Patient Portfolio Update – April 2018

Welcome to another insightful edition of the  Patient Portfolio Update (previously the Wealth Building & Income Update). If you saw the post on my buys in April, you’ll know that I’ve joined Team Index.

“A low-cost fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth.” (Warren Buffett to John Bogle, from The Little Book of Common Sense Investing)

Does this mean all the different and exciting components of the Patient Portfolio are now a thing of the past?

Hell naw! investing should be fun & encourage learning. I’ll contribute most money to the Vanguard ISA account whilst still funding more exotic investments like Private Equity & P2P Lending.

At worse, these other investments can be potentially strong hedges against a bear market for stocks.

In any case, let’s take a look at some wonderous passive income

Source

Amount

Dividends

£11.65

Bank

£4.60

Property Partner

£9.58

Rate Setter

£1.94

Wise Alpha

£4.35

Grand Total

£32.12

Dividends came in from Diageo (£5.23), GSK (£3.45) & RIT Capital Partners (£2.97). Flashback to April 2017 & I only made £4.98, all from Diageo, mind you.

£11.65 isn’t an amazing sum of money by anyone’s standards, I’m sure, but it really is the greatest feeling knowing that these companies are working round the clock to generate income for my portfolio. Whilst I just sit here and blog about it.

Other than dividends, Rate Setter and Property Partner both came with record highs in April. On top of the regular £3 from my Halifax reward account, there was also £1.60 interest from a savings account.

The Patient Portfolio 

There was strong progress this month. Not only was there a reversal of the March stock sell-off but I also started my index-fund investing journey (I can’t mention this enough times, eh). check it out below:

Patient Portfolio

Still, It’s important not to get carried away and stick to what works: buy quality assets, then buy more.

Here’s the visual.

patient portfolio

I am keen to see the day when the Vanguard account equals the individual stocks account. Hopefully, the market helps me along that path.

Thanks for stopping by, more than happy to answer any questions on the above. Question for you: Do you prefer index investing or buying individual stocks?

5 Replies to “Patient Portfolio Update – April 2018”

  1. The bulk of my portfolio is in index trackers but I also have some individual shares plus a growing ‘basket’ of investment trusts. Then, of course I have my ‘fun’ portfolio of Dogs of the FTSE shares – index trackers aren’t very exciting and I agree with you, investing should have an element of fun!

    £11.65 doesn’t seem much but compared to last year, it’s a big increase and you’ll continue to see year on year growth. Just keep at it and it’ll just build up.

      1. Hi, originally, I’d made a point of just selecting investment trusts where the ongoing charge was 1% but I’m ok with that as the average charge across all my ITs is around 0.63%. Just need to try to keep it all balanced.

  2. For me individual stocks are the way to go. I have some specific industries I do not wish to invest in for my own personal reasons. These are oil, tobacco and weapons amongst others. Since large index funds usually have part of their portfolio in the above industries they are no option for me.

    1. I hear that. Makes a lot of sense & is respectable.

      Wouldn’t work for me though, with so many companies involved in things I don’t agree with (child labour, tax avoidance, environmental pollution & destruction, animal abuse etc. etc.), there would be no one left for me to invest in!

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