A third consecutive positive month brought a return of 1.7% for the portfolio. Sadly, it must be statistically likely that June will see the end of this little purple patch, but it has been nice while it lasted.
AstraZeneca and Glaxo both fell as Pfizer’s gentle courting of the former was curtly rebuffed and the latter went from the frying pan of a Chinese investigation to the fire of a SFO version. Andrew Witty must be frustrated because this must now be likely to overshadow anything else Glaxo does for the next few months at least. With regard to Astra, all eyes will be firmly fixed on whether it can make good its promises to shareholders over the coming years. I think, as a small, non-scientific investor, you have no choice but to trust the Board when they state so unequivocally that the pipeline will be worth more to both patients and investors with Astra operating as an independent company. Time will tell.
The consumer groups also had a decent month with Reynolds moving higher on yet more tobacco sector consolidation chatter. The story this time was of a possible merger with Lorillard being funded by British American Tobacco, which owns over 40% of Reynolds. Imperial was also stronger, but it wasn’t evident that this was for any reason other than a mild correction to their persistently low valuation.
I added a new position in JP Morgan Chase and the share price, to me, looks sufficiently cheap that I hope to be able to keep adding to it over the coming months to build it into a worthwhile holding for my portfolio. Banks, as we all know, are dangerous beasts because they can and do go bust but, I think and hope that JP Morgan Chase has proved itself by successfully navigating the last few years. I also think that my portfolio is sufficiently diversified to cope with the addition of a few bonus-hungry cigar-chompers. Let’s now hope that JPM is set to build on its strong position and deliver strong earnings (and dividend) growth in the years to come.
Disclosure: Long AZN, GSK, RAI, IMT, BATS, JPM.
Disclaimer: This post is not a recommendation to either buy or sell. Please consult your investment advisor.
Hi FI,
Well done with your returns over the past few months – wondering if the figures are total return incl. dividends. Looks like you are putting together a solid portfolio – has a flavour of Nick Train at Finsbury or Personal Assets?
Good luck with the rest of the year!
Hi,
Yes, the figures are total returns – I will make this clearer. Would be a shame to leave out the dividends – they are the best part after all. I do enjoy following the always careful and deliberate moves of Personal Assets, but probably take more from Nick Train, Buffett and Woodford. I admire people brave enough to back themselves meaningfully when they have an idea and then stand by it for a long time – no burying it in 100 position portfolios. Thanks for your comment.