PORTFOLIO RESULT

As previously mentioned, I had to withdraw the funds from my account due to needing the money to fund our new house purchase. Granted the plan was to stay invested for 10 years, circumstances have changed which required the withdrawal of funds.

It was quite fitting as it has been exactly a year since I started investing (18th March 2015) and it was also on 18th March 2016 when I sold my last sets of shares. I am pleased to have achieved my objective of getting at least a 10% return on my total funds (£10,000). The volatility after Christmas was rather high, leading to some losses being realised. The total profit realised is £1,059. This compares favourably when one uses the FTSE All-Share Total Return benchmark which, for the same period above, showed a -4.4%. One must note that the benchmark also includes dividends whereas I have deliberately excluded my dividends. This is because I use dividends to cover the costs of trading shares – these costs are not detailed in my portfolio page. However, if I had included them then the total return would be more than 11%.

It has been an interesting year and I really learnt a lot about investing as well as myself in terms of psychology. There were two points where I held on to my losses for a considerable amount of time. These were the Entertainment One (ETO) and Paysafe (PAYS). Although the latter fared well and ended up banking me the highest profit compared to others. ETO however did not fare well and ended up costing me a lot – losing more than 50%. In hindsight, I should have been ruthless in terms of cutting my losses (around 15%-20%). This is something I will keep in mind should I be in a similar situation in the future. Obviously this is easier said than done!

In the immediate future, I will probably not have a chance to invest in the market due to not having funds! And there’s that extension for the house that we had agreed to save for! It will probably be a while until I have some ample funds to invest in the stock market.

I will however try and blog from time to time on my thoughts on the market in general. The recent budget announcement regarding ISA threshold being increased to £20,000 is excellent news. Though it is quite challenging to save this much in a single year!

I hope you enjoyed this website as much as I did in maintaining the blog. All the best in the future!

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