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Contrarian Portfolio Update

Posted on December 17, 2019

At the beginning of each financial year I recommend buying the 10 worst performing stocks in the ASX 200 and holding them for 12 months.

We are almost at the half way mark of the year and the portfolio has gotten off to a great start with a current gain of 13% vs SPDR S&P ASX 200 FUND (STW) which is up 3.4%.

Two adjustments have been made with the portfolio so far;

  • Bellamy’s was sold at $13.03 after the Chinese announced the takeover bid. I could have got more but was fearful of the deal falling over; at $13.03 investors were risking around 35% to make 1.6%.
  • Costa group 1 for 4 rights issue was taken up @ $2.20. This brings the entry price down to $3.30

The 10 dogs are collectively looking good again after a different bunch returned 25% in FY19.

General Advice Warning
The information provided in this post is general information only. Unless otherwise stated the information is not designed for the purpose of providing personal, financial or investment advice. Any examples are presented for illustration purposes and past performance is not a reliable indicator of future performance. The information provided does not take into account your particular investment objectives, financial situation or investment needs.

Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this post, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action. Unless otherwise stated the information presented is not a recommendation to invest in any investments, securities or financial products.

This service, like all other financial services, is subject to market forces and unpredictable events that may adversely affect its future performance. Whilst all care has been taken in compiling information in this post, and is provided in good faith, it is not to be relied upon as a substitute for professional advice. The views expressed are commentary only and the writer accepts no responsibility for the accuracy, completeness or timeliness of the information.

Super Equity Pty Ltd ACN 609 373 202 is a Corporate Authorised Representative 001238425 of ANDIKA Pty Ltd AFSL 297069. It should also be noted that references and hyperlinks to any third party information (including, but not limited to: news articles, blogs, reports, videos or other mediums of information) is not an endorsement of that party or product.