October 2016 – Financial Overview

pumpkinAnother month, another step closer to financial independence. In October our investment rate was according to the plan, adding nearly EUR 2,000 to our portfolio via share purchases. We’re in the middle of the Q3 reporting season and the results so far quite mixed with both positive and negative surprises. Overall the S&P 500 closed slightly lower this month, but due to the stronger dollar our portfolio had some small gains in euro. Let’s see the details!

Stocks

Company Weight  Purchase value EUR   Current value EUR   Value Change EUR 
Target 7.32% € 2,469.70 € 2,503.83 € 34.13
Unilever 6.14% € 2,150.15 € 2,099.90 -€ 50.25
AT&T 5.39% € 1,522.47 € 1,842.85 € 320.38
Cummins 5.10% € 1,416.54 € 1,746.17 € 329.63
ABN Amro 4.73% € 1,441.53 € 1,618.93 € 177.40
Ameriprise 4.71% € 1,654.00 € 1,610.02 -€ 43.98
Sanofi 4.15% € 1,457.28 € 1,419.20 -€ 38.08
IBM 4.09% € 1,331.98 € 1,399.73 € 67.75
Cisco Systems 4.08% € 1,325.61 € 1,397.09 € 71.48
ADM 4.06% € 1,269.44 € 1,388.84 € 119.40
Emerson 4.05% € 1,462.93 € 1,384.70 -€ 78.23
Valero 3.94% € 1,239.50 € 1,348.82 € 109.32
Western Digital 3.89% € 1,055.47 € 1,330.60 € 275.13
Royal Dutch Shell A 3.32% € 1,068.50 € 1,135.50 € 67.00
Phillips 66 3.24% € 1,067.69 € 1,108.61 € 40.92
HCP 3.19% € 976.87 € 1,091.76 € 114.88
AES 3.13% € 899.00 € 1,071.95 € 172.95
Qualcomm 2.74% € 609.75 € 938.80 € 329.05
CF Industries 2.56% € 1,046.51 € 874.68 -€ 171.83
Banco Santander 2.54% € 1,292.79 € 868.38 -€ 424.41
Kinder Morgan 2.18% € 468.00 € 744.26 € 276.26
Apple 2.12% € 804.60 € 723.84 -€ 80.76
Prospect Capital 2.10% € 567.00 € 718.58 € 151.58
Lockheed Martin 1.97% € 409.98 € 673.17 € 263.18
YUM Brands 1.84% € 547.36 € 628.63 € 81.27
NextEra Energy 1.70% € 519.30 € 582.88 € 63.58
EXXON Mobil 1.55% € 511.84 € 531.18 € 19.34
Colgate Palmolive 1.52% € 504.24 € 519.93 € 15.69
K+S AG 1.35% € 586.25 € 462.50 -€ 123.75
VISA 1.32% € 445.44 € 450.87 € 5.43
Total € 32,121.72 € 34,216.19 € 2,094.46

Two purchases were made in October:

  • Unilever – Comparing to the earlier holding this purchase was significant. Versus the September 2.57% now the company represents 6.14% of the Dirty Thirty Portfolio. The last few weeks were not too good for the share price, dipping over 10%. I have used this opportunity. There is absolutely no guarantee that the price will rise from here, but I believe it is a good long term buy at anywhere below EUR 40.
  • Ameriprise – Here I have also bought the dip, doubling my stake after the sell off that has happened after the not too good Q3 earning release. For me the company still looks solid with a low dividend payout ratio and this is exactly what I am looking for. Because of this reason I have doubled my stake.

There have been two dividend increases announced this month that impact the portfolio. Visa, which is actually the only company that I do not hold for its current dividend has announced a 17.8% dividend increase. Considering the low dividend yield and the small percentage this company represents in the Dirty Thirty portfolio it won’t make me rich, but the number looks good.

