12th Entry - Annual Report 2020

What a Year. 

No one would have thought a pandemic would happen in this time and age. But it was a good test for the market. I could see which shares could hold their own. 

 I don't really know where to begin, there is so much I wanna write about actually. Let start with the overall things. Since Corona happen, many shareholders either sold their share for good or sold early and bought back in cheap. Lets hope you - my dear reader - are rather the later than the first one. I personaly just hold it, since i hate to pay fees to the bank. Selling and Buying always cost me money and I rather would spent them on shares than to banks. As I posted befor, this was the time to buy in and I really do hope you guys did just that. A friend of mine, I recommended doing it, has a performance of +55% in share value. Within a year! Thats easy money i would say. Even if his shares wouldn't have risen, he would still have made a good deal, since he coud bought himself in with a discount. 

 

To some companies:

 I personaly like Main Streat Capital, they are a very stable company even in corona-times they didn't lower their dividend as much as I would expected. Really good company. 

As for New Residential Investment I am really disappointed in them. I don't live in the US and I don't care what happens there, but cutting 0,5 to 0,05 dividends ist just to outrageous. Even camping now (April 2021) at 0,2 is just to bad. Their performance in crysis is to weak. I didn't sell them, since I still see them going strong in the future, but not in the near future. Therefor i wouldn't buy in now. It just not worth it. They take too long to recover.

  My personal winner (in comparison to the other shares I bought in) would be Prospect Capital. Good performance even tho corona happend. Prospect Capital gained alot of Trust through it. Their share value dropped, but since it was cheap from the start it couldn't really go down that much, which is a plus I guess. Also they didn't lower their dividend in 2020. Very strong.

 

As far as dividends go, I gained 2.279,13 € in 2020. That's ~500 € less than the year befor. Mostly because of New Resident Investment, but i am still satisfied. It showed that buying dividend shares is a very stable strategy. Not the best, since buying low and selling high would be better in 2020, but on the long run it is very good, since I have less fees to pay and less things to keep track with/at.

My only regret in 2020 would be not being able to buy more shares. The discount ranged from 10 to 60%. That's a huge bargain. That was the golden year. The legendary "opportunity" where you have to take all your money and buy in as Warren Buffett once said - content/meaning-wise, I mean not literally but in the core. You know what I mean. 

Well nothing I can do about it, so lets move on to Year 2021!

It was a tragic year for many, just don't lose focus. Life is hard and it might get worse, but at least I can say, I tried to better myself. Stay safe and remember the lost ones.