Portfolio update – October 2017

October has ended and we are ready for another portfolio update.

We didn’t buy any new stocks this month, so the development is based on the same portfolio as last month. This month our tech stocks did quite good as the whole sector rose in value after some good reports. We are overall very pleased with a monthly return of 1.75%. We hope to see more months like this!

Our portfolio did okay compared to the European index, but the S&P500 did way better as we had a few shares that fell quite a lot.

FIRE – an appealing concept

Financial independent, retiring early or FIRE as it is called for short, is a concept we have met over and over since we started this blog and began to read other blogs about personal finance. The concept is fairly simple – keep your expenses low and invest what you have left each month. Based on the articles we have read so far a rule of thumb is that you should save/invest at least 40% of your income every month. By living this way you will be able to live by passive income later in life and be able to retire early(ier). This is where we got very excited! Who wouldn’t love to be financially independent?

Dividend update – Q3 2017

Who doesn’t love watching money fly into one’s account without touching a finger? It almost sounds too easy but that is why we love our dividend paying stocks. After pressing the buy-button there is nothing more to do than wait and keep an eye on what the next dividend payout ratio will be. Despite our delight in dividend paying stocks, we have multiple times discussed whether we fool ourselves returnwise, as we pay our taxes at an earlier stage compared to owning a stock that accumulates the value instead of paying it out.

Portfolio update – September 2017

It is now the start of a new month so how did our portfolio perform in September?

Writing our first portfolio post earlier in September (Our portfolio) inspired us to go on a little stock spending spree, so we were quite active in September and bought three new stocks. We bought Intel, Salesforce and Facebook shares, so that kinda bumped up our tech exposure. Lets hope that it will prove to have been a good idea. Below is our portfolio as it looked ultimo September.

To compare our return to the market we have chosen to benchmark it against the American index S&P500 and an European ETF tracking MSCI Europe. Lets just say it as it is. September was not too good for our investments compared to the rest of the stock market…

Even small costs take a big bite of your investments

When I was younger and first heard about investing I thought: “Wauw, this concept of my money working for money instead of me working for money is so smart that I’m probably not smart enough to do it”. But I considered myself smart enough to not just let anybody do it, so I went online and researched the different investment funds. After thorough googleling (wauw such skillz, huh?) I ended up picking a somewhat local fund based on past performance.

Was I as smart as I thought with this past performance research? The fund performed like its benchmark, but the costs made sure that I didn’t!

Our portfolio

Until now, you have heard a little about our view on investing, as well as gotten a guide to how to get started out easily (If you are a Dane). But how have we chosen to invest our money? In fact, we each have our portfolio, which we each manage, but for the sake of convenience we have planned to present our two portfolios as one single portfolio here on Talk About Finance.

Looking forward, we will be making a post about once a month with a brief summary of what we have invested in since then, as well as an update on how our investments have performed.

When should I start investing? – Early!

Have you ever thought: “I’ll start investing in a few years when I have more money.”? If you have, you are cheating yourself! Read this and find out why it makes sense to start now.

A lot of people postpone the start of their investments because they believe that they will earn more money later in life. They can therefore justify themselves to wait and thus instead use a little extra on house, car, clothes, etc. right now. This is a priority and we are not able to say if you are happier to spend the money now or wait. However, in this post we will try to motivate you to start investing early in your life using a small example. What we would like to show is that one of the most important factors of an investment is time.

Compounding interest – the most important concept for your financials

Compounding interest, compounding interest, compounding interest. Say it out loud (or in your head one more time) so you remember it. It is the most essential term to understand in order to take control of your financials. Compounding interest is what puts some people in financial misery and makes other financially independent. Get an understanding of compounding interest early in your life, and be in control!

Compounding interest is in short interest on interest.

An example of this is that the first year $1 is invested with an 10% interest it will yield 10 cents, so that you have $1.10. The second year this investment however has 10 cents more to earn interest than in the first year. The investment will as such yield 11 cents instead of 10 cents in year two, so that you have $1.21 after the second year.

Guide: Sådan kommer du i gang med at investere (Danish)


Når man skal i gang med at investere, kan det være svært at vide, hvor man skal starte, da man bliver præsenteret for en ny verden, man intet kender til. Med baggrund i vores egne erfaringer har vi lavet denne guide, der trin for trin fortæller, hvordan man nemt kan komme i gang.

Guiden indeholder svar på følgende:

  • Hvor skal jeg oprette et depot?
  • Hvad skal jeg investere i?
  • Hvor meget skal jeg investere for?
  • Hvordan handler jeg?
  • Hvad skal jeg gøre efter jeg har handlet?

Hvor skal jeg oprette et depot?
Hvis du vil investere dine penge, er det første, du skal gøre, at oprette et depot. Et depot er et virtuelt sted, hvor dine værdipapirer bliver opbevaret, efter du har købt dem. Har du ikke et depot, kan du altså ikke handle værdipapirer. Et oplagt sted at oprette et depot er hos en af de store danske banker, der tilbyder en investeringsservice, eller hos Nordnet som har specialiseret sig i private investorer.

Why invest your money?

If you have any savings that you do not need in the near future, you can consider investing it in something that gives you a return. At the moment, interest rates in Denmark are so low that at most banks you have a deposit rate of 0%, which means you do not get any interest income on your savings. In the short run it is okay, but if you have a long-term perspective with your savings, you should definitely consider whether it makes sense for you to invest the money, as their value over time will decrease due to inflation.