The Share Sleuth portfolio

Tue, 6th December 2016 - 23:44

BARCLAYS BANK (LSE:BARC) For what feels like an age, we've been mentioning 220p as a target for BARC and this week, it has finally obliged, reached target, and now closed above by a reasonable amount (226.75). It results in the situation where we must regard the main "top" on the new trend above 220 as being 250p sometime in the future.

Share Trading

Tue, 6th December 2016 - 23:44

BARCLAYS BANK (LSE:BARC) For what feels like an age, we've been mentioning 220p as a target for BARC and this week, it has finally obliged, reached target, and now closed above by a reasonable amount (226.75). It results in the situation where we must regard the main "top" on the new trend above 220 as being 250p sometime in the future.

Introducing Share Sleuth

Long-term value investing

Share Sleuth is a model portfolio exposed so you can see every statistic, every piece of research, and witness every decision as it happens.

Jump to: Objective | Portfolio | Who is Share Sleuth? | Performance

Strong businesses at attractive prices

The portfolio invests in stable trustworthy firms at attractive prices that can reasonably be expected to maintain or increase profitability over the long-term (at least five years). Strong finances indicate past success, high levels of profitability suggest current strength, and strategies that promise to differentiate companies in ways customers value promise future prosperity. The aim is to hold these shares for as long as they meet Share Sleuth’s criteria of trust and stability. Preferably forever.

Sometimes Share Sleuth may add shares in companies that are more susceptible to change. Economic downturns, competitors and poor managers push such companies around. They may perform well for years and then shock investors when conditions change. The trick to investing in susceptibles is to add them when they are undervalued, but strong enough to survive, and eject them when conditions are at their most favourable.

Portfolio and targets

The heart of Share Sleuth is a spreadsheet (below). It contains a simple financial model for every share in the portfolio, every target under consideration, and a decision engine that ranks the shares so the best long-term investments, stronger companies at more attractive valuations, are near the top

The company names on the summary page link to analysis for that company.

Who is Share Sleuth?

Richard Beddard, an editor at Interactive Investor since 1999, has managed the portfolio since he started it in 2009. He’s a private investor and columnist at Money Observer magazine. This interview reveals more...

You can contact Richard by commenting on his analysis, joining him on Twitter or emailing richard.beddard@iii.co.uk.

As these are Richard’s best investment ideas, he owns many of the shares. He doesn’t buy or sell shares on his own account within a week of writing about them and he informs Interactive Investor’s editor when he profiles a company he owns, in line with the Press Complaints Commission’s code of practice.

He won’t profit from short-term price movements that might result from something he’s written.

Long-term performance

Performance is measured scrupulously after charging £10 in lieu of broker fees for every transaction and 0.5% stamp duty on additions to the portfolio. Transaction prices are actual prices quoted by a broker including the cost of the spread. Uninvested cash earns no interest.

Over any five year period the portfolio should earn a positive real return and beat the stockmarket average as represented by a FTSE All-Share tracker fund with dividends reinvested, hopefully by a considerable margin. This is how Share Sleuth did in its first five years, to 9 September 2014.

About the author

Richard is companies editor of Interactive Investor and a columnist at Money Observer magazine. A keen private investor through his Self Invested Personal Pension, he manages two virtual portfolios. The Share Sleuth portfolio is a hand-picked collection of mostly small-cap value shares, while the Nifty Thrifty is a mechanical portfolio designed to pick large, successful companies at cheap prices.

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