Portfolio Update [November 2020]

As promised, all the way back in the second or third update, I was going to go over what I have bought and why. Currently the markets are going gangbusters again, leading some to speculate that we’re in a massive bubble. Just looking at the daily rises, I am tempted to believe them. But that doesn’t mean we should stop investing and wait for the inevitable crash.
After all, I have shown you how small each past crash has been in relation to the overall growth.

But before we start, here is my current position. Things of note that are different from last month, apart from the almost 10% gain, are the extra ASD.NZ shares. Going from 1070 in October to 1690 now. By doing this, I have brought down its overall cost average, which is why I have a very odd number under cost price.

I wish I had taken a screenshot a few days earlier, when my overall position was just shy of 12% gain. On the back of this vaccine news, Australia opening its doors and our very decided election, it seems investor confidence has returned en masse. I am looking forward to the 17th of this month when Napier Port declares its earnings (and hopefully dividend).

But lets dive deeper into why I have these holdings and where my end goal is. Hopefully it all makes sense. And hopefully you are able to get something out of it.

AGG.NZ is the Global Aggregate Bond EFT offering from SmartShares. This is essentially a hedge fund that tracks the return on the Bloomberg Barclays Global Aggregate Index. A very safe investment realistically, and it doesn’t return that much – just 1.9% on average. But this is part of my foundation. Money that will slowly grow and return a little, but won’t ever rock the boat. Which is perfectly fine.

AIR.NZ is Air New Zealand, the national carrier. I got these during COVID and tried to get in on them when they were just 89 cents! But alas, so did everyone, and drove the price up to a respectable $1.45. Now with the news of boarders opening, their share price will surely climb. Also, with Air NZ being government backed, they can never really fail. In a few years’ time, when things go back to normal, AIR.NZ should at least double, and go back to paying its historically high dividends. Seriously, get in on them while they are under $2!

ASD.NZ is another SmartShares EFT, but this one if focused on dividend paying Aussie companies. This is a great way to diversify your investments without having to keep track of 20 different companies. And being focused on dividend paying companies, gives it a 7% average return.

DIV.NZ is the New Zealand version of ASD. A more modest return of 5% on average. And the benefit of investing in a bunch of New Zealand companies, with all the good feelings that entails. I like how SmartShares breaks down the top holdings, so you get an idea of where your money goes.

GNE.NZ is New Zealand’s largest energy retailer, with over 500,000 customers. Energy companies don’t often go under and pay great dividends, so it’s basically a toss of the coin as to which one you’re looking at. The end goal is to hedge my bets and have shares in all major power companies in New Zealand.

NPH.NZ is Napier Port. A place I worked at for a while. If 8 years could be called a while… I got in on the IPO when it was $2.60 a share, and its honestly the best move I ever made. Port companies often have a very steady share price, pay great dividends and will never go under. Partly owned by the government of Napier, I count this to be one of the safest bets on the NZ Stock Markert. Once their big project is done, I expect their shares to rocket to around the six- or seven-dollar mark.

Ah, good ole NZR.NZ. New Zealand Refineries was supposed to be a sure-fire bet. You see, they supply the fuel to Air New Zealand exclusively. Planes need to fly, and fuel needs to be refined. And this was the only refinery in New Zealand. Who would have thought a global pandemic would come along and crush them completely. But I have hope – once we start flying again, this share price should go up. Not to its previous high, but close enough so I haven’t made a complete loss… This is where my strategy of long holding might be a benefit.

SPK.NZ is Spark – one of the mobile carriers and internet providers and all up in that IT business of New Zealand. Spark have always performed really well, and my only regret is not buying more of them. Great dividends too. And this business grew heaps during COVID, so I have faith they will stick around for the time being. And not because I work for them either…

There you have it. My current holdings, what they are and why. In the future, I hope to expand my foundation by investing in three more SmartShares ETFs. NZG.NZ – the S&P/NZX 50 Index which tracks the top 50 performing companies in New Zealand. FNZ.NZ – which is similar to the NZG in that it tracks the top 50 companies, but each company only has a 5% share in this EFT. This makes it more stable to fluctuations – both up and down. And TNZ.NZ – tracking the top 10 companies in New Zealand.

These three will make up the main foundation. They will track the New Zealand market, while diversifying my investments and provide modest returns. Of course, I am betting on the stock market to continue to go gang busters. These going up will add to my net worth and not my real worth. I hope to have at least 10,000 shares of each at some point. By using the dividend reinvestment program, these will just sit and grow themselves over the next 20+ years.

At this moment in time, all my holdings are enlisted in the dividend reinvestment program, so that when they do pay out, they just buy more of themselves. In my next post, I will go over my snowball amount and what that means. And at some point, I’ll actually take apart all the details in each share listing.

November 16th, 2020
Current Portfolio : $15,606.48

Now it’s your turn. Tell me your plan, your strategy. What would you invest in if you could? What are your goals? I am eager to learn.

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.