Portfolio Watch

Portfolio Watch: 25 September 2020

It's been a while since I wrote a blog post about my portfolio. Life kind of got really busy this month and I am currently going through a slump. But that is no excuse. I have to stick to a schedule and make sure I post on time, whether the blog post is perfect or not.

New Blogging Format

I've decided that I'll split my learning posts from my portfolio watch posts because combining them makes for a very long blog post. This takes a lot of time and delays the process of getting a blog post out in time.

So one week I'll give an update on my portfolio. The following week I will do some research into an investment topic and write about what I've learned.

The portfolio (before buying)

My Portfolio Before Purchases

Things aren't looking too great with my portfolio. There was one point last week where every single one of my ETFs were in RED. I then decided that I needed to step back from my portfolio otherwise the negative numbers could impact my mood and lead to me making foolish decisions.

This worked well for me so far but I have to return to my portfolio to decide what are my next batch of stocks or ETFs to buy.

Increase in my monthly investments

I am part of the fortune minority of people who got a raise during these COVID-19 times. I am very thankful to be working for a company that wasn't affected too negatively by this pandemic. In fact, some would say we benefited a great deal. But nothing to the degree of say Netflix, Microsoft or Amazon.

This increase in salary means I can put more money into my portfolio. I started with R150, moved to R350 a month or two later. Now I'm going to invest R750 per month. I initially wanted to invest R1,000 but there are other areas of my budget that needs some money as well. R750 is not too bad.

This means that I am currently investing 2% of our nett income every month. My goal is to get that figure all the way up to 10%. This excludes other savings my wife and I make on a monthly basis. We save for repairs and maintenance, emergencies and clothing.

My strategy this month

I still plan on having a 4:1 split in my portfolio of ETFs to Equity. Currently it's at about 1.8:1. So I want to put the entire R750 in ETFs. But the Multichoice Group loss is bothering me a lot. I lost about 16% in value of my Multichoice shares.

My thinking is that I can buy more Multichoice stock, now that it's 16% less than my original investment. This should lower my average purchase price. Then the stock price doesn't have to go up that much for me to realise a profit and for me to sell it off. I don't plan on keeping the Multichoice for long. I only bought it because I heard they will pay dividends. I got my divends. It was about R8.

The portfolio (after buying)

My Portfolio After Purchases

This already looks a bit better by just buying more of the stuff I'm already making losses on. LOL. I know, this is all down to a small gain I made between the time I took the two screenshots.

Besides the Multichoice stock, I bought a number of ETFs. This brings my ETF to Equity ratio to 2.33:1, closer to my target of 4:1. It will take me at least 2 months to get where I want to be. I spent R150 on each stock or ETF. So I bought one equity and 4 ETFs.

This is already a long post. I'll share more details on the ETFs I purchased. That's it for now. Until next time. Thanks for reading.

Jade

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