A year in review – My investments
2020 brought many challenges and will likely not soon be forgotten. For me it’s brought many changes as I went from being employed full time, being sent home for lockdown and eventually returning again, only to hand in my resignation as I got accepted into university.
Investment wise 2020 has been my best year ever. I am up 144% riding a 5 year performance of 390%. I’ve been a Tesla (TSLA) shareholder since 2016 and entering 2020 that payed off big with huge gains throughout the year.
2020 also marks the first year I’ve been taking some profits to pay off taxes. In my country of residence, Denmark, selling out of your gains gradually instead of all in one year means you’ll be taxed a lower rate (27%) in comparison to the standard rate of 42%. I’ve been primarily selling out of Microsoft (MSFT), which was the first ever stock I bought back in 2014 and my best performer (Up 468%) before Tesla (TSLA) rocketed this year.
However all my profits (post-tax) will be reinvested. My next major long term bull case is Taiwan Semiconductor Manufacturing Company (TSM) which is interestingly enough not a very well known company being one of the largest in the world with a market cap of 565 billion USD at the time of writing. They are the world’s largest producer of semiconductors and my position is a pureplay bet on the rise of ARM-based technologies this next decade. I am incredibly confident in this company and their ability to increase revenue and grow. They even pay a pretty nice dividend above 1.5%, which is just a nice bonus.
Parallel to this I also started a small position in Nvidia (NVDA) as another bet on ARM, as they recently acquired the company behind the licensing technology – but this will stay a much smaller position for me and my timeframe is shorter. The acquisition is still pending approval with regulators which makes it quite risky given that I bought in so late.
My monthly income has decreased very significantly after starting university in September. With this in mind I started a dedicated position for high yield dividend stocks. This is a way for me to continue investing without having too much money to put aside from my salary. I am focusing on companies paying dividends above 3% and REITs. Currently it only comes out to being a little less than 5% of my overall investments but it’s a portfolio I am planning to be able to grow a little more consistently with reinvested dividends and a goal of never having to sell any position. I am looking to build a maximum of 10 positions averaging around 10% of the portfolio each in a good mix of real estate (REITs), finance, medical and technology.
Currently it consists of four American companies and a passive Danish Index fund (DKIDKIX) – The latter I am able to invest a small amount of money into every month without brokerage fees and should also pay a dividend. This particular position might eventually grow to larger than the aforementioned 10% weight.
I plan on making updates on my investments and sharing my thoughts on any future purchase I might make. If you have any questions, suggestions or the like please let me know and I will do my best to answer to them.
Hope you all had a good year despite all its challenges, let us see what 2021 brings! I am truly excited to see for myself.
Disclaimer: I am not a financial advisor, the opinions expressed in this article are entirely my own – always invest at your own risk.
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