It’s now nearly 5 months since I took on the role of Amateur Investor. In that time I have made hundreds of share purchase transactions, drip-feeding money into the markets as the media feeds us a daily meal of economic doom and gloom.
As we stumble from one economic crisis to another I decided to take stock and see how my purchases had faired.
My portfolio is broadly split into two parts. Investments made for income, the High Yield Portfolio (HYP), and shares purchased with my speculative hat on.
The speculative portfolio is the “fun” portfolio if you like, while the HYP is managed with my serious head on.
So I want to concentrate on the HYP portfolio here.
At the time of writing the HYP contains 44 holdings, the largest 5 being:
- iShares FTSE UK Dividend Plus
- RSA Insurance
- Legal & General
Although this portfolio is concerned with generating income, there have been some nice capital gains too, with Old Mutual and Royal Dutch Shell both up 23%
Worst performer is GAME (GMG) which is down over 50%, but has paid out one nice dividend of 1.88p in November. At the time GAME shares went ex-dividend (19 October) the shares were about 24p so this represented a yield of about 7.5%
I’m fully aware that this holding is (very) risky, but I went into it with my eyes open.
My average buying price stands at 16.24p and a current share price of less than 8p is how we get to a capital loss of 50%. A loss of over 8p per share puts the 1.88p dividend into perspective.
Had I put a stop loss in place this would have limited the losses, but my exposure isn’t that big so this is one share I’m prepared to tuck away.
Rumoured console releases in 2012 could be just the boost GAME needs. Or at least that’s what I’m trying to convince myself will happen…
So how am I doing overall. Well not that badly actually.
Since the beginning of August the FTSE100 is down just over 4% while the Amateur Investor High Yield Portfolio is down less than 2%. I’d say that’s quite good for an amateur!