Wednesday 2 July 2014

Summary of June 2014

Summary, contrarian, stock portfolio, June, 2014

The month became much, much more expensive than what I had expected. My bicycle broke down so  badly that I was forced to buy a new one. I took the stupid decision of ordering a bicycle online. Big mistake! The bicycle had so many faults with it that the day after I made a cancelation of the buy due to faulty goods. The company, no phone number existed to call, only had an email address and when I sent my complaints to that company email it bounced back without being delivered. I then went to my bank to block the credit card payment and now I am stuck within the decision  process of my bank and in the meantime I was sitting on a useless bicycle and 320 € less.

Still... I needed to have a bicycle to go to work so I bought a second one for 280 € but this one I tested in the store before buying so the slightly more clever approach of buying  a bicycle. I am very happy with this one and to decrease the interest of people to steal it I made some ugly paintings on it with indoor paint. This means that it looks ugly right now but once the bicycle start to look used the paint will also have disappeared and in this way there should theoretically never be an interest in stealing it. Fingers crossed.

I also realised that I had to make a service and safety control of my car which brought me down an additional 321 €. There are no rules about service of cars in Germany but the safety control is a must every second year. When you have bought a new car you can wait three years until having the first control. It is exactly the same in France but in Sweden one have to make this check each year.

So... it was a pretty bad month considering that I lost a block of investment (~1,000 €) on expenses that I was not really prepared for. Good that I always keep a buffer though so that these kind of things never become a real problem and is only slightly annoying.
How did then the investment work out?

invested, value, contrarian, June, 2014

The total invested value made a significant jump up this month and I am now up at 39,826 €. The reason for the increase is due to that I was forced to buy more shares in DB (analysis of DB 2014), because I wanted to buy more shares in DBAG (analysis of DBAG 2014) and in Cez (analysis of Cez 2014). This then also means that I am back on track with my investment plan of around 1,000 € per month at least for the running half year of 2014.

current value, June, 2014, stock portfolio

The current value is now at 37,734 € and it is sad to see how the pie chart of Asian Bamboo has become smaller and smaller. If we compared my stock portfolio to last month then the increase has been +1.29% which is pretty ok.

chart of my stocks versus the index of DAX
As can be seen in the chart above DAX is far, far away from me but it did lose last month. DAX went back with -0.5% while my portfolio increased with almost 1.3%. Looking back Dax has beaten me 20 out of 29 months and the best month for DAX was +6.8% and the worst was -9% for me the best month has been +7.3% and the worst has been -13.5%. DAX in total is now up 42.8% and I am -5.3%.

For the full portfolio report please go to the Stock Portfolio page and if you have suggestions for stocks that I should analyse then please go to the Analysis Requests page. If you do write a comment then it will not appear directly because I always screen it first and as soon as I have done that it will be published.


Dividend Life said...

Hi Fredrik,

In comparing your portfolio's performance to the DAX index, how do you account for dividend payments? I'm curious as I compared my portfolio to some index funds yesterday but not to an index itself.

I'm sorry to hear about your bicycle - I hope your credit card company refunds you the money!

Enjoy your day!

Fredrik von Oberhausen said...

Hi Dividend Life,

I checked out your blog and I like it!
You have a very nice dividend flow coming your way each year! I wish I would be even close to that!

I do not account for dividend payments. All the companies on DAX are valued according to their market capitalization + an additional weight factor. So when they pay out dividend their market capitalization also decreases and the DAX index falls just like my individual shares fall when I get my dividends.

The biggest difference would be if I would account for when I bought my shares each month and compare that to what the DAX index was then standing at. This would push down the %-age increase of the DAX significantly and make me look a little bit better... but I do not care about looking good so I leave it as it is.

If my contrarian strategy will work then I should be able to beat index no matter how I count and if not... well... then I better start buying cheap index ETFs for my money. :)

In my eyes it does not really matter what you compare your development against. If you want to look good then pick a hedge fund that is poorly run and with high fees, if you want to have a tougher time pick an index fund.

Regarding the bicycle... my bank told me that they could not block the payment and since the payment was not in Germany (but in the Netherlands next door) they were not even able to deal with the problem.

Hahaha, a credit card that I can use all over the world but if there is any problems outside of Germany they will not help me. Hahaha

So... a good moment to look over the various banks in Germany and to pick a new one.