Back in May 2012 when I last reviewed the performance of the Shareswatch Random Stocks Portfolio the S&P/ASX 200 (XJO) closed at 4165. On the 25th January the ASX 200 closed at 4835 which means the XJO has risen by around 13.85% since the last review. So it will be interesting (for me at least) to see how this randomly selected collection of stocks has been performing against this ASX 200 Index.
Before I look at the portfolio in detail I need to deal with some portfolio management & administration issues. Firstly Onesteel (OST) has undergone a restructure and is now known as Arrium Limited with the new ASX code of ARI.
Next Gunns Limited went into voluntary administration on the 25th September 2012 so the stock price shown in the portfolio is the last price it traded at.
Lastly the Shareswatch Random Portfolio is sitting on just under $50,000 cash thanks to the takeover of Riversdale Mining. My intention is to randomly select three more stocks for the portfolio ($10k in each) plus allow readers to pick the final one.
I will set the date for the acquisition of these new stocks for the portfolio to the 1st March 2013 with the cost price being the closing price for each stock on that day.
The “reader’s choice” stock for inclusion into the portfolio will be selected randomly from stock suggestions left in the comments area.
Now let’s see how the portfolio has fared since May 2012.
The drag on the portfolio when compared to the S&P/ASX 200 Index, which rose around 13.85% during the same period, was mainly due to:
– The amount of money being held in cash.
– The slump in MacMahon Holdings Ltd. shares. (ASX:MAH)
– Gunns being put into administration.
– The continued slide of the Arrium Limited (ASX:ARI) stock price. (formerly Onesteel)
On the plus side other stocks rose in value with Woolworths (ASX:WOW), Platinum Asset Management (ASX:PTM) and Monadelphous Group Limited (ASX:MND) posting solid gains.
MND shares in particular have had a good run as the chart below clearly shows.
Monadelphous (ASX:MND) 1 year stock price chart
Overall the portfolio is up 51.1% since October 2008 which isn’t a bad return and means it has on average, gained just over 10% per year. Remember dividends are not included in this figure as I assume that any income from these have been used for portfolio administration & trading costs.
So the open issue now is for readers to suggest which stock should be added to the portfolio from March, so please feel free to nominate any stock within the S&P/ASX 200 Index along with the reasons why you think the stock should be included. (just to make things more interesting!)
The Shareswatch Random Portfolio is a random selection of stocks from the ASX 200 range of companies. For further details regarding how it was constructed please see: The Random Portfolio
Greg Atkinson is the editor of Shareswatch Australia and the Managing Director of Ohori Capital. He is originally from Australia but currently resides in Japan. He can be followed on twitter via @GregAtkinson_jp