Hopeless cases portfolio takes the lead!!!

Time to re-visit the battle between the FTSE-250 vs. the hopeless cases portfolio which I started back in August 2011:-

http://michae1mouse.blogspot.co.uk/2011/08/very-little-research-but-are-these.html

Whilst the FTSE-250 has done well with a current return of 48.9%, I can reveal that the hopeless cases portfolio has now taken the lead with a gain of 51.6%.

The two top performers (by far) in the portfolio remain ITV and Thomas Cook with gains of 215% and 239% respectively, then comes Vodafone with a gain of 33%. Vodafone has recently risen on the back of it's Verizon Wireless disposal, and shareholders will have had and will still receive substantial amounts of cash back from dividend and special dividend payments.

Next up is Aviva with gains of 26% and 24% respectively. As mentioned in previous blogs I reinvested the profits from the Cable and Wireless takeover into more Aviva shares.

Cable and Wireless Communications is up 22%, leaving Man Group as the worst performer in the portfolio, down by 58% (not forgetting that Game Group went bust).

I don't hold shares in any of the hopeless cases portfolio, and it was started just for a bit of fun. It will be interesting to track it's performance over the next two years though and see what lies in store for the remaining six companies. Please note that I have not taken into account any dividends paid in my calculations, and the comparison is strictly on capital gains.

On another note, there is a great article by John Lee in the FT Money section today on small cap investment. He writes as follows:- "I believe there are two key prerequisites for investment: common sense and patience. When stock selecting, I seek six characteristics: a stable, experienced board with significant directors' shareholdings; cash positive with low levels of debt, and preferably good asset backing; profitable companies with a record of paying a dividend; firms registered in the UK with British governance and audit standards, but with global turnover; a trading activity that I can understand; and optimistic recent comments made by the chairman or chief executive."

Couldn't agree more John. I can't say that I always follow the above criteria to the letter, but for me to make a substantial investment in a company then most of the above is an absolute must.

I've just noticed that John Lee has a book coming out in December entitled, "How to make a million - Slowly". Certainly one that I will buy. It's a shame that he doesn't write a regular column anymore.