Chapter 11 - “Portfolio Update - The Big Move” February 2019 Update Net Worth $76,118 (-$-2109) - The Incompetent Investor

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Tuesday, February 19, 2019

Chapter 11 - “Portfolio Update - The Big Move” February 2019 Update Net Worth $76,118 (-$-2109)

Welcome to Chapter 10 of the Incompetent attempt to Financial Independence before the age of 85.. ha ha just kidding (sort of). Although, I am battling. It is pretty discouraging seeing the family net worth increase +$907 since my first update in August of 2018. 

What the hell is going on? I suppose again, this is a testament to the fact that it does not always go the way we envision. It should become easier when my family are in Darwin and we are not paying rent in 2 cities. Let's see what happens. 

I reluctantly report that this month is a shocker. The family net worth has gone down $-2109, which potentially may get worse. My wife, son, dogs, and cat are in the process of moving up to Darwin from Melbourne. 

I have got a new house, which required a bond up front, and 4 weeks rent in advance. My wife's mum is also unwell at the moment, so she is heading to India which means 1) she wont be working for an additional 2 months and 2) we had to fork out for tickets and some spending money. 

So, the good news is the family is joining me. The bad news is I am doing the drive from Melbourne to Darwin. I am not a big fan of long drives, and in addition, Wolf Creek has had a long lasting negative influence on my state of mind in respect to driving through the middle of Australia. Also, it pays to be frugal especially given cars are depreciating assets, but strewth, driving the 2008 Honda Accord Euro through Australia has me a bit uneasy. Stay tuned on that front.. 

I will definitely share photos of the trip up to Darwin from Melbourne in my next portfolio update (as long as some axe wielding psychopath does not get me). 

Anyway enough bloody banter, lets get into it. Oh, quite a few readers asked for photos of the family dogs. My dad refers to dogs as 'hounds from hell', so if you have a similar sentiment, apologies in advance for the photo above ha ha. 

Portfolio Update

I have recently added an additional 611 units of Milton for a total of $2,702. I also sold VGAD and VDHG and decided to buy UOS - United Overseas Australia Limited. I purchased 5,374 units for a total of $3,620. I will not be purchasing any additional UOS. The rationale for letting go off VGAD and VDHG is I do not intend to add to them at all. Moving forward, once I hit the $100,000 milestone, I will eventually start purchasing VGS. I am not entirely decided on the overall allocation to VGS as my strategy is mostly income focused. 

Back to UOS. UOS for me is a bit of a speculative play since my underlying philosophy on investing is not to invest in individual shares. Technically I broke my own rule there, but as I have always said, I am not perfect. 

Strong Money Australia did an interview with a young fella who retired at 32. He discussed his interest in UOS. It does not go into great detail. Although, if you are interested feel free to have a read of the interview with the young fella here. I personally was quite comfortable writing this off as my speculative allocation despite its great returns for shareholders. 

I did note some risks with UOS. Initially I thought it was a REIT. However, it is more of a developer in Malaysia. There is risk there alone. In my opinion, it does not have the best shareholder communication which isn't great. The two fellas running the company essentially own most of the company. This is not always a negative aspect, in fact it is awesome when insiders have skin in the game. Nonetheless, perhaps less input from others? 

Finally, there is the risk of property going through a tough time in Malaysia, and also there is political risks. On balance, I do not advocate for personal share holdings, but I made an exception for myself, and I am okay with it not turning out as I hope. 

In summary, to me, this is a speculative play. It is my speculative fix I suppose. 

That is all from me. Hope you fellas and ladies are tracking along well. From time to time, you are going to get these set backs and I've learnt not to fixate on the numbers. There is more to life than getting your numbers up. The numbers will come in time!


Disclaimer: Please do not buy UOS based on my personal interest in it alone. I have an extremely poor track record with picking individual shares. I also do not have the ability to digest complex financial reports to make informed decisions around buying into individual shares. 

Also, the information on this website is general information and should not be taken as financial advise. I am simply documenting my journey and experience. I am also not a licensed Financial Adviser. You should also seek independent legal, financial, taxation and other advise that relates to your unique circumstances. The Incompetent Investor is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. 


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