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My Performance and Thoughts

What I have shown in the Snapshot above is my current Hatch portfolio. It is worth mentioning that this is my smallest account. What I say in the opening blurb to the website is that I spread myself across different brokers. The reason I do this is to spread my risk. It is also cool to know that you have little bits of money/investments in different places. I even have $1000 of silver in my bedside draw! What I want to do in this blog is to analyze why some investments of mine have done well while others haven't. Just remember that none of this is intended as financial advice. Always make sure that you do thorough research before making any investment.

Since I have the Snapshot above, lets start with my Hatch account. I opened it in January this year and currently own MSGS, FSR and BOX. BOX is my largest, just because it has risen 38.6% so far; so while it began as the same size as MSGS it has grown to be larger. I think that BOX have a solid future, and they just reported solid earnings. In fact, they have beaten on the top and bottom lines of earnings in the past 5 quarters. FSR have only just broken even for me after a solid week. At the moment they are sitting around $16. I will sell when they get to $40. They have a good partnership with Magna for the manufacture of their first EV car (the Ocean), and the design is very cool. But they inked a deal with Foxconn for producing their second EV, and Foxconn are not proven as a car manufacturer. MSGS meanwhile is slightly down for me at the moment. This is understandable as both The NY Rangers and NY Knicks seasons are over, and the revenue will be low for the next 6 months. This is the nature of their business though, so nothing to be worried about. I did have someone ask me lately why I own MSGS. Honestly, I brought them because they are undervalued. Their NTA (Tangible Value) is around $240, way above where they are sitting now. When the share price better reflects the companies assets, I will sell.

My ASX portfolio is comprised of POS, BASS and WBC. I cannot tell you how sick of BASS I am. Someone on the executive team is a friend of a family friend (or something like that), and I acquired the shares 3 years ago. Their performance has been terrible, down almost 80%. They are a flake graphite miner operating mainly out of Madagascar. I have had various sell orders on them, but they have never reached the price that I want to sell at. I currently have a sell order on them at $0.008, so fingers crossed I get out of them this week. POS on the other hand have done fantastically, and have wiped out all the losses I have made on BASS. POS is the famous Poseidon Nickel, and they have a number of high-grade nickel mines around Kalgoorie in Western Australia. I think the future is very bright. WBC (Westpac) is one I was obsessed about at the start of last year, probably for the good dividend. I brought them on the first day of the Covid crash on February 26. My timing could not have been worse. This one has shown the benefits of having patience. The stock fell 50% in March, but has gradually gone back up, because of stimulus and general economic optimism. I am currently showing a 10%, return and am not unhappy. I think that while it is not the strongest (that is CBA), WBC continues to be the most undervalued of the big banks in Australia.

In my ETF portfolio I hold 8 different ETFs. All of which are listed on the NZX. TWF (Total World) is the biggest, followed by ASP (Australian Property). After this comes USG, USF, APA, EMF, LIV and AGG. ASP was a good buy I made in December, and they are currently showing an 8% (paper) profit. At the moment I am making regular monthly contributions to USF (US 500) and TWF. Some people may ask me why I do this, because they hold a lot of the same large companies (like Microsoft and Google). My answer is that they have the lowest management fees (0.3%). Speaking of low fees, my fund manger Simplicity also have fees of 0.3%. I have two funds with Simplicity i.e the Growth Fund and a Balanced Fund. The Growth Fund is for my Kiwisaver, and as with most NZers, I dollar-cost-average into this by making weekly contributions. The Balanced Fund for me is just another bit of diversification to my investments. They are comprised about 60:40 stocks to bonds, international and domestic. AGG is the Smartshares bond fund. I'm not a Bond guy, but if the Equity market falls off a cliff tomorrow, hopefully the bond fund will be okay.

Finally, my individual stock NZX portfolio is comprised of 11 stocks. Or as I like to think of stocks, 11 companies. Because when you buy a stock, you are buying a piece of a business. So I think it always better to think of your stocks as businesses, because that is what they are. I hold 3 REITS (Real Estate Investment Trusts), as well as the ASP fund. These comprise about 20% of my total portfolio. The reason this is, is because they provide me with stable PIE income, as well as (hopefully) stable capital growth. I have stayed away from directly owning office REITS, as a lot more people are working from home now. My best REIT (and favourite stock) has been PFI, which owns industrial property, mostly in Auckland. They have given me solid capital growth, along with a stable dividend yield that I have reinvested back into the company. The rest of my NZX portfolio is comprised of FRE, EBO, SKT, ZEL IKE, SCL, SCT and SPK. Of these Sky TV (SKT) has been by far the worst. At the time I brought them, I thought I was buying them on a dip. But what happened is that I was just trying to catch a falling knife, and the knife went right through my hand. They recently did a big capital raise, so I don't think they will go broke, but I am not hopeful of breaking even any time soon. FRE (Freightways) have been my best of these 11 stocks. I brought them in August, and they have benefitted massively from the NZ economy re-opening. I recently took my profits out of FRE, and put them into SPK (Spark), which are a strong company.

I think that my portfolio, comprised of 28 different investments, shows the benefits of diversification. I have had some real stinkers (BASS and SKT), but they been outweighed by my gainers (POS, FRE and EBO). Something I would like to do before August is to buy a company (stock) that pays out dividends in February and August. They are the only months that I don't get dividends, and it irks me. While I reinvest all of the dividends I can, I just think it is important to have that income there if I need it. It is the same reason why I have an investment in the Simplicity Balanced Fund and the Smartshares Global Bond Fund. They are not holdings that I think will ever have great capital appreciation, but they will (hopefully) protect my portfolio in the bad times. And the bad times will come again, it is only a matter of time. Warren Buffett says that diversification is only a protection against ignorance, and it shows that you are unwilling to do your research. But I think we can all be a bit ignorant at times, and what markets do in the short term is rarely rational, and more typically very irrational. Having your assets spread among different asset classes enables you to reduce your risk, while not reducing your expected return.

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