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On the Path to Financial Freedom - July Update 📊

With the temperatures in July, my portfolio finally started to pick up again, even if not quite as much as I’d hoped 😉. After the somewhat challenging past few months, this little breather comes at just the right time!

July Portfolio Overview:

👉🏻 July:

Starting value: 1,219,254 euros + 428 cash

End: 1,270,244 euros + 16.65 cash

Deposit: 3,200 euros

Profit: +47,378.65 euros (+3.87%)

One positive aspect of the portfolio’s performance is that the growth was actually driven almost exclusively by my other (non-gold-related) holdings, as my gold and silver holdings performed neutrally to slightly negatively this month.

PayPal ($PYPL (-1,11%) ), Accenture ($ACN), and Xiaomi ($1810 (+2,23%) ).

PayPal is one of the investments I’ve held for quite some time—currently with a cost basis of about 55 euros—and I’ve weathered a long rough patch with it. I took advantage of the price decline to consistently buy more shares, as I’m convinced of the company’s value. The takeover offer a few weeks ago at around 53 euros has at least brought PayPal back into the spotlight, and I’m glad that there are others who also see value in PayPal. At the same time, however, I’m also glad that PayPal rejected the offer. In my view, a sale shouldn’t even be considered for less than 75 euros per share—and preferably even more. The quarterly results have shown that PayPal is still growing and is fundamentally very strong. Thanks to the consistent share buybacks, more and more shares are staying with us shareholders… so I’m holding on to my shares!

Accenture and Xiaomi also contributed positively to the portfolio’s performance. However, I see this more as a technical rebound from the massive (excessive) sell-off than as a result of actual operational news—but of course, I’ll take it anyway!

At the end of the month, performance was boosted once again by Novo Nordisk ($NOVO B (+2,59%) ) and Western Union ($WU (-1,11%) ). While Novo was hit with a -10% intraday drop because a study on a potential new drug missed its targets, Western Union fell by over 20% as its quarterly results fell far short of expectations. Nevertheless, I’m holding on to both companies!

The portfolio’s performance will, however, continue to be determined primarily by the future performance of mining stocks. Given the uncertain situation surrounding Iran, I expect volatility to remain elevated going forward. At the company level, all mining stocks (K92 Mining, Equinox Gold, Santacruz Silver Mining) delivered very strong production figures. And the gold price also appears to have found a floor around $4,000 per ounce for now. But in the short term, what happens next will likely be determined by Trump’s whims 😉 ...

Let’s see how things play out! Tomorrow’s trading session looks like it’ll be another exciting one.... Deal, no deal, deal, no deal, deal.... 😅

➡️🆓: On my way toward $4 million in total assets, I’m now 41.5% of the way there.

Here’s to successful stock market trades! 😊

20 Comentários

At first glance, a global ETF would have performed better—even without any losses

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Part_Time_Joe@Part_Time_Joe

@alphawolf You might be right about that, at least as far as this year is concerned. But you'll always find an index that outperforms you... 😉

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Investor@investingbeginner

at what age did you reach 1m?

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Part_Time_Joe@Part_Time_Joe

@investingbeginner at 31

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Korni@Korni1987

@investingbeginner a nice inheritance

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Investor@investingbeginner

@Korni1987 yes that's nice, unfortunately everyone's life is different, so best not to compare with anyone and only compare yourself to yourself and see if you are becoming better

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Marty0292@Marty0292

Congratulations! May I ask how you managed to amass such a substantial fortune at such a young age?

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Part_Time_Joe@Part_Time_Joe

@Marty0292 Sure, I'm being transparent about that. About 50% of it is an inheritance. The remaining 800,000 consists of about 250,000 I saved myself and 550,000 in capital gains from my stock portfolio (based on the inheritance)—that’s a very rough estimate.

In total, my net worth is about 1.7 million euros. Of that, about 1.3 million is invested in stocks.

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Marty0292@Marty0292

@Part_Time_Joe Okay, that's great—thanks for being so transparent.

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Mo@Mo28

When do you think financial freedom begins? It seems like you're not far from it :)

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Part_Time_Joe@Part_Time_Joe

@Mo28 For me, it really starts at around 4 million euros in invested assets (excluding real estate, etc.).

