Maintenance purchase or more like a dividend re-investment with a purchase of additional 20 shares of Kemira. This time I paid 11.90 EUR per share. Still nibbling on until situation calls for bigger purchases.
As anticipated for the second quarter, I initiated a new position on Gilead Sciences, Inc. with a purchase of 25 shares bought for 60,53 USD per share. This complements the other pharmaceuticals (AbbVie and Pfizer) and a bit more riskier one. Company financials are not ideal (debt and all) but then again valuation seems to be reflecting it quite nicely. Then again virus focused company is quite nice addition considering how to company is positioned for the ongoing decade. I’m not sure if I will build a full position with any of these companies. Instead I might just handle all of them as a basket of pharmaceuticals filling that position in the portfolio. Might even eventually add few additional ones but let’s see.
Another quarter passed and what a ride it was once again. Russian special operation – Njet problem, normal katastrof – in Ukraine kicked in and outcome was probably something most didn’t expect. Ukraine has put on a brave fight and now this one month old war (well, in reality it began years ago with the annexation of Crimea) is turning into a real shit show for Russians. Economic sanctions on Russia are something that I for one didn’t expect international community ever to pull off. Russia is like zombie with the exception of zombie having fair chance of eating before rotting away. This all hit some companies really hard but overall markets way less than I would have guessed. On personal level impact could be described as minor mainly due to having very limited Russian exposure and elevated US exposure. It’s hard to estimate how this thing will play out. Hopefully international community will not scale down the sanctions until Russia truly learns the provided free lesson. Furthermore this will hopefully result Finland joining NATO. This is something that should have been done in the 1990’s but better late than never. This would be extremely important also to mitigate country risk associated in being small open economy next door to Russia.
Main portfolio gained about 7% during the quarter. Dividend income was 1623,60 USD dollars and 120 EUR before taxes or 1566,42 EUR when using the exchange rate at the time of writing. Quite solid improvement compared to 1190,15 EUR year ago.
What next? Overall bounce back from the Russian special financial operation was maybe too quick. Inflation fears are still there and underlying problems in global economy are probable just one month older and equally bigger. Most likely I will just continue with current approach: do mainly smaller purchases and re-invest dividends. Let cash position grow a bit even though it’s quite significant already and not really ideal considering the inflation environment. Then again my personal finances are less severely hit by inflation as my consumption level is in general low and key factors like energy are either low or something that I can almost eliminate if and when needed. Let’s see. I might initiate a new position on Gilead Sciences and possibly add on existing 3M and Kemira positions while waiting for better opportunities to make bigger moves.