The other company is AT&T, which has announced its usual 1c (equals 2%) increase, which will be effective from 1st February. This is the kind of yearly dividend increasing pace I’m expecting from the company in the foreseeable future, but considering the relatively high dividend yield I am fine with it.

Bonds

No change here, my only holding is still the PowerShares Emerging Markets Sovereign Debt Portfolio ETF (PCY). The current value is only EUR 946.08, but based on my early retirement plan I am slowly planning to add some more holding in the next couple of month.

Real estate: EUR 13,000

Cash: EUR 10,000

Total: EUR 58,162 (vs EUR 55,946 in September

2016-10Pie chart of the assets 

Overview of the Road to One Million

2016-10total

Still far from the first milestone of EUR 100,000, but I’m only expecting to reach it in about two years anyway. The point is the slow but steady growth at the beginning which could hopefully turn into an exponential increase over the years.

How did October end for you? Have you made some extra purchases to your portfolio? Feel free to share your views and ideas at the comments!

Please subscribe to the weekly newsletter and never miss a new post!

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 early retirement.

(Visited 3 times, 1 visits today)

10 thoughts on “October 2016 – Financial Overview

  1. ambertree

    The trend is up! That is what counts.

    I have my eye on Unilever as well via put options. I will have to manage that well to get out as I want. Quite surprised with the sudden drop in price

    Reply
    1. Roadrunner Post author

      Unilever has a safe dividend and I’m expecting comfortable but solid growth from the company. For me any price drop is a good opportunity to buy; not planning to sell a single share for many years.
      Thanks for sharing your thoughts!

      Reply
  2. Team CF

    Hey RR,
    Nice progress, keep that going and you may hit that €100k sooner than you are planning now!
    Good luck with the hard work required to get there.

    Reply
  3. droppedcoin

    Hi Roadrunner, this is really fascinating to see your portfolio. A couple of years ago I did invest in individual blue chip stocks – including Unilever actually – but I made the cardinal mistake of selling just a year or so later. I didn’t really have a proper plan of attack and obviously 1 year is far too short a period. So I now invest in mutual funds (currently active ones, planning on moving to index trackers) until such time as I can invest with some proper knowledge. I do retain a few stocks but the largest part of these are from my employer, who gives me a cut price deal!
    Cheers,
    Paulie

    Reply
    1. Roadrunner Post author

      Hi Paulie, thanks for your comment!
      We all make some mistakes during our investments, but we can learn from them. I would be interested to read back my own posts and ideas a few years later and see what I’ve done right and what I’ve done wrong. It can be useful on a long term.
      You need to find which type of investment method fits you the best. Based on your comment I tend to believe that index tracker ETFs would be a good option for you (actually I can’t name anyone for whom it would be a bad option). They are a great and cheap way to invest the stock market.
      I’m personally not a fan of active mutual funds. On a long term they usually can’t beat the market and they have usually quite a high fee. Check how much difference a fraction of a percent in fees can make on a long term: http://www.theroadtoonemillion.com/the-importance-of-expense-ratio/
      Employer stock options can be a really good deal. They can also make you more dedicated towards the company. Unfortunately my employer is not a listed company, otherwise I would also go for it.

      Reply
      1. droppedcoin

        I agree completely about the active mutual funds. I understand the basic concept of ETF’s, but I am hesitant to get involved in them, because one of the active funds that HAS actually made me money and thrashed the market, Fundsmith, is run by a guy called Terry Smith. Terry has written about his own distrust for ETF’s and on my ‘todo list’ is to investigate these funds before I get involved in them! I think he has written a few times but here is one of the articles he wrote…http://www.reuters.com/article/etf-investors-idUSL6E8CI42H20120118
        Cheers,
        Paulie

        Reply
        1. Roadrunner Post author

          Thanks for the link; it’s always good to see different points of view. What I immediately noticed from your reply is that you know the name of your fund manager. I guess this is something that at least 90% of the investors can’t tell. It shows that you made your own research which is the most important I think.

          Reply

Leave a Reply

Your email address will not be published. Required fields are marked *