MONTHLY JOURNEY TO FINANCIAL FREEDOM: 55th
- BecomingFI
- Sep 6, 2022
- 6 min read
This month was not one of the many asset purchase opportunities in Brazil. The main Brazilian index took off from the world stock exchanges and ended the month of August up 6.16%, while in the United States the S&P 500 dropped 4.29%. On the other hand, my portfolio rose more discreetly than the Brazilian stock market: 3.53%.
The positive performance of the Brazilian market in August was due to commodity companies and discounted assets (the companies' second quarter financial results corroborated the assessment that the shares are very cheap).
So, by presenting more opportunities abroad, I practically directed my purchases to foreign assets, and, in some cases, I made an exchange, in order to keep my strategy in passive income.
Finally, as for my financial spreadsheet, this month I didn't make any updates, but soon I intend to make some additions regarding fixed income
POSITIVE AND NEGATIVE HIGHLIGHTS OF THE PORTFOLIO
MDIA3 was the positive highlight of my portfolio. While on the negative side, the highlight was ARVL.
AUGUST PURCHASES
With the fall of the American stock market, the month of August gave me some opportunities. I bought 260 ARVL shares worth USD 1.24 each. As a result, I now have 700 shares with an average price of 2.59 USD.
I also bought 13 PK shares worth $15.39 each. I actually made a trade, sold BHR and bought PK. That's why my number of shares and the average amount bought were above what I had written (11 shares at $13.71)
Finally, in the foreign market, I bought 03 MMM shares worth USD 124.77 each. With that, I lowered my average price from USD 134.01 to USD 131.24.
On the domestic side, the only purchase made was 100 SAPR11 shares at R$17.43 each, therefore, within my target of buying 100 shares at R$17.73. As a result, I now have 5,200 shares at an average price of R$20.05.
AUGUST SELLS
As written above and explained in the last few posts, I took advantage of the fact that BHR had risen more than PK to make a trade. I sold 12 BHR at USD 5.62 each.
But not all the stocks in my portfolio abroad went down. Two foreign assets stood out in my portfolio, occupying the top 5, which is why I took advantage of the rise to sell 01 URNM at USD 72.21 and 02 URA at USD 22.80 each, in order to make cash to invest in other stocks, specifically, PK, MMM and ARVL.
So, in august/2022, I made BRL 6.592,49 in contributions and BRL 946,15 in sales.
NEXT ACQUISITIONS/SELLS
If next month stock prices are below or stay the same as August-2022 close, I will possibly buy with the following companies:
In any case, I believe that, in the next month, I will possibly buy those companies that pay a dividend greater than 6% and that the current prices are far from the highest price of the last 52 weeks; or, even if the company is not within the 6% price ceiling, the stock is at the recent lows of the last 52 weeks and has the potential to generate dividends further down the road.
However, I will seek to continue with foreign assets that are more aligned with my investment strategy and that are still the best opportunities. So I think:
If the market continues to fall and because they are valued in my portfolio, I will sell more of my uranium ETFs (URA e URNM), because I bought in order to speculate.
If the market continues to fall, I will sell VOO to take advantage of other opportunities.
I will sell the VNQ, in case another asset is more devalued than it, but that has a greater potential to generate income than it. VNQ is not giving me much yield at current prices (3.56% at USD 92.75).
Exchange BHR for PK, since, based on the average of the last five years of dividends, the yield of the latter is higher than the former (10.60%, against 9.81%).
I will continue to buy MMM as its price drops to be more in line with my passive income strategy, and if PK rises in value and MMM continues at current levels, I will sell PK and take it.
I will avoid DIS, because despite being a good company, it does not have an attractive return on actual prices or sell if the price goes up to take another captured opportunity.
I will continue to buy ARVL until the amount invested in it represents 1% of my portfolio
Regarding my Brazilian assets:
keep liquidating GRND3 shares little by little while the price keeps going up, but in the meantime, I will be following the next results. I must do this by selling puts.
AESB3 announced a share subscription at R$9.61. I am entitled to subscribe to 2801, which is why I will subscribe as the share price is above this amount.
I will continue to buy ITSA4 if the price remains at the closing levels or below R$ 9.09.
I will continue to buy ABCB4 if the price drops below R$15.00.
I will buy SAPR11 again if the price drops below R$17.43.
I will continue to buy FLRY3 if the price drops below BRL 14.37
I will buy ENBR3 if the price drops below R$19.00
Based on the comments above, I've scheduled the following orders until they're cancelled:
- Sell order: 02 shares of URA at USD 25.08;
- Sell order: 01 URNM share at USD 79.43;
- Sell order: 01 VOO share at USD 402.44 or another price to take advantage of another opportunity;
- Sell order: 01 VNQ share at USD 109.01 or another price to take advantage of another opportunity;
- Sell order: 06 XHR shares at USD 20.99;
- Sell order: 12 BHR share at USD 5.96;
- Purchase order: 34 ARVL share at USD 0.96;
- Purchase order: 04 PK shares at USD 12.97;
- Purchase order: 01 MMM share at USD 120.01;
- Purchase order: 200 shares of FLRY3 at R$ 14.37;
- Purchase order: 2801 shares of AESB3 at R$ 9.61;
- Purchase order: 600 ITSA4 shares at R$ 9.09;
- Purchase order: 100 ABCB4 shares at R$ 14.76;
- Purchase order: 100 SAPR11 shares at R$ 17.13;
- Purchase order: 200 ENBR3 shares at R$ 18,99;
- Sell order: 1900 shares from GRND3 (selling puts GRNDJ960 at R$ 0.19;
PASSIVE INCOME
May/2022 was the month I received the most dividends this year, but August/2022 surpassed it: I received BRL 10,992.80 in passive income, most of it from TAEE11 and BBSE3, the rest came from ITSA4, GRND3, FRAS3 and KLBN11 , as shown in the image below:
NEXT DIVIDENDS
With the end of August, I already received the amount of R$ 42,635.49 in passive income in the year 2022. However, I still have to receive R$ 1,752,66 in dividends from the following companies: ITSA4, MDIA3, AESB3 and MMM.
EQUITY
I ended the month with a net worth of shares of R$ 1,123,590.75, a value higher than last month. In fixed income, I ended the month with a balance of R$ 121.830,37 due to the receipt of dividends.
So, at the end of the month, I ended up with an equity of R$ 1,245,421.12
ALLOCATIONS
My portfolio still has 24 assets. I continue to focus on keeping only those assets that generate passive income or have great passive income generation potential. So I want my portfolio to drop to 17 assets.
I emphasize, however, that the only one that escapes this reasoning is the ARVL. I really like the concept they are bringing to the market, so I think about having 1% of it in my portfolio, which corresponds to R$ 10,000.00 or USD 2,000.00.
MY GOALS
My goal for this year is: i) to reach R$ 1,000,000.00 invested in shares; and, ii) receive R$ 45,000.00 in passive income.
Well then! At the end of the month, I ended up with a capital invested in shares of R$ 946,353.06.
And I also ended up with a passive income accumulated in the year of R$ 44,388.15 (graph below), including dividends that I will still receive, thus representing a return on cost of 4.69% (graph above).
It can be seen, therefore, that I am getting close to my goal of one million reais invested in variable income, behold, with the amount I have in fixed income (R$ 121,830.27), I would already reach the goal. But of course my goal is to have a million invested, so I need the stock market to continue helping me, that is, for the stock to fall in price so I can invest what I have in my fixed income.
And as for passive income, I can already count on the victory, as there are still 4 months left for the end of the year and I have already accumulated a little more than R$ 44,300.00 in dividends.
Keep going!!!!
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