Welcome to the analysis of my portfolio in April 2020. This has been a month of ups and downs, marked again by the Coronavirus.

This virus has changed our lives in a brutal way. It has achieved what seemed impossible: to stop the world.

For two months I have only left my house to buy food and throw away the rubbish. And honestly I can’t complain. Luckily I still have my job and the people around me are fine. Right now I can’t ask for more 🙂

In terms of investments, this month we have seen large increases in the stock markets, especially in the United States. This is surprising given the enormous impact that the current halt of the economy is going to have in the short/medium term.

If you invest periodically like I do, the ups and downs of the stock market don’t matter much to you, since you invest regardless of the stock price.

Let’s see the main results of the month:

  • I have saved 70% of my income
  • The return of my investments has gone up by 8.6%
  • I am now 72.8% financially free (survival phase)

The big rise in the stock market has had a positive impact on my portfolio, and that is very encouraging!


Portfolio Asset Allocation

 
Here I show you the distribution of the assets of my portfolio in April 2020.

The companies that I have selected continue to be the most important position in my portfolio, with 42%.

Next we have the mutual funds, which represent 34%. After them comes the S&P500 index fund, which increases 2% from the previous month to reach 11% of my portfolio.

Finally we have the p2p platforms Estateguru (8%), Crowdestor (4%) and Bulkestate (1%).

As I commented in my March portfolio analysis, I have decided to reduce my p2p investments after the fraud cases on Envestio and Kuetzal. In my opinion it is a high risk investment, so I prefer to wait until there is a financial regulation that supervises the p2p platforms.

This regulation would protect investors in the event of fraud, is it happens when you invest in the stock market with regulated brokers, such as DEGIRO.

Below I show you the evolution of the assets in my portfolio.

Evolution over time of the distribution of assets in my portfolio.

You can observe that my investments in stocks are increasing. The money not invested is shrinking more and more. Right now it represents 9.3% of my portfolio.

My idea is to become 100% invested (except the emergency fund) by the end of 2020, with most of my investments (> 90%) in the stock market.


Portfolio Return in April 2020

 
Accumulated return on my portfolio.

This has been a great month for my portfolio. Thanks to the general increase of the stock market, my monthly yield was 8.6%, placing the accumulated return at 16%.

In the graph it can be seen that the growth has been mainly due to the stock market, although peer to peer lending has also helped. Let’s take a look at each asset in detail.


Stocks Portfolio Return in April 2020

 
This graph shows you my stocks portfolio return in April 2020.

This has been a great month for investments in the stock market. All my assets have gone up, although some have had better results than others.

If you want to learn how to invest in the stock market, access here my initial guide to invest in the stock market.


S&P 500 Index Fund

 
Picture that shows the performance of my S&P500 index fund.

The S&P500 index had a great performance in April, rising 10%. This makes the cumulative return of my S&P500 index fund 16.3%.

I love investing in the S&P500 Index, since it is based on the United States economy, and it has earned a 9% annual return for the past 150 years.

I believe that investing in index funds is the best way to obtain high returns and pay very low fees. In my index funds guide I tell you all its advantages, and what are the best index funds to invest in

Here’s my guide to invest in index funds.


Mutual funds

 
Accumulated return of my mutual funds portfolio.

Mutual funds also had a good month. Both Fundsmith and Lindsell have taken advantage of the uptrend in the market to grow.

Fundsmith stands out with an increase of 9.4%. That’s what I call a great fund manager! 🙂

If you want to learn more about investment funds, take a look at my complete guide to invest in the stock market.


My Own Stocks

 
On this graph I show you the evolution of my own shares portfolio.

The companies I own have performed well this month.

On the picture above you can observe that US shares have only grown a little bit. This is because my main company, Biogen, has dropped a bit this month. Fortunately, UK companies rose highly, 14.2%. I was looking forward to it after the crash they suffered in March 🙂

Let’s see how each company has performed:

NameCountryInitial PriceCurrent PriceMarch returnTotal ReturnPosition Size
Bristol MyersUS ($)45.160.310.0%34.6%6.5%
FacebookUS ($)151.4202.323.5%33.6%1.9%
BiogenUS ($)235.0293.1-3.5%24.7%19.2%
GoogleUS ($)1086.91317.015.8%21.2%1.5%
FergusonUK (£)50.655.513.3%10.9%5.0%
PersimmonUK (£)20.522.114.6%10.2%2.9%
Fifth Third BancorpUS ($)17.817.822.5%-0.2%3.8%
AshteadUK (£)21.621.123.5%-1.6%8.4%
Taylor WimpeyUK (£)1.691.4924.8%-3.3%1.4%
Barratt DevelopmentsUK (£)5.835.3018.0%-7.9%8.4%
CRHUK (£)26.223.59.1%-8.6%4.9%
Bank of AmericaUS ($)28.623.813.6%-16.1%17.3%
Rio TintoUK (£)46.836.1-0.2%-16.4%1.2%
Legal & GeneralUK (£)2.621.964.6%-24.9%7.6%
JP Morgan ChaseUS ($)136.693.26.0%-31.3%1.3%
M&T BankUS ($)160.7107.28.3%-31.5%2.7%
Wells FargoUS ($)48.127.60.1%-41.1%0.8%
Suncor EnergyUS ($)31.617.28.9%-42.1%0.8%
Delta AirlinesUS ($)58.024.1-8.8%-57.9%2.7%

This month I have made several purchases and sales. I have bought shares in companies that are undervalued, such as Bank of America and Barratt Developments.