Assuming a net return of 3% (adjusted for inflation), that adds up to 120,000 euros per year. After taxes (25%), that leaves 80,000 euros. Of that, I’d reinvest another 30,000 euros to further grow the base. You can live very comfortably on 50,000 euros net per year.

These are very conservative assumptions for me right now. But my goal is to ensure financial freedom with a very high degree of certainty—both for the future and for future generations.

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Mo@Mo28

Yeah, those are definitely conservative estimates, but that way you'll be on the safe side. And besides, you'd almost be financially free by now—so what else would you even set as goals? :D

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Part_Time_Joe@Part_Time_Joe

@Mo28 Oh... I definitely wouldn't be short on ideas. I wouldn't have any financial goals, but I certainly wouldn't get bored! :)

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Markus@MarkusF

@Part_Time_Joe Historically, including the Great Depression, you could certainly achieve a 3% return if you diversify broadly across the market.

You don’t need to reinvest anything.

I agree with the 50k net figure, but you’re overlooking two things:
1. That’s not net; you have to pay for health insurance and long-term care insurance—that’s 600–1,000€/month privately or through employer and employee contributions on the income from profits that’s subject to insurance requirements.
2. Good for you: With your return, you’ll be nowhere near a 25% tax rate.
Inheritance should already be taxed, and your return over the visible time period doesn’t suggest nearly 100% profits.
With a 99.5% allocation to individual stocks, you’ll likely have to trigger taxes a few times before that when you rebalance your portfolio.

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Part_Time_Joe@Part_Time_Joe

@MarkusF Regarding your point 1: Not having to work doesn’t necessarily mean not working at all, but rather that I can truly pursue my interests. To save on health insurance—if that’s what you want—you can always find a job that’s subject to social security contributions. It doesn’t have to be full-time.

Regarding your point 2: Investment income is taxed at a flat rate of 25%. There is an option for a more favorable tax assessment, but if you have 100k in annual income, then the 25% flat rate is definitely more favorable than your personal income tax rate.

My return on investment with getquin over the last 12 months is just under 25%. To be honest, I don’t think that’s too bad at all. I never claimed that the 100% return happened in the last 12 months, did I? There was a time before getquin, too... 😉

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Markus@MarkusF

So 1.3 million in today’s value would be enough for me.
That said, my portfolio is less risky and yields a higher return (as a percentage, not in absolute terms ;)).

My goal is €800k by age 63—so the increase in the retirement age can go to hell ;)
Since I’m 40, that comes out to about 1.2 million before adjusting for inflation.

But I don’t spend all that much either (about 50% of my salary + occasional purchases like washing machines and such), and my mortgage might go up in 8 years, but not because of inflation ;)

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Billy O.@IBilly

With your investment portfolio, I wouldn't be able to sleep or leave the house without a diaper.

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Part_Time_Joe@Part_Time_Joe

@IBilly Is it really that bad? I see my portfolio as significantly less risky than those of some people here who are overweighted in tech….

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Billy O.@IBilly

@Part_Time_Joe Yes, indeed. 50% of your portfolio consists of mining companies, and 10–20% consists of German companies that don’t even earn their cost of capital and burn through more money than they generate. Think BASF and VW.
If you’re so convinced about your mining stocks, sell everything else, shift your holdings into an ETF, and build a portfolio around the mining stocks as satellite holdings. 75% ETF, 25% mining stocks. You’d most likely fare better that way.
Of course, that’s just my personal opinion. If you’re comfortable with it, go for it.

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Part_Time_Joe@Part_Time_Joe

@IBilly I’m not convinced by mining stocks in general, but I am convinced by the exact three I own (K92 Mining, Equinox, and Santa Cruz). With K92, for example, I’ve been invested since 2018—so even before they were in production—and my cost basis is about 40 cents on the “original position.” I believe these mining companies still have a long way to go and will continue to grow significantly faster than the market.

As for BASF and VW, I think these are good opportunities to get in. The companies will transform themselves, survive in the long term, and grow again. I have no doubt about that. But if there weren’t any problems, there wouldn’t be these low prices...

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