Sunday 19 February 2017

Stocks bought February 2017: BP and ETF Portugal

I read an article the other day concerning the richest man in Belgium, an activist investor of the name Albert Frere, and how he has now stepped into Hugo Boss with a 3% stake and is planning to expand it. What I found very interesting was that he seemed to have stepped into Adidas at a similar moment of time as I did and he apparently decreased that holding a little lately, while I sold off all of it. I hope that he has a slightly better reason for why he bought Hugo Boss than I do but I am happy to now know that I will benefit from his knowledge and skills in pushing companies forward. Back to the topic at hand....

BP has been with be since the very start back in spring 2012. Since my very first investment I have made three additional increases when the share price have dropped or in this case because I see a shift in the wind. BP has a fairly large stake in Rosneft and since it was bought it has not contributed with much in terms of earnings which was due to the strong decrease in the oil price but also the entire Russian economy came to a halt.

The Russian economy is, by the look of it, picking up again and my Russian index fund is up nicely at the moment and Avtovaz also jumped up like crazy. I actually missed a sales moment there... sigh... Anyway... oil price is higher, Rosneft will do better and the share price has been punished now for too long for BP.

If I am wrong, as I have been for the five years I have held on to them, then I will at least collect a nice dividend and I have no issues with that.

I bought an additional 420 shares which set me back, including fees, for 2,238 €. I hold this stock in my British stock portfolio and I realise the annoyance of being forced to pay a stamp duty here in the UK.

Commerzbank, logo, 2017

The ETF Portugal has remained at a very low level for a long time now. I took a look at unemployment rate that is now down at around 10%! Their GDP is also increasing year after year after year. It is not possible that the Portuguese economy and population is doing so well today while the companies and the stock index is not. There will one day be a correlation and I think that is more likely to happen sooner than later.

I therefore decided to double my investment in the Portuguese PSI20 by doubling my holding. I bought an additional 370 parts at a total cost of 1997.65 € including fees. I have only had this investment since spring 2016 so it is not very old.

Any changes will be brought into the stock portfolio upon the next update in the very end of the month.

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