Inflation is rampant worldwide. Nevertheless, I believe that — in these difficult times — stock markets still offer the best investment hedge against inflation and excellent long-term return potential for carefully selected shares.
My portfolio
| FTSE | Share | Code | Market cap (£bn) | Industry | YTD % performance | One-year % performance | Three-year % performance |
|---|---|---|---|---|---|---|---|
| 100 | AstraZeneca | AZN | 175.8 | Pharmaceuticals | 24.15 | 26.51 | 47.23 |
| 250 | Beazley | BEZ | 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 | GLEN | 64.9 | Mining & Trading | 30.36 | 49.76 | 108.12 |
| 250 | Hunting | HTG | 0.5 | Energy Industry supplier | 68.44 | 39.02 | -37.64 |
| 250 | Indivior | INDV | 2.1 | Pharmaceuticals | 12.06 | 45.31 | 377.45 |
| 250 | Mediclinic | MDC | 3.7 | Health | 55.56 | 58.12 | 46.85 |
| 250 | Serco | SRP | 2.1 | Government Services | 32.17 | 33.56 | 21.93 |
| 100 | SSE | SSE | 19.4 | Power Generation | 2.51 | 2.30 | 46.87 |
| Portfolio | As at 31.8.22 | 27.30 | 33.05 | 69.58 |
On an equal invested value basis, the portfolio has grown by 69.6% over the past three years (+19.2% per annum). While past performance is no guarantee of future performance, medium to long term I expect the overall portfolio to outperform the FTSE 100 and FTSE 250 indices.
One or two of the stocks may disappoint. Hence, I will actively manage the portfolio and substitute any stocks for which the prospects deteriorate.
AstraZeneca
A British-Swedish multinational pharmaceutical and biotechnology company. It was at the forefront of the rush to develop and distribute a vaccine for Covid-19. Its innovative medicines are used by millions of patients worldwide.
Beazley
A British parent company of worldwide insurance businesses. It underwrites a diverse book of insurance and reinsurance for clients and is a market leader in many of its chosen lines.
Bunzl
A British multinational distribution and outsourcing company. Over 50% of its business is in the food service and food retail sectors.
Capricorn Energy (previously Cairn Energy)
A British oil and gas exploration and development company. Despite Britain’s net zero objectives, as green billionaire Elon Musk says, “civilization would crumble” if the world stops drilling for oil and gas.
Glencore
An Anglo-Swiss company. One of the world’s largest globally diversified natural resource businesses, being both a mining company and the world’s largest commodities trading firm.
Hunting
A British-based supplier to the oil and gas industry.
Indivior
A global pharmaceutical company specialising in developing medicines to treat substance use disorders and serious mental illnesses.
Mediclinic International
An international private hospital group with hospitals in South Africa, Namibia, Switzerland and the United Arab Emirates.
Serco
A British contractor for the supply 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.
