Nifty Thrifty Portfolio
The money-making concept behind the new Money Observer Nifty Thrifty portfolio is detailed in the June 2010 edition of the magazine. Its genesis is derived from the US Nifty Fifty – the 50 shares that investors could not afford to exclude from their portfolios in the late 1960s and early 1970s.
Unlike the Nifty Fifty, however, our Nifty Thrifty portfolio will be built using far more sound investment principles. Over the next 12 months we will pick 30 UK-listed companies (with a market value of more than £500 million), using an algorithm that assesses three key criteria: value, as measured by the earnings yield; profitability, measured by return on capital; and financial strength, measured by Petroski’s F_Score.
The first 14 shares in the portfolio are listed below and you can discover why we have added them in the July edition. The starting date for the portfolio is 1 June 2010.
We are assuming an equal apportionment into each share and for our purposes this is £1,000. The opening value takes into account stamp duty and the £10 dealing charge levied by our sister website Interactive Investor. Clicking on each share’s link will take you to the Interactive Investor website to allow you to find out more details about the company in question.
We will add the next tranche of shares in early September and the last tranches in December 2010 and March 2011. In June 2011 we will sell the shares we’ve held for a year and replace them with those ranked most highly by our formula.
TODAY: Friday 03 September 2010
TIME: 21:13
|
| Name | Shares / Units | Cost | Current Value | Profit / Loss |
|---|
| AMEC (AMEC.L) | 124 | £8.0242 | £1,173.04 | +178.04 (+17.89%) |
| Babcock International Grp (BAB.L) | 172 | £5.81 | £909.88 | -89.44 (-8.95%) |
| Balfour Beatty (BBY.L) | 384 | £2.609 | £945.02 | -56.83 (-5.67%) |
| Carillion PLC (CLLN.L) | 308 | £3.24 | £967.43 | -30.49 (-3.06%) |
| Cobham PLC (COB.L) | 426 | £2.347 | £935.07 | -64.75 (-6.48%) |
| De La Rue (DLAR.L) | 109 | £9.165 | £769.00 | -229.99 (-23.02%) |
| London & Stamford Property (LSP.L) | 804 | £1.244 | £912.54 | -87.64 (-8.76%) |
| MITIE Group (MTO.L) | 431 | £2.318 | £881.83 | -117.23 (-11.73%) |
| Next PLC (NXT.L) | 47 | £21.192 | £964.91 | -31.11 (-3.12%) |
| Regus PLC (RGU.L) | 1,118 | £0.894 | £822.85 | -176.64 (-17.67%) |
| Rotork PLC (ROR.L) | 73 | £13.603 | £1,183.33 | +190.31 (+19.16%) |
| Spirent Communications (SPT.L) | 909 | £1.099 | £1,194.43 | +195.44 (+19.56%) |
| Ultra Electronics Holdings PLC (ULE.L) | 62 | £16.097 | £1,073.84 | +75.83 (+7.60%) |
| Yell Group (YELL.L) | 3,064 | £0.326 | £513.22 | -485.64 (-48.62%) |
Current value calculated using data at least 15 minutes delayed. Source: Interactive Investor.
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