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What does the portfolio look like after the first 6 parts of this series?
(The values are in GBP since its the base currency of this portfolio)
Since 14th Feb 2022, the portfolio is up 1.36% while the benchmark in down 3,92% in the same period.
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This is broadly due to two reasons:
While the base currency of portfolio is GBP, all of the cash is in USD and a rise in the Dollar has a positive impact on the portfolio.
While this series began on 14th Feb, portfolio purchases were made last week, the timing was in favor of the positive performance in the portfolio.
I call this beginners luck and in my opinion, as time progresses, luck generally runs out and skills are what brings a positive impact to the portfolio.
Asset Class distribution:
Equities 14.5%
Fixed Income 35.1%
Cash 50.4%
As I had mentioned, the portfolio out performance was largely due to currency movements (Cash has the largest positive contribution while equities and fixed income are flat).
This is the non cash component of the portfolio:
Google (shortlisted from the 2nd part of this series, Emerson Electric (from the 3rd and 4th parts of this series) and Infineon (from the 5th part of this series) have similar exposure (~5% each in the portfolio) among equities.
The UK Gilt, maturing in Sept 2024 (from part 6 of this series) has a 35% weight on the portfolio. With a yield of nearly 3.9% per annum, this is the only purchase I am considering in fixed income currently.
To sum up: four additions to the portfolio, 15% equities, 35% fixed income. The portfolio is up 1.36% while the benchmark in down 3,92% in the same period. I will continue to add equities to the portfolio in the forthcoming parts of this series.
This is investing, not rocket science. In part 7, I will look at automotive stocks.
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