It’s not often that I make some sort of announcement about which shares I think will do well in the short term, but in 2012 I’ve made an exception. At the end of last year, Philip “the Irish Zero Hedge“ O’Sullivan had the idea of putting together a “share tips for 2012″ derby, between a few of us online commentators, including Expecting Value, Wexboy and Mcturra2000.
So what did I pick?
Well, originally I had two lists, which is sort of cheating. However, at this half-way point I’ll be dropping one of the lists, which was a bunch of small-cap, low price to book type companies which I’m really not interested in at all now. For me it’s all about quality, quality and more quality (and a low price of course).
My selection criteria was simple. I just picked the 12 highest ranking shares that my investment screen was showing at the time.
The high quality, low price list, as it stands today, looks like this:
The gain/loss figures are year to date. The FTSE 100 performance figures are from Google Finance. RWD is highlighted in red because it was taken over by Muller (of rice fame) at a handy 50% plus profit. The gain/loss figures are excluding dividends, so I’ve included a list of the yields too.
On this very simple basis, excluding trading costs like commission and bid/ask spreads, the portfolio has done well, beating the market by over 8% in capital gains and has a yield more than 2% higher too. That’s good, but of course as a long-term investor I have to say that this sort of short-term outperformance is meaningless noise – but beating the market still makes me happy, meaningless or not.
The performance in comparison the the FTSE 100 looks like this:
Note the slightly different performance number for the FTSE 100; it’s -0.9% rather than -2.5% in the table. I think the table (from Google Finance’s main page) is looking at the FTSE to the close yesterday, whereas the chart above from their portfolio tool is looking at it to now. So because we’ve had 1%+ moves in the last day or so, that’s something to do with it.
Either way the portfolio, picked blindly from my screen, has faired well so far. We shall see what the rest of the year has in store.