Folio Management | SIPP Investing – Buying-in Strategy

12th Jun by Jean_Michel

5 comments 412 reads

I’m a fairly recent subscriber who has found Stockopedia immensely helpful and informative. It such a valuable resource, and well worth the fee. And everyone seems very nice here! I’ve become a regular listener to Paul Scott’s excellent podcast.

With the buttering-up out of the way, I am seeking some wisdom from those more experienced than I am...

After months of form-filling and hoop-jumping, I’m edging ever closer to getting my hands on a lump of money from and old pension pot, transferred into a new SIPP with interactive investor.

I have an existing ISA, which I’ve run for some years, adding to existing holdings, and taking out new positions, in dribs and drabs, as finances and bonuses allow.

But as I’m about to have six figures to invest into the SIPP, the amounts I’ll be investing are going to be rather bigger than I’m used to, and in a shorter timescale.

My plan is to gradually buy-in to my chosen stocks as opportunity occurs. I’ll have Level 2 (ii offers a monthly subscription) although am not fluent and still need to get my head around it properly.

I’m not in a massive a rush to get fully invested, and am envisaging a period of several weeks or months to build positions of around £5-10k each. I’m also planning on keeping 10% in cash, for unknown future opportunities that might come along.

So, the wisdom I’m seeking is if I’m missing anything from a basic strategy of simply buying-in over a period of time? I’ll have a few sturdy large caps, but mostly mid and small caps, although nothing hugely illiquid.

Any wisdom would be very gratefully received!

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The Phoenix

12th Jun

Just my opinions avoid anything sub £150 mil market cap as generally to illiquid, try and keep spreads to max 2%, avoid blue sky, avoid loss makers, avoid big debt, generally avoid most aim listed stocks.

Try and find companies that increase dividends every years and make sure dividends are covered, I fish in the 250mil - 1.5 bil market caps pond. Keep an eye on what the ftse 250 index is doing if its weak as it was Jan 2022 - Oct 2023 act defensively ie don't go all in when market down trending.

When it perks up Oct 23 to present scale in maybe over 2-3 purchases to complete full position sizing but you will need to be confident to do this quickly as the big market moves normally happen over 3-6 months.

Unless you can do this full time don't have to many different stocks as I find any more than twenty is difficult to keep on top of.

If after 2-3 years your not out performing the likes of S&P 500 and funds like Rathbones Global Opps ask yourself why you are bothering and put together a portfolio of investment trust maybe 15-20 including a gold etf for diversification.

This game is super hard I work in the wealth management industry and would guess less than 5% of private investors out perform the market consistently.

I went to a meeting today with a lady who co-chairs a fidelity european investment trust from memory its averages out at 17% per annum so again if your not confident of getting 20-25% per annum your probably better putting together a trust portfolio.

I love this game and the research that goes with it but after 20 years of learning and fine tuning I am on par with most good fund managers so my thinking is I might as well put together a trust portfolio rebalance six monthly and put the 15-20 hours per week of researchinto something else that I might be more successful at.

Hopefully this doesn't discourage you as there are some brilliant traders on the Stocko boards who are willing to share and help but be under no illusion this is a super hard game to master and get into that 5% that consistently outperform.

Regards

Andy

GloucesterBob

13th Jun

I used to find the "winning" share, invest my 10k and duly watch it go down, panic, sell and repeat.

I then discovered Roland's SIF portfolio on here where if a share matches his criteria he will hold for at least 9 months. Tweaking this slightly, I now buy a share over 9 months, i.e 2k initial, then 1k for the next 8 months, taking advantage of AJ Bell regular monthly buy for 1.50.

I have missed some rapid gains but also avoided large losses as I work out what the share is doing over a period of time.

The key is to find the right shares, the screens here are wonderful and tweaking those to suit is easy.

rmillaree

if you do venture down the american shares route factor in any curreny translation costs - i hold a few us shaes in my sipp as there are extra tax benefits ref us taxes (if broker plasy ball) - so i try and have a kitty of us money where i rarely move between usd and pounds and try and keep most invested in something us - unlike an isa you can hold currency so sipps trump isa for us shares from my point of view .

note if the pound or dollar is particulary weak or strong i may move cash across one way or the tother (say above 1.35 or 1.10 or less move back) - i aint bought anything us recently as the exchange rate has been lower than i would like - perhaps i need to face facts i may never see 1.35 again.

Jean_Michel

Thanks so much Andy, that's really helpful.

My ISA investing has been going pretty well since I’ve been doing that (and up a pleasing 25% so far this year), helped recently by all the Stockopedia resources.

I’ve got to the point where I figure I can probably do at least as well by being hands-on with a SIPP, rather than leaving the cash in the sleepy ex-company pension pot where it was sitting doing not-very-much each year.

I have other eggs in other baskets so my plan is to have a bit more fun with the SIPP investing, and see where that takes me. Time will tell!

Naturally this will be the point where everything goes to pot...

ezlifeme

Hi Jean, that’s exactly how I treat my SIPP. I adopt a different profile when investing it. wouldn’t quite say have “have a bit more fun” bbut I try and stretch my risk profile investment choices ( a little)

ATVB with your investing

SIPP investing – buying-in strategy

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Jean_Michel

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