Portfolio Update #5: £6k Milestone + Consolidating My Portfolio

 




Update: Consolidating My Portfolio.

This week I decided to sell four of my twelve stocks in order to focus on eight stocks within my areas of competence. These eight positions are the only ones – with the exception of an ETF in the future – that I'll be investing in for the foreseeable future.

The inspiration behind consolidating my stocks came from Peter Lynch. He mentioned in an interview a while ago that sometimes diversification can really mean "di-WORSE-ification. In other words, one shouldn't blindly throw money into companies they don't understand well. 

It's for this reason that I decided to invest in 8 companies I understand well, and can consistently invest in for the next 20+ years every week.  

I believe a few of my stock picks, including $LEG, $C & $KHC are greatly undervalued right now, so extra capital in these picks will realize greater gains for me in the future. 


Stocks Sold:
I sold the following stocks for a total of ~£2,200: $LMT, $T, $BIG, $BMY & $DX


Stocks Bought: 
From the £2,200 sale above, I invested the amount equally (£225) across my new 8 core holdings (shown below under "My portfolio"). Besides this rebalancing of capital, this week I'll be investing my weekly £50 deposit into the following stocks:

  • £10 - $KHC
  • £10 - $C
  • £10 - $LEG
  • £10 - $EPR
  • £10 - $TD

My Portfolio (8 holdings):
  • $C 
  • $KHC
  • $LEG
  • $O
  • $MAIN
  • $TD
  • $EPR
  • $TTE

Portfolio Value (January 18th, 2020):
£6,029


Dividend Income (including 15% tax)
  • Yearly: £210
  • Monthly: £17.5
  • Daily: £0.57 


You can track my income growth by week here. 






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