LM portfolio as at 05/05/2023:
| Code | Sector | Date Bought | Cost | Value | Gain/Loss |
|---|---|---|---|---|---|
| LM055 LM055-2 |
General Financial | 11/01/2023 02/05/2023 |
£2560 | £2800 | 9.44% |
| LM056 | Media | 11/01/2023 | £1270 | £1350 | 5.73% |
| LM057 | Gas, Water & Multiutilities | 12/01/2023 | £1270 | £1460 | 15.05% |
| LM058 | Support Services | 17/01/2023 | £1270 | £1380 | 8.77% |
| LM059 | Industrial Transportation | 30/01/2023 | £1260 | £1110 | (12.41%) |
| LM060 | General Retailers | 06/02/2023 | £1270 | £1120 | (11.95%) |
| LM061 | Aerospace & Defense | 20/02/2023 | £1270 | £1400 | 9.77% |
| LM062 | Food Producers | 06/03/2023 | £1290 | £1190 | (7.28%) |
| LM063 | ETF | 24/04/2023 | £1270 | £1270 | 0.01% |
| LM064 | Personal Goods | 24/04/2023 | £1290 | £1280 | (0.83%) |
| LM065 | Travel & Leisure | 24/04/2023 | £1280 | £1260 | (1.13%) |
| LM066 | Beverages | 24/04/2023 | £1280 | £1340 | 4.26% |
| LM067 | Nonlife Insurance | 02/05/2023 | £1270 | £1210 | (4.41%) |
| LM068 | Industrial Engineering | 02/05/2023 | £1270 | £1230 | (3.36%) |
| LM069 | Food & Drug Retailers | 02/05/2023 | £1280 | £1280 | (0.14%) |
Driving my daughter to school last week I saw a wagon up ahead. Hmmm, I thought to myself, the business name on that truck seems familiar. Took me a moment to realise that I was aware of it because I own shares in it (LM059).
A few minutes later it struck me - of course I know them, I've been seeing their company vehicles around for years. The logo is very recognisable.
Funny how you can see things day in and day out but only really notice them when you develop some kind of personal involvement. Like when you buy a new car and then notice how many of the same model and colour are on the road.
Whilst you might be thinking; so you own a share but don't know what the company does?, it isn't unusual for me to buy a share but not know much, if anything, about the underlying company.
Whenever I purchase a share it is purely down to the price action. They are usually making new 52 week highs, which is how they come to my attention, and as long as they are reasonably big (i.e. market cap of over £100m) and the price rise isn't due to a takeover bid then I will likely make an initial purchase.
I successfully bet on horses and have now completed 12 full months of my "System 1" test that I have mentioned before. Only one of those has been a losing month.
It's fair to say I have taken thousands of pounds from the bookies yet, aside from the Grand National, I don't think I have watched a horse race in the last year.
There's no need.
I know nothing about the horses, the jockeys, the trainers, the yards. Can't say I'm interested really. All I want to know is that the horse shows up in the software and the price is right. If that happens, I will back the horse.
Same with shares.
I'm not interested in the CEO and how early he gets into the office. If you want to start at 6am then you go crazy, pal. Fine by me if you want to put in 100 hour weeks, it's not my health that's affected and it's probably not going to make much difference to the share price but if it makes you feel important then go for it.
Not bothered about whether the company's a good place to work or the staff are motivated - I just want to see the price go up.
If the price of the share is rising and it isn't a tiny company, and I don't already have shares in the same sector, I'll probably jump on it with a smallish pilot purchase. If the share goes down too much I'll cut it. If it goes up enough I'll add to it.
Simple. And over time, with a solid money management plan, I'm confident this approach will prove profitable.
The Portfolio
As you can see from the above table, I've added a second unit to LM055. This is another purchase of the same amount (£1250) as the initial purchase that I made because my initial position got to 20% profit. When I do this I will often call it a "pyramid" trade or refer to it as pyramiding.
Hopefully this will be a good example of adding to a winner and letting that winner run. The share price can drop back and I could get out at break-even - or it could continue to advance and my profits will be greater than if I'd just left it with one unit's worth.
Despite the 8 new trades added since the last update, there is still plenty of cash remaining in my dealing account so I'm ready to move when something comes along. This could be another pyramid - LM057 is looking healthy - or a new position entirely.
Whatever happens, the portfolio is looking nice and populated at present. It's always good to be well-invested when the market is doing well. There's plenty of potential for upside and, with careful money management, losses should be limited if the markets turn.