Over three years ago I wrote a post following the request of some friends that wanted to start investing long term and didn’t know where to start.
I created what I called the rookie move, a 10.000$ portfolio divided into 10 stocks with the very same weigh into every stock but with 5 searching dividend and 5 searching grow. Different sectors and different countries, they are now showing interesting results.
First the bad news. Of the 5 growth stocks two have underperformed big time.
Agile Therapeutics, focused on birth control in the for of patches, is down 99.9%. In other words: the 1.000€ are gone.
Virgin Galactic, focused in space travels for private people, is also down 85% after being up almost 300% from the entry point.
American manganese has also underperformed compared to the market, but at least is returning a 10%. The company is now called Recyclico and still trying to open business in an industry and sector that has brought many rivals down 90%. American Manganese was at a point in 2021 up 1.000% above the entry price.
Two stocks have overperformed the market in this time. One is Uber, the transport company, that was at the time opening new services in a moment where private travelling, competitive pricing and home delivery were about to be crucial. The stock is up 84% since the end of September 2020.
Time to see the leader of the board: NCC. NCC is a civil engineering company in India. Very frecuentky you don’t need a magic ball to see the future, just to know a little about your past. The biggest expansions in any economy has always been made possible to a willing to grow and the infrastructure to do so. USA at the end of the XIX century and beginning of the XX. China at the end of the XX century. And in a similar way India is now deploying all they potential thanks to their willing to grow and the very needed infrastructure to make the country more agile. NCC has profited so far a lot of this strategy, and their stock is 580% up since September 2020. In other words, you can forget that you lost money with Agile and Virgin, because you multiply your money 6.8x with NCC.
So far of the 5.000€ invested in growth potential stocks we have transformed them into 9.870€.
Moving into the dividend stocks, we see a more conservative return but nevertheless an increase also in the stock value. The selected stocks are a combination of strong companies in 4 countries (Spain, UK, Germany and USA) of sectors that always have a great demand.
Iberdrola (SPN) has given us 96€ in dividends since sep. 2020 with also an 11% increase in the stock value.
Repsol (SPN) has given us 522€ in dividends (a 52% of the invested) with an increase in value of 128%.
Allianz (GER) has given us 192€ in dividends and the stock is up 45%.
GSK (UK) has given us 143€ in dividends and the stock is up a 5%.
Coca Cola (US) has given us 80€ in dividends and the stock is up 20%.
In total the amount harvested in dividends over 3 years is 1033€ (a 10% of the portfolio original investment) and the actual value of the dividend portfolio part is 7101€.
In total we have a portfolio now valued at 16.971€ that has given us in cash extra 1033€. Combined that are 18.004€, or an 80% up from our original investment. If we had reinvested the dividends this amount would be around 90% so far (the magic of reinvesting the dividends… but that maybe can be explained in another post).
Compared to the Nasdaq (up from sep 2020 a 36%) we see that we have outperformed it 1.2x (36% vs 80%). Without selling or buying more than the 10 listed stocks, and without actively trading the results are at least interesting.
Comments may on company showcased are an expression of opinion only, and should not be construed in any manner whatsoever as recommendation to buy or sell any financial instrument at anytime.