2022 ASX Alphabet Stock Challenge
As we head into a brand new year, it’s high time I provided an update on my ASX Alphabet Challenge, and released my ATOZ Fund selections for 2022!
Due to my interest in the Australian market and learning more about investing, I challenge myself each year to create a fictional fund of 26 ASX listed stocks, one stock code for every letter of the alphabet. The 2022 challenge will end on the 21st of December 2022.
This is purely for entertainment/personal education purposes, and does not in any way constitute actionable insights or ideas. I have previously completed this challenge in 2019, 2020 & 2021.
Performance Report
My 2021 portfolio finished the year with a total balance of $27,265.56, made up of $1,303.54 in profits and $483.64 in dividend income. My total profit for the year was 6.88%.
My best performer in 2021 was AEF (180.26%) and my worst performer was LVT (-64.17%).
As an aside, my 2020 ATOZ Fund is now sitting at $31,127.65, with an overall return of 23.83% since inception.
My 2019 ATOZ Fund is now sitting at $41,470.72 (with one company delisted through a private equity takeover). That’s a overall return of around 70% since inception (which is very rough because there’s a delisted company in that calculation).
The Rules of the Game
I have equally weighted $1,000 (rounded down) to each stock, with the starting value of the portfolio not exceeding $26,000.
The companies are all listed on the ASX, and I am not able to make any trades during the year, regardless of what happens to the company.
There are no other restrictions on which stocks I choose; any market cap, industry and P/E ratio. To make it easier, I’m also disregarding brokerage for the purposes of this experiment.
My Chosen Companies
To get started, I have added all of my 26 stocks to a hypothetical portfolio using the free InvestSMART Portfolio Manager tool, and have set the purchase price as the close price for each stock on the 21st of December 2021.
There’s definitely stocks I’ve picked that I would never put my own funds in, but am including them out of interest in the company or product/services (plus, a few letters were really tricky).
I am using this challenge to learn more about the 26 chosen stocks throughout the year, and understand how they operate and plan to grow moving forward. I am also fascinated to see how this fictional portfolio performs given the minimal time and reasoning behind the stock choices.
The list of stocks for my ‘ATOZ Capital Fund’ are as follows:
ABY - Adore Beauty Group Ltd
BWX - BWX Ltd
CBA - Commonwealth Bank of Australia
DOC - Doctor Care Anywhere Group PLC
EML - EML Payments Ltd
FMG - Fortescue Metals Group Limited
GEM - G8 Education Ltd
HMC - Home Consortium
IDX - Integral Diagnostics Ltd
JAN - Janison Education Group Ltd
KME - Kip McGrath Education Centres Limited
LOV - Lovisa Holdings Ltd
MFG - Magellan Financial Group Ltd
NWL - Netwealth Group Ltd
OLL - Openlearning Ltd
PSI - PSC Insurance Group Ltd
QRI - Qualitas Real Estate Income Fund
RCW - Rightcrowd Ltd
SMP - Smartpay Holdings Ltd
TPW - Temple & Webster Group Ltd
UWL - Uniti Group Ltd
VEE - VEEM Ltd
WES - Wesfarmers Ltd
XRO - Xero Limited
YOJ - Yojee Ltd
Z2U - Zoom2u Technologies Ltd
If you replicate this challenge, I’d love to hear your selections and how you fare, all in the name of entertainment and learning!
Happy Hunting!
Kate
