I've been contemplating an approach to long-term investing for some time but never really given it a consistent trial to see if its viable or not. What i'll be trialing in this thread is a 10 stock portfolio starting with $100,000 whereby I add stocks and review the portfolio on a monthly basis in the first week of each month. Initial purchases will be 4% of portfolio value and I can add to a position up to 2 additional times both for an additional 4% each if the stocks remain undervalued.
I'll be taking into account $20 brokerage costs and the interest earned on the theoretical bank will be on a monthly basis based on the best available 1 month term deposit rate (i.e. this first month will be 1.75%).
The aim of the portfolio is to target large companies with earnings stability, low debt and decent dividend yields which appear to be undervalued based on a simple PE measure. Chances are this approach will simply do similar to investing in the broader market but it's something i've wanted to trial for a while so see how we go. Hopefully by having a thread on here it will ensure I stick at trialing it at least for a reasonable amount of time.
Each month i'll also post the number of stocks that met my initial scan, of which i'll review the top 50 based on some criteria i've put together and i'll name the top x amount of stocks that came through as undervalued in some shape or form. From this list is where I pick my monthly investments. Selling of the stocks will be done on the basis that either something else looks to be providing better value or something has changed the value of that stock which means its no longer a viable investment for the method.
Anything i've missed or any questions let me know.
137 stocks met the scan criteria this month of which the following 14 stocks made the final investment consideration list:
1 wes.ax
2 amp.ax
3 rmd.ax
4 rhc.ax
5 sgp.ax
6 vcx.ax
7 ccl.ax
8 sol.ax
9 ipl.ax
10 hvn.ax
11 tpm.ax
12 sgr.ax
13 car.ax
14 dlx.ax
Of these stocks I made the decision to purchase DLX and CCL as per following table.

Time will tell how this goes, could be a flop but feel the time is right to give it a try for a bit of fun and interest. Will post any further details I think of along the way.
EDIT: Performance will be compared to the S&P/ASX 200 Total Return Index (XNT)
I'll be taking into account $20 brokerage costs and the interest earned on the theoretical bank will be on a monthly basis based on the best available 1 month term deposit rate (i.e. this first month will be 1.75%).
The aim of the portfolio is to target large companies with earnings stability, low debt and decent dividend yields which appear to be undervalued based on a simple PE measure. Chances are this approach will simply do similar to investing in the broader market but it's something i've wanted to trial for a while so see how we go. Hopefully by having a thread on here it will ensure I stick at trialing it at least for a reasonable amount of time.
Each month i'll also post the number of stocks that met my initial scan, of which i'll review the top 50 based on some criteria i've put together and i'll name the top x amount of stocks that came through as undervalued in some shape or form. From this list is where I pick my monthly investments. Selling of the stocks will be done on the basis that either something else looks to be providing better value or something has changed the value of that stock which means its no longer a viable investment for the method.
Anything i've missed or any questions let me know.
137 stocks met the scan criteria this month of which the following 14 stocks made the final investment consideration list:
1 wes.ax
2 amp.ax
3 rmd.ax
4 rhc.ax
5 sgp.ax
6 vcx.ax
7 ccl.ax
8 sol.ax
9 ipl.ax
10 hvn.ax
11 tpm.ax
12 sgr.ax
13 car.ax
14 dlx.ax
Of these stocks I made the decision to purchase DLX and CCL as per following table.

Time will tell how this goes, could be a flop but feel the time is right to give it a try for a bit of fun and interest. Will post any further details I think of along the way.
EDIT: Performance will be compared to the S&P/ASX 200 Total Return Index (XNT)