Q2/2016 & H1/2016 Results

Another quarter has passed so it’s time to summarise the results. This time around it was a little bit unusual quarter as the still ongoing Brexit saga unveiled during the last week of this quarter. Significant drop in markets was very normal result of such an event but the following days surprised with a steep trend upwards. Portfolio and some of the market is trading near all time high levels so direction during the next months remains to be seen.

Q2 2016 Performance
Q2 2016 Performance
H1 2016 Performance
H1 2016 Performance
Historic Performance
Historic Performance

The dividend income during this time period was as expected. Steady increase fuelled by new investments and better yields in key holdings. Graph contains pre taxes dividend statistics compared quarter to quarter and half to half for years 2015 and 2016.

Recent Buy: Sampo PLC A

Brexit aftermath part 2: new position in Sampo Plc. As most stocks have traded significantly lower today, I decided to initiate a new position in Sampo. Main focus is on Nordea which dropped quite a lot today. I already have a full position on it but decided to add some exposure via Sampo. This also brings in some diversification in the form of IF insurance company and Mandatum Life subsidiaries. I bought 60 shares for 35,75 EUR per share and consider that as a decent valuation for the time being. Sampo is the type of company that rarely trades with discount anyway so I’m glad to take this valuation.

For this purchase I had to dip into my cash reserves a little bit. For the next months I really have to plan my moves. Depending on the market I have the option to increase my debt load and to spend the cash reserves even more. That would however require some once in a lifetime valuations for grade A companies. For the September I have my eye on Olvi as well so until then I just might focus on building up the cash reserves. It could be either or some kind of combination of both.

Recent Buy: Diageo

Midsummer proved to be a bit different this time around. UK voted in favour of the brexit which was a bit of a surprise. Personally I expected the result to be around 56% in favour of staying in EU but the people have spoken and now it’s left for the politicians to either implement the decision or find a way to work around it.

These are the type of events that don’t occur very often. They provide plenty of uncertainty and even panic which make them potentially excellent times for net buyers. Personally I started with a purchase of 10 additional shares of Diageo for 105 USD per share. I considered it as a substitute of buying a very large pint of Guinness to celebrate this special occasion.

Pretty much everything (at least on this side of the pond) went down yesterday. My portfolio didn’t move at all as the strengthening dollar compensated pretty much all of it. For the next week I expected┬áthe downfall to continue which hopefully opens a window of opportunity to either add to existing positions or even start totally new ones. As the uncertainty is likely to go on for years, there might be plenty of the opportunities to exploit during the next months.

Recent Buy: Hennes & Mauritz AB

Yet another addition to existing position with a purchase of additional 50 shares of┬áHennes & Mauritz AB for 242 SEK per share. Lately there has been multiple reasonable valuations on existing positions and this was one of them. In fact this decreased my average price significantly. Today also Diageo went down enough to enter a really interesting value range. Lately I’ve been considering my short term strategy options. Slowly decreasing my investment debt load has been one option as it’s a bit over my intended 10% mark. Then again my cash position and debt potential allows strategic moves in the case of major meltdown on the market.