Friday, 5 June 2020

Stock bought June 2020: Tessenderlo

As I previously mentioned it would either become more of Skanska or Tessenderlo. In the end I decided to increase my Tessenderlo investment.

I bought 80 more shares at a price of 27.60 € which gave a total cost of 2216.90 € including trading fee. I now have 170 shares in Tessenderlo at a total cost of 4297 € or 25.27€ per share.

To take a look at my current Stock Portfolio then please click on the link. The portfolio will however not be fully updated until the end of the month.

Sunday, 31 May 2020

Summary of May 2020

Summary of May 2020

The sunshine has continued during the month while my mood has gone a bit down from all the home office. The world has started to be active again and I'm sitting every day having telephone conferences with all corners of the globe. UK will now start to ease the lockdown and people are allowed to meet up as long as they keep the 2m distance.

I will be back in the office on Monday and more and more of my team will be brought back in during the coming weeks. I'm happy to be back at work even tough it will be awkward with the social distancing and all the precautions that we must take. I'm Swedish and we are a hugging population. Few things beat a proper hug for showing that you care about the person.

In the latest weeks I've spoken a lot with people in South America. They are still on proper lockdown and their economies that were struggling already before have now gone further downhill. Since it was on my mind about the supply companies I was asking them about it and what they said was that smaller supply chain companies either have or will go bust which will lead to delays in the economical kick-off not only for South America but for many other parts as well.

Share prices have continued up also this month and I can only once again state that I think the celebration is far too soon. Does this mean that I will not buy new shares from my salary? No, it does not. I know that I cannot time the market so if the company is reasonably priced then I buy it.

For the previous summary please visit Summary of April 2020 and here you can see my stock portfolio as it is.

The total invested value is now up at: 147,260 €. The monthly investment in the Mixed ETF has been made and I bought shares in Skanska.

The value of the portfolio is today: 170,199 and I have 2095 € in cash on my broker account. I have realised gains of 3,103 € and unrealised of 22,940 € (13.5%) which is, as always, not good enough.

DAX is now up at 11,587 points which means that it has increased by 6.7% since the previous summary and my own portfolio has increased by 7.0%.

Conclusion: Third month in a row that my portfolio performed better than DAX. I do not expect it to last. I have cash again on my broker account and I've made a small investment in construction so I am still missing property and forest industry. Additionally, I'm interested in increasing my holdings in Skanska, ABF, DBAG or Tessenderlo. ABF has a part retail (Primark) and I am already have in retail so I'm reluctant with that one. DBAG pay out very nice dividends, they recently opened a new fund that was filled up with money so they have firepower for plenty of investments however I already have a bit of money in them. I was looking over the forest industry and I'm sorry to say that I am not pleased with their revenue growth rate and property I consider to be in a bubble due to the low interest rates and one need to dig to see if the company is aggressive with their property re-evaluations so currently I cannot be bothered to look into that industry. Hence it will either be more in Tessenderlo or more in Skanska.

Saturday, 30 May 2020

Dividends during May 2020: Talanx

Many companies stopped their dividend payments so one must be happy with what little stream one do get.

During the month of May I received dividend from Talanx in the size of 120 EUR. From this was taken 31.65 EUR in taxes and 88.35 EUR was paid out as cash on my broker account.

To see a bit more in details please visit my Stock Dividends page.

Wednesday, 13 May 2020

Asian Bamboo looking back

My, without doubt, biggest financial mistake was made with a fairly young company, working in an old line of business and being based in China.

Asian Bamboo is now since 205/2016 bankrupt and for that reason I decided to go back to all the annual reports to read them again to see if I would today, hopefully knowing a bit more, have done something differently. Interestingly enough, Asian Bamboo was bankrupt, had no CEO, no board and yet it was still being traded on the stock exchange in 2016 as if it had a 1.5 million euro market capital (it has now been removed!). The company had many similarities to surströmming... besides from the taste that is.

Actually one should dig into all the Chinese companies that had their IPO in Germany since around 80% of them have gone "bankrupt", by now closer to 95%! Unfortunately I do not have the time for that but I did own Asian Bamboo so there my interest is large enough for me to spend time on it. This time I also had to spend to make sure to really rub some salt into the wounds.

Strange things that should have opened my eyes are mentioned below. Some of them I did react on when reading the reports but I kept pushing them away that the Norwegian oil fund held shares in the company gave me a false sense of security:

  • Very high payments for leasing the bamboo forests 
  • The forests kept going to maturity with increasing value even though they claimed to harvest the forest
  • Largest parts of profit was from rewriting the value of the bamboo forest that they were leasing (not even owning it, which does not really matter because the value of course still increase but still...)
  • I was in touch with their CFO asking who their competitors were and got the answer back that they did not have any. Yeah, right. This guy actually told me to get out with that answer and I failed.
  • Kept flipping the costs between reports from being non cash flow influencing to being cash flow influencing. I still claim here that the auditing company that allowed this to happen should be sued by all the investors.
  • Having a company in between Germany and China in Hong Kong that was a mailbox company with an oddly structured ownership that made no sense.

In the end my conclusion has been that I will simply not invest in a company that are not obliged to follow rules and regulations similar to what I am used to. This translates into only owning North American and European companies. Additional, I'm not allowed to allow myself some false sense of "security" based on other (famous) investors owning shares in the companies that I also own. It is irrelevant. The investment can often, in the grand scheme of things, mean nothing to them but it means a lot to me!

My first investment was made in 2012 and my final 11 months later in 2013. In 2015 I finally sold the shares with an overall loss of -5,783 €.

I currently have similar but unrealised losses in DB and Coba both companies were initially, just like Asian Bamboo, bought in 2012 when I started investing.

Well done me!

Tuesday, 12 May 2020

Dividends from January to April 2020

With this publication I am now finally on top of things again! All the dividends from the past has been sorted out (2018 and 2019) and now I have caught up with the dividends payments during 2020. I have also managed to make my simplistic analysis of all my current holdings and unfortunately all of them are not in the state that one would have liked to see. The three big ones there are my two German banks DB and Coba but also K+S has now joined the children choir of sorrow.

During these four months I have received:

Two dividend payments from Nike in total 17.63 €
Associated British Foods paid out 40.23 €
DBAG gave a nice payment of 232.50 €
Intel arrived with 39.88 €
TJX with measly 13.10 €
IBM with 35.48 €
and finally BP with 72.06 €

As tradition holds all dividends are re-invested with my monthly purchase.

This year will most likely not be very fruitful in terms of dividends due to two reasons:

1. Over 50% of my holdings are in non dividend paying ETFs
2. Many companies have decided to hold on to the cash from 2019.

I've also started to read other finance blogs and it is interesting to see how many of them have handed in the towel. I hope this is because they got tired of writing articles and that they privately are still enjoying the great fun of investing!

I hope all of you are busy reading up on companies and catching some good ones that are now more reasonably priced and you can be sure that I will, in the end of each month!

To see a bit more in details please visit my Stock Dividends page.