Summary of December 2022 and partially January 2023

 

Summary of December 2022 and partially January 2023

It will take a while before I stop this however war is still ongoing! The yearly inflation for many countries were in the double digits region. House prices are somewhat dropping, people try to avoid large energy bills. The pound sterling that looked good for a little while have now dropped down to the area it has been since pretty much BREXIT took place. Governmental employees keep going out on strikes and in generally few wants to come into the office to work.

I had a lovely Christmas market event in Berlin even though fewer than usual managed to turn up. Next year I hope it will improve! I had two wonderful weeks in Sweden and of course I took on the role of Santa Claus. My youngest nephew was slightly worried and had to hold the hand of his daddy (my brother) to approach me. I run a strict scheme and everyone must shake my hand before I let go of the gift. I celebrated New Years Eve with a couple of my buddies with lovely food and games.

Plenty of things on the agenda in the company this year. I've started to push as much as I can because I will not walk away with an abundance of lose threads and just leave the employees hanging. I hope I will succeed with all the targets that I've put on myself in the months that I have left.

For the previous summary please visit Summary of November 2022 and here you can see my stock portfolio as it is.

The total invested value is now at: 332,180 €. Monthly investments made in ETF Mix with fresh cash and then I sold Restaurant brands, Yum, Stock Y, McDonalds, RWE, VW, DB, CZB, K+S and instead I bought Barratt, Barclays, Lloyds, HSBC, Scottish Mortgage, Intel and ETF SWE.

The value of the portfolio is today: 455,859 € and I have 1,402 € in cash on my broker accounts. I have realised gains of 6,471 € and unrealised of 123,679 € (27%) which is not good enough. My ETFs are now up at a value of 69% of my portfolio.

DAX is now up to 15,034 points which means that it has increased by 3.5% since the previous summary and my own portfolio has only increased by 2.3% in the same time period.

Conclusion: DAX had another good month and overall the year for DAX did not turn out that bad. I took some advantage of currency differences during the month but less so than what I would have liked. There will be no report for the end of January and the next one will not be until the end of February when I have hopefully handed in my letter of resignation.

The stock portfolio development during 2022

 

What a horrendously bad year for the growth of my stock portfolio in 2022! My stock portfolio increased in value by 84.3k € of which 74.8k € was in savings and a measly 9.5k € came from value increase. Bad, bad, bad! The market crash have had an impact for sure.

In the previous report the stock portfolio development 2021 I spoke about that I had readjusted my target from the original 750k € to 425k €, so that I could buy a renovations object, in ideally the south of France. I want to live close to the beach and I want to be able to go skiing during winter so more places have appeared on the radar as of late and more money is needed to buy the places. I've reached the target (~450k €) and I'm very close to handing in my letter of resignation but in the last weeks they've been pushing that they will increase the age of when one is legally allowed to take out from the private pension scheme from 55 to 57 years of age. This is to follow the 2 year increase in the UK from 65 to 67 years for retirement. Very annoying... So I need to fund a further two years and yes, currently house prices are dropping but not as heavily as I would have liked to see so I can't fund the two years by putting less into the renovation object.

As can be seen in the graph above my plan is working well. In my first year (2012) of investment I ended up with a stock portfolio in the value of 17,659 € which was 4,744 € more then my plan required. In the second year (2013) my stock portfolio grew with 73 % and ended up with a value of 30,623 € which was 4,723 € above my target meaning that I managed to stay ahead of my plan but I did not manage to increase this advantage. In the third year (2014) my stock portfolio grew with 57% and I ended up with a value of 48,208 € which is then 8,333 € ahead of my investment plan which means that I managed to double my advantage during 2014. In the fourth year (2015) my portfolio grew by 53% and I am up at a value of 73,579 €. My plan was to have a stock portfolio of 54,915 € in the end of 2015 which means that I am now 18,664 € ahead of my plan. During my fifth year (2016) which was horrible in terms of new investments my portfolio still grew by 20% and the value was up at 88,414 € which mean that I was still 17,312 € ahead of my plan. In the sixth year (2017) the portfolio grew by 24% with a value of 109,606 € which was 21,802 € ahead of my plan. Followed by my seventh year of investing (2018) and an estimated growth of 19% and a value of ~130,000 which kept me 22,726 € ahead of my plan (hit by divorce). To then in my eighth year of investing (2019) with a growth of 24% with a stock portfolio value of 160,669 € and me being 33,216 € ahead of the plan (still hit by divorce). In the ninth year of investing (2020) and a growth of 52% and a stock portfolio at 243,801 € and me being 94,629 € ahead of the plan (final year of being hit by divorce). In my tenth year (2021) I had a growth of 57% and a stock portfolio at 383,941 € and by that I was 211,395 € ahead of the original plan. In the eleventh year (2022) I had a growth of measly 19% and a stock portfolio of 455,859 € and by that I was 258,156 € ahead of the original plan.

