A year ago I presented a specimen portfolio of six shares that I held in my portfolio that were of high quality, reaonably priced, and thought could do well. You can find the original post here: https://www.stockopedia.com/co...
How did I do? Not bad, as it happens. The resulting gains are as follows: CCC 2378 →2806 (+18.0%);
CWK 3310 →4430 (+33.8%); IG 700 →788 (+12.6%); MACF 107 →124
(+15.9%); OCI 468 →485 (+3.6%); RNWH 735 →1056 (+42.3%).
That is an average return of 21.0%, against the ASX (All-Share Index) of
4228 →4560 (+7.9%), for an outperformance of 13.1%.
Don't I just wish I could get those returns every year! So, a 21% overall return, outperforming the index by 13.1% is a result that I am more than happy with. The only underperformer was OCI.
I did say at the time "How much cheaper do you want this stuff anyway?" We had shares on low PE ratios (MACF was on 9.1, for example) or very reasonable ratios. MACF is still on an undemanding ratio of 10.1. Another share particularly worth mentioning is IGG. I said that it was a P/FCF of 5 with a ROCE of 28%. There were a lot of concerns that the shares had gone ex-growth, and much negative news surrounding it. There has been some board room changes, and investors seem a bit more positive on the company. It's trading on an EV/EBITDA of 6, which is still a low rating.
Let's check out the current PEs of the company: CCC 15.4, CWK 17.5, IGG 7.8, MACF 10.1, OCI PBV 0.71, RNWH 15.8.
None of those valuations look frothy, although CWK might be a little bit more than what you'd want. IGG, MACF and OCI are in value territory. The NAV of OCI hasn't progressed very much, as I recall, so folks may be a little down on it. Director purchases in OCI have been impressive. So far, this year, directors have made purchases of over £2.5m. Even larger purchases were made in 2023. Sometimes you have to endure a little sluggishness.
I still own all the shares listed.
I won't do a new list, as I did one near the end of March here: https://www.stockopedia.com/co... So if you're looking for ideas, you might want to check there. They, again, represent quality companies at a reasonable price. The portfolio is is beating the ASX…