I am specially proud of purchasing Facebook and Google. Both have given me an exceptional return in their first month, especially Facebook with 33%.

Stock market declines represent an opportunity to buy stocks of good companies at a cheaper price. I had been following Facebook and Google for a while, and March downturn gave me the perfect opportunity to buy.

To invest in the stock market I use the DEGIRO broker, which has very low fees.

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

 
Start to invest with DEGIRO


P2P Lending Portfolio Return in April 2020

 
Accumulated return of my P2P portfolio.

The return of p2p platforms has continued to rise in April. Estateguru is the winner of the month, despite the effects of Covid-19.

Let’s take a look at platform separately.


Estateguru

 
This picture shows you the monthly return of my Estateguru portfolio.

This has been a good month for Estateguru, given that it has obtained a 1.2% monthly return. It is a great result if we take into account the current crisis. It shows that Estateguru is doing things right.

This makes their accumulated return reach 11.7%. Thanks to April great result Estateguru has become the top p2p platform in my portfolio, ole!

Estateguru offers you a 1% bonus on all investments you make in your first 90 days, if you register using this link.

You can learn everything about this p2p platform in my Estateguru guide.

 


Crowdestor

 
Monthly return of my Crowdestor portfolio.

This month, Crowdestor’s return was 0%, that is, I have not received any interest.

This is because, due to the Covid-19 crisis, Crowdestor has agreed with borrowers they do not have to pay interest for 3 months. So in April I had no payment.

I know this sounds a bit scary, but I believe given current situation is good to give some time to borrowers. Many European countries have frozen the debt recovery processes, so even if Crowdestor wanted to proceed that way, it would have to wait till the recovery processes are allowed again.

A couple of days ago I received an email from Crowdestor indicating that several borrowers are going to resume payments, so I should soon start seeing new income.

You can read more about this p2p platform in my Crowdestor analysis.


Bulkestate

 
Bulkestate monthly return.

Bulkestate achieved a 0.4% return in April. That’s good news, the return is in line with the values of previous months.

All the loans have paid the interest on time, so at the moment there is no impact of the Coronavirus, hooray!

As I mentioned on previous portfolio analysis,most projects at Bulkestate pay interest at the end of the loan. Therefore, the monthly return graph show lower values than Crowdestor and Estateguru.

If you want to know more about this peer to peer lending platform, here is my Bulkestate guide.


Financial Freedom Progress

 
This picture shows you my progress towards my first target of financial freedom.

After last month’s decline, this month I have regained quite a bit of ground on my way to financial freedom, thanks to my investments and savings.

Right now I am 72.8% financially free (phase 1 – survival).

I hope to continue climbing in the coming months. I’m already looking forward to reaching my first goal! It would be a big boost of confidence, knowing that I am doing the right things.

Initially, I had thought that I would fulfill it in early 2021, but with the Coronavirus crisis it will surely be delayed for a few more months 🙂


Savings Rate

 
My savings rate is helping my portfolio grow faster.

This month I have reached a savings rate of 70%, which is great!

After two months going down, it’s nice to go back up and be able to save so much money. This rise was due to my expenses being reduced this month due to Covid-19 confinement. That’s what happens when you are at home all day, you spend less money 🙂

Do you want to learn how to save? I have prepared a super savings guide where I show you the method I used to save 60% of my income in 2019


Blog Statistics

Lastly I would like to show you the statistics of the blog. April has been the best month to date:

  • Page views: 5712, 52% more than in March
  • Followers on Twitter: 2640, (490 new followers)
  • Blog Subscribers: 184 (72 new subscribers)

I have decided to start displaying the graph with the monthly blog traffic.

Evolution of the number of visits to the blog.

The traffic increase in April has been spectacular. Also, the trend is clearly bullish, so I am very happy.

Let’s see if I can keep increasing the number of visitors, it will mean I’m on the right track. Thank you very much to all of you who read me and motivate me to continue developing this blog!

If you want to continue learning about investing in the stock market and financial education, I recommend the following blog articles:

 

Any doubts or questions you have, don’t hesitate to use the comments section to ask me. I will answer you delighted.

COMPÁRTELO!
Categories: Portfolio Update

2 Comments

DR GOH H · 3 July, 2020 at 12:43

Well done mate. I am just wondering you still believe in individual stock investment? I have stopped selecting individual stocks

    Gonzalo@Tofinancialfreedom.co · 4 July, 2020 at 07:14

    Thanks Dr Goh!
    Glad to see you around. I am not sure I will be able to beat the S&P500 with my individual stocks. I am willing to try because I believe in my strategy, but I also know the odds are not in my favour.
    That’s why I am going to stop investing in my own stocks and invest more on index funds & mutual funds. Depending on how my stocks perform over the next years, I will decide if I add more money to them, or if I sell them

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