The year was kept on the down and low due to the poor performance of the stock portfolio. Savings were kept up at an extremely high value. It is insane to be able to save almost 75k € per year in the last two years.

Conclusion: 2022 did not become the best year ever. The massive saving ability once again helped my out substantially but the stock portfolio did not perform well at all. At least it did not drop down so I should potentially be pleased about that but I am not.

Bought stocks during December 2022

 

With the increasing interest rates on mortgages I took the decision to invest in a bank (and others) spread in GBP. This could be done due to that I had sold off the fast food investments in the highly valued dollar.

The Swedish currency is currently low valued and the Swedish stock market have reduced significantly. Sweden is an export heavy country so they will profit from the low valuation of the currency and I will hopefully get a double effect; Currency + stock market going up, so buying an ETF seemed reasonable to me.

500 shares were bought in Barratt Homes for a total value of 2,289.68 € or 4.58 € per share.

1,900 shares were bought in Barclays bank for a total value of 3,384.10 € or 1.78 € per share.

6,500 shares were bought in Lloyds bank for a total value of 3,352.66 € or 0.52 € per share.

270 shares were bought in Scottish Mortgage Investment Trust for a total value of 2,293.44 € or 8.49 € per share.

700 shares were bought in HSBC bank for a total value of 3,953.82 € or 5.65 € per share.

4,900 parts were bought in ETF SWE for a total value of 30,167.53 € or 6.16 € per share.

The monthly update that follows will reflect these changes made to the stock portfolio.

Sold Stocks during December 2022

 

Hmmm... In the end of November the high inflation, prices for gas an electricity was getting to me and my thoughts were as follows. I want to get rid of RWE since it has increased too much and I'm not overly joyed about their energy production so then I might as well balance the massive share price gain by getting rid of some long standing bad investments (German banks!) in my German broker account. So I did.

Secondly... The dollar is high, inflation should lead to higher prices in the fast food chains and people have less spending power meaning they should (but will they though) reduce how much they spend in the fast food chains. I should potentially not have sold off McDonalds since they are not a fast food chain, however, property prices are also going down. I'll keep an eye on McDonalds moving forward.

Restaurant brands bought for 6,438.30 € and sold for 7,580.74 € with a profit of 1,142.44 € (17.7%) and additionally I've received 85.79 € in dividends.

Yum! bought for 5,317.92 € and sold for 5,752.46 €, leaving a profit of 434.54 € (8.2%) and additionally I've received 83.58 € in dividends.

Stock Y was bought for 4,387.05 € and sold for 1,093.06 €, giving a loss of -3,293.99 € (-75.1%).

McDonalds was bought for 4,806.72 € and sold for 7,220.49 €, leaving a profit of 2,413.77 € (50.2%) and additionally 223.65 € was paid out in dividends.

RWE was bought for 4,581.29 € and sold for 13,929.30 €, with a profit of 9,348.01 € (204.1%) and additionally I've received 1,652.50 € in dividends.

VW was bought for 2,003.14 € and sold for 1,623.34 €, with a loss of -379.80 € (-19.0%) and additionally 339.96 € had been paid out in dividends.

Deutsche Bank was bought for 9,483.77 € and sold for 4,204.58 €, giving a loss of -5,279.19 € (-55.7%), over the years I've received 807.45 € in dividends. Held since 2012.

K+S was bought for 5,195.89 € and sold for 4,647.95 €, giving a loss of -547.94 € (-10.6%), additionally I've received 724.40 € in dividends. Held since 2013.

Commerzbank was bought for 7,649.76 € and sold for 5,736.56 €, causing a loss of -1,913.20 € (-25.0%), additionally I've received 905.30 € in dividends over the years. Held since 2012.

My average holding time of divested companies are now at 3.35 years.

Dividends in December 2022

 

Yum brands paid out 21.56 € as cash on my broker account.

McDonalds kindly enough paid me 34.42 € to my broker account

ETF EU 600 paid me 57.46 € as cash to the broker account.

BP paid out 45.08 € in cash to me and finally

IBM paid out 38.85 € of which the taxman took 5.83 € and I was left with 33.02 € as cash on my broker account.

The year end dividends have now also been updated on the dividends page.