LM portfolio as at 31/12/2020:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM026 | ETF | 14/10/2020 09/12/2020 |
£2160 | £2310 | 6.86% |
| LM027 | ETC | 09/11/2020 | £1060 | £980 | (7.40%) |
| LM028 | 'No specific industry' | 16/11/2020 | £1010 | £970 | (4.10%) |
| LM029 | ETC | 23/11/2020 | £1030 | £1060 | 3.15% |
| LM030 | ETC | 23/11/2020 | £1010 | £1100 | 8.14% |
| LM031 | Mining | 30/11/2020 | £1020 | £1150 | 13.09% |
| LM032 | Industrial Transportation | 07/12/2020 | £1040 | £1040 | 0.66% |
Finally we reach the end of 2020!
Unfortunately, though many were hoping 2021 will be better, much of the UK enters the new year in "Tier 4". And Tier 4 is full "March 2020" lockdown marketed under a new name.
2020 was a very disappointing year with regards to investing - we'll come to the LM portfolio numbers shortly - but on the whole it was a great year for me personally.
In the middle of October we got some great news - new baby due in June - and at the start of December we moved into a new house.
As I have definitely mentioned previously, I'm on the wrong side of 40 and despite owning a home for 9 years I was left with next to nothing following a divorce. Therefore my situation was the same as a 40-something who had been renting their entire adult life. To finally get my name on some deeds was a great relief.
It was a long and protracted process to buy the house with plenty of delays, silence and frustration. Then, all of a sudden, everything came together with little fanfare and we were moving in.
Gathering the deposit and paying all the numerous expenses relating to the house took up any spare cash we had.
Consequently I am left with another £2k to find in the next three months to make sure I get the full LISA bonus for this year. I am confident I can do it though I may have to pull my finger out and do some hardcore eBaying.
Enough rambling, let's get down to brass tacks...
At the beginning of 2020 the LM portfolio was worth £16,230.
During the year I added £2,000 and consequently received a LISA bonus of £500.
As of close of trading today, New Years Eve 2020, the LM portfolio is worth a total of £17,330
So it's down around 8.6%.
All I can compare it to is the FTSE 100. This was 7542.40 at the end of 2019 and 6460.52 at close today - a fall of 14.34%. So the overall market lost 14% and I lost 9%. I can accept that... just about.
I've mixed feelings about my performance this year. On the one hand I am happy that I had the discipline to sell everything according to the rules I set myself.
It is no exaggeration to say that shares took a dive. There were huge, huge falls in the stockmarket and no sign of when it would end. In a calm and orderly manner I closed positions as my rules dictated, taking some large losses.
Yes, I could've closed the positions sooner and I wouldn't have lost as much money but as it stands I beat the FTSE 100.
The whole time I was selling and seeing these red numbers on my screen I had to remind myself that there would be numerous further opportunities to make money and now was the time to be cautious.
Shortly after, I watched as shares like William Hill shot back up again.
Typical.
And this was the problem. Hindsight is wonderful and I should've been buying like mad in early April 2020. Had I done that I would've been sitting on some wonderful gains now... assuming of course that I'd picked the right shares.
But I have to remember that many shares are still well down since March so it's easy to look at those, like WMH, which are up five-fold or more since their low and think that you've "missed out". No one consistently gets in at the bottom and out at the top.
The FTSE is still over 1000 points down from where it was last year so there is plenty of opportunity for gains. I'm about 50% invested which could only be described as 'cautious'.
Needless to say I'm ready. I have the available cash to invest in several shares in the future and therefore the opportunity to make some great returns if we hit the new year with optimism.
To ready myself further I have started re-reading Jonathan Maitland's book which I've previously talked about here: How to Make Your Million From the Internet (And What To Do If You Don't) by Jonathan Maitland
Well worth a read as it contains many lessons about investing, even if Jonathan didn't realise he was teaching them! Pick it up for pennies from eBay.
As for my portfolio, I haven't updated you about the latest additions due to being busy moving house and subsequently clearing what seemed like an endless supply of boxes in our new house.
Two new positions since the last update - one new unit added to LM026 and a new share purchase from a 52 week high (LM032).
There is a cracking amount of cash available for investments as we head into 2021. The plan is to keep monitoring the markets over the weekend and then pull the trigger on new trades on a Monday or Tuesday.
Fingers crossed there's some growth this year as all these stockmarket jitters in 2020 haven't done much to help me reach my target for 20/21. Fair to say I am well short!