This article is the latest in a series that aims to help novice investors with the stock market. To enjoy past articles in the series, please visit our full archive.
The Beginners Portfolio is a virtual portfolio, which is run as if based on real money with all costs, spreads and dividends accounted for. Transactions made for the portfolio are for educational purposes only and do not constitute advice to buy or sell.
Since our last Beginners Portfolio update, weve had some pretty dramatic news from some of our companies.
Before we examine them, heres what the portfolio was looking like as of Thursday afternoon, 11 September (with the latest dividends from Barclays, BP, GlaxoSmithKline, Persimmon and Rio Tinto included):
| Company | Shares | Buy | Cost | Bid | Value | Change | % |
|---|---|---|---|---|---|---|---|
| Tesco | 159 | 305.5p | 498.23 | 229.9p | 355.54 | -142.69 | -28.6% |
| Glaxo | 34 | 1,440.5p | 502.22 | 1,428p | 472.52 | -26.70 | -5.3% |
| Persimmon | 49 | 617.9p | 352.21 | 1,348p | 650.52 | 325.31 | +100.0% |
| Blinkx | 1,319 | 36.9p | 499.68 | 41.5p | 537.39 | 37.71 | +7.5% |
| BP | 112 | 434.5p | 499.01 | 471.6p | 518.19 | 19.18 | +3.8% |
| Rio Tinto | 31 | 3,132.9p | 996.05 | 3,204p | 983.24 | -12.81 | -1.3% |
| BAE | 146 | 332.3p | 497.59 | 455.7p | 655.32 | 157.73 | +31.7% |
| Apple | 14 | $65.50 | 605.98 | $99.90 | 845.83 | 239.85 | +39.6% |
| Aviva | 146 | 321.4p | 470.71 | 527.5p | 760.15 | 289.44 | +61.5% |
| Barclays | 210 | 254.2p | 546.56 | 224.5p | 461.45 | -85.11 | -15.6% |
| Quindell | 249 | 196.5p | 501.73 | 169.3p | 411.56 | -90.17 | -18.0% |
| Cash | 88.67 | ||||||
| Initial total | 5,073.66 | ||||||
| Current total | 6,743.38 | 1,669.72 | +32.9% |
Portfolio on the up
Its been a positive few weeks overall, with our portfolio gain now up to a shade under 33% back on 8 August we were up a little over 24%.
Our total has been a lot higher, mind, but our big growth stock Blinkx (LSE: BLNX) famously crashed back from massive gains. But at least Blinkx has been recovering in recent weeks and were actually back into profit with it now, but only just.
The big technical news of the week came from Apple (NASDAQ: AAPL), whose super-secret product unveiling revealed exactly what everyone had been expecting a couple of bigger iPhones and the new Apple watch.
Now, I think a phone that needs two hands to operate and a watch that you can only work through your phone and thatneeds recharging every day are pretty naff ideas, but Im clearly in a minority the Apple share price has been pushed up to $99.90. With the pound dropping to $1.62, that takes our gain on Apple to almost 40% in just 20 months.
Dividend slashed
Then there was the profit warning shock from Tesco (LSE: TSCO), coupled with a 75% slashing of its interim dividend. Many of us were expecting the cash payout to be slimmed down so Tesco has more cash for price wars and the like, but I wasnt quite expecting that.
Full-year trading profit guidance was downgraded to 2.4bn to 2.5bn, with the first half expected to bring in around 1.1bn.
But on the upside, new chief executive Dave Lewis brought forward his arrival by a month and is now at the helm.
Weve also had mixed news from Quindell (LSE: QPP). First came the shock that its plan for free telemetrics roll-out with the RAC is off the company had previously been denying there was anything afoot. Quindell is to buy out the RACs share of the joint venture.
Worthless win
Then came the apparent good news that Quindell had won its libel suit against Gotham City Research, but the truth is that Delaware-based Gotham City simply didnt turn up at, or even acknowledge, the UK case. And the way US law works, Gotham City can pretty much ignore the result unless Quindell pursues a case in the US.
Overall, Quindell shares havent moved much, and were 18% down on them so far.
Finally, is the Beginners’ Portfolio the right approach to get you into the millionaire bracket? Over decades and with regular additional investment, it just might be. Check out the Motley Fool’s brand new report, How You Could Retire Seriously Rich, if you want to know more.
Did you know, for example, that 100 in cash in 1900 would be worth less than 400 today, but the same invested in shares would have topped 28,000?
Click here to learn more and pick up some top ideas to enhance your personal wealth.
Alan Oscroft has no position in any shares mentioned. The Motley Fool UK owns shares of Apple and Tesco, and has recommended shares in Glaxo. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
