Welcome to Week 9 of This Portfolio’s Journey to £10,000
Find the full description of this project and the outline of the goals at Week 1.
The updates in this article will see this portfolio reach 22.2% of the goal.
Last week’s change: +0.9%
⚠️ Disclaimer ⚠️
I am not a financial adviser, and the information I share is based solely on my personal investment journey as an average individual. Please remember that past performance of the market is not a guarantee of future results. Always do your own research and consider seeking advice from a qualified professional before making any financial decisions. Only invest what you are willing to lose.
Last Week’s Portfolio Performance
Last week, my portfolio performed slightly better than the S&P 500 – but certainly nothing to shout about.
With the S&P 500 taking a 0.45% hit over the week, my portfolio followed the trend, reducing in value by 0.2%. However, the slightly lower reduction was helped by additional holdings in Coca-Cola, Realty Income, Sandvik, and Nvidia, all of which finished the week higher than they began.
Additional Income
In addition to this, I received small amounts of extra income from the following sources:
- £0.11 in interest on uninvested cash
- £0.88 in dividend payments from Games Workshop
- £0.49 in dividend payments from Realty Income
While these are small amounts, it’s exciting to see returns generated from the investments held. I look forward to watching these payments grow as the portfolio evolves.
Coca-Cola’s 2024 Report
A significant factor in Coca-Cola’s share price increase was the release of its full-year 2024 financial report.
The company reported net revenue growth for the full year, with a 6% increase in the final quarter. Despite operating income being down for the year, the fourth quarter showed a 19% increase, indicating strong recent performance.
Although rising costs remain a challenge, Coca-Cola appears to be managing expenses well while creating new revenue streams through alternative beverages such as Sprite Winter Spiced Cranberry and Oreo-flavoured Coke. Additionally, Coca-Cola Zero saw a 13% increase in volume, highlighting the continued demand for calorie-free soft drinks.
Cameco: A Portfolio Challenge
Cameco has been a drag on my portfolio in these early stages, reducing my return on investment by approximately £18. With uncertainty surrounding the company’s future revenue streams, many investors are jumping ship.
The volatility stems from two key factors:
- The fluctuating price of uranium
- Geopolitical tensions related to global tariffs
What Do I Think?
Despite the challenges, I believe Cameco is worth holding for the long term. The recommencement of operations in the JV Inkai project and a backlog of historical contracts should lead to positive earnings reports over the coming quarters, hopefully boosting the stock’s value.
This Week’s Investments
Current Portfolio Breakdown
At present, the S&P 500 makes up around 41% of my portfolio. I see this as the portfolio’s safety net – an area where I have greater confidence that my money is secure for the long term, despite short-term fluctuations.
By removing the S&P 500 from the picture, I can assess how the remainder of the portfolio is distributed. This helps to ensure no single stock is dominating my investments and provides insight into overall risk exposure.
This week, I am using this view to help determine how to distribute my next investment.
This week’s £100 investment will be distributed as follows:
- 20% (£20) into higher-risk stocks
- 40% (£40) into dividend stocks
- 40% (£40) into ETFs
Higher-Risk Allocation
For the higher-risk portion of this week’s investment, I will be adding to my holdings in AECOM. I originally purchased this stock at a relatively high price, so I will use the recent dip to reduce my average cost per share.
Additionally, AECOM currently makes up the smallest portion of my portfolio, making it a logical choice for reinvestment.
Dividend Allocation
For the dividend portion of the portfolio, I will be purchasing additional shares in Procter & Gamble.
A £40 investment will buy approximately 1/4 of a share, pushing my total holdings above 1 full share. Procter & Gamble is also currently trading below my initial purchase price, so this investment will help reduce my average cost per share – much like my AECOM strategy.
ETF Allocation
As per tradition, the 40% ETF allocation (£40) will go straight into VUSA (the S&P 500 ETF).
This continues my commitment to maintaining a strong foundation within the portfolio.
Next Week…
Stay tuned for next week’s update as we continue the journey to £10,000!
If you missed last week’s update, you can find it here.
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Have a great week!
