Financial Idiot 003 - (Fiat) Portfolio Insights

This Blog Post was originally distributed by the Newsletter "Financial Idiot". You can find and subscribe to it here.

Sometimes you need to get down to the numbers to get a clear overview of your financial situation. Let's have a look at mine. Welcome to a new Issue of "Financial Idiot".

This time, the insights I'm providing are on the bleeding edge. I just returned from a vacation a few days ago, so I'm writing this issue on the 11th of April, one day before it will be published. That also means I can provide the most accurate data and values in my portfolio. All of the data presented comes out of parqet.

Since the beginning of the coronavirus pandemic, the market was down quite far, and with the recent start of the war in Ukraine, it is no wonder my portfolio is down with it.

Currently, it holds a value of 2.778,10€ (- 9,10%), down from the invest 3.354,59€. If I remember correctly, it was even down more in the last few weeks, and it finally seems to start going upwards again.

We are currently buying cheap as the primary driver of my investments is the savings plan I've set up.

Like an idiot, I made many changes to the savings plans, and I'm highly advising against it. Pick the ETFs you want to invest in and stick to them.

Anyway, the portfolio currently consists of the following:

  • 21 Shares Crypto Basket (WKN: A2TT3D): 43,78%
  • Vanguard FTSE All-World (WKN: A2PKXG): 42,02%
  • Xtrackers MSCI World Information Technology (WKN: A113FM): 9,34%
  • Xtrackers MSCI Emerging Markets (WKN: A12GVR): 4,86%

21 Shares Crypto Basket

As you can see, the Crypto Basket is currently the most significant balance. It has five different cryptocurrencies in it that are defined by 21 Shares based on their expected market capitalization by 2050. I bought it a few times, and it is a long time hold position for me. My idea is to sell a few pieces at an 80€ target price, but we are far from that (current price 13,11€; so almost 8x).

Considering the enormous volatility of cryptocurrencies that could be reached next week or take millennia. A long time gamble on crypto, but with the easiness of a tax-easy broker.

Vanguard FTSE All-World

The second-largest position is a so-called "all-world ETF ", and I'm buying it monthly as a savings plan with 200€. It has 3.775 positions in it (3.765 of them are shares). The ETF is "only "a few years old, but since it has around 98% of the world's businesses, it is probably the "most stable "investment in my portfolio. I think it will make approximately 9% per year, similar to the MSCI AWCI (they are similar). Finanzfluss did a great comparison of them here.

Xtrackers MSCI World Information Technology

I got this IT ETF a while back and also had a savings plan on it, but I changed my mind in favour of the FTSE All-World and will sell off the position in the upcoming future. Although the information technology sector is the future, I want to keep my fiat portfolio simple (the crypto one is already complicated enough.

Xtrackers MSCI Emerging Markets

This position is a recent addition to my savings plan on the FTSE All-World with 75€ a month. The FTSE All-World has extensive exposure in the USA (as it is the largest economy in the world), and with the addition of the EM, I want to bring more of the rest of the world into the mix.

Conclusion

As you can see, my portfolio has some rampant growth, but I plan to streamline that in the future. I also made some small bets in the past with GameStop and AMC (I'm looking at you r/wallstreetbets) and recently tried out some Knock-Out Certificates, but that is the topic for another issue.

If you take only one thing from this issue of "Financial Idiot" (! No financial Advice!), consider investing your savings money and stop using "building savings" ("Bausparer") and every other "saving" form the typical bank provides. Keep a small buffer for "accidents" (rainy day fund) and put the rest into work for yourself. Investing isn't as complicated as the banks want you to think.

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