Net Worth Update Q1 2017: €111,887 (+12.14%)

This month's net worth update!

Another quarter down, another net worth update. And what an update it turns out to be – the title say it all, I guess! Rarely have I enjoyed putting the numbers together like I have this time, so let’s take quick look at the increase in assets I’ve enjoyed since the end of 2016.

Over the past couple of months I’ve noticed that my enthusiasm for financial independence has been waning in favour of other hobbies and activities. On the one hand, I feel that’s a bummer since I like to keep on top of things in our community, but on the other hand it feels relatively liberating for lack of a better word.

My declining interest stems from the fact that I’m unworried about the fact that I’ll reach my financial freedom goal sometime in the future. I’m certain that there’s a future version of myself out there that’s enjoying life without a financial worry in the world, even more so than is the case now. And of course, I grow even more relaxed and laid-back with every passing month if the numbers stay good.

Did I say good? I meant excellent!

Compared to the end of 2016 my portfolio grew by a staggering 12,132 Euros, almost twice the amount of the previous quarter! As usual, I’ve kept my income high and expenses low to achieve that number, but what many call the “Trump bump” and all-round improving economic prospects definitely helped too.

Net worth update for March 2017

Q1 growth landed at a whopping 12.14%, which is one of the biggest quartely increases I’ve experienced so far. What’s more impressive in my mind is the fact that it happened right when I was about to cross the magical 100,000 marker that everyone raves about. The often heard phrase “when you reach 100k, it’ll really start to snowball” seems to be true so far!

 

Dividend growth stocks

As you all know, most of my savings are socked away in dividend growth stocks. Based on historical performance and corporate policies these type of stocks promise increasing cash payments year-after-year with a relatively high amount of certainty. The progressive nature of dividend stocks boost the compounding effect that investors love so much even more.

Indeed, companies that stick to a progressive dividend policy go out of their way to pay you a higher piece of the profits every single year (internal compounding). You can then re-invest those increasing dividends to buy even more shares, thus effectively doubling the compound effect (external compounding).

Of course, dividend re-investment isn’t nearly enough to get a sizeable portfolio off the ground in the beginning. That’s why I continue to add my monthly savings to the pile. This way I was able to purchase even more shares of Belgian brewer AB Inbev (EBR:ABI) and Anglo-Dutch consumer goods giant Unilever plc (LON:ULVR) than I already owned.

You can find the gains in absolute and relative numbers for each company in the table below. The cost basis for each position includes the price of the shares, a 0.27% stock market tax and brokerage fees.

Ticker Company Shares Cost basis Mkt. value Gain
ABI AB Inbev 47 4,782.41 4,852.75 +1.47%
AFL Aflac Inc. 9 419.41 618.53 +47.48%
AGS Ageas NV 150 4,633.13 5,430.00 +17.20%
T AT&T 80 2,352.46 3,033.72 +28.96%
BLT BHP Billiton plc 110 1,908.56 1,635.78 -14.29%
BP BP plc 92 507.24 511.53 +0.85%
CAT Caterpillar Inc. 25 1,465.40 2,191.22 +49.53%
DE Deere & Company 7 452.61 711.73 +57.25%
DGE Diageo plc 75 1,885.55 2,032.03 +7.77%
ENG Enagas SA 100 2,569.09 2,479.00 -3.51%
GE General Electric 22 450.70 612.24 +35.84%
GSK GlaxoSmithKline 80 1,470.38 1,554.69 +5.73%
HOME Home Invest Belgium 45 4,099.42 4,361.85 +6.40%
INDV Indivior plc 10 3.89 38.38 +886.65%
IBM IBM Corp. 6 736.76 957.62 +29.98%
JNJ Johnson & Johnson 20 1,769.41 2,353.43 +33.01%
KIN Kinepolis Group 40 1,399.25 1,967.60 +40.62%
MCD McDonald's Corp 14 1,003.47 1,723.45 +71.75%
MUV2 Munich RE 21 3,657.15 3,843.00 +5.08%
NG National Grid plc 300 3,816.01 3,667.93 -3.88%
NOVN Novartis AG 30 2,295.71 2,078.13 -9.48%
NOVO-B Novo Nordisk 90 3,647.27 3,066.91 -15.91%
PG Procter & Gamble 23 1,594.66 1,949.44 +22.25%
QCOM Qualcomm Inc. 36 1,733.79 1,789.16 +3.19%
RB Reckitt Benckiser plc 10 630.34 871.28 +38.22%
ROG Roche Holding AG 10 2,2388.60 2,406.21 +0.74%
RDSB Royal Dutch Shell 110 2,956.64 2,880.90 -2.56%
SAN Sanofi SA 30 2,216.98 2,559.90 +20.35%
SOLV Solvac NV 25 2,313.46 2,968.75 +28.33%
S32 South 32 Ltd. 48 20.04 97.33 +385.67%
KO The Coca Cola Company 17 540.05 684.84 +26.81%
FP Total SA 45 2,045.95 2,161.35 +5.64%
ULVR Unilever plc 120 4,333.09 5,721.97 +32.05%
VZ Verizon Communications Inc. 20 785.07 915.46 +16.61%
VOD Vodafone plc 1000 2,845.15 2408.82 -15.34%
Total 69,639.08 77,136.93 +10.77%

 

Other

Besides equities I also have some other investments, one of which is a tax-advantaged pension fund and another one that basically is a savings account. The pension fund continues to receive automtic payments to hit the €940 upper limit for 2017, while any excess cash goes towards the savings account and the emergency fund.

