My Stocks and Shares ISA is in the red… and I’m still smiling

Having not invested through a downturn before, this is the first time I’ve seen my Stocks and Shares ISA showing a loss.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

For the first time in many years of investing, my Stocks and Shares ISA is showing a negative return. I know I’m not alone in this, and I’m sure many reading will be in a similar situation.

It’s human nature to feel like you’re suffering more than others are. But that’s simply because you’re experiencing your feelings all the time, and not constantly seeing or hearing the impact on everyone else.

However, it’s important to recognise that we’re all in this together. And here at The Motley Fool, we pride ourselves on our transparency (it’s why we disclose positions in any company mentioned, even those we just mention in passing!). So today I thought some of our readers may benefit from hearing my own tale.

A bit of background

It’s first worth mentioning that I follow the Foolish investing line of only buying shares with money that I’m unlikely to need in the next three to five years. That’s a core component of long-term investing. In fact, our CEO Tom Gardner said it best recently:

And at the beginning of 2022, my wife and I decided that it was time to ‘upsize’, and sell our flat in order to buy a house. (N.B. investing — Foolishly — was the only reason we were able to buy our home in the first place!)

So I worked out which shares I was happy selling to bridge the gap — which largely comprised stocks I bought close to 10 years ago, had risen substantially in value, and crucially were no longer marked as Buys in a TMF UK service — and those I wanted to keep in my Stocks and Shares ISA.

A bumpy landing

I concede that in one respect I was lucky, since I happened to sell some of my holdings at high levels before the invasion of Ukraine occurred, with markets plummeting thereafter.

But, of course, the vast majority of the shares I kept fell quite drastically. As did those held by the vast majority of investors.

It also didn’t help that I have bought into a variety of US tech stocks over the years. For example, in September, I bought shares in Atlassian. My investment in the software firm is now down almost 50%.

My fourth largest holding (by book cost) is in e-commerce company Shopify, now down 70% over the last 12 months, and showing a -24% fall in my portfolio.

All in all, the total value of my Stocks and Shares ISA is in the red by a percentage of -22.74 as I write.

The grass is always greener…

While that (paper) loss isn’t ideal, of course, I’m not worried. In fact, I’d go as far as to say that I’m optimistic!

That’s because I’m not investing to ‘get rich quick’. No, I buy shares and plan to hold them for the long term. With no future Big Life Event planned in the next three to five years for me and my wife, I can afford to see today’s market volatility as a positive.

There are many, many quality companies out there — both listed in the US and UK — that are currently beaten-down and undervalued. I believe that my Stocks and Shares ISA will creep out of the red if I follow three principles:

  1. maintaining my belief in the underlying businesses of my holdings;
  2. topping up positions in my favourite shares; and
  3. identifying new buying opportunities

For instance, I’m contemplating adding to my Greencoat UK Wind shares, up 13% in my portfolio right now. I’m also interested in some of the Footsie’s income stocks that have proven themselves to be consistent dividend-payers through thick and thin. And I’m definitely, definitely not selling anything marked as a Buy or Hold in a Motley Fool UK service!

In summary, if anyone reading this can be reassured by just one thing, it’s hopefully this: that we at The Motley Fool are still investing alongside you. Indeed, I’ve recently heard from colleagues that they’re more excited to buy shares than they have been in many years (and these Fools love buying stocks!)

Happy hunting!

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sam Robson has positions in Atlassian, Greencoat UK Wind, and Shopify. The Motley Fool UK has recommended Atlassian, Greencoat UK Wind, and Shopify. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »

Investing Articles

The JD Sports Fashion share price has just plunged another 16%! Buy or sell?

Harvey Jones is reeling after another sharp drop in the JD Sports Fashion share price. Should he seize the chance…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

This once-great FTSE 250 UK fashion retailer is down 47%, so is it time for me to buy?

A formerly iconic UK fashion brand, this FTSE 250 firm has fallen out of favour. But it has a new…

Read more »

Investing Articles

Nvidia share price dips despite strong Q3 results. What can we expect now?

Despite posting strong Q3 results after yesterday's market close, the Nvidia share price slipped 2.5% in aftermarket trading. Mark Hartley…

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

An outstanding interim report sends the Halma share price surging 10%

News of 13% revenue growth and a 17% increase in earnings per share has the Halma share price rising. And…

Read more »