My mates portfolio tactic.
My mate sticks 60 quid in each pay day. Buys a top 10 tracker and then with any money left over and dividends earnt he then buys the player making him the best return per share.
Next month will be his 6th month.
He’s around 11% up.
He plans to market sell everyone in the 6th month. Buy a top 10 tracker then lump the 6 months worth of pennies into the best return - so looks like Neymar.
What do people think of this strategy?
He just uses this as a savings account and doesn’t do any trading as such.
Think it's a weird strategy and he must be losing lots at the moment, probably everyone in the 10 have been dropping with some having huge falls in that time. Owning 6 of each shares isn't going to make the dividends worth it either. I'd be surprised if he's earned enough divs to buy 1 Neymar yet
Agreed very weird. I got 80% Roi with better tactic. Buy outside main leagues the top guns like de ligt frenkie de jong isak odegaard barbosas eiting doan etc and when they go in the main leagues they go booming!
He says as it stands now:
Portfolio Value £400.15 Balance of £3.67 so that's £403.82
He's had £14.75 in dividends.
So my calculations are 12.17% ROI in total, so thats around 4% divs and 8% CA ??
He says the reason for the 6 month things is due to keeping it fresh and he says even after the 2% commission he would be happy with a 10% increase.
He seems to think by selling up and re-doing the buying pattern he will have more chance of keeping the dividends coming in??? I sort of get it, but I like a bet and a gamble so it sort of doesn't work to my mindset.
But I suppose for someone who doesn't bet and can save 60 quid a month and gain 10% on it, it sort of works...he's never going to get rich, but I suppose as say an xmas savings kitty it works out at £720 in a year and maybe £72 commission (dividends call them what you will) its close on £800 a year saved.
I'll ask him for his port screenshot if anyone is interested.
He also only logs in once a month to deposit lol........
I’d imagine his first 3 months were a lot more successful then his last 3 months
If he is happy with his returns and lack of research required then fair play but with that level of investment I guarantee he could make far better returns in the sub £1 market with half an hours research every week or so.
I've no doubt he could make more, but for a low maintenance strategy it seems fair enough.
11-12% a year is much better than a savings account.
But I'd like to add a zero a month extra on what he's putting in & maybe that pays for the Xmas presents once a year.
@Milnerman is he selling them up each month and rebuying?
If anything, right now is probably the right time to do this with the top 200 prices relatively cheap he is effect shorting any losses as getting into a good position for when the recovery comes.
No. He’s planning on clearing out in total after 6 months and staraeting over. It using his pot of cash on his best doc returner so to speak.
I have actually said why not sell any that have dropped out the top 10 after the six month period and use that to top up on his best performer.
Probably wiser to expand at the moment... Same strategy and hands off approach but buy a top 100 instead of top 10
Why would you suggest top 10 please? And not maybe top 25 and or 50.
Also I wonder how long it would take to sell the complete port?
He's sent me his current port - below is how it looks.
You see if I was doing it, I would flog everyone apart from Neymar, save the coin and then next pay day stick the usual £60 in, then buy in bulk whoever his top dog would be (most prob Neymar) and rinse and repeat that every 6 months.
A tracker 25 and a tracker 50 and then the rest of Neymar but keep Neymar, then resort back to his buy a tracker 10 and any left overs on best divs returner......he wants to keep it simple and just log in once a month.
@Milnerman in general the top 100 is always rising. Recently there's been a dip but it's mostly the top 20. When things turn positive again he can sell some and consolidate back to a top 10...or just neymar. 30% of my port is Neymar ☺
@Milnerman I'm a newish user on here ,so I might be wrong, but looking at that portfolio, he's up a few quid, but he'll be out of pocket selling all those after commission and selling price surely. Or am I wrong?
2% commission on current sales prices should see him come away with around £390.00, so he should still be around £30 quid up in total.
Then start over again lol.
Looking at people's feedback, If I was him I would sell up, then next pay day sink 60 quid in and buy whichever tracker he could afford (most prob a top 10) rinse and repeat for another 6 months.
@Milnerman are u doing the commission on the total or player by player... Kane for instance is at break even after commission pretty much.
@Vespasian32 I just did total current value /100 *98
He said he's just leaving it as it is.....I might actually sell up my port and buy some 100 trackers.
I'd have £3k if I sold at current price minus the 2% commission.
This is my port, if I sold and got £3k i'm around £800 up in total.
He's my port.
@Milnerman but it cost him £397.38 so that's a loss
@Incolrabaaz sounds like some of that cost is from reinvestment. the initial depost was 360.
@Vespasian32 surely its almost 10p in commission on Kane per share, so a loss of 6p per share ?
@Munchie63 my comment referred to his mates port - where kane is 10 p up per share but would cost tht in commission.