Portfolio Update [February ’21]

February sees the acquisition of even more shares for my budding portfolio. This month, it was Contact Energy – a power supplier that also does gas and broadband. Ok, so I can understand the electricity and gas part, that’s pretty staple. But broadband too? What is this company playing at?

It seems to be a common package with energy companies in New Zealand that you get power, gas and internet all in one. I don’t know who told them this was a good idea, or even who came up with this idea. But in saying that, I have met a few people that like dealing with as few companies as possible (ok, so that’s like 99% of the population). It means having as many services as possible bundled together, in one handy bill, is a win-win. You can see why they do it. Oh, and sometimes they will even give you a fridge or TV if you sign up for a year. People do like free stuff!

With at least 4 energy companies in New Zealand, all offering similar things, why Contact? And why now? Ah, I am glad you asked. Even if was leading the witness a bit.

I used to be customer of Contact Energy. In truth, I was with Contact Energy for about 9 out of the 10 years I was in New Zealand. The only reason I switched was because Contact doesn’t do the whole ‘Solar Power’ thing and we had just gotten solar panels on our house. During that time, Contact provided the cheapest power, with the best customer service, and every time I had to reach out to them – because of moving, a bill query, or just because I was lonely, they were always super helpful.

Almost on a side note, Contact Energy happens to be the second biggest energy provider in New Zealand, just after Meridian. This also played a part in my decision making. The other part was that their dividend payouts are scheduled for the end of March. Buy now and get paid soon after! Sounds like a good deal to me.

I intend to own shares in every single energy company in New Zealand. Why? Because as NZ moves to a more digital future, the demand for power will increase. Electricity is also a service that people need and if you invest in needs, you will never go broke. I am positive I read that somewhere… But if you can’t tell me where, then I will claim it!

As you can see, I now have shares in 2 energy companies – Genesis and Contact. In a few months, I’ll pick up Meridian and Mercury. In-between other shares of course.
As it stands, here is February’s portfolio. I am up 8.6% on my investments (not counting dividend payments), for a net profit of $1,614.45. Not too bad at all I’d say. The goal is to get this as close to 10% as possible. Spoiler alert: March may just do it!

I am continuing my semi-aggressive portfolio growth, with the aim being to invest at least $10K a year. Maybe even more if I can. Sure, I could cut out of a lot of fun things and probably do $20K a year, but ya bois’ gotta live, you know! And Melbourne is just begging to be explored.

February 26th, 2021
Current Portfolio : $20,337.77
Current Profit : $1,614.45 (8.6%)

And now I must put this in for the legal reasons…
I am not a financial advisor. All advice is taken with this in mind. I do not benefit from you using the same platform I do, or by using a different one. I do not have any insider knowledge of any company listed. Everything I will talk about – from the tools to the news – will be as available to me as it is to you. Again: I am not a financial advisor and never will be.