Welcome to my February portfolio analysis. This has been a crazy month, with price rises and overall big sell offs.

As you most likely already know, the Coronavirus has expanded to many countries, triggering the panic in the stock markets. Last week was the biggest drop in the SP500 since 1987. In 5 days it dropped 12%, not bad at all!

This downturn has eaten away the growth accumulated during the previous 4 months. I have been investing for 4 years, and I have to admit this has been a learning experience.

Seeing the portfolio dropping so much without getting nervous makes me realise that I truly believe in the stock market in the long run.

Even if my investments are falling thousands of £s per day I sleep like a baby 🙂

The only thing that got me nervous was thinking the best way to take advantage of this stock fall.

Now, let’s get to the interesting stuff! The main results of this month are:

  • I have saved 70% of my income
  • I am 77.3% financially free (down 1%)
  • My portfolio return went down 6%, reaching 23.2%
  • Blog page views increased by 109%

Do you want to see all the details? Let’s go


Portfolio Asset Allocation

 
Graph that shows the asset allocation of my portfolio

My own selected shares continue to be the most important position, reaching 45%. I am aiming to hit 50% in a couple of months, let’s see if I can make it.

After that we find the mutual funds, representing 30% of my portfolio.

Next comes Estateguru with a 9%. As I commented on previous posts, I am reducing my investments in Estateguru in order to better balance my p2p lending investments.

S&P500 index fund is right after with 8%. I am hoping that it will overtake Estateguru in a couple of months, since I am increasing my investments in the S&P500.

Lastly we have the remaining crowdlending platforms, where Crowdestor stands out, since for me it’s the best p2p lending platform.

After Kuetzal and Envestio fraud cases I have decided to reduce my investments in p2p until there is financial regulation that oversees these platforms. Including a guarantee fund that cover loses due to fraud cases, as we already have in the stock market.

Evolution of my portfolio asset allocation

This can be observed on the picture above, where p2p lending is getting smaller, and stocks are growing.

You can also see that money not invested is reducing. My target is to be fully invested (100%) when 2020 ends. In order to do that I am investing periodically, so I can take advantage of the downturns of the market (like it just happened).

This strategy is known as Dollar Cost Averaging, and it’s one of the best investing strategies that I know.


Portfolio Return in February 2020

 
Graph that shows the evolution of my portfolio return till February 2020

In the graph above you see the big impact of the “Coronavirus crisis”. My stocks went down 7.4%. This has been parcialy offset by peer to peer lending, that gave me 1.4%.

After this big drop, the total return of my investments sits in 24% since January 2019.
It’s not a bad result 🙂

In total my portfolio went down 6% in February. This is a good result, if we take into account that S&P500 index dropped 10%.

My portfolio has dropped nearly half of S&P500, so I am outperforming the index (at least for a month 🙂 )

February has been the worst month since I started to invest. Maybe March will be the best month? We will see about that!

Let’s take a look at how each asset of my portfolio has performed.


Stocks Portfolio Return in February 2020

 
Graph with the returns achieved on my stocks portfolio

The accumulated return of my stocks portfolio dropped 6% in February. In the above graph we can see that the S&P500 index fund, the mutual funds and my UK shares have dropped roughly the same. However, my US shares have reduced less, smoothing the month 🙂

Let’s see each asset separately.


S&P500 Index Fund

 
Picture of the accumulated returns in my S&P500 index fund.

My S&P500 index fund has fallen quite a bit, due to the panic created by the Coronavirus. I honestly think that there is a disproportionate reaction from the investors, since it does not look like (at least till now) it will have such a big impact in the long term economy.

There has been other virus crisis in the last years, and it´s long term impact in the economy was almost null. It’s also true that the S&P500 had gone up a lot in the last few years, so a correction was due.

Even after this drop, S&P index fund is achieving a 21.2% return since January 2019.

If you want to learn more about index funds, take a look at my beginner guide to invest in stocks.


Mutual funds

 
Here I show you the returns of my mutual funds portfolio.

