Also for the year 2021 there is again a portfolio review and my goals for the coming year. Because at least on the stock market it was a very successful year. As usual, I present all my assets and highlight the top and flop stocks of the year.
Overview Depot Review
When you look back at 2021, you almost have deja vu, because basically not much has changed from 2020. The all-dominant topic is still Corona and now Omikron, but that’s not what this annual review is supposed to be about. That already dominates our everyday life enough, so I don’t need to tell you about it as well.
Because there is actually something that went really well, and that was the stock markets this year. That’s exactly what I want to talk about in the next three quarters of an hour. In the U.S. in particular, things were outstanding again and my individual stocks did similarly well.
Surprisingly, however, they were mostly stocks that mean little or nothing to many of you. Therefore, the portfolio review differs somewhat from the others, as I have had the stocks in my portfolio only since the end of the year before last and did not expect them to outperform like this.
I have also built up a thematic ETF portfolio. I also tell you how well this has performed.
The share of P2P loans in the portfolio has shrunk quite a bit in 2021 and will not grow anymore. But let’s start with the returns.
Before I get started with the portfolio review, this episode is brought to you by my sponsor Wechselpilot.
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The return on my total assets was 17.85% in 2021. In the previous year, it was only 6.53%. There was only one negative month in the entire year. This happens very rarely and needs to be emphasized accordingly.
The time-weighted return from my total portfolio is 17.85%. Source: Portfolio Performance
When I consider that my book gains in 2021 alone easily exceeded my last gross employee salary, I’m really glad I started in the stock market in 2013
When I started on the stock market back then, I received just under 100 euros a year with dividends and price gains. I couldn’t imagine that my way to the stock market would be so successful.
If I add my dividends and P2P interest to the book profits, it adds up to quite a bit more. Once you have taken the first step
eight and stays with it continuously, takes care of his assets himself, it usually pays off in the long run.
Asset Allocation 2021
2021 I did a lot of tweaking to my portfolio, especially in the first quarter. This was primarily due to the build-up of my thematic ETF portfolio, which led to some distortions in the portfolio. Unfortunately, this was also associated with high costs because I have the custody account at comdirect and the buying and selling fees there are very high. On the other hand, this portfolio now exclusively contains ETFs.
Rank 1 of my return table in the portfolio is held by cryptocurrencies. Although things went really badly in December, an annual return of just over 146% is really something to be proud of. Unfortunately, cryptocurrencies only account for just under one percent of my portfolio, so they don’t really make much of a difference.
Second place in my asset allocation is held by my single stock portfolio with a time-weighted return of 31%. Only in 2019 did it do slightly better, with 34%. By comparison, the Dax was up 15.8% in 2021, the S&P 500 was up 28%, and the NASDAQ Composite was up 23%. In the asset allocation, the share of equities is 64%.
In 3rd place in the return table is my ETF allocation. 19.5% is of course very good, but a simple MSCI World ETF has returned over 32.5%. This shows in black and white that my theme ETF mix performed significantly worse than my individual stocks.
But also my MSCI Emerging Markets did really bad with only 2.30%. This is mainly related to the various capers in China. The ACWI therefore also only achieved 29%. And another comparison: A Momentum ETF only returned 24% and did much worse compared to the normal MSCI World. My ETF share is exactly 13% of the portfolio.
P2P loans are in 4th place with 6.85%. This is mainly due to the fact that I almost only rely on Bondora Go & Grow and, for example, Mintos is now completely de-levered except for the defaults. So the return has dropped by over 1% compared to 2020. Nevertheless, my P2P share still makes up almost 6% of the portfolio.
The penultimate place is held by commodities. Gold returned only 2.37% last year and doesn’t even beat inflation. However, at 4% of the total portfolio, this part does not make much of a difference.
The red lantern in 2021 has made my bond part, which was still in the front in 2020. – However, 7.73% is also very bad after almost +15% in 2020. Almost exactly 5% is the bond part of my assets.
Operating assets and overnight and time deposits make up the remaining 7%. The share has shrunk a good bit in the last year.
This is how the asset allocation looks in detail. The crypto share is still very small and that is why it is only shown so small.
This is how the performance chart – sorted by individual assets – looks in Portfolio Performance.
This is how the overall performance of all assets looks in 2021. The absolute high runner were the cryptos, but I left them out, otherwise it would have become confusing. Source: Portfolio Performance.
