| Some Of My Golden Oldies

29th Jul '23 by Mark Carter

2 comments 771 reads

(Sorry for the brevity, my previous post got knocked out inadvertently).

So, I decided to have a look at the returns I made on shares I've held for at least 5 years. One was bought in 2015 (DPLM), and the rest were in 2017 and 2018. Here's the results: Diploma (LON:DPLM) +347%, IG group (LON:IGG) -5.6%, Morgan Sindall (LON:MGNS) +46%, Oakley Capital Investments (LON:OCI) +170%, Sylvania Platinum (LON:SLP) +283%.

I don't need to compare it with the indices at the time to figure out that my longer-term holdings have trounced them, except IGG. I consider myself a mediocre investor, so I was quite surprised at how well I had done. It is leading me to think that a longer horizon is a better way to go, at least for me.

My shorter-term holdings have been decidedly mixed, however, and I am somewhat deflated by their performance. The picks I gave back in late May for underperformed the market, for example.

Now, if only Stockopedia would bring back Fantasy Funds, I might be tempted to run a model portfolio.

Unlock with Email

Unlock with Google

Already have an account?
Login here

BnB

29th Jul '23

Focusing on stocks that you have kept the longest is somewhat self-reinforcing, where performance is concerned. It might be more revealing to look at the performance of stocks you sold since selling them. Have any multibagged?

I believe in picking quality names and letting them run. So far, Diploma is a big winner for me too.

Mark Carter

Have any multibagged?

Yes. Oh, the lamentation! I held JD Sports Fashion (LON:JD.) for awhile as it was a value stock. I made what I thought was a nice gain (I don't have records, as it was a long time ago). The shares would have gone on to perform much, much better. Judges Scientific (LON:JDG) was another one. I banked some small gains, but the shares have gone on to make stellar returns since I sold them.

I did hold Greggs (LON:GRG) for a brief spell. I think I actually managed to lose money on those. In retrospect, I was really dumb in selling those shares, as I knew it was a good company.

I probably should have kept Smith & Nephew (LON:SN.), too. I bought when they were pretty cheap and they had quite good returns on capital. I read an opinion that was critical of management, and it phased me out of the shares. Taking a quick look at them now, I see that their returns on capital are only so-so, their dividend raises have been mediocre, and they have too much debt for my liking. So it's not a share that I'd be interested in buying now.

A lot has gotten lost in the mists of time, and some of my sells have been "meh", being a mixture of right and wrong. Some of my sells have been great calls, though. One that springs to mind is MicroFocus. It was a great little business with juicy returns on capital. I did well on them, but then they started making fancy acquisitions and the debt was more than I was comfortable with. I sold. The price still went up after I sold, but eventually crashed back down. It was a difficult decision for me to make, but it ultimately proved to be the right one.

So, yes, I take your point that some of the shares I've sold have gone on the perform magnificently. And this is part of the reason that is motivating me to adopt a longer-term horizon. Rather than say, put down money in Tesco (LON:TSCO). What a dog that was.

Some of my golden oldies

Unlock the rest of this article with a 14 day trial

About the Author

Mark Carter

2 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...