My two mutual funds have reduced a lot, around 9%. Both Lindsell and Fundsmith have stopped its growth to enjoy a free fall.

After this drop Fundsmisth sits on 24.5% accumulated return, and Lindsell on 15%.

If you want to know more details about the mutual funds where I invest, go to My Portfolio.


My Own Shares

 
Evolution of the accumulated return in my own shares portfolio

In this section I tell you about the performance of the companies I have picked.

In February US shares have come to save the day. Since they dropped less than 5%, it compensated the other investments and my overall losses were not that big.

My accumulated return on my own shares is 18% in just 9 months!

Let’s take a look at each company separately.

NameCountryInitial PriceCurrent PriceFebruary returnTotal ReturnPosition Size
PersimmonUK (£)20.528.4-9.2%43.6%2.3%
FergusonUK (£)50.667.4-1.1%34.4%6.8%
Bristol MyersUS ($)45.159.1-6.7%32.3%5.2%
Barratt DevelopmentsUK (£)5.837.57-6.6%31.9%7.9%
BiogenUS ($)235.0308.415.0%31.2%21.2%
Taylor WimpeyUK (£)1.692.02-6.4%28.1%2.1%
AshteadUK (£)21.623.9-4.1%11.5%8.6%
Standard Life AbUK (£)2.612.77-8.7%8.9%1.8%
CRHUK (£)26.226.4-9.0%0.8%6.1%
Bank of AmericaUS ($)28.628.5-8.7%0.2%15.8%
Legal & GeneralUK (£)2.622.60-8.5%-0.5%9.3%
Suncor EnergyUS ($)31.627.6-10.5%-10.1%1.3%
General MotorsUS ($)34.830.5-9.2%-11.8%4.0%
M&T BankUS ($)160.7140.4-20.7%-11.9%3.6%
Wells FargoUS ($)48.140.9-15.0%-13.5%1.2%
JP Morgan ChaseUS ($)136.6116.1-13.8%-15.0%1.7%
Rio TintoUK (£)46.836.1-12.2%-20.2%1.3%
Delta AirlinesUS ($)58.046.1-18.4%-20.4%5.4%

Even after the negative impact of the Coronavirus, I have 5 companies with a return above 30%.

The winner of the month has been Biogen, since it went up 15%. I have big hopes with Biogen, hopefully it will not let me down!

The worst performers in February were M&T Bank and Delta Airlines, dropping nearly 20% each.

I use the broker Degiro to invest in stocks, since it has the lowest fees I have found.

If you want to start making money with stocks, sign up with DEGIRO on the banner above or with the link here!

You can learn more about this broker with my DEGIRO super guide.


P2P Lending portfolio return – February 2020

 
The graph shows you the accumulated return of my p2p portfolio.

My p2p investments keep on giving returns relentlessly. After Kuetzal and Envestio frauds, it looks like the other p2p platforms are stepping up. In the last weeks I have received several emails from the p2p platforms about security and transparency enhancements.

Hopefully this will help to make the p2p lending sector stronger. In February I got a 1.1% return, which helped me to compensate the stock market loses. Let´s check each platform in detail.


Crowdestor

 
Graph that shows the monthly return of my Crowdestor portfolio.

After the big return increase I got in January, due to several loans paid 6 months interest at once, in February we have come back to previous levels. This means a monthly return of 1.1%, which is great!

In the previous picture we have seen Crowdestor keeps being the platform with the highest accumulated return.

This is one of the reasons why I believe Crowdestor is the best p2p platform.

Do you want to start making money with Crowdestor?

Sign up on the banner above or on the link here!


Estateguru

 
Graph that shows the monthly return in Estateguru p2p platform.

Estateguru keeps its spot as the second p2p platform with the highest accumulated return.

In February it has achieved a 1.2% return, amazing!

Estateguru offers you a 0.5% bonus on all investments you make in your first 90 days, if you register using this link.

If you want to learn more about Estateguru, check out my Estateguru review.


Grupeer

 
Graph that shows the evolution of the monthly return of my portfolio in Grupeer.

Grupeer keeps doing well, achieving again a 0.9% monthly return.

