2022 Annual Review

Investment Performance in 2022

FULL YEAR (2022):

• Model Portfolio (MP): +2%
• Vanguard Total World Index (VT): -18%
• MP Internal Rate of Return (IRR)*: +3%

SINCE INCEPTION (JAN. 2019):

• Model Portfolio (MP): +110%
• Vanguard Total World Index (VT): +42%
• MP IRR*: +26%

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

Last year I managed a slightly positive return (+2%) during a very difficult market. Vanguard Total World Index lost -18%. I have taken profits on some positions which helped produce a positive IRR and active trading succeeded to generate a positive time weighted return in a bad year for investments overall. The fact that about half of the names in the portfolio pay a regular and sustainable dividend also helped. I generated circa +20% of alpha return with my model portfolio in 2022.

I also publish a multi asset passive portfolio composed of 4 asset classes (equity, bonds, commodities and cash) replicated by ETF/ETC. The passive multi-asset portfolio performed in line with market (as it supposed to) with Commodities the only asset class with a positive performance last year.

In 2022, the site registered more than 1205 views from 591 visitors from 10 countries (mainly Romania, China and US), slightly less than in 2021.  The number is a a bit disappointing, but this site was not aimed to achieve a large number of clicks, but financial returns and education.

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

Portfolio Changes

I have published 2 new ideas in 2022 (SUNRUN and GEORGIA CAPITAL). I had an active approach in managing existing names – to double or liquidate exposures. I doubled the position for REVANCE, PAX. FOSUN and reopened BAIOO. I liquidated 3 positions – BAE SYSTEMS, REVANCE and BHC. First 2 were sold with nice profits. BHC was sold at a loss. Most profitable position were PAX (+168% profit taken),  a leading international supplier of paymnet terminals and REVANCE (+95%), a next-generation botox producer .

I currently have nine names in the model portfolio and maintain 5 names on the Watch list. Model portfolio contains a variety of investing themes.  Largest exposure currently is FOSUN at 17% of the portfolio. The company is a holding listed in Hong Kong operating diversified businesses and trading at a big discount to NAV.

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

For more details see Model Portfolio page – Portfolio Updates.

Investment Objective, Style and Tools

• My objective is to make a return of min. 15% a year from a high conviction, low turnover and concentrated portfolio of less than 15 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;
• All costs for site design, hosting and development are supported from my pocket.

Plans for 2023

• Target annual return of min. 15% a year from a concentrated portfolio of less than 15 equity names;
• Internal Rate of Return (IRR)* of at least 25%;
• Publish at least one new investment idea per semester;

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*Note: All figures in USD. IRR was calculated with an amount of c. $1k invested in each name; trading fees of $2/trade included. Returns from dividends amounting to approx. 4% portfolio cost yield are included.