Guys, it’s already the last month of the year! Time is flying so fast and I can’t believe that in a few weeks it will be 2018. I don’t want to close the year already, but what I will do is to close November and check how our investments have performed. Is the reallocation of some shares into real estate already paying off? What’s happening to the extra income? Find it all out below!
Portfolio Fun Facts
Even though the pan was not to invest anything in the stock market until we build up at least EUR 5k emergency fund plus our outstanding mortgage decreases under 85% of the value of our house, I cheated a bit. We had some dividends accumulated on our investment account and I decided to reinvest it. It was only a bit over EUR 200, but I believe I found a good place for it.
Prospect Capital has made it to my November watch list, and as I already indicated there, I bought extra 50 shares. The purchase price was $5.76 per share, which looked way undervalued for me.
That share price meant that PSEC was trading only 65% of its net asset value, which is way-way under the historical average. So far this looks like a nice purchase.
Besides of this small purchase, I have not bought any other shares.
Winners and Losers
The 3 best performing stocks of our portfolio were:
- Qualcomm (+30.05%)
- Brinker International (+19.56%)
- Prospect Capital (+14.36%)
30% increase in Qualcomm within a month; that’s what I’m talking about! Of course there’s a story behind it. Broadcom is planning to purchase QCOM.
They have initially made a bid with a value of $70 per share, which has been turned down by Qualcomm as it believes this price undervalues the company. Broadcom seems dedicated to the purchase and rumors say it may sweeten its offer. Currently the stock is trading in mid 60s, which still means a discount to the original offer. Let’s see how this story will develop!
It’s really nice to see Brinker International among the top gainers of my portfolio. During the last months it has been more among the bad boys. Besides of this nearly 20% gain I believe there is still plenty of room upwards. Let’s hope the share price will start with a 4 more sooner than later!
Prospect Capital was a really good timed purchase earlier in November. Wish I had more free cash on my investment account at that time. In October PSEC was among the top 3 losers, now it has already erased all those losses.
The 3 worst performing stocks in the portfolio were:
- Kinder Morgan (-4.86%)
- Cummins (-5.36%)
- Western Digital (-11.66%)
Kinder Morgan is on my watch list for a while and I’m struggling a bit to understand the reason behind its weakness. For me the more it falls, the more attractive it is.
The fall behind Cummins and Western Digital is more like a correction in my view. I really like both companies, especially since they are among my top gainers considering my cost basis.
The total value of our stock/bond portfolio is EUR 43,298.67 which represents a EUR 820.15 increase versus October. This also includes the purchase value of the 50 PSEC shares.
This month we have received our first full month rental income. I have written a separate post about the details, so I don’t want to repeat myself. If you are interested, you can read the report HERE.
The net value (market value minus mortgage) of our investment real estates is:
- Rental Apartment: EUR 44,748
- Garage: EUR 14,000
- Total: EUR 58,748
Monthly Passive Income
Since the financial overview of October, I am tracking our passive income on a monthly basis. I was really interested to see how a full rental income would contribute to the result. Well, the answer is below:
Our total passive income of November is amounting to EUR 391.18. This is a new record! Considering that the best month of the quarter is usually the last one, I am really optimistic about how the year end will look like.
Looking at the chart, the most interesting for me is that how fast real estate income became the main source of passive income. No, I am not planning to become a predominantly real estate investor, but it is good to see that all the hustle around the apartment hunt, financing, saving for down payment etc. was not for nothing.
Our emergency fund is being built up in a very rapid speed. In November I have received a big payment from my previous company that relates to unused holidays (I had quite a big balance). All together our cash balance now is EUR 10,694. This is over 2 times the planned initial balance and even higher than the planned final emergency fund.
But Roadrunner, didn’t you say that you will use the excess cash against your mortgage in order to go below 85% again?
That’s right, but apparently there is some change. The thing about personal finance is that it’s personal, therefore you should always adapt to the changes in your life.
I will disclose in a few weeks why the mortgage repayment plan has been (partially) modified. I am very excited about the near future and I am sure that this change will have the best result from every perspective. Stay tuned for the details!
The Road to One Million
In light of the above, let’s see where we are on the road to one million!
The current balance is EUR 112,741. It has been only a few months since we crossed the 100k limit and now it’s getting further and further. We will see in a few weeks how we close 2017. I have no reason to be pessimistic!
How was your November dear readers? Hope black Friday didn’t make it a negative month! 🙂
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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement.