Tag: freedom

October 2018 – Dividend

October 2018 is almost over , time flies and so it’s time for another dividend update. A new increase, comparing with October 2017 due too the expansion of the portfolio. The exchange rate impact is something I am used to by now and the small increases in dividend payout minimize the inconvenience in the result. It’s a figure too low for me to consider hedging the currency issue.

Percentage wise the increase is pretty large, 67%. At some point as the portfolio increases this will level out more and produce a more normal percentage. For now it looks fun. With another 2 months to go this year I’m curious we’re we end up. For now the numbers :

DateStockCurrencyAmount
24-10-2018Cisco systemsEUR8,03
25-10-2018General ElectricEUR2,30
15-10-2018W.P. Carey EUR8,91
10-10-2018Vanguard FTSE All-world UCITS ETFEUR39,63
1-10-2018Coca ColaEUR5,09
1-10-2018Vanguard Dividend Appreciation ETFEUR1,30
TotalEUR65,26

Why buying a home is not an investment, but still a good idea

With the housing market being at pre crisis levels again and people desperately trying too buy a house the euphoria is back again. The sort of euphoria were people count there paper profits as actual profits and fantasize what they can buy with it.

A strange phenomena which returns every time housing price rise, so I have been thinking a bit about and the only logical conclusion for me is, stop looking at the house you live in as an investment. But it’s still a good idea to own your home.

There are only 2 options when it comes too getting a roof over your head, renting or buying. Basically renting is paying for the use of the house and the owner taking the risks, which in return you will pay a premium for the owner too cover his expenses, inflation and profit. Too keep up with inflation rents are raised with a certain percentage every year. Fortunately in most country’s rents are regulated. And in higher segments during crisis you can get nice discounts. But for the most part rents tend too rise.

When buying a property , you carry all the costs , maintenance insurance taxes and so on. You can simply buy a house with cash savings but most people will have to take out a mortgage on the property. This is a different risk landscape, the bank will loan you the money and will ask a certain interest percentage for risk covering and profit. But the house is yours, and here is where the fun starts.

At a certain point in time when you buy the house, a large part of your living expenses is set for the duration of the mortgage , mostly 10, 20 or 30 years. So your monthly payments are the same. When renting you will see a raise every year.

The monthly mortgage payments consists of interest and a part of the initial loan the principal (the part of the loan you pay back to the bank and thus lowering the outstanding debt). Now the fun bit, most banks permit paying back extra on the principal , so your monthly expenses will go down, you will pay less interest on the remaining loan and the amount you are obligated in paying back each month also drops. What you can do with this extra money is food for another post.

You have a certain control on what the roof over your head will costs you each month, the most significant is the absence of the yearly rise in rent. But buy paying back extra you will own your house faster and save paying future interest. This can add up quickly.

So why is owning your house not an investment ? Well simply because it doesn’t yield any income. No interest will come your way, like when you have a savings account with a bank, nor will there be dividend payments like when you own shares in a dividend paying company.

The only way in cashing in is selling the house. You should not consider yourself richer because of the paper profit which at some point wil be there. Your house is simply an expense which your are obligated inlaying each month , but you need too live somewhere.

Why it’s still a good idea? First you own the house and you can control your monthly expenses more easily.
Second, buy simply having the option repaying the mortgage faster you can get your costs down. Instead of the sure rise in living costs you have when renting. And historically housing always been following inflation (minus the bust and bubbles in the meantime) So after you are done living in your house and downsize start renting after retirement there wil always be a sum of money left over after the sale. You simply gain an asset by doing something you need , having a roof over your head.

Why not rent ? Renting can be cheaper in some cases, when you need the excess money after retirement and downsize. When you move a lot for work. But most people live in a house for years, making buying almost always cheaper than renting. It’s also the easiest way to control a large part of your monthly expense.

But just remember a house you live in is first and foremost a roof over your head and not an fictional ETM machine which you can use for your daily groceries. So no investment but still a good idea.

Portfolio news – Summer 2018

Finally after all the buying of ETF’s too balance the portfolio out in a better way, it’s now time too add a few handpicked stocks to the portfolio. Buying ETF’s isn’t anything really interesting too talk about. Hence not many portfolio updates over the last few months.

