Investment case studies – Page 3

Why I’ve sold my shares in ICAP PLC

This is the story of how my investment in ICAP PLC worked out, including why I bought it, why I held it for almost 3 years and why I have now decided to sell.

Imperial Tobacco returns a stress-free 27.8% in just under 2 years

Imperial Tobacco is the epitome of a defensive company. It generates a steady flow of cash from millions of loyal customers who spend small amounts of their income on the company’s products every day, regardless of the state of the economy.

This investment in Greggs shares returned 30% in less than 2 years

In December 2012 I invested 3.4% of the UKVI defensive value model portfolio into Greggs PLC and also added it to my personal portfolio with a similar allocation.

Last week I sold those shares for an annualised return of 15.8% per year over that slightly less than 2-year period.

This short case study digs into some of the details of how the buy and sell decisions were made, and why a sensible investment strategy produced relatively good results rather than skill or luck.

Why I’ve sold my Royal Dutch Shell shares

While I always invest with the expectation of holding the shares for a number of years, it doesn’t always work out that way.

The stock market is a volatile and unpredictable place and sometimes what was attractively valued one day may look significantly less attractive just a few months later, and that’s pretty much what happened with this investment in Royal Dutch Shell PLC (RDSB).

Case Study: 3 Year investment in AstraZeneca PLC returns 17% per year

The Defensive Value Portfolio’s investment in AstraZeneca PLC has been an almost textbook example of how a strong, market-leading company can survive through tough times, and how patient and brave investors can sometimes get lucky.

Sold: Mears Group PLC shares return 91% over 3 years

Mears Group PLC is a bit of an undercover defensive. It’s not a company that gets much attention among investors (at least those that I know), and yet it has a fantastically successful track record.

Aviva shares – A profitable but difficult investment

450 Aviva shares were originally added to the UKVI defensive value model portfolio back in early 2012. Aviva is exactly the sort of large, high-profile company that I’d expect to see in such a defensive and income-focused portfolio, but now – after a long spell as the portfolio’s weakest link – the rising share price has finally provided a decent exit point.

Go-Ahead shares return 36% in less than 2 years

Go-Ahead is one of the UK’s busiest public transport companies, with a focus on urban markets.

Case Study: Interserve investment returns 117% in 2 years and 4 months

Interserve is a FTSE 250 listed support services and construction business with a current market cap of £651 million. It’s a steady company in a relatively dependable industry, and it makes profits every year while diligently paying a growing dividend. To most investors, it probably isn’t that exciting, and it looks no different to so many other companies.

Case Study: Reckitt Benckiser investment returns 47.2% in 2 years

Reckitt Benckiser is a fantastic company. Every day it sells millions of pounds worth of products like Dettol, French’s Mustard and Nurofen to customers worldwide. In financial terms, it has a perfect record of consistent dividend and earnings growth over the last decade – so why would I want to sell it?

Dividends or other cash payments
Changes to the intrinsic value of the underlying company
Changes to Mr Market‘s mood (and therefore share prices)

But there is another way.

Category: Investment case studies