July has been a decent month, with the grand total now standing at £199,112 and the month P&L at £11,149. That beats last quarter’s total of £186 as I mentioned in my Q1 Year 2 Performance Report
So what went right this time? Well Glencore, Next and EOG have all done well, and my long term hold of Sports Direct also took a bit spike up with the appointment of a new CFO – Always good to have a grown up in the Boardroom apparently.
Probably of least importance from a P&L perspective, but most important from a process viewpoint was Novae. I found Novae using a filter from Deep Value Investing by Jeroen Bos. I set out my investment logic on 18th May here. This looked like a cheap share given the net asset position of the company, and I wasn’t the only one thinking that as the firm was subject to a takeover bid as reported 6th July here. It took ages to filter through the data to find this one but I made about 27% in just under 2 months, which is the sort of returns that are going to get me to my goal if I can string a few together.
In terms of the goal of getting to £1 million in 5 years, I have currently 3.6 years left and I am coming up on the 200k mark. This means that my required return rate has moved up from a very stretching 40% to a probably impossible 56.5%. Still, speed is probably the least important variable and I’m going to carry on running the project. Getting the monetary goal at some point would be great – doing it the right way and learning about investment along the way will be more important for me long term than if I take an extra year or so to do it.
Now I need to go and battle my own psychology – but do I stay patient and ride the winners or do I recognise when prices are unsustainable and not get caught up in the market hype?