The Fantasy Sipp is having a tough time in 2020. Its performance has suffered mainly due to its exposure to travel related shares such as WH Smith (SMWH) and InterContinental Hotels (IHG). Disney (US:DIS), which is discussed later, has also done a lot of damage. Avon Rubber (AVON) and Amazon (US:AMZN) have been the star performers.
The UK Quality Share portfolio has taught me just how difficult it is to put together a diversified portfolio of UK shares that are highly profitable, cash generative, can grow and have the all important recession resilience.
I find myself very much in agreement with Keith Ashworth-Lord, the manager of the Castlefield Sanford-DeLand UK Buffettology Fund, who feels that exposure to UK consumer facing businesses are a recipe for disappointment.
On that basis, shares in the UK Quality Shares portfolio such as JD Sports (JD.), Greggs (GRG), Hollywood Bowl (BOWL) and WH Smith (whose travel business is badly wounded right now) should be sold. The problem is what do I replace them with?Download PDF