Investor Angie Ellis reveals the secret of her Shares Race success

The Sunday Age,Money. Angie Ellis is the reigning champion for the 2017 Shares Race, pictured with her dog cushion Charlie.Pic Simon Schluter 10 November 2017.

Angie Ellis has won more of the four-week shares races this year than any other competitor, including the professional tipsters.

Not only has she won more four-week competitions, she was leading the one-year race all year and was just pipped to the post in the final results published last week.

So what are her secrets for success?

It all started when Ellis seeded her family share portfolio from the proceeds of investment properties about four years ago.

The 46-year-old from Melbourne has an investment style best described as “growth”.

She prefers to invest for capital gains rather than holding the local market’s big dividend payers like the big banks.

Her family portfolio is separate from her superannuation, which allows Ellis, a trained accountant, to take more risks knowing her retirement savings are protected. Speculative

Ellis is much more speculative for the four-week Shares Race than she is with the one-year game and her family portfolio.

For the four-week race, in which eight competitors select 10 stocks with a hypothetical $10,000 in each, she likes to see strong share price gains with no down days before the race starts.

“It has to be an easy-to-understand business that is also a ‘hot’ share,” Ellis says. “I pick shares in sectors that are trending up and that are receiving a lot of media attention.”

Ellis also likes to see the directors of the company themselves as well as fund managers buying shares in the company.

With her star pick Digitalx, a facilitator of overseas money transfers using digital currencies, Ellis ended the last four-week race of the year, which she won, with her original $10,000 worth $31,250.

“I like companies that have a global outlook and a lot of my shares are not just Australian based,” she says.

Ellis has done very well from A2 Milk Company in her family portfolio, whose products include infant formula.

“There were a lot of articles in the Australian Financial Review about A2 Milk and about milk formula generally in China,” she says.

“I went to the supermarkets and you could see that it was flying off the shelves and I spent the whole week looking at A2 Milk.Then, I was helping a girlfriend out who had broken her knee and I opened her fridge and there were half-a-dozen bottles of A2 Milk in her fridge and I started buying A2 Milk at about 80c.”

A2 Milk’s shares are now worth almost 10 times that.

Of course, just like any share investor, Ellis has had her fair share of disappointments.

For her family portfolio she bought Buddy Platform, a platform for monitoring and reducing consumption of electricity, water and gas, among other things.

She bought the shares for about 13c in May last year and sold out a year later for 5c.

Almost immediately after selling the shares, they rocketed to about 35c.

“I’ve learnt that sometimes it takes a while for the market to catch-up on why these businesses are amazing,” Ellis says. Year-long race

For the one-year shares race and for her family portfolio she puts more emphasis on companies with strong revenue and profit growth and good “tailwinds” for the business.

She wants to know how a company is going to generate cash, grow its business and strengthen its economic “moat”, the barrier to entry for new competitors.

Ellis’ pick of Big Un, the parent company of Big Review TV, helped to finish in the long race as well as helping her to win many of the four-week races.

She bought shares in the company in late January this year for 42 cents and they are now trading at about $3.50.

The Big Review TV platform integrates multimedia to provide a hub for people to search, view and review businesses, events and destinations.

It has a global focus and strong revenue growth. She took the time to understand the business model and contacted a few of its customers to see if they were happy and would be likely to resubscribe to the service.

Ellis took the opportunity to realise her huge gains from Big Review TV to plough 80 per cent of the sale proceeds in jewellery retailer Lovisa, which became her largest holding in her year-long portfolio.

The company is rapidly expanding overseas and recently opened a “pilot” store in Los Angeles.

Ellis has a contact in Los Angeles who sent Ellis some photos of inside the store showing it bustling with customers.

Last year, Ellis visited a QVB store in Sydney with her daughter and after seeing the store doing a brisk trade, bought more of the company’s shares.

Ellis attends the company AGMs to make a point of meeting the chief executive and the board. Offshore holdings

Ellis has 30 per cent of her family portfolio invested in global markets with much of her international exposure held in Australian-listed exchange traded funds (ETFs).

These are funds that track not only sharemarket indices, but a variety of markets such as the gold and oil prices.

One of her ETFs tracks the share prices of the biggest companies listed on Asian sharemarkets.

She has further exposure to emerging markets through a managed fund with a focus on the Indian sharemarket.

Ellis holds only two overseas-listed shares directly; Amazon and Twitter, which are listed on Wall Street.

This story Administrator ready to work first appeared on Nanjing Night Net.

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