2020 Annual Review

Investment Performance

What a year! The investment blog has been free, fun and educational. It was a very profitable year for the ones that invested. Thank you for following my blog https://investment-ideas.net/.

In 2020 my model portfolio returned 32% double than the overall market* .  Internal Rate of Return (IRR) was 40%.  

Since I started my blog in Jan. 2019 time-weighted investment return amounted to 96% and portfolio IRR 34% s, also double than the market.  Returns from dividends are included, amounting to approx. 5.1% cost yield. The IRR was calculated with an amount of c. $1,000 invested in each name; trading fees of $2/trade included.

Portfolio Comments

I have published and invested in 7 new ideas in 2020. I currently have 10 names in the model portfolio and 3 names on the Watch list. Model portfolio contains a variety of investing themes from real estate to biotechnology.

Largest exposure currently is Kazatomprom with 24% of the portfolio. The company is a dividend player and a long term play on uranium price.

Most profitable positions were Pax Global Tech. (+131%) and Revance (+80%). The largest loss maker was BEST (-34%).

In terms of geographies, I covered 8 US listed companies (Best, BHC, British American Tobacco, IGR, Illumina, Revance, Stratasys and Tesla), 3 listed in Hong Kong (BAIOO, Fosun and Pax Global Tech.) and 2 listed in UK -Kazatomprom and BAE.  All investments in this blog are companies from outside EU to avoid any potential conflicts of interest.

In 2020 I have liquidated completely 2 positions – Illumina and Fosun – and reduced 2 positions – Revance Therapeutics and Pax Global Tech with nice profits.

In 2019 I used to focus on fallen angeles and value companies. In 2020, I have employed diverse styles with an opportunistic bias which paid off (a good example is Pax, a producer of POS systems).  I also took advantage of the rare opportunities in the first half of the year adding to existing position (IGR and Kazatom). About half of the names pay a regular and sustainable dividend. This is my hedge in case markets turn south.

Porfolio overview is below. For more details see Model Portfolio page.

Investment Objective, Style and Tools

  • My objective is to make a return of 15-20% a year from a high conviction, low turnover and concentrated portfolio of less than 15 names;  Return objective was exceeded in all years;
  • In general, I am looking for 20%+ return p. a. on each name including dividends, when initiating the position. I expect that some investments should not perform as expected;
  • All costs for site design, hosting and development are supported from my pocket. In 2020 I upgraded my hosting plan to allow more facilities for visitors and welcome donations.

Plans for 2021

  • Continue to target annual return of min. 15% a year from a concentrated portfolio of less than 15 equity names;
  • Publish at least one new investment idea per quarter;
  • Publish  a multi-asset model portfolios containing equity, fixed-income, real estate and commodities;
  • Increase the number of permanent subscribers. Please subscribe with e-mail if you like the blog.

Site Statistics

The site registered more than 1500 views from almost 700 visitors mainly from Romania, China and US, more than double than in 2019.  Please do not forget to subscribe with your e-mail not to miss any opportunity!

*Vanguard Total Stock Market return has been 16% in 2020 and 47% since the beginning

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