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Strategy presentation, feedback welcome

Hello everyone,

I have been following this forum for some time now and have decided to present my experiments and current strategies.

On the one hand, because I want to avoid losing track of things, and on the other hand, to prepare my thoughts for myself and also to get other perspectives and opinions.

Briefly about myself

I am 22 years old and graduated last year with a Bachelor of Engineering in Energy Technology.

I am currently working in a medium-sized company in the energy industry in Germany.

I have been rather frugal with money since I was a child. As I got older, my interest in increasing money wisely grew.

I was also lucky that my uncle opened a junior custody account for me when I was born. As a result, at the age of 18 I already had a small starting portfolio worth around 3,000 euros.

At the beginning, I focused intensively on precious metals and also invested in them. I don't plan to touch these holdings in the long term. If I don't need them, I see them more as a legacy for the next generation. I will buy more from time to time.

Basic start

As a first step, and I am aware that this will be assessed differently, I have taken out a unit-linked pension plan with the savings bank, which I save 150 euros per month.

I also took out a building society savings plan, as I basically want to buy my own home in the long term. I am currently renting.

The building society saver is also 150 euros per month per month.

At the same time, I have been working with neobrokers, from which my current portfolio has gradually developed.

Yes, there are still quite a few stocks in it at the moment. I will probably clean that up in the long term.

1st approach, accumulating ETFs

My first approach was to invest in classic accumulating ETFs.

World, $XDWD (+0,73 %)
Emerging markets, $EIMI (+0,99 %)
AI and big data, $XAIX (+1,6 %)

Smaller side bets were added later.

Armaments, $DFEN (+1,49 %)
uranium, $U3O8 (-0,69 %)
batteries, $BATG (+3,03 %)

I also bought my first individual shares to gain experience. Among other things, I had success with $RHM (-0,01 %) . At the same time, I learned how quickly losses can occur if you are not sufficiently diversified, for example with $ABR (+0,53 %) ,$1SXP (+0,67 %) and other stocks.

This ultimately led me to my second approach.

2nd approach, dividend strategy

As I already have a pension plan through LBS and don't want to be the richest man in the cemetery, I focused more on a dividend strategy.

The first attempt consisted of the following combination

The idea came from a business magazine and was aimed at making monthly distributions as even as possible. I also added $QYLE (+0,28 %) to gain initial experience with option strategies.

However, as this combination is only diversified to a limited extent and I deliberately wanted to move away from the USA, I adapted my strategy further.

Current strategy

Fixed savings rates

LBS, retirement provision, 150 euros per month
Building society, residual debt for future home ownership, 150 euros per month

Dividend strategy with 115.24 euros per month

$XDWL (+0,8 %) , 34 percent
$IEEM (+1,28 %) , 26 percent
$XAIX (+1,6 %) , 13 percent
$EXSH (+0,55 %) , 26 percent

Side bets with 81 euros per month

$DFEN (+1,49 %) , 62 percent
$BATG (+3,03 %) , 10 percent
$QYLE (+0,28 %) , 25 percent

Trading 212 experiment with 100 euros per month

Here I am pursuing the goal of bundling individual shares in a common pot, partially saving them and automatically reinvesting distributions in order to benefit from the compound interest effect in the long term.

I welcome tips and constructive criticism so that I can continue to improve my strategy.

Best regards

Mister Kimo

40Positions

19 540,55 €

40,88 %

9 Commentaires

Philip Buß@GoldenShield

First of all, thank you for the detailed presentation. In general, I think the approach is very good, but in my view there are too many positions. Many of the ETFs do similar things
Perhaps it would make sense to think about liquidating all small positions (for example < 1%) and investing in a closed position
In itself, however, there is little wrong with the individual positions

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Chris@Multibagger

First of all, welcome to the active community. I'm pleased to see that many new active members have joined in the last few days and are taking their first step here.
Personally, I think you have too many ETFs for your age. That's rather defensive, just like the building society savings contract and the savings contract with the savings bank. In my opinion, in your early 20s you have enough time for more individual assets and more risk. But of course it has to suit you. If you feel comfortable that way, that's fine.

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Kimo@cashing

@Multibagger Thank you. Basically, I feel comfortable with a mixture, hence the venture with 212. What are your experiences with 212?

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Chris@Multibagger

@cashing I think it's great. But I only use it for savings plans and shares via Pies.

