At the beginning of 2025, the market surprised with a severe setback - triggered by massive US tariffs in April. Amazon $AMZN, (-1.99%) long at a high of over € 242, fell to around € 145 within a few weeks. For me, this was the impetus to take out a loan for the first time - instead of working for months on the next buying opportunity and buying in chunks using a savings plan.
■Why a loan?
My monthly savings rate was already € 2,200 at the time, but to really build up a noticeable position in this market situation, I would have had to wait several months. In the overall portfolio of around €100,000 to €110,000, a small individual purchase position would hardly have made a difference. So I decided to take a bold step: I took out my first loan. My entry on Amazon, €159.28.
■Loan conditions:
Loan amount: €10,000
Term: 12 months
Monthly installment: €881.93
Total amount: € 10,583.16
Debit interest rate: 9.83
Effective annual interest rate: 10.29
This means: I pay around €50 per month for interest alone - not a big additional burden.
Opportunities and risks
Thanks to the loan, I was able to invest immediately and add Amazon shares to my portfolio at a price well below their high for the year. The risk is clear: the interest burden increases the pressure, and if the share does not recover as expected, the return would be quickly eroded. On the other hand, a loan opens up the opportunity to invest larger amounts counter-cyclically, especially in crash phases. My portfolio size and the high savings rate kept the risks significantly low.
■My interim conclusion
Seven months of the term are still open. So far, it is clear that courage can pay off on the markets - but also that you have to be fully aware of the financial commitment. My aim is to document this experience transparently with you.
Have you ever thought about it? Or invested with loans yourself?
My post at the time about buying Amazon shares:
