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It was seven years ago that I left a tenured professorship to concentrate on investment. At the time the FTSE 100 was around 6,600. The market as a whole has not exactly moved in a positive direction over those seven years (although there have been dividends of around 3-4% per year).
Given the headwinds I suppose I can be reasonably pleased with my performance so far, especially in light of the fact that my approach – deep value – generally has not done well in an era of great excitement about growth companies. I remain convinced that value investing will have many years in the future when it out-performs growth investing across the market, giving a nice tailwind to help future portfolios along.
Even without a boost from rising indices, a deep value strategy can perform well, as the tables below show. These are results (so far) of all the shares bought for the portfolios I’ve been writing about in my Newsletters.
The comments I made at the time explaining the rationale for each investment are available for you to read in older newsletters – there is nowhere for me to hide from my appraisals made three, four or seven years ago.
I present the returns after taking the hit on broker costs, stamp duty and bid/offer spread.
(Some of you have joined us recently so, in case you are not familiar with them, I briefly describe the criteria for my portfolios following the portfolio performance tables.)
The 2013 NCAV portfolio
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| French Con. | 25.7.13 | £0.3047 | zero | Sold July 2015 £0.4378 | 44% | ||||
| Caledonian T | 25.7.13 | £0.70 | zero | Sold April 2020 for £1.391 | 99% | ||||
| Fletcher King | 6.8.13 | £0.30 | 14.25p | Sold June 2016 for 46p | 101% | ||||
| Northamber | 22.8.13 | £0.287 | 1.6p | Sold Oct 2016 £0.303 | 11% | ||||
| Titon | 5.9.13 | £0.379 | 6.5p | Sold May 2016 £1.06 | 197% | ||||
| Mallett | 12.11.13 | £0.7682 | 12.7p | Sold Nov 2014 £0.60 | -5% | ||||
| AVERAGE | 75% |
The 2014 NCAV portfolio
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| Holders Tech | 10.10.14 & 3.11.14 | £0.47 | 1p | Sold March 2017 £0.33 | -28% | ||||
| Airea | 4.11.14 | £0.1195 | 0.9p | Sold Sept 2016 £0.309 | 166% | ||||
| Northamber | 17.11.14 | £0.4265 | 0.7p | Sold Oct 2016 £0.303 | -27% | ||||
| Caledonian T | 30.12.14 | £1.39 | zero | Sold April 2020 for £1.391 | 0 | ||||
| AVERAGE | 28% |
The 2015 NCAV portfolio
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| PV Crystalox | 15.1.15 | £0.122 | zero | Sold Dec 2016 £0.237 | 94% | ||||
| Arden Partners | 1.9.15 | £0.422 | 1p | Sold May 2018 £0.364 | -11% | ||||
| Northamber | 4.9.15 | £0.443 | 0.4p | Sold Dec 2016 £0.303 | -31% | ||||
| AVERAGE | 17% |
The Buffett-style portfolio
This type of share is rarer than the others, and so I combine all years.
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| Dewhurst | 9.4.14 | £3.18 | 70.5p | Sold February 2020 £7.217 | 149% | ||||
| MS International | 9.10.19 | £1.723 | 3.5p | £1.05 | -37% | ||||
| Character | 20.1.20 & 5.6.20 | £2.811 | 15p | £3.16 | 18% | ||||
| AVERAGE | 43% |
(I bought some more of Dewhurst in June 2014 at £3.11, December 2014 at £3.75, November 2017 at £5.46, February 2019 at £5.54 and April 2019 at £5.64.).
Modified price earnings ratio portfolio 2015/16
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| Haynes | 11.2.15 | £1.159 | 33.5p | Sold 2.10.19 £2.9175 | 181% | ||||
| AGA | 11.3.15 | £1.002 | zero | Taken over June 2015 £1.456 | 45% | ||||
| Hogg Robinson | 10.4.15 | £0.4709 | 2.37p | Sold June 2016 £0.656 | 44% | ||||
| MS International | 3.7.15 | £1.86 | 36p | £1.05 | -24% | ||||
| BHP Billiton | 24.9.15 | £10.43 | 127p | Sold May 2018 £16.90 | 74% | ||||
| TClarke | 5.11.15 | £0.7916 | 13.61p | Sold Feb 2020 £1.1215 | 59% | ||||
| Premier Farnell | 8.4.16 | £1.222 | 3.6p | Taken over 20.6.16 £1.632 | 36% | ||||
| AVERAGE | 59% |
The AGA holding was doubled 30 April 2015 at a price of £0.9466.
Modified price earnings ratio portfolio 2017
| Company | Purchase date | Purchase price | Divs to 30 September 2020 | Price 30 September 2020 | Return to 30 September 2020 | ||||
| Braemar | 28.6.17 | £2.848 | 20p | Sold June 2018
£2.639 |
0% | ||||
| Caffyns | 10.8.17 | £5.012 | 52.5p | Sold 17 July 2020 £2.389 | -42% | ||||
| Connect | 27.9.17 | £1.046 | 10.8p | £0.185 | -72% | ||||
| MS Intern | 14.11.17 | £1.84 | 20p |
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