Portfolio Update [January ’21]

In case you missed it, Simone and I have officially moved to Australia! Melbourne to be specific. And to add to the excitement, I have bought more stocks! January just keeps getting increasingly exciting, doesn’t it!

So, what did I buy and why? Let’s break down my stock decision making here. But first, as is custom, story time!

In 2016, I was convinced to buy some Ethereum. What is Ethereum, or its street name – Eth, you may ask. Well, it’s not the latest drug, or quick rich scheme, in case you’re wondering. Eth is the second biggest cryptocurrency in the world – right behind Bitcoin, kinda. Recently Eth went through a bit of a resurgence and rallied from US$100 a coin to now US$1,300+ a coin. When I bought, it was NZ$320 a coin. So, I got quite lucky. I capitalised on this resurgence and withdrew two of my coins. This allowed me to trade the volatility of crypto for the ‘stability’ of traditional stocks. I remain bearish on the whole crypto thing, but that’s another topic, for another time.

I put this newfound money to work in Hallenstein Glassons – purchasing 488 shares for $7.15 a pop. And the reason is simple. HLG have a very good dividend percentage. They typically pay 5.52% in dividends, which for New Zealand stocks, seems to be relatively high.

I also used good ole common sense… During lockdown, HLG made a profit. In fact, when the clothing company couldn’t get their typical textiles from China, they turned towards local NZ businesses. Even fruit businesses that were struggling with the Covid lockdown suddenly found themselves sewing clothes! And then after lockdown, both Hallenstein and Glassons remained busy. Busy stores make for great shares… I think Confucious said that.

This quick pivot by the business during lockdown, and then capitalising on their position in New Zealand after the lockdown shows me that this business is one that can react quickly. It shows good leadership. And more importantly for my purposes, it shows how hungry this company is about surviving and making a profit. Add to this, the HGL group has been named as one of the most ethical companies in New Zealand. All these facts make it a winning bet in my mind.

When investing in a company, you want one that will pivot quickly during times of uncertainty. One that has the leadership and stones to allow this to happen. I also looked at a breakdown of the most common dividend paying ETFs and found the HGL group is often close to 10%. Smarter people than I have put them there, so they must be good.

Currently, as you can see, I have made a minor loss of HGL, having paid $7.15 per a share, when it is currently trading below that. This is typical as I placed my buy order in the middle of the expected price range. I have no doubt that they will again rise to above $7.50 a share in due time. If they drop below $7, then I’d suggest buying ASAP.

And there you have it. The reason I bought HGL and why I am bullish on their future. As they continue to expand into new markets and use New Zealand resources, they can proudly declare “Made in NZ”. And that gives everyone warm fuzzies indeed.

PS: Get your clothes from Hallensteins (boys) or Glassons (girls). For, uh, no particular reason… 😁

January 29th, 2021
Current Portfolio : $19,326.62
Current Profit : $1,582.50 (8.9%)

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.