Month 1: £0.74 Up, FTSE, Energy, Emerging Mkts, THG

For my first month I’ve split my investment between the FTSE100 (which seems like a historically safe option), green energy and emerging markets as important long-term options and some smaller companies; The Hut Group, Mitchell & Butlers and AFC Energy.

I deposited £100 into my Freetrade account (you can get a free share worth up to £200 if you join here), however the below shares cost a total of £98.77, so the rest is left as cash to be invested in future months. At the time of writing my £98.77 of shares is worth £99.51, which is a profit of about £0.74.

The below shares were purchase on December 29th (two weeks ago). For future posts I will invest at roughly the same time each month and publish the summary about two weeks later.

Shares bought last month:

Mitchells & Butlers

A large chain of pubs and restaurants in the UK. Their share price stagnated between 2016 and 2019, rallied in the second half of 2019, then fell during the first lockdown. I envisage a rebound once the country has vaccinated the majority, but they may fall further in the meantime.

1 share at £2.53

£0.01 Stamp Duty

Total cost: £2.54

iShares FTSE 100

100 of the largest UK companies. Very consistent growth over the years means it has tripled since I started high school in 2002. Graphs even show positive growth since the vote on Brexit. A good drop since our first lockdown means I may be getting this at a nice discount.

3 shares at £6.54

Total cost: £19.62

iShares Global Clean Energy

An index of global companies which focus on sustainable and renewable energy. I’m aware of the growing need for clean energy, and with younger generations being very conscious of this, it is surely an industry which will grow massively in my lifetime.

1 share at £12.16

Genesis Emerging Markets Trust

Investing in companies in emerging markets such as China, India, Brazil, South Korea and Russia. My employer is expanding into some of these emerging markets, because they can achieve larger percentage growth than expanding further in the UK. This is the same logic I’m using – these markets are expanding rapidly and there is no doubt that at least some of the companies this invests in will become significant players.

2 shares at £8.865

Total cost: £17.73

The Hut Group

A collection of around 100 ecommerce sites, including MyProtein, Glossybox and a tonne of others which are popular with Millennials and Gen Z. Myself and many others I know of are regular customers. They invest a lot in marketing to Gen Z, and as that’s the next generation to have disposable income, investing in these now seems like an obvious move.

3 shares at £7.3733

£0.11 Stamp Duty

Total cost: £22.23

AFC Energy

A clean-energy company developing hydrogen fuel cells, which has recently established a partnership to produce batteries for electric vehicles. This was a bit of a pot-luck stand-out one for me, as I had not heard of these before this investment. Some small investments into potential future large-players are worthy of some consideration. This company and many others in this industry could grow massively over the next 10 years as electric vehicles become more mainstream.

28 shares at £0.8746

Total cost: £24.49

As of 13th January:

Total cost of stocks and shares: £98.77

Current value: £99.51

Difference: +£0.74

Cash left over: £1.23

Current value + cash: £100.74

Considerations for next month:

I’m currently engaged in a lot of research so the below list is likely to change. If you check my Portfolio page, Global Clean Energy is up by a double digit percentage since I invested, so I am keen to put a little more into there and expand further into similar spaces.

I am also looking at dividend stocks and considering if this is a good way forward.

Some ideas:

  • Proctor and Gamble
    • Makes many popular brands and is likely a long-term consistent performer
  • Other emerging markets
    • Good growth with larger risk, but a long-term option
  • Smaller companies funds
    • Hopefully some good growth after Coronavirus has been dealt with
  • Green energy and Electric Vehicles
    • QuantumScape
      • Producing batteries for electric vehicles
    • WorkHorse
      • Deploys electric vehicles for delivery
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