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Portfolio update – January 2018

January… Cold dark month here in Denmark so karma gave us some good returns to make up for it! But by the looks of the markets here in the beginning of February karma found out that we spend most of January on a bounty island in warm weather. Anyways February still have many days to surprise us so lets stick to January for now.

As we had spend a bit on the vacation we didn’t buy any new stocks in January so our portfolio remained the same.

We ended up being 1,5% down on currency, but there were some heavy hitters to make up for that so our return for the month was 3%. Please give us more of these months! Please.. PLEASE!

Well… The online retailers was our best performers this month. Amazon and Boozt are quite different companies, but its seems investors are believing in the e-com case benefitting both of them. Lots of other decent returns in the portfolio as well.

For readers following the blog you know that we have written about individual stocks vs. the popular index funds (if you haven’t read it click here). For the theoretical lesson we wish that the chart below would have shown a similar return for the indexes and our portfolio (not 🙂 ) but we ended up quite ahead of the benchmarks. It looked so good that we had to recalculate the returns as we we unsure if we had the currency effect right, but if we can believe Apple’s excel stock function then it is correct. Well we are certainly not complaining.

Lets see if everything that the market has given are taken back in February. Earlier today we were preparing ourselves for the worst, but as we write this we see that the American markets are turning green. More to come next month.

2 thoughts on “Portfolio update – January 2018

  1. Are you thinking of going cash in following weeks/months? I’m personally thinking of going 50 % cash to avoid the worst of the correction, which I think is coming soon.

    What’s your thoughts?

    1. Hi Frederik.

      It is a very relevant question as the market is showing a lot of volatility at the moment. Personally we have a strategy where we buy stocks frequently (approx. 1 or 2 new per month) and hold them for the long run as we do not need the money in the foreseeable future. Doing this means that we will take a loss in our current portfolio if the market drops, but be better off in the future if we can buy stocks cheaper after a correction. So we are actually not that scared of a correction, because we are still young with many years left to add money to the portfolio. It could even be an advantage for us.

      It would of course be better to sell before a correction and then buy again cheaper, but we have talked about it and concluded that we are probably not able to time it correctly. For it to be a success you would have to time the market twice – both selling at the top and then also buy again at the bottom. So we stick to our strategy so far.

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