Friday, December 31, 2004
Artful Dodger earns 13% return in 2004
At 1p.m. this afternoon the London Stock Exchange closed for 2004. The oft-quoted FTSE 100 index closed for the day at 4,814 points, sealing a 7.5% advance from the start of the year. My portfolio ended the year showing a respectable 13% gain, pushed higher by Ben Bailey's continuing advance, closing at 422p to sell.
Portfolio standing at 31/12/04:
Ben Bailey, 20/02/03 at 178p (422p)
Ben Bailey, 21/06/04 at 390p (422p)
Chaucer Holdings, 06/10/03 at 42.88p (48p)
Chaucer Holdings, 06/04/2004 at 54.75p (48p)
Dana Petroleum, 20/11/03 at 223.75p (417.5p)
Mayborn Group, 15/03/04 at 282p (258p)
+ cash holdings
Return for the year: +13%
This is a resounding victory. My efforts, time, stresses and exertions over the year have been rewarded, the return achieved is significantly in advance of what a risk-free investment in a building society account or gilts would have produced. Furthermore, my decision to manage my own funds rather than invest my cash in a market tracker has been vindicated with a 5.5% outperformance.
However, I'm bitterly disappointed with the return achieved this year. Much larger gains were expected from the positions I took in my portfolio. Ben Bailey has finished 2004 only a paltry 2.9% ahead from the start of the year, Chaucer has managed an even more mediocre 2.1% rise. Dana Petroleum has been the true hero of the portfolio posting a 69% rise from the start of the year.
Portfolio performance was hampered by three key lapses in the year: my indolent failure to sell Ben Bailey at 480p following final results being the most idiotic. This would have freed up a large amount of cash that could have been invested amongst several of the opportunities I was unable to capitalise on in the year due to a lack of funds. My decisions to buy a second tranche of Chaucer shares at 54.75p and opening a position in Mayborn at 282p were rash and impatient lunges for profits that never materialised. At the end of the year both positions sit underwater, weighing down performance and returns like a couple of tonnes of flotsam tangled in a trawler's nets.
However, some decisions this year have proved particularly profitable.
Buying more Ben Bailey shares at 390p when sentiment towards the housebuilding industry turned bearish was well-disciplined, brave and well executed. At today's closing price, this aditional purchase is showing an 8.2% advance and has made a significant contribution to the year's returns.
October and the Atlantic hurricane season presented a test of nerve as shares in Chaucer holdings fell to 40p to sell. The early indications from the industry showed losses would fall within budget and the disasters would serve to increase insurance rates further in the future. Chaucer remained dirt cheap and I held on like a limpet in a whirling vortex to see the shares finish the year 10% higher at 48p.
Here's to 2005.
The Artful Dodger
Portfolio standing at 31/12/04:
Ben Bailey, 20/02/03 at 178p (422p)
Ben Bailey, 21/06/04 at 390p (422p)
Chaucer Holdings, 06/10/03 at 42.88p (48p)
Chaucer Holdings, 06/04/2004 at 54.75p (48p)
Dana Petroleum, 20/11/03 at 223.75p (417.5p)
Mayborn Group, 15/03/04 at 282p (258p)
+ cash holdings
Return for the year: +13%
This is a resounding victory. My efforts, time, stresses and exertions over the year have been rewarded, the return achieved is significantly in advance of what a risk-free investment in a building society account or gilts would have produced. Furthermore, my decision to manage my own funds rather than invest my cash in a market tracker has been vindicated with a 5.5% outperformance.
However, I'm bitterly disappointed with the return achieved this year. Much larger gains were expected from the positions I took in my portfolio. Ben Bailey has finished 2004 only a paltry 2.9% ahead from the start of the year, Chaucer has managed an even more mediocre 2.1% rise. Dana Petroleum has been the true hero of the portfolio posting a 69% rise from the start of the year.
Portfolio performance was hampered by three key lapses in the year: my indolent failure to sell Ben Bailey at 480p following final results being the most idiotic. This would have freed up a large amount of cash that could have been invested amongst several of the opportunities I was unable to capitalise on in the year due to a lack of funds. My decisions to buy a second tranche of Chaucer shares at 54.75p and opening a position in Mayborn at 282p were rash and impatient lunges for profits that never materialised. At the end of the year both positions sit underwater, weighing down performance and returns like a couple of tonnes of flotsam tangled in a trawler's nets.
However, some decisions this year have proved particularly profitable.
Buying more Ben Bailey shares at 390p when sentiment towards the housebuilding industry turned bearish was well-disciplined, brave and well executed. At today's closing price, this aditional purchase is showing an 8.2% advance and has made a significant contribution to the year's returns.
October and the Atlantic hurricane season presented a test of nerve as shares in Chaucer holdings fell to 40p to sell. The early indications from the industry showed losses would fall within budget and the disasters would serve to increase insurance rates further in the future. Chaucer remained dirt cheap and I held on like a limpet in a whirling vortex to see the shares finish the year 10% higher at 48p.
Here's to 2005.
The Artful Dodger
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