Now that everything is balanced out a bit more, I have added a few stocks to the portfolio. Europe is pretty much still lagging behind because of all the political themes , Brexit, Italian budget concerns and trade wars. Timing for me is like magic and I am not a licensed magician. So I just went down my what to buy when I have the money list and came up with a few good ones. The new positions are :

BMW

BMW is in a tight corner, diesel gate , trade wars, currency problems and the omission of a decent electric vehicle have made a considerable dent in the image of not only BMW but the whole German car industry. There is not a lot of music in the stocks , and there hasn’t been for some time.

On the other hand, every car the ensemble , sell with a pretty decent profit. Enough too get their heads around building a decent electric vehicle too get into competition with the established electric car makers. It’s a bit of a waiting game lately with all the political and economical turmoil at the moment. Surely in the short term they will hurt a bit. But with the brand still having a status symbol status and quality cars they have all the potential for being just that in the future. And in the meantime they will still be paying out dividends.

Reasons enough for me too buy BMW, just not the car itself.

Starbucks

Wish list item for a while now. Now with the funds available I finally added Starbucks to my portfolio.
Since 2010 they are paying a steady stream of dividend and their goal is growing the dividend stream.

Starbuck’s stock price has been under pressure for most of the year and is now finally seeing some upward potential. So buying in the summer has been a unexpected bonus. The position of the company is still very solid with nice growth numbers in Europe , The US part is falling behind a bit , but that’s a work in progress in getting things sorted again.

All in all one I had my eye on for some time and finally made an entry in the portfolio.

Nike

Last but not least, Nike. A lot of hustle and bustle around Kaepernick and sales figures. After having their main rival Adidas in the portfolio which had reached a very nice profit margin where the dividend percentage didn’t make sense anymore I simple sold it and banked the profit. Now it’s time to own Nike. The other power in sports and leisure branding.

And same as Adidas , not for any numbers and other boring date. Just looked at the brand and seeing lots of people still growing up with Nike as a brand people wanting too own stuff from, especially sneakers , but also other stuff. Everybody has that one pair of sneakers they wanted and saved up for. And not being able getting the other pair. In later life , they still buy these models. And every generation has them. Same with Adidas.

They still have a large following , limited edition runs, collabs and a lot of sub cultures have in some way shape or form incorporated Nike in their style.

They keep up marketing wise and make bold statements. Which still resonate with young and older crowds. And I don’t see that changing anytime soon.

September 2018 – Dividend

Another month gone by rather quickly, time again for the dividend update. This month has seen a new increase comparing with last year. The figure is around 43%, again mainly due to positions who are paying dividends for the first time since being in the portfolio.

Exactly the effect I am after. Let’s see how this is going to work in the future.

The numbers :

DateStockCurrencyAmount
05-09-2018UnileverEUR3,87
10-09-2018Emerson ElectricEUR4,18
13-09-2018Microsoft CorpEUR7,24
14-09-2018DowDuPont INCEUR3,28
17-09-2018Royal Dutch ShellEUR40,48
18-09-2018Icahn EnterprisesEUR1,51
TotalEUR60,56

August 2018 – Dividend

August is almost over , dividend wise for it’s over already in my case. Another great month in dividend streams. Some new positions payed dividends for the first time, which has the traditionally weak month of August catching up too the rest. Percentage wise an increase of 150% , but as already stated this has to do with the new additions to the portfolio.

The exchange rate between the Euro and the American dollar pulls it all a bit downwards. Despite of Apple increasing it’s dividend percentage it’s result is pretty much the same.

all in all a nice improvement which I can only be happy with, other things in life might not be as upbeat , this is. Which hopefully makes me less dependent on others in the future, that’s the broader goal. For now the numbers :

DateStockCurrencyAmount
24-08-2018StarbucksEUR4,66
16-08-2018AppleEUR6,46
13-08-2018NSI N.V.EUR12,48
13-08-2018Flow tradersEUR67,50
03-08-2018Amsterdam CommodotiesEUR24,00
TotalEUR115,1

July 2018 – Dividend

A new dividend update, the compounding kicks in. This month it’s a 104% increase compared with July last year. Mostly from the growing portfolio and some small dividend increases, largely offset by currency rates which are still a bit negative relative too last year. All in all nice progress in this ever evolving experiment.

