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

Investing Articles

Up 26%, can the BT share price really push higher still?

The BT share price has surged on several catalysts in 2024, but there’s evidence to suggest that the stock could…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

What are the best dividend shares to buy right now?

As shares in B&M European Value Retail have fallen, the dividend yield has reached a 10-year high. Should investors be…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

My favourite FTSE 100 passive income stock that keeps the Christmas coffers full

The holiday season is expensive and can leave many consumers struggling to make ends meet. Here’s how I use a…

Read more »

Investing Articles

The latest growth forecasts suggest the Glencore share price will hit 555p!

Harvey Jones has been disappointed by the performance of the Glencore share price since he bought the commodity stock last…

Read more »

Dividend Shares

A closer look at the 11% dividend yield forecast for Phoenix Group shares

Phoenix Group shares have one of the highest dividend yields in the FTSE 100 index today. Could this be a…

Read more »

Investing Articles

If I’d put £25,000 into the FTSE 350 at the start of 2024, here’s how much I’d have today!

Many FTSE shares have rebounded this year as interest rates look set to keep heading lower and market appetite for…

Read more »

Investing Articles

Up 40%, but experts forecast the easyJet share price could soon hit 664p! Time to buy?

The easyJet share price has been flying lately and stock analysts are predicting more fun to come. But there's only…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

Worried about tax raids? Here’s how I’m targeting a £44,526 passive income with shares

Investing in a Self-Invested Personal Pension (SIPP) or Individual Savings Account (ISA) can supercharge one's passive income, says Royston Wild.

Read more »