After going 5 months without having to close any trades, the portfolio has now seen two trades cut in the last two weeks.
Last week I got rid of a Crude Oil position which hadn't worked out and this week I sold all my WPP shares (LM017).
The only reason for buying WPP was I read somewhere that it was a "Dog of the FTSE" which apparently means it's one of the FTSE 100's highest yielding shares.
Don't ask me why this makes it a "dog", I didn't look too much into it.
My purchase decision came when I checked the chart of WPP and saw that the price was about to move above the 200 day simple moving average. Once the price had stayed above the 200 day SMA for 2 weeks I eventually bought it. I'd watched the price for 8 weeks waiting for the right opportunity.
Usually all trades in the LISA Millionaire portfolio have a strict 20% stop loss but WPP didn't even get that far. On closing it gave a 10.48% loss which is more than enough.
WPP reminded me of a previous trade - SRP (code: LM010) - which I sold on 30th April 2019.
SRP had been lowering gradually every time I did the end of week SMA checks. Having slipped below the 50 day SMA it continued to drop a little each week. I finally decided to sell when reading this particular article:
https://www.moneyobserver.com/our-analysis/beginners-guide-how-to-become-isa-millionaire
"Face up to poor decisions and apply a 20 per cent stop-loss; there's nothing worse than keeping a loss-maker in your portfolio"
I didn't even allow SRP get to a 20% loss. The fact that it had been in the portfolio for two months and declined in value each week meant that it was a loser I was willing to cut. So I swallowed the 11.3% loss.
WPP was very similar in that every week in 2020 it declined in price. Something is obviously not right there so I sold with no hesitation.
That's not to say I won't ever buy these shares again. Perhaps in the future they will re-test the highs and I will become an owner again. For now though, WPP is gone from the LM fund.
(I've just checked SRP and since I sold the price has done well, increasing steadily - oh well, can't win them all!)
Here's the state of the fund this week:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM001 LM001-2 |
Equity Investment Instruments | 11/06/2018 16/09/2019 |
£2020 | £2360 | 16.91% |
| LM009 LM009-2 |
Gas, Water & Multiutilities | 05/02/2019 04/02/2020 |
£2020 | £2170 | 7.41% |
| LM012 LM012-2 |
Real Estate Investment Trusts | 20/05/2019 28/11/2019 |
£2030 | £2370 | 16.45% |
| LM014 LM014-2 |
ETF | 17/06/2019 02/12/2019 |
£1950 | £2670 | 36.57% |
| LM015 | ETF | 27/08/2019 | £970 | £920 | (4.42%) |
| LM016 | Travel & Leisure | 29/08/2019 | £1020 | £1030 | 0.68% |
| LM018 | Construction & Materials | 11/11/2019 | £1020 | £1100 | 8.77% |
| LM019 | Travel & Leisure | 11/11/2019 | £1020 | £1100 | 8.54% |
| LM020 | Software & Computer Services | 28/11/2019 | £1010 | £1110 | 10.04% |
| LM022 | Household Goods | 29/01/2020 | £1020 | £990 | (2.38%) |
As you can see, the money received from selling WPP was used to add to the LM009 position. This became the fourth position I have added to.
There's a new page up on the site about Stuart Goldsmith's Double Your Way to £1,000,000 report and some people who attempted it whilst also documenting their progress on the web.
I've always found it very interesting to read about someone improving their life, whether that's losing weight, paying off debt or increasing their income. Hopefully readers of this site will find these blogs and websites worthy of a visit.
The new page can be found here or on the homepage.