The Money Machine Aug 2017

After our kick-off that we had just over a week ago, I have furnished a little in the money machine. We decided to sell our holdings in B&L and Good Finance and instead invest the money in two new investment companies in the “Bas portfolio”.

Another change I made (also intended as a long-term goal for 2017) was to liquidate the “Play account” with small holdings in Foxnort, Grapes and Sureprint. It was fun to test buy and own a little less risky shares but in the long term it doesn’t feel relevant anymore so I closed the account.

Adding more investment companies 

money

The reason for adding more investment companies is partly because we want more risk diversification and partly that we are not so active that we keep track of individual shares. Since we are shifting over some money in investment companies, I mean that we do not have to monitor them as hard as if they were individual shares.

We bought items in Good Lender and Labor. Good Lender feels like a good complement to our current holdings in Investor and Industrivärden. Good Lender invests in other industries (digital consumer businesses) that give us good diversification. Labor has historically fared very well and in the sense investment company is a bit different from the others in the class.

More risky but compared to an individual share

cash

Labor has three holdings corresponding to about 70% of the portfolio value. With this, the Labor holding becomes a little more risky but compared to an individual share, there is still more diversification which we are looking for. Right now, our holdings look as shown below and the plan is to only replenish current holdings in the future.

Development of the year – the money machine

cash

The portfolio’s development this year feels approved. I compare with GFIC, which is the development of the entire stock exchange incl. dividends. Now that we are moving towards “safer” and larger companies in our money machine, maybe the Good Finance will be more suitable to compare with, but we will see how I do there.

Since we have invested more than 10-15% cash in 2017, our return is even better if we only look at stock and fund developments. Happy sight, it didn’t look as bright a few months ago. How have you been doing so far this year?