The return of my stock portfolio in blue, my total return in black, commodities (gold) in green, my bond fund in orange and my ETFs in beige. P2P loans are shown in gray with a total return above 6.85% before taxes.
At the end of the year, I can say that my savings rate was significantly worse than in 2020, but that was because I invested in experiences during the home stretch of the year rather than in the portfolio. I’ll talk more about that in a special podcast episode in February.
Aside from that, however, my regular savings plans on individual stocks and ETFs continued without interruption.
Overnight and time deposits
My Swedish time deposits at Weltsparen all expired in the fall, and the interest rates are so low that I put some in the overnight account – and spent the other part. But that was also planned a long time ago.
Otherwise, reserves play a crucial role in my self-employment. Compared to 2020, however, the share has decreased, as already written.
The time-weighted return from my stock portfolio is 31.36%. Source: Portfolio Performance In
2020, I had already turned my single stock portfolio around properly and concentrated on fundamentally strong single stocks. Here, the focus was more on stocks that offer both price gains and rising dividends. I also focused on this in 2021 and it was exactly the right decision.
In addition, I divested myself of all my China stocks and a few other underperformers. In exchange, I then focused on somewhat lesser-known but fundamentally sound companies.
Sales and right decisions
While I made two expensive wrong decisions in 2020 with the sales of Disney and BYD, among others, 2021 went very well. Wrong decisions sounds very harsh now, but both stocks were completely overpriced and no longer fit into the portfolio in terms of key figures. BYD rose again in 2021, but this decision would have been taken again, because the value is clearly overvalued. In December, the price gains of the year were halved. That is not surprising with a P/E ratio of 171.
Disney fell by 20% this year because share price gains and actual profits did not match at all. Although I think the company is great, it makes no sense to invest there in the current situation.
In 2021, I divested from long-time underperformers such as BASF, Hormel Foods, Gilead Sciences and Coca-Cola. I only made losses with the biotech company Gilead. Otherwise, the high dividends have resulted in a small plus over the years.
At the end of the year, I sold my Cerner shares. The company is one of the leading developers of medical software, especially in the field of electronic patient records. I had bought three tranches during the year because I was firmly convinced that this area would become very important.
That’s what Oracle thought, too, which is going to dig very deep for Cerner, spending a full $28 billion. Of course, the price of Cerner shares then went up considerably and I have now taken the good profits.
Trading depot on stand-by
I have almost completely liquidated my trading depot at Trade Republic with profits. There are now only two very successful individual stock savings plans. For free share savings plans
there is no better portfolio than Trade Republic in my view, although I have not yet tested Scalable.
Compared to last year, I only had to make minor adjustments to the sector distribution. These were necessary due to the sales. But now the distribution fits very well and I only have to do a smaller rebalancing in 2022.
Consumer goods are in first place with 17.65%, closely followed by technology with 15.03% and the chemical/pharmaceutical/healthcare sector, which has fallen sharply due to sales, with 11%.
Here’s how my percentage sector distribution from Portfolio Performance looks at the end of 2021:
Here’s what my desired and actual sector distribution looks like at the end of 2021. I only sorted the individual stocks and ETFs by sector, not the other assets. That’s why the ACTUAL distribution is 65.11%. Source: Portfolio Performance.
Mean Holding Period and Trades
The mean holding period in my portfolio is 798 days and has decreased by 11 days. However, this is only a temporary effect due to the build-up of the thematic ETF portfolio and adjustments in individual stocks.
As announced last year, my serious goal is to get that number to over 1,000 days by the end of 2023. I’m still quite unhappy with all the selling and buying in 2021, but I’m in a much better position than before, especially with individual stocks. In the end, I am a long-term investor and would like to remain so. The fewer trades, the better. 42 trades were clearly too many.
Of the total of 42 sales, 25 were at a profit and 17 at a loss. However, the pension funds from the private pension insurance are also listed here, because they are sold once a year, the costs deducted and reinvested. So it’s not just stock sales.
My portfolio conversion of 2020 has already borne fruit this year and I hope that it will continue as stable as before with the conversions of 2021.
At this point comes the disclaimer. The stocks, ETFs and P2P loans presented now are neither buy or sell recommendations nor advice, but solely my personal opinion. What conclusions you draw from them is up to you.
3 stocks from my 2021
2020 portfolio were BYD (2021
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