Hello fellow investors and casual readers,
I’m an external auditor for 5 years now and since I started in this profession, January has always been the busiest month of the year. And this year wasn’t an exception. Overtimes are piling up like crazy and so is the general tiredness from meeting all of the strict deadlines. Recapitulation of my portfolio development is therefore very pleasant change from all the audit stuff, believe me.
Investment wise the January was a very solid month considering the uncertainties in global environment such as corona virus which affected negatively my stock market exposure near the month end. I can manage that though and hopefully China is going to be able to manage the virus as well. Because if not, the stock market will be the last thing we’ll need to care about.
Except for the stock market, January was a very good month for all the cryptocurrency enthusiasts. My exposure is not significant due to my risk averse appetite (and my personal policy that only 2-3% of my portfolio will be invested in crypto), but the appreciation of my Stellar Lumens was the main reason behind this month’s profits.
Other than that, I received a little disappointing regular crowdfunding interest income due to some late projects on CrowdEstate platform and significant decrease of my Mintos investment which was invested in other projects only partially. Currently I’m doing my research on 2 new crowdlending and real estate crowdfunding platforms, so if the research will be favourable, I’ll move the cash there in February.
As always, don’t forget to read My Investment Policy Statement and My Financial Situation to understand the environment in which I live and invest. This will help you to understand my financial goals and how much I’m able to put aside.
Current Portfolio Value
As of 31.1.2020 my portfolio’s value is EUR 10,917 so my initial investment of EUR 10,091 has brought EUR 825 of total profits. Compared to last month, my investment in crowdfunding platforms decreased from 35% of my portfolio to 23% as of 31.1.2020 due to withdrawal of EUR 609 from my Mintos account (reasons behind described HERE). Withdrawal was partially transferred to real estate investments and partially to free cash. Cash is now at 12% of my whole portfolio. That is at the moment only timing problem since I’m performing my due diligence review before I invest this money in other platforms.
Regarding fulfillment of my financial independence goal of EUR 500,000 I have currently 2.18% of that amount.
You can read about more details of each category HERE. Currency wise, my portfolio consists mainly of EUR denominated investments (81%). There was no significant currency exposure change compared to previous period.
As Warren Buffet’s says, rule number 1 is to never lose money. I’m glad that as of 31.1.2020 all of my instruments are profitable since from this month my cryptocurrency finally has green bar as well. Most of my profits are still related to stock market comprising of index funds, mutual funds and individual shares and I assume this will be the case in the future as well.
Portfolio Development in January
In December 2019 I didn’t manage to meet the plan of net investments of EUR 1,100 due to the fact that no payment was made to my private personal fund as the payment is processed through a state owned agency and they are having ridiculous deadlines to transfer the cash. I was able to invest EUR 1,001 and my monthly return was EUR 75 which is 0.8% of the opening balance as of 1.1.2020 (plan is 0.5% monthly). Exceptionally good return was the result of the cryptocurrency rally throughout the month.
Regarding my investment allocation in December, I invested mainly into real estate crowdfunding (EUR 486). My cash position prepared for future investments increased from EUR 490 to EUR 1,260. As already mentioned, I decided to withdraw the majority of funds invested in Mintos and that’s exactly why crowdfunding net investments are negative.
Plans & Summary
My plan for next month is to invest a piled up cash into real estate crowdfunding and crowdlending platforms together with possibility to invest some money into American stocks through Revolut Trading (my watchlist currently consists of 15 companies where price is close to the attractive price for which I would be buying). Any fluctuations in the market can make stocks in this watchlist a really interesting opportunity.
And that’s it. I’m one step closer to my financial independence goal and so far so good. I’m looking forward to any challenges February is gonna bring from investing and also from work perspective.
Good luck to you as well