2021 Annual Review

Investment Performance in 2021

Full Year (2021):

Model Portfolio Internal Rate of Return (IRR): +28.5%

MP TWR: +13%

VT: +18%

Since Inception (Jan. 2019):

MP IRR: +32%

MP TWR: +124%

VT: +72%

Note: IRR was calculated with an amount of c. $1k invested in each name; trading fees of $2/trade included; VT=Vanguard Total World Stock Index. Returns from dividends are included amounting to approx. 3.8% portfolio cost yield; all figures are in USD.

Thank you for following my blog. It has been free, fun and educational and was a profitable year for the ones that invested along.

I have started writing and sharing investment ideas in order to have more disciplined approach to my personal investments and share ideas. The site registered 1661 views from 863 visitors mainly from Romania, China and US last year.

Please do not forget to subscribe with your e-mail not to miss any opportunity!

Portfolio Changes

Market overall was exuberant in 2021, with some exceptions, such as China. The stellar performance of VT and S&P is not necessarily a reflection of the broader market, as gains are dominantly from that handful of mainly large tech companies. On the other hand China/HK names were negatively affected by the regulatory crackdown on tech and overall negative investor sentiment.  Technology and internet sector dragged the Hang Seng Index down 14.1%, among the worst performing global indices. Unlike European and U.S. stock markets, however, Hong Kong stocks do not have access to increased capital through monetary policy and quantitative easing that European and U.S. stock markets have.

In 2021, I had to actively manage existing names, sell for mainly for profit taking or cut losses on some names. I liquidated 5 positions – Kazatomprom, Fosun, Stratasys, Baioo and Zhonghzi – and reduced 2 positions – Pax Global Tech and Baioo with nice profits.  Most profitable positions were Stratasys, Kazatomprom, IGR and BHC in 2021. The largest loss makers were Best and Revance. I have published 4 posts and one new investment idea in 2021

I currently have 6 active names in the model portfolio and 7 names on watchlist. Model portfolio contains a variety of investing themes from real estate to biotechnology.  Largest exposure currently is real estate with 40% of the portfolio and healthcare.

In terms of geographies, I write about companies in US, Asia and UK. All investments in this blog are companies from outside EU to avoid any potential conflicts of interest.

In 2021, I have taken profits on some positions early in the year which helped produce a nice IRR of +28%.  I closed positions on most China names toward the end of year, but I may add some of them back to the active portfolio.  About half of the names in the portfolio pay a regular and sustainable dividend. This is my hedge in case markets turn south.

As promised , I also published a multi asset passive portfolio composed of 4 asset classes (equity, bonds, commodities and cash) implemented through ETFs. For the 2 months in 2021, return was +0.7%.

For more details see Model Portfolio page – Portfolio Updates.

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 equity names; 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;
  • I allocate a nominal amount of $1k rounded to the number of shares for each stock in the Model Portfolio so that portfolio is easy to follow and replicate at any scale by anyone;
  • For the multi asset portfolio I target an absolute return of 6% p.a. and to beat the strategic asset allocation, but here the retrun mainly depends on the overall market evolution;
  • Site is free, all costs for site design, hosting and development are supported from my pocket.

Plans for 2022

  • Target annual return of min. 15% a year from a concentrated portfolio of less than 15 equity names;
  • Maintain an updated multi-asset model portfolio quarterly. I may add other asset class such as real estate in the future;
  • Publish at least one new investment idea per quarter;
  • Outlook for 2022… I am cautious, but optimistic. Much of the peformance in the investing world in the past 2 years stem from simply money printing. This is not normal or sustainable. I expect lower but positive returns for 2022 and active management is key.

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