The numbers :

DateStockCurrencyAmount
27-07-2018Walt Disney CompanyEUR0,72
26-07-2018Cisco SystemsEUR7,97
25-07-2018General Electric CompanyEUR2,28
17-07-2018W.P. Carey IncEUR8,79
05-07-2018Vanguard FTSE all world UCITS ETFEUR39,23
04-07-2018Vanguard dividend appreciation ETFEUR1,47
03-07-2018Coca-Cola CompanyEUR5,04
TotalEUR65,50

June 2018 – Dividend

Another month gone by quickly. And thus a new dividend update. It’s up about 3,2% compared to June 2017. Which is exactly what is supposed too happen. No big differences with the positions and just a steady growth.

It’s funny, this strategy is very easy too follow and doesn’t require a lot. Just one thing perseverance , that’s it.

In combination with debt reduction and other savings the power of compounding over time becomes very apparent. It’s a no brainer really.

The numbers :

DateStockCurrencyAmount
26-06-2018Deutsche PfandfabriekEUR107,00
21-06-2018Icahn EnterprisesEUR1,51
19-06-2018HAL TrustEUR31,00
17-06-2018DowDupont EUR3,28
14-06-2018Microsoft EUR7,24
12-06-2018Emerson Electric CompanyEUR4,18
07-06-2018ASM InternationalEUR8,00
06-06-2018UnileverEUR3,87
TotalEUR166,08

May 2018 – Dividend

A bit faster than the last dividend report. May is over again and the numbers are in. Bit lower compared to last year due too dividends being payed just outside of May in some occasions. In percentage -44% but in simple money still a nice number and a good confirmation of my strategy.
Now that the balance between handpicked and the ETF parts in the portfolio is almost complete I will go back and do some picking again. Lets’s see how that goes.

The overview:

DateStockCurrencyAmount
30-05-2018Bayer AGEUR14.00
30-05-2018Unibail-RodamcoEUR5,40
18-05-2018K+G AG EUR14.00
18-05-2018Porsche Automobil Holding EUR17,60
17-05-2018Apple IncEUR6,24
14-05-2018NSIEUR13,44
10-05-2018Amsterdam CommoditiesEUR42.00
09-05-2018ASML HoldingEUR5,60
TotalEUR118,28

April 2018 – Dividend

Well late this, very late almost June again and I hadn’t yet published my April dividend numbers. Nothing special , a nice growth comparing with last year. Which is the idea behind it all. Percentage wise it’s a ridiculous number, 263%. Totally due to first time dividend paying positions.
So it looks awesome but’s it’s simply just new funds that were added after they payed dividends last year.

The dividend investing strategy is being debated more and more in favor of a more growth focus strategy (I.e Netflix, Amazon , Tesla and so on). But for me this dividend focused strategy works fine, it’s simple and straightforward. Exactly what I need.

The numbers:

DateStockCurrencyAmount
30-04-2018Munich ReEUR197,80
26-04-2018Ahold Delhaize KonEUR63,00
26-04-2018Cisco systemsEUR7,63
25-04-2018General Electric CompanyEUR2,81
21-04-2018Jungheinrich AGEUR5,00
17-04-2018Icahn Enterprises LPEUR1,21
17-04-2018WP Carey Inc. REITEUR8,38
16-04-2018NedapEUR50,00
05-04-2018Vanguard FTSE AWEUR16,74
03-04-2018Coca Cola CompanyEUR5,85
03-04-2018Vanguard Dividend appreciationEUR0,90
TotalEUR359,32

Dusseldorf citytrip

Another experiment in my never-ending quest in how far can I take it without failing miserably. A citytrip to lovely Dusseldorf. And as with a lot of citytrips over the years , another marathon. My third Dusseldorf marathon. Preparations were not ideal. I could not escape the flu and I hurt my left leg during a random walking down the stairs, resulting in a bruised left calf. Hopefully I recovered just enough.

Combined with the anticipation of a long travel and hustle and bustle of a big city I was pretty nervous. But we were prepared, planned a full day for both the journeys , Saturdays an empty day , so staying sharp en fit for the marathon should be doable.

the outward journey didn’t go with the fast ICE due to maintenance , so we went with the regular train services. First off to Venlo, then a simple stop at every stop you can find train towards Dusseldorf. The trip went well and we arrived at noon. Luckily the room was ready and we just took it easy the rest of the afternoon.

