1Sem.·

Savings plan day: Anniversary

In June 2023, I started a savings plan on Philip Morris $PM (+2,69 %) and have been adding to it weekly via a savings plan ever since. Today, the savings plan on Philip Morris is being used for the 100th time executed.

Especially at the beginning, when the amounts were very small in relation to the rest of the portfolio, I could never have imagined that the small weekly amounts would grow into such a large position in my portfolio over a period of almost 2 years.

Just in time for the anniversary of the savings plan, I created the following chart:

The yellow dots mark the day the savings plan was executed and the price at which it was executed. Especially at the beginning, I was able to collect shares at comparatively low prices. Even after the share price only went in one direction (upwards), I remained loyal to the savings plan and continued to invest stubbornly on a weekly basis.

The result:

average buy in103.05 USD
Return through price gains: ~64%
Total return (with dividends): ~71%
TTWOR yield: ~97%

So just keep at it and invest regularly. Especially for people who want to keep things simple and uncomplicated, a savings plan in a broadly diversified ETF is the best way to turn small amounts into a substantial sum over time.

Stay tuned,

Yours Nico Uhlig

14 Commentaires

Stefan21@stefan_21

1Sem.

Congratulations on your anniversary🥳
DCA is often underestimated. You simply buy regularly with small amounts, don't worry about the price, trade less emotionally and simply get the average price over a longer period of time.

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Stephan Schnee@MrCumEx

1Sem.

@stefan_21 well, it would have been better if he had invested a lot at the beginning and only a little in the last 10 months. Then he would have made a lot more profit now ;-)

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Stefan21@stefan_21

1Sem.

@MrCumEx It's always easy to tell in hindsight - but you don't know where the price is going.
With DCA, you can be happy when the price rises, but also happy when the price falls, because then you get more shares. As I said, this takes the emotion out of it.

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Stephan Schnee@MrCumEx

1Sem.

@stefan_21 Yes, but that's not how a Buffett does it, is it? He'll have a reason why he doesn't do it that way, right?

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Stefan21@stefan_21

1Sem.

@MrCumEx if you're not a fan of DCA and prefer market timing, that's fine too :)
In my experience, DCA is very often the better choice. Market timing often doesn't work and when prices collapse, you often make emotional decisions that have no place in the market. But of course that depends on the investor :)

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Stephan Schnee@MrCumEx

1Sem.

@stefan_21 I have nerves of steel like Warren Buffett ;-) He does it very well IMO.

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Nico Uhlig@RealMichaelScott

1Sem.

Market timing is a completely different matter to DCA. As Stefan said, I didn't know that the price would go up when I invested at the beginning. Even if I was sure that the price would go up at some point, I still don't know WHEN.

@MrCumEx Buffett doesn't do any real market timing but buys when he thinks the price is favorable. But it's also not the case that he catches the best times. The difference is that he strictly stops buying when the price reaches a certain level.

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Stephan Schnee@MrCumEx

1Sem.

@RealMichaelScott Yes, that's how I do it too...

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