Q3/2015 Report

This quarter was full of market turbulence: worries about China slowing down, FED hiking the interest rates, commodities taking a beating. Market value of the portfolio decreased by 6.81 percent during this quarter. Compared to the Q3 last year, there was significant increase in the dividends received. Compared to the previous quarter though, there was a slight decrease. This is largely explained by the fact that BBL paid a dividend of 74,40 USD during Q2 but not in Q3 (they use a semi-annual dividend policy). Considering this, the overall performance was satisfactory.

Passive income during Q2 (before taxes) was as follows:

375,96 USD compared to 173,89 USD for Q3/2014 and 333,63 USD in Q2/2015.

Update: Removed false information since BBL paid during Q3 after all. Transaction didn’t show in my brokerage account until today.

Recent Buy: Fortum Corporation

Today I bought 70 shares of Fortum Corporation for 13,36 EUR per share. Minor addition to existing position with seemingly reasonable valuation. In reality this is a piece of a cash pile standing on two legs made of political risk. It remains to be seen which – Russian or domestic – will proof to be worse.

I had much faith in former CEO who still stays in the company and high hopes for the new CEO. They have plenty of cash to invest which should proof to be very effective in the current market environment. Then again majority of the company is owned by Finland which has a lengthy history of killing cash cows.

Fortum Investors Page: https://www.fortum.fi/en/investors/pages/default.aspx