103 days later - Portfolio update: up 5.71%

Time for a quick update on the Millionærklub Portfolio.

(for those of you who have no idea what I'm talking about: we run a portfolio on live Danish national radio in the programme called The Millionaires Club).

 

Millionærklub Portfolio Behavioural Strategy 25 Juni

The cost basis of the stocks were $35.873,42 when we bought in on March 10th and we're now up to a portfolio value of $37.922,20 or +5.71%. 

This is against 2.77% for the S&P500 and 2.35% for the Dow Jones, which are the relevant indexes for us to benchmark against.

So in other words we seem to be doing fine. We're even posting green numbers for all 5 positions (don't worry: this can change fast).

Volatility

However: the portfolio is volatile. As can be seen from the screen shot above the latest day of trading gave us a 1.40% nudge upwards, which is pretty common for this portfolio. 

So the true test of whether we're actually doing something right has very little to do with performance of the ticker prices over a 100 day period. Instead it has far more to do with what has happened in the underlying companies in those 100 days. How have they faced the markets they are in and what return on the capital invested have they been able to make. 

Here we are quite confident that good things are happening, even in excess of the good things that are happening in companies in the market overall in this business cycle upswing. 

Some of the companies have very clear catalysts that will affect the share price this year (Seadrill Partners) while other companies will be buoyed by good business results (Xinyuan Real Estate, Natural Health Trends and Amira all have forecasted significant earnings increases in the second half of 2017).

What's next? 

We hope to see a near term catalyst for Seadrill Partners, which should be before July 30th at the latest when they announce the result of their restructuring. This will have a big impact on the portfolio, good or bad. Fingers crossed.

 

 

1 comment

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James bell

Hi Ulrik,

Thanks for posting your progress.it’s interesting to listen to the show and follow the changes you guys make and your analyses of company health and markets. As a non-dane beginner investor, listening to your show and understanding 95% of the content, can I ask if there is an overview somewhere if Danish investing " best practice"? My bank and Danish investors on Reddit advise to stay away from American ETFs when based in DK for example but as a newbie and foreigner, I’m missing the tax and fee overview to see how to balance a portfolio with foreign securities in it. This is extra interesting to understand when one of your team reported back today on his findings from his California trip! Exciting stuff, but I’m wary of investing before I understand the basics.

So, the short version might be: is there a “Danish investing for dummies” book out there to help me avoid the pitfalls?

Ha’ en rigtig god dag,

James

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