I started investing in this p2p platform in September 2019, and so far so good. One of Grupeer advantages is that all loan originators offer buyback in case of default.

In short, if the borrower doesn’t pay back, after 60 days of delay the loan originator will pay the investor. This adds extra security to the investment.

To start investing in Grupeer, sign up on the banner above or on this link.

If you want to learn more about this platform, take a look at my Grupeer analysis.


Bulkestate

 
Evolution of the Bulkestate monthly return

This month I got the payment from one of the loans, so the monthly return went up to 1.8%.

When I started investing in Bulkestate I wasn’t very happy, since it was not easy to find available loans. There were not many new loans, and its autoinvest feature prioritised the older users.

However, after two months I was able to invest in new loans without problems.

In Bulkestate the majority of the loans pay the interest at the end of the term. That’s why the above graph shows such a low return. As the months go by the picture will start showing higher returns 🙂


Financial Freedom Progress – February 2020

 
Here I show you my progress towards my first goal of financial freedom, which is survival.

This has been the first month where my progress has reduced since I started in January 2019.

In February I have retreated 1%, and now I am 77.3% financially free (1st stage, survival).

I am going to carry on working hard to try to complete the 1st stage soon!


Portfolio value growth in February 2020

 
Picture with the growth of my portfolio since January 2019

As it has happened in my journey towards financial freedom, my portfolio has also retreated.

Due to the stock market downturn, my net worth is now 56.7% more than in January 2019. Even after the stocks crash, I am getting a huge growth!

I hope I can get a 56.7% portfolio growth every 14 months in the future!


Savings rate

 
Graph with the savings rate since January 2019

In February my savings rate has come back to the usual values, reaching 70%.

It is not as astonishing as the 90% reached in January, but it’s still a great achievement! This has also helped to compensate the stock market sell off.

In order to grow your net worth, you need to save and invest. If you want to learn what is investing, and how to start to invest, start here.


Blog stats – February 2020

Lastly, let’s take a look at the blog stats:

  • Pageviews: 4989, a 109% more than in January
  • Twitter followers: 1794 (574 new followers)
  • Blog subscribers: 88 (30 new)

The traffic has increased a lot this month. This is mainly due to twitter. My January portfolio analysis grabbed a lot of attention.

I believe what shocked people was the 90% savings rate. I am going to have to work hard to repeat that again!

Thanks a lot to all my fellow readers, you allow me to carry on working on new posts 🙂

Lastly, please bear in mind that investing involves risk of loss.


Previous portfolio analysis

If you want to see more analysis of my portfolio, check out the previous months here:

Any queries or doubts you have, feel free to use the comments section below. I’ll be happy to answer you.


4 Comments

Baldrick · 10 March, 2020 at 09:44

I agree with you that the market downturn is something that you should look beyond, but I can’t help that feeling of “Oh bugger, what next” especially when the Oil war hit as well. Anyway, I won’t let it affect my long term investment plans.
Baldrick

    Gonzalo@Tofinancialfreedom.co · 10 March, 2020 at 17:58

    Hi Baldrick, nice to see you around.
    I agree with you, it’s not easy to see the market dropping so much, so aggressively. But after so many years of going up, it had to drop at some point.
    We should look at this as an opportunity to buy cheaper, and use any cash we have sitting around to buy more.
    After all, people who invested after the market crash in 2008 were the ones who obtained the highest returns.
    Hope to see you around soon 🙂

Lukas · 4 March, 2020 at 18:22

Great job!
Any specific reason why your portfolio went semi-viral on Twitter?
Close to 600 new followers in a month is a pretty big deal.

    Gonzalo@Tofinancialfreedom.co · 4 March, 2020 at 20:29

    Thanks Lukas, glad to know you liked it!
    I believe the main reason was the 90% saving rate I achieved in January. On my Spanish twitter it generated more than 2000 page views in just 4 days.
    Yes, 600 new followers in a month is very good. It’s important to note that I am counting my two twitter accounts (Spanish and English), since I have my blog in those two languages.
    Hope to see you around soon Lukas!

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