A lot has happened since the last review of the Shareswatch Random Stocks Portfolio in January with the S&P/ASX having risen from just under 4800 to around 5400. That’s a gain of about 12% so it would not be unreasonable to expect the portfolio to have also posted a good gain over the same period.
First a few housekeeping notes. In January the portfolio had around $47,000 in cash so after input from some readers and one random selection, 4 more stocks have been added. The random selection was TEN Network Holdings Limited (ASX:TEN) with the others being National Australia Bank (ASX:NAB), Westfield Group (ASX:WDC) and AWE Ltd (ASX:AWE).
These stocks were added on the 1st March with the purchase price for each new stock being the closing price on that day.
Of the 4 new stocks included in the portfolio only the National Australian Bank has posted a gain with the other new holdings in the red so far.
Overall the value of the portfolio has slipped backwards and is now up 37.72% whereas at the end of January it was up 51.10%. This means that the Shareswatch Random Stocks Portfolio has actually slipped back by almost the same amount (in percentage terms) as the ASX 200 Index has risen or in other words it has under-performed the S&P/ASX Index by more than 20% since the last update. Ouch!
In terms of details the closing prices for each stock and the total market value as of the 11th November is show below.
Of course the three new stocks added in March that are in the red haven’t helped much either.
Monadelphous Group Limited (ASX:MND) 1 Year Chart
On the bight side Challenger Limited (ASX:CGF) has had a good run and is now up 314% and Woolworths (ASX:WOW) has been behaving like a growth stock recently and has risen by around 10% since January. Platinum Investment Management is also on the rise and is now up 57%.
Woolworths Limited (ASX:WOW) 1 Year Stock Price Chart
Generally speaking the financial & consumer related stocks in the portfolio are up and the industrial & resources related stocks are down. One notable exception to this is Coca-Cola Amatil Limited (ASX:CCL) which has slipped back a touch since January.
So in summary the value of the portfolio has fallen since January, but it is still up by around 37% despite the receivership of Gunns Ltd. and the poor performance of Arrium (ex-Onesteel) and MacMahon Holdings. Also we need to keep in mind many of the stocks in the portfolio pay out dividends which would easily bring in a $1000 a year or so.
What the next 6 months or so will do to the portfolio is anyone’s guess, so if please feel free to share your views regarding this along with should be done with the $7k in cash. Maybe it’s time to invest in a speculative higher risk stock or maybe diversify into gold even?
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