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Inflation is rampant in the world. However, I believe that – in these difficult times – stock markets still offer the best investment cover for inflation protection and long-term return potential for carefully selected stocks.
My portfolio
| FTSE | Share | Code | Market value (£bn) | Industry | YTD % performance | One year % performance | Three-year % performance |
|---|---|---|---|---|---|---|---|
| 100 | AstraZeneca | AZN | 175.8 | Pharmaceuticals | 24.15 | 26.51 | 47.23 |
| 250 | Beazley | Without | 3.5 | Insurance | 22.13 | 45.24 | 0.00 |
| 100 | Bunzl | BNZL | 10.6 | Distribution, logistics | -0.35 | 8.33 | 42.82 |
| 250 | Capricorn | CNE | 0.7 | Oil, gas exploration | 25.97 | 22.39 | 42.21 |
| 100 | Glencore | Glenn | 64.9 | Mining and trade | 30.36 | 49.76 | 108.12 |
| 250 | Hunting | HTG | 0.5 | Energy industry supplier | 68.44 | 39.02 | -37.64 |
| 250 | Individual | Inv | 2.1 | Pharmaceuticals | 12.06 | 45.31 | 377.45 |
| 250 | Medicine | MDC | 3.7 | Health | 55.56 | 58.12 | 46.85 |
| 250 | Circo | SRP | 2.1 | Government services | 32.17 | 33.56 | 21.93 |
| 100 | SSE | SSE | 19.4 | Power plant | 2.51 | 2.30 | 46.87 |
| Portfolio | As on 31.8.22 | 27.30 | 33.05 | 69.58 |
On an equity invested value basis, the portfolio has grown by 69.6% (+19.2% annually) over the past three years. While past performance is no guarantee of future performance, over the medium to long term, I expect the overall portfolio to outperform the FTSE 100 and FTSE 250 indices.
A stock or two may disappoint. Therefore, I actively manage the portfolio and replace stocks where the prospects are deteriorating.
AstraZeneca
A British-Swedish international pharmaceutical and biotechnology company. He was at the forefront of the rush to develop and distribute a vaccine for Covid-19. His innovative medicines are used by millions of patients worldwide.
Beazley
British parent company of international insurance businesses. He writes a diverse insurance and reinsurance book for clients and is a market leader in many of his chosen lines.
Bunzl
A British multinational distribution and outsourcing company. More than 50% of its business is in the food service and food retail sector.
Capricorn Energy (formerly Cairn Energy)
A British oil and gas exploration and development company. Despite Britain’s net-zero ambitions, green billionaire Elon Musk says “civilization will collapse” if the world stops drilling for oil and gas.
Glencore
Anglo-Swiss Company. It is one of the world’s largest natural resource businesses, a mining company and the world’s largest commodity trading company.
Hunting
A British based supplier to the oil and gas industry.
Individual
A global pharmaceutical company focused on developing drugs to treat substance use disorders and serious mental illnesses.
Medical International
An international private hospital group with hospitals in South Africa, Namibia, Switzerland and the United Arab Emirates.
Circo
UK contractor for the provision of government services, primarily in the health, transport, justice, immigration, space and defense sectors. 55% of the company’s revenue is generated outside the UK.
SSE
Formerly Southern and Scottish Energy, SSE is a multinational energy company that operates UK power stations and offshore wind farms and has a hydroelectric plant in Scotland.