We went for a walk and a lunch in the city , got my racing number and just walked around a bit. We ended up passing a truly giant supermarket just around the corner from our hotel. Got some breakfast stuff once we found it and took a break at the hotel. Late in the afternoon we went to our favorite Burger restaurant in Medienhafen.

Saturday morning after breakfast we went to Niederkassel for some relaxing and to visit the Japanese garden. Unfortunately it openend hours later so we went on a walk around the neighborhood. With a bit of coffee and cake on the way. A very beautiful place too live indeed. Lot’s of green , parks and cool houses. And very close to the city centre. Happy few only I’m afraid. After the nice walk we went back towards the city, grabbing lunch at our favorite breakfast lunch spot. It’s still there !

Back to the hotel after getting some supplies from the mega Edeka. Taking the afternoon to catch some sleep and make sure I get enough rest. Even dinner at the hotel with fresh salads bread and deserts and getting a nice early rest. Tomorrow is marathon day !

Sunday morning, marathon d-day, nerves are definitely at their post. Early breakfast and preparation time. Main question of the day is , do I have enough endurance to get to the finish line without breaking down at some point. Only one way to find out.

We walk towards the start , which is at 9:00 in the morning, via Altstadt where the last remaining people are kindly swept out of the bars. There was a bit of a celebration in the city due to the promotion of Fortuna Dusseldorf on Saturday.

This being a relatively small marathon, about 4000 runners, there is plenty of space to do a nice warm up at the start and my girlfriend is able to be at the starting grid. I did a few test sprints to see how well my left leg felt. It felt good which added to the confidence a bit

About 10 minutes before the start I get in my starting position and it starts to rain a bit. Because of the course spectators can actually see the runners a lot , the course returns in a small part of town a couple of times so they can easily walk and be on time at different points in the race. Fun and good for moral.

Een 10 minuten voor de start zoek ik mijn startvak op en begint het wat te regenen. Mijn vriendin kan gezellig naast het vak staan en gaat even later naar het eerste punt, door de opzet waarbij je steeds weer terugkomt in een klein deel van de stad is het ideaal voor toeschouwers en kunnen ze de lopers vaak voorbij zien komen. Leuk en goed voor de moraal.

It’s there start , and the running can begin, all nerves went away immediately , which always happens when I start running. I am in a group with pacers who have 3:14 as a goal. I know that is a bit of a stretch for me but for now the pace is good and being in a group provides some heat. Which is great because of the increasing rain. My liquid intake isn’t great apparently because I have to take 4 restroom breaks along the way. First 2 times I got back with the group but I gave up on that because it took too much of my energy.

I am in a good pace and feel good, I take a drink at every stop and some gels and bananas. While running thru Niederkassel and Oberkassel the rain really starts pouring and I am soaked and a bit cold. Mainly on the return trip over the bridge. I still maintain a nice pace, After 30 K my legs het heavy and I can’t keep the pace. Which is fine by me and I decide not too force anything and stay in one piece. Just maintaining pace as much as possible which works great. In my mind I reached the giant 40 K sticker on the road pretty fast and the sun has started drying me and warming me up. Which is nice. The final stretch downhill towards the finish line and I am there. As usual my muscles immediately stop working after crossing the finish line, which is always a bit of a strange feeling. As is the time my watch tells me 3:21:11, en new course record. For me that is. I am extremely pleased , not one moment of pain or troubles along the way. Race seemed over before I knew it. Another milestone , in experience and running.

After the finish we find each other again and go for a curryworst lunch. Getting some food in is always great. Afterwards we walk back to the hotel and the sun is still shining. At the end of the afternoon we go to Medienhafen and get a drink and some sunshine. It’s hot by now. We walk back to the hotel via an unknown part of the city which has nice shops and restaurants. A new discovery for future visits.

Dinner is at a Thai restaurant near the hotel and an early bed , travel time tomorrow. Weather the next day is bad , well luckily travel time which went well as well and we are back home in the afternoon.

This citytrip went well and has given me a lot of insight in how to plan a trip. Running a great marathon was a very nice bonus. This learning experience has given me a lot of hope in getting on with our main hobby. Traveling.