SIPP PROGRESS

Current Value (As at 30th May 2018) = £169,321 including cash
Target for 8th November 2018 = £186,000
Value at commencement of this blog on 1st August 2012 = £51,684.02.
Monthly contributions since commencement of blog = 36mths @ £300 plus 32 months @ £750 = £34,800
Capital Growth is £163,200 less (£51,684+£34,800) = £76,716


Wednesday, 14 August 2013

Pension Builder Strategy - Part 1

This blog is simply a "diary" of the trades on my SIPP.
The intention is to detail what I've bought and sold, and provide a brief explanation as to why. You should be aware that this is not a share "tipping" site. I will make no recommendations to buy or sell shares as I am not regulated to do so by the FSA. I will simple state what I have already bought and sold personally. You should ALWAYS do your own research and come to your own decision on share trades. If you follow my trading and lose money you only have yourself to blame, and not me.

So far, I've been detailing the trades that I've made on my SIPP, and I make no secret of the target that I've set myself to achieve by the planned "retirement" date of 8th November 2014 - £639,925.00 if I can achieve an annual growth of 20%. What I haven't done is put down a strategy to achieve that growth of 20% to enable me to hit that goal.

To achieve annual growth of 20% there is no point in sitting on the side-lines or investing in safe mediums - you have to take a punt. So far, I've been fairly lucky with my choices of shares. This time last year (actually, on the 18th & 19th September), purely in the knowledge that Apple were about to release iPhone 5, I bought 800 shares in ARM Holdings plc (ARM) at a cost of £4,742 or approx 593 a share. I reasoned that if iPhone 5 was a success, even initially, then ARM - being a major supplier of components for the iPhone 5 - would receive a boost in the share markets. As it happened, the shares jumped up in value markedly and tho' I didn't sell at the top (they hit a high of 1111 in mid-May this year) I managed to sell at 1019 securing a tidy profit. That was an early success, tho' I did wish I'd bought more than 800 shares. So, that is strategy number 1 - finding companies that have the potential to take advantage of event with a high probability of happening, in this case iPhone 5 being a success.

Shares currently in my portfolio that fit this category are:
(AZEM) AZ Electronic Materials Group - this is a company that will benefit from growth in consumer spending in electrical goods, is debt free and cash-positive at the bank. It could also be a takeover target.

(OPAY) Optimal Payments Group - this company is poised to take advantage of the "cashless" society when mobile phones incorporate credit facilities. Again, this company could prove to be a takeover target in time.

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments being undertaken when investing in a Pension (SIPP). This blog is not personal advice, but is a record of the authors own investments.

No comments:

Post a Comment