The money-making concept behind the Money Observer Nifty Thrifty portfolio was initially 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 is built using far more sound investment principles.
Over 12 months we have picked 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 Piotroski’s F_Score.
The first 14 shares in the portfolio were detailed in the July 2010 edition of Money Observer and four more shares were added on 1 September. Imperial Tobacco, WH Smith, Debenhams and Compass were added on 1 December. On 2 March the final eight shares were added: AstraZeneca, BAE Systems, Centrica, Dragon Oil, Drax, Logica, Rio Tinto and Unilever.
The annual review on 1 June 2011 re-assessed the portfolio's first 14 shares. Only retailer Next survived; and 13 new shares were added: Antofagasta, Cape, Eurasian Natural Resources, Ferrexpo, Greggs, Howden Joinery, IMI, Inmarsat, Invensys, New Britain Palm Oil, Restaurant Group, Senior and Spirax-Sarco Engineering.
On 1 September 2011 we sold the shares we had held for a year and replaced them with those ranked most highly by the formula. As three of them were already constituents – BHP Billiton, British Sky Broadcasting and Halfords – only Atkins (WS) got the chop. It was replaced by software company Micro Focus International.
On 1 December we replaced Imperial Tobacco and Compass with Go-Ahead and Smiths Group, and £1,250 was invested in each of the newcomers.
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. The starting date for the portfolio is 1 June 2010. The next update will be on 1 March 2012.
TODAY: Sunday 05 February 2012
TIME: 04:16
|
Investment |
Return |
Profit / Loss |
% |
|
Holdings
|
30,000.00 |
31,084.73 |
+1,084.73 |
+3.62 |
|
Cash
|
|
8.00 |
|
|
|
Total
|
30,000.00 |
31,092.73 |
+1,092.73 |
+3.64 |
Above figures in UK pound sterling.
| Name |
Shares / Units |
Cost |
Current Value |
Profit / Loss |
|
Antofagasta (ANTO) |
83 |
£13.28 |
£1,156.19 |
+53.95 (+4.89%) |
|
AstraZeneca (AZN) |
33 |
£30.27 |
£990.33 |
-8.58 (-0.86%) |
|
BAE Systems (BA.) |
304 |
£3.29 |
£968.85 |
-31.31 (-3.13%) |
|
BHP Billiton (BLT) |
51 |
£19.33 |
£1,122.77 |
+136.94 (+13.89%) |
|
British Sky Broadcasting (BSY) |
138 |
£7.23 |
£966.00 |
-31.74 (-3.18%) |
|
Cape (CIU) |
208 |
£5.34 |
£888.78 |
-221.94 (-19.98%) |
|
Centrica (CNA) |
295 |
£3.39 |
£887.95 |
-112.10 (-11.21%) |
|
Debenhams (DEB) |
1,378 |
£0.726 |
£971.49 |
-28.94 (-2.89%) |
|
Dragon Oil (DGO) |
170 |
£5.88 |
£877.20 |
-122.40 (-12.24%) |
|
Drax Group (DRX) |
247 |
£4.03 |
£1,330.10 |
+334.68 (+33.62%) |
|
Eurasian Natural Resources Corporation PLC (ENRC) |
131 |
£8.44 |
£954.99 |
-150.65 (-13.63%) |
|
Ferrexpo (FXPO) |
242 |
£4.59 |
£866.12 |
-244.66 (-22.03%) |
|
Go-Ahead Group (GOG) |
101 |
£12.35 |
£1,296.84 |
+49.49 (+3.97%) |
|
Greggs (GRG) |
207 |
£5.37 |
£1,079.50 |
-32.09 (-2.89%) |
|
Halfords Group (HFD) |
197 |
£5.056 |
£642.81 |
-353.22 (-35.46%) |
|
Howden Joinery (HWDN) |
976 |
£1.138 |
£1,064.82 |
-45.87 (-4.13%) |
|
IMI (IMI) |
105 |
£10.54 |
£959.17 |
-147.52 (-13.33%) |
|
Inmarsat (ISAT) |
182 |
£6.09 |
£768.22 |
-340.16 (-30.69%) |
|
Invensys (ISYS) |
361 |
£3.08 |
£768.93 |
-342.95 (-30.84%) |
|
Logica (LOG) |
729 |
£1.37 |
£590.49 |
-408.24 (-40.88%) |
|
Micro Focus (MCRO) |
384 |
£3.18 |
£1,717.63 |
+496.51 (+40.66%) |
|
New Britain Palm Oil (NBPO) |
109 |
£9.27 |
£926.50 |
-83.93 (-8.31%) |
|
Next (NXT) |
47 |
£21.192 |
£1,301.90 |
+305.88 (+30.71%) |
|
Restaurant Group (RTN) |
368 |
£3.01 |
£1,113.57 |
+5.89 (+0.53%) |
|
Rio Tinto (RIO) |
23 |
£43.61 |
£914.82 |
-88.21 (-8.79%) |
|
Senior (SNR) |
718 |
£1.547 |
£1,324.71 |
+213.96 (+19.26%) |
|
Smiths Group (SMIN) |
130 |
£9.58 |
£1,322.10 |
+76.70 (+6.16%) |
|
Spirax-Sarco Engineering (SPX) |
55 |
£20.29 |
£1,140.15 |
+24.20 (+2.17%) |
|
Unilever (ULVR) |
54 |
£18.50 |
£1,093.50 |
+94.50 (+9.46%) |
|
WH Smith (SMWH) |
205 |
£5.00 |
£1,078.30 |
+53.30 (+5.20%) |
Current value calculated using data at least 15 minutes delayed. Source: Interactive Investor.
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