My portfolio

I see my portfolio as a never-ending work of art. It consists of a mix between ETF’s and dividend stocks.

The growth of my portfolio is mainly based on targeting companies that issue a dividend. As I want my asset allocation to be broad, I also started purchasing ETF’s on a regular base. When purchasing shares of a company, I conduct thorough research and mainly invest in things that are familiar to me. If this isn’t the case, the stock goes on my watch list and I try to find as much information as possible. I will never purchase something on a gut feeling. Currently, there are several companies on my watchlist so I can see their performance over time. This provides me with enough confidence to go ahead and purchase. The amount of shares I buy is depending on my savings rate and on the market opportunities. If the market doesn’t present a good opportunity, I simply wait and safe my money.

Why ETF’s? 

Exchange traded funds have a much lower expense ratio in comparison with regular funds and they can be traded as stocks, meaning you can easily buy and sell them if you wish. Not that this is part of my strategy. I’m in for the long run. Purchasing ETF’s provides me with an asset allocation that is divers and thus, decreasing the overall risk and volatility. Another benefit is that I’m able to buy certain ETF’s without paying additional brokerage fees. This is interesting as with every purchase I safe approximately 10 €. The only condition is that there is a minimum purchasing amount of 500 €.

Why dividend stocks? 

I try to invest in stocks where the value of the stock is running lower than the intrinsic value. Do not mistake this with investing in value stocks. However, by investing when the price is at a lower level, I’m able to purchase more stocks for the same price, resulting in a higher dividend payout %. Of course, this has to be taken with a pinch of salt. It’s important to keep in mind that when you are investing for the long run, it’s not that big of an issue to buy shares at a higher price.

Below an overview of the stocks and ETF’s I currently own.

Schermafbeelding 2017-10-22 om 18.34.21

Schermafbeelding 2017-10-22 om 19.08.43

2 thoughts on “My portfolio

  1. willyfog 18 December 2017 / 23:21

    Hi MelonDeal,
    nice blog, I just found it in FIREhub.
    I have a comment (please, this is just an idea, I am not an expert): you do not have any bonds in your portfolio.
    I like the Boglehead approach with 3 funds (https://www.bogleheads.org/wiki/Lazy_portfolios#Three_fund_lazy_portfolios) or the Permanent Portfolio (https://portfoliocharts.com/portfolio/permanent-portfolio/). Both have bonds in order to decrease the volatility. What do you think?
    And you also invest mostly in Europe. What about increasing diversification, following for example the index “MSCI World”?
    Best wishes!

    Like

    • themelondeal 19 December 2017 / 07:24

      Hi Willyfog,
      Thanks a lot for the info. I’ll check it out! As I consider myself at a young age, I prefer to focus on growth. Once this has been established, I’ll probably add some bonds. I focus on dividend income which goves more room for volatility as well.
      I have two ETF’s that increase my diversification but I’m doing some research to add a third one. MSCI world is definitely one I consider but I also look at the dividend payout. I have an update coming up soon! Stay stuned.
      Thanks again for the comment. All the best. TMD

      Like

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