My Portfolio - February 2022 Update

February has not been a kind month for my portfolio - but this is to be expected considering the asset allocation (100% equity) and the current situation. 


I did not do much in terms of transactions, except:

  • I sold the Kraft Heinz shares (I bought them in May 2019), realizing a 16.6% capital gain (around 193 Euro) and 153 Euro of dividends. Considering it was a purely speculative move, I think I got it wrong. Let me explain why: everything is a matter of cost opportunity - if I had invested that amount of money in my usual ETFs probably I would have gotten even more out of it
  • I have used some savings to reduce my margin trading exposure from approximately 29K Euro to 12.3K Euro. I really dislike the fact of having to pay 4% (annual rate) on this amount. I put in around 13K Euro from my "emergency" fund (which I will have to rebuild) and the usual 2.7K Euro that I invest every month (plus the Kraft Heinz shares of course)

Anyway, below the summary:

I am a bit confused by the Internal Rate of Return (IZF), I am not clear how that is calculated in the month (ITM). 

In terms of biggest winners and losers, iShares Global Clean Energy UCITS ETF - USD DIS had a great month, most likely fueled by the geopolitcal risks that are associated to fossil fuel (now more than ever). On the opposite side of the spectrum, all geographical ETF have suffered (Europe, North America, Emerging Markets). Also here, no particular surprises I believe. 

This month the dividends are coming from Apple (16 Euro) and iShares Core MSCI Europe (Dis) (85 Euro) and year to date we are totalling 314 Euro (yelllow line below - the other lines represent the past years). Nice to see the rate picking up - already now I got more dividends than until April last year!

Last but not least, my Crypto investment is now around 1.6K Euro, slightly better than in January but still on the losing side. 

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Comments: 5
  • #1

    Michal (Monday, 28 February 2022 22:23)

    Thank you for sharing your insights. Would be interested for you to possibly create a post on what is your process for evaluating ETFs prior to deciding whether it's a choice you want to go with.
    Also, hard question but do you think that for someone starting investing into ETFs right not, is that the right time to invest? I guess the best time was 10 years ago and the second best is now :) but would love to hear your opinion.
    Thanks and keep on doing what you're doing!

  • #2

    just(an)ordinaryguy (Tuesday, 01 March 2022 08:30)

    Hey Michal,

    Thanks a lot for the post suggestion - noted it down and will come within the next 2 weeks!

    In terms of starting now or not, I believe it is extremely difficult to time the market, so I would just go for it. If you follow this link (https://app.parqet.com/p/61b6171200b3055a4b421095 - hope it works) and look at the performance in %, you can see that I had a pretty bad first 6 months. This was also due to my choices at the time - but my point is, if you are in for the long term, jump in and time in the market will beat timing the market.

    PS I cannot format anything in the comment but I want to put the emphasis on being in for the long term, that is really key!

  • #3

    Michal (Wednesday, 02 March 2022 12:38)

    Thank you for sharing your thoughts. I am of the same opinion and although I feel bad for starting late (I'm 34yo with only pension plan + savings + almost paid apartment) I am super encouraged and keen to learn the long term strategies. Everything you have posted I have read and it mimics the strategy from book I am currently reading: The Simple Path to Wealth by JL Collins. It makes sense and I'm a natural saver so it's not even going to be that hard. I think for me, personally, it is the psychological aspect I need to work the most with (maybe something you could talk about in your future posts); to basically hold on while the market goes into all sorts of ups and downs.
    Will be watching your space. All the best!

  • #4

    just(an)ordinaryguy (Sunday, 06 March 2022 14:28)

    Hey Michal,
    Thanks for the book recommendation - I just got a child, so I am not sure I will be able to read it anytime soon, but good to have it in mind!
    It is never too late to start - and I might be a bit of nerd but I actually find it pleasant to categorize all my expenses, sit down every month to invest the amount I have saved, ect ect. It does take discipline, but I find it very rewarding.
    Thanks also for suggestion on the psycological aspect! Between one diaper change and the other, I am scouting for some information on your previous suggestion :-p

  • #5

    Michal (Sunday, 06 March 2022 16:25)

    Congrats on the kid!. Understandably so, I would not focus too much on the books or my suggestions right now. That being said, still appreciate your reply and a new post.

    As for finding investing pleasurable; I think that if someone wants to be successful in investing it needs to be pleasurable. It's a long ride and as such requires that consistency, discipline and focus, which can be very daunting if it is not enjoyed. Personally, I have fun
    focusing on financial spreadsheets, investing saved money and seeing small but consistent steps that get me into the direction of my goals. I do it once a month and it helps me knowing there's a bigger goal at stake.