Welcome to My Portfolio Report for May 2021.
The investment return of my portfolio fell by -£120.19 (-0.5%) across the month of May 2021. This figure excludes the benefit of additional deposits made and focuses solely on return achieved on existing capital.
£0.00 additional deposits were pumped into the portfolio this month, with £518.84 of total capital being invested into additional holdings. £105.73 in additional deposits was made from income from dividends being transferred into the capital account.
The additional deposits and dividend payment minus the capital invested and account fees has therefore led to an increase in the capital held on deposit which has fallen from £696.32 to £375.52
Capital held on deposit now sits at 1.5% of the value of the fund
The total value of the portfolio, along with the cash held on deposit sits at £25,391.37
The FTSE 100 rose +0.8% in May 2021 so the fund didn’t beat the market this month but is still doing great on the year so far.
On 1st January 2021, the account sat at a value of £19,546.68. Since then I’ve pumped in a further £2,500 into the fund. Today’s value of £25,391,37, minus the £2,500 additional deposits, means that I’ve made an investment return of £3,344.69 so far this year which represents +17.11%.
The FTSE 100 this year is up +9.4%. So we are leaps and bounds ahead of the overall market for the year to date.
I added positions again this month on #STOCK 28# for a total cost of £518.84. The price fell almost the very next day and stayed there until the end of the month, so I am already down on those. But I didn’t buy them to sell them by the end of the month, I bought them because I wanted to own a slice of their very well run business. I actually wish I had more spare capital right now as I’d buy more at the lower price today.
Some members that follow my pricing research take it too far and make it too overcomplicated. But I think Warren Buffet puts it well when he spoke at a Berkshire Hathaway shareholder meeting back in the 90’s (I forget the year) when he said:-
“If someone in your local town came to you who ran a wonderfully growing business, and they asked if you wanted to buy 50% of their shares, albeit a little on the expensive side, and if you liked the business and you liked the person, then you would probably do the deal. If you really liked the business and you thought you’d make a return over the next 10-20 years then you’d take the deal. You wouldn’t worry on the price. I think you just get in and own them. You don’t wait for a flu epidemic to come along to knock the price down. You’ll be waiting an awful long time.”.
£105.73 was received this month in dividends and re-invested into the fund. We have received a total of £210.99 in dividends for 2021 so far. I am hoping for a 2.5% yield from my account each year (approx £450 in 2021), however, consideration must be given to the fact that many dividends have been withdrawn this past year due to the impact of Covid-19.
23 YEAR PERFORMANCE TRACKER
My goal is to reach £1,024,864 in account value within 23 years from the start of this project. I plan to get there by achieving an average annual return of 15% from my stock picks and an additional average 2.5% annual dividend yield which will be re-invested into the fund for compounded growth. This also assumes a £250/month cash input to aid growth.
My financial forecasts suggest that to stay on track and reach my goal I must finish 2021 at £13,262. By the end of 2022, I need to be on £19,169.
However, the value of my fund has already reached £25,391 by June 2021. As a result, I am approximately 3 years ahead of schedule of reaching my target of £1,024,864 by 2042. Giving me plenty of room should I suffer 1-2 poorer years along the way or should the average annual return not turn out as expected.
However, my projections are already based on conservative returns, obtained from historical performance. I am therefore left with no doubt that I will make my target far sooner than planned. Initial projections suggested I would reach my end target aged 61. However, current projections now suggest the milestone will be reached by the age of 58. My expectations are to get there before I hit 55.
I hope you continue to join me for this ride across 2021 and our forthcoming years of financial growth. One day I hope to be able to meet some members in person and bask in each other’s stories of success. Nothing will please me more than for my hours and hours of analysis to have had significant positive impacts on peoples financial lives and wellbeing.
This is an incredible journey, growing a starter portfolio of £4k to £1 million. It will take the best part of 20-25 years to achieve. However, I hope these monthly reports then become a roadmap of sorts that future generations can take.
Leaving a Legacy
I certainly intend for my children to take on the baton and continue running with it long after i’m gone. For me, this is the start of the Chillingworth legacy. Whilst I started in my 30’s with less than £10k, my children will start in their 20’s with perhaps £100k each. Their children may start with a million each. Their children could eventually be billionaires. Whilst I won’t be around to witness it, I’d be happy knowing I came into and then left this world having made a positive impact to my family in this way.
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