Yes, it’s about time I give another update about my goals and progress towards reaching a EUR 100,000 investment portfolio! By the way, I made this my official goal right now 😀 ! Although, the title pretty much gives it away, let’s find out more!
The impact of COVID-19 on my stock portfolio
I must admit I’m rather lucky. I sold all my stocks at the end of October, 2019. As a result, I probably missed out on some gains the following months leading up to February. However, I surely missed out on the market crash in February and March!
Because of the market crash, I’ve decided to buy stocks rather aggressively (EUR 10K in total) for my personal account. I’ve written more about that in my previous post.
However, I still remain cautious. Planning to buy more if another significant decline kicks in.
The portfolio of my kids
Thankfully, I also rebalanced my the portfolio of my kids in November. I wrote about that here. Adding some gold to this portfolio, although only about 10%, helped cushion the blow. Nevertheless, the portfolio was hit with a 25% decline.
But once again, buy-and-hold is the way to go, as stocks have recovered pretty nicely as per today.
The impact of COVID-19 on my net worth
Because of my limited exposure to stocks, the impact of the Corona virus on my net worth was negligible. The chart belows says it all:
Good luck with spotting any impact of COVID-19!
I’m very happy with the progress of my net worth so far. Hopefully, I can reach a net worth of EUR 250K by the end of this year. Probably that’s too ambitious, but you should always aim high!
My progress towards reaching a EUR 100K investment portfolio
This is my big audacious goal for the coming years! I just need to reach this milestone. I want to proof to myself that I can do it.
As Charlie Munger mentioned:
“The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit”
By replacing the $ with a EUR, I’ve set the bar even higher!
I was messing around with my financial model and based on my forecast, I expect to reach that goal in about 3 years.
My starting point is my current personal investment portfolio of about EUR 11K and I expect a growth rate of about 7% per year. Probably too high, but reaching EUR 100K in 3 years doesn’t include a lot of compounding anyways. That’s why it’s so hard!
So, I’m 11% there. Ouch, that’s a long way to go! However, I love the challenge!