Name Cost basis Current value Gain
Pension fund 3,045.00 3,308.19 +8.64% and 30% tax break
Savings account N/A 26,000.00 N/A
Emergency fund N/A 5,421.49 N/A
Total 34,729.68

 

Going forward

To be honest, all I can say here is “let’s keep this train rolling”! When I found out about financial independence in 2014 and really started dabbling in it, I couldn’t have imagined things going so smoothly as they have gone for me. I’ve discovered that I can’t have everything I want, but I can have anything I want if I put my back into it.

That feelings offers me endless peace of mind, as I previously said.

Naturally, the future can’t be predicted and stock markets have a mind of their own, but by focussing on the variables within our own locus of control we can achieve great things. I believe this is not just a mindset with regards to financial goals, but one that can benefit us in almost all areas of life.

The grass may look greener on the other side, but don’t let that keep you from kicking your own butt into gear and working towards a better future for yourself and the people around you. Drop the complain game, reach out to the great people in our community and focus on what makes you happy. You’ll become a better person for it.

Thank you for reading and for your support.

22 Comments

    1. Thanks, DAC!

      I’m keeping a close eye on you as we started out around the same time. It’s fun comparing and seeing what you come up with to reach your goals.

      Unilever did indeed pop a week after I bought some extra shares. Pure luck, but I’m not going to complain, especially now that management announced it’s looking to boost earnings and the dividend more the following years. Let’s hope they can achieve their goal!

      Cheers,
      NMW

      1. Comparing can indeed be fun. Although I have to admit I’ve somewhat shifted towards a more total return based approach over the last year due to the high level of taxation. Previously I would not have considered some companies due to a too low dividend yield but these days it bothers me less, I may even add some non-dividend paying stocks.

        Regards,
        DaC

    1. Richard,

      Doesn’t sound very likely that Charlie Munger actually said that, but kudos to him if he did! I’m really looking forward to see that number grow with less and less input from myself.

      Cheers,
      NMW

    1. Dividends and Hobbies,

      No waffles for me! Too expensive and my bathroom scales wouldn’t like it, ha.

      Best of luck to getting to 100,000 yourself! You’ll be there before you know it. And from then it’ll start going faster and faster.

      Best wishes,
      NMW

  1. Very nicely done. That is a massive increase. I have also had a massive increase for March. Hoping I can continue to keep this growing for many months and years to come.

    1. BHL,

      Congrats on your big increase too! Seems like the rising tide raises all boats. Let’s hope we continue to see such great growth.

      Cheers,
      NMW

  2. Solidly in the 6 figure territory! Nicely done Mr. Waffles. A very good quarter indeed. Best of luck for the remainder of the year, albeit I hope we will see some buying opportunities.
    Guess you were happy to be an UNA shareholder too 🙂

    1. Team CF,

      Thanks! This quarter has been incredible – I wish I could enjoy this growth level until financial independence, ha!

      It’s tough finding good buying opportunities at the moment. Most stocks are overvalued in my opinion, but maybe I’m just unlucky finding good deals. Although I must say that the Unilever situation brought a little smile to my face. Pure luck, but I’ll take it!

      Cheers,
      NMW

  3. Very strong quarter. And might turn out to be a very strong year too. I see you added an average 20 k in 2015 YOY, this grew to 30 k on average YOY, and you’re starting of 2017 with a 40k YOY growth. Let’s keep the fingers crossed.

    1. Makewealthsimple,

      Savings are around 25,000 Euros every year, so the additional growth in the last years comes from more and more capital gains and dividend income. Let’s hope I can make 40k a reality in 2017!

      Cheers,
      NMW

  4. Some great growth there, NMW, with very little effort on your part except to continue investing. Keep it going. Good to see that you are enjoying your life too.

  5. Quick question from a beginner here. Given that De Giro allows me to buy into ETF without transaction fees, and given that I want to save about 500-800 a month, my assumption would be that it were best for me to go the ETF route and not the stock route? The transaction costs in buying stocks seem quite large to me… Especially when investing less than 1000 each month.

    Alternatively, I could sell the ETF after 3 months, and buy 2000 worth of stocks, this would offset the transaction costs a bit. Does this seem more viable/better to you in the long run, after I have some ETF to have a diversified portfolio??

  6. Hi,

    First, congratulation for your maturity and increasing net worth. I wish I was like you at your age but at that time I prefered going out, spend more than I earned and get into debts 🙁
    I have a question for you, If your ultimate goal is to be finacially independant, does it mean stop working as employee of a company and solely living from your investments? Have you considered investing in properties?

    Thanks

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