I am thinking of creating a best of British pie, and then leaving it to grow and see how well it does over time. The rules being I can only pick 10 companies, and any rebalances will be in 6 month intervals.
Currently on my shortlist, which includes some of my current holdings are:
BYIT - Cloud IT company providing hardware/software services CERES Power - think of them as the Arm of power conversion. IAG - just looks too cheap given the current state of vaccines being approved, as an entry point for a recovery play. ITM Power - clean energy storage MWE MTI Wireless Edge - (not yet on 212, so might have to exclude) MNDI - Packaging company OCDO - no explanation required here.
CHRY - Mainly for access to Transferwise & Starling although I would prefer to keep to individual stocks.
And so I’m looking for a few more to review this weekend and decide what 10 I should include in this pie. Any suggestions on what to add/remove? That and I need to check if these can be baked into a pie.
Would this be the all of your portfolio?
Would it be a lump sum “set and forget” or would you add periodically? (eg. Monthly)
If you are looking at Tech or digital companies, and seeing as you have BYIT, which seems to have had its IPO recently (I haven’t checked, but the graph only goes to December 2020) you might be interested to look into Brandshield Plc. I came across it on one of Joey’s IPO requests. I liked the idea, but it looked a bit overpriced, nonetheless I have not been able to mmake time to research it properly.
A couple of companies that I got into (very small positions) a while ago are Water Intelligence (not on T212) and EEnergy (Ticker: EAAS, available on T212). They are microcap though.
Bushveld minerals could be another small cap option. It is listed on AIM but its operations are in South Africa. You might want to read Donald Duck’s article from a while ago:
Just so you know, I have Bushveld shares in my portfolio (medium position).
With regards to your choices, I looked at Ocado a while ago and thought that it was over-priced. I don’t know if it has come down though or something has fundamentally changed.
I agree with IAG, a lot of upside considering the current price but also high risk. I hold a significant position in IAG though.
I like ITM and Ceres and have a small position, but I don’t know if the price is fair. I think they may be over-valued now.
You may have already come accross them, but here are a few other ideas from this community forum that you might want to consider if you want exposure to Gold or Technology Advertising. I would not be surprised if neither of these turn out to be your cup of tea, but I thought I’d mention them, seeing as it seems that you are going for high risk/reward sectors.
Pan African Resources (Medium gold miner, initially researched by Donald Duck also - Will probably depend on Gold price variations)
Bidstack (Gaming advertisements, not researched but sounds interesting)
And this is something that came to my mind… would you consider investing in companies that work in insolvency litigation financing or business recovery advice?
Then have a look at Begbies Traynor and Manolete Partners.
A typical one but that may still have upside potential is Legal and General, I did not mention it earlier as I didn’t think that it is the type of company that you are looking for. However, having seen that you inlude BT…
Centrica is also a utility that is at a low price, however the debt it has is very risky.
BIDS is an interesting one, and one I have on a list to look at, but difficult to follow the fundamentals and review the risk/reward to the current entry price so its on a hold. L&G I think has a bit less potential than M&G, but time will tell.
Business recovery companies are an interesting thought.