As I mentioned last post, while looking over my portfolio I thought it'd probably be prudent - at long last - to take another look at Creston and Plastics Capital. Both are companies which have been with me since 2011, and their fate is something of a sorry one. They originally had weights of about 5-6% in a portfolio with more stocks than I now particularly like holding, and since the rest of portfolio happily appreciated while both CRE and PLA hovered around the same, they now occupy about 3% each in a portfolio with only 11 shares. They haven't done that badly, to be fair - PLA is up 15% pre-dividends and CRE about 20%, but that's hardly an exciting return for a small cap share over the last couple of years. The last paragraph of my last post most or less sums up my thoughts:
I'm not averse to having such small holdings, but given their size I haven't taken the care I should do with considering them. I'm very much of the opinion that too much diversification simply dampens returns, so I want to either reaffirm that I like the shares - and therefore buy more - or decide that holding them simply because they haven't done much and I haven't given them much thought is a fool's errand, and therefore sell. Expect a post on that soon!
So, without further ado, a short section on each of the offenders, and what I'm planning to do with them. (more…)