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Kimo@cashing

@Multibagger That works. A somewhat naive question: How does it actually work, or is it even possible to transfer securities individually to another custody account without closing the original custody account? I would like to incorporate my positions in $RHM, $GOOGL etc. into a pie in order to reinvest dividends directly there. Otherwise, I might put my idea into practice and close my TR custody account in order to use 212 exclusively for shares and call money. What bothers me, however, is that according to my research, the accounts are protected by the deposit protection scheme, but the custody accounts are only protected up to €20,000.

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Julian@MoneyISnotREAL

Hello Kimo,

At the age of 22, I would have liked to have been ready to invest my money in the stock market on my own. In the meantime, I have done that, among other things, I have turned everything concerning financial products upside down for the last 2 - 3 years, and finally quit due to inflexibility and unprofitability.

You would like to hear other people's thoughts and points of view:

### Unit-linked pension insurance with the savings bank
-What are the running costs?
-How high are the acquisition fees?
Without knowing the contract, I would consider such a product at the Sparkasse to be critical, expensive and unprofitable. In other words, check carefully and I am very sure that canceling and investing €150 a month in an ETF will be the better choice.

A few further thoughts:
-What are you investing in?
-When could you start accessing the assets?
-Taxation in the payout phase? (personal income tax rate + max. social security contributions)
-Inheritable? Yes/No?
-Don't forget the counterparty risk - savings bank bankrupt = goodbye retirement provision

### Building society savings contract
-Conditions?
You probably don't have any interest on credit balances in the savings phase (think around 0.1%). The loan interest rate will probably be around 2 - 3%.
Do the maths, but include the closing fees (10% of the savings amount), the additional costs when taking out the loan (approx. 2% loan amount) and the lack of interest during the savings phase vs. the money market ETF. I also had a building society savings contract from my parents, which I terminated. Even a money market ETF would have allowed me a loan interest rate almost 50% higher than the building savings contract had. With a term of ~10 years and ETFs ... anyway 😇

In order for you to be able to use the building savings contract for your own home, it will have a certain volume and with €150 per month it will certainly take 20 years (without special payments) until it is ready for allocation. After that, the building society determines how long they will leave you hanging, i.e. grant the loan (during Corona, the loans were simply not approved, even though they were ready for allocation - because the building society had to pay out more loans than contracts were saved)

To cut a long story short: it is probably better to terminate the contract and if you want to realize your dream of owning your own home in the next 3-7 years, divert the savings sum into a money market ETF.

### ETFs:
-Solid base with world + emerging markets
-$XAIX is also a bet on AI / tech for me
-Sector bets if you want, but would limit it to 2% portfolio volume (per ETF), max. 10% in total, individual stocks should be included accordingly

-In general, I would not bet so much on the bets, but would significantly expand my core. The companies in it also benefit from this, or if a company becomes more valuable, it also rises (or falls) in the world ETF.
Depending on the overlap, you increase the cluster risk. Using X-Ray / DeepDive, it is interesting to see how many assets are in which stocks - especially with several ETFs and individual stocks.

-Dividend strategy >> I would simply take the world ETF as a dividend payout. If you save, you don't need dividends because you can also reduce your savings rate. In addition, the tax office collects approx. 27% of each dividend, which you lack in asset accumulation (interest-interest).
For motivation, you can use your sector bets to choose a few stocks that pay dividends.

- In general, keep everything a little leaner, simpler and clearer.

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Susanne@Isus01010

For the reasons mentioned above, I would also question whether you (already) want to focus on dividends.

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Kimo@cashing

@MoneyISnotREAL Thank you for your detailed answer, I really appreciate it. Basically, the most important thing is to do something with your money and not leave it in a savings account or, in the worst case, consume it without building up reserves. I will look into your suggestions about the unit-linked pension insurance at the savings bank and the building society savings contract when I get a chance.

Would you prefer a money market ETF to an overnight deposit account? Are the interest rates there noticeably higher?

A little bit of a crazy idea on the side: the €300 per month with annual dynamization as a reserve for a later house purchase, as real estate also represents a value in a certain way that may increase, and in old age you could then use the capital for a smaller apartment and as a supplementary pension. :)

You're absolutely right about ETFs, I need to reduce my cluster risk in relation to $RHM and find a better weighting, possibly with a solid base and a pie of individual stocks.

Taxation is not an issue for me at the moment, but yes, in the future it can and probably will become relevant. Good points, thank you!

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