Diary of a Private Investor

Six of the Best Revisited

Twelve months ago, I wrote a festive series of “Six of the Best” articles to try and predict what might happen in 2017 – a fool’s errand, if ever there was one. These included Six of the Best Income Shares, Six of the Best Growth Shares and because I was convinced that 2017 would be the “year of the takeover”, Six of the Brest Takeover Targets. So how have these predictions fared?

 

Six of the Best Income Shares

Company EPIC Price at 29 Dec 2017 Price at 20 Dec 2018 Gain/Loss Personal Position
Safecharge SCH 207 288 39.13% Still Holding
Royal Dutch Shell RDSB 2236.5 2432 8.74% Sold
Phoenix Group PHNX 733 770.5 5.12% Sold
Gattaca GATC 289.75 305.25 5.35% Sold
Central Asia Metals CAML 226 299.5 32.52% Sold and Rebought
Watkins Jones WJG 117.75 219.75 86.62% Still Holding
Average 29.58%

 

Well, that’s not a bad start. An average gain of nearly 30% and all six companies either maintained or increased their dividend during the year.

 

Six of the Best Growth Shares

Company EPIC Price at 29 Dec 2017 Price at 20 Dec 2018 Gain/Loss Personal Position
Revolution Bars RBG 230 150 -34.78% Sold
Petards Group PEG 26.5 19.5 -26.42% Sold
Beximco Pharmaceuticals BXP 49 59 20.41% Sold
Bioventix BVXP 1400 2500 78.57% Still Holding
D4T4 Solutions D4T4 195 126 -35.38% Sold
Zytronic ZYT 400 480 20.00% Still Holding
Average 3.73%

 

Ah, we appear to have hit a snag! Not much growth among these growth shares during 2017, averaging only 3.73%.

 

Six of the Best Takeover Targets

Company EPIC Price at 29 Dec 2017 Price at 20 Dec 2018 Gain/Loss Personal Position
ITV ITV 205.6 165 -19.75% Sold
IG Group IGG 495.6 684 38.01% Still Holding
D4T4 Solutions D4T4 195 126 -35.38% Sold
Beximco Pharmaceuticals BXP 49 59 20.41% Sold
Brainjuicer (now System 1) SYS1 560 350 -37.50% Sold
Ideagen IDEA 70 97 38.57% Sold
Average 0.73%

 

Oh dear! And not a single takeover among them, nor indeed across my entire portfolio. So much for 2017 being the year of the takeover!

Commentary
This was a piece of festive fun more than anything else but nonetheless, it is interesting to look back and reflect. The reality is that none of us know what’s going to happen. Markets rise and markets fall. Shares go up and shares go down. Some businesses overperform and some underperform.

Fortunately, my actual portfolio has performed better during the year than these festive predictions, mainly because of the decisions I have taken during the year. For example, my top performing holding in 2017 was a company I didn’t even own shares in a year ago. My aim is to write more about those decisions and the lessons learned over the past twelve months in a separate article, where I will also provide further insight into my strategy for the year ahead.

In the meantime, I wish all readers and Twitter followers a

Happy Crimbo!
Simon (@BrilliantLeader)

 

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