MONTHLY JOURNEY TO FINANCIAL FREEDOM: 56th
- BecomingFI
- Oct 4, 2022
- 6 min read
Instead of starting the post describing the national and international scene, as I always do, I decided to change this month. And this change is for good reason; actually two reasons.
In this month of September, I achieved my two goals set last year: invest BRL 1,000,000.00 in assets and receive BRL 45,000.00 in dividends:
Despite having received BRL 44,052.15 until this month, the amount to be paid in dividends still in 2022 exceeds my goal by BRL 733.49.
And there are still three months to end the year, and some companies that usually pay dividends haven't even communicate the value yet, as is the case of AmBev.
As there are three months to go, in an optimistic view, I believe that I will close the year with BRL 50,000.00 in dividends and, in the worst case, at BRL 47,000.00
As for the goal of one million, achieving it was made possible largely by the contribution I made to Aes Brasil, which I will detail later.
For now, I will not outline the next goals. I'll wait for the year to end to make the new projection. But that doesn't mean I won't continue to buy. I follow the same strategy of buying those companies that pay dividends greater than 6% and that the current prices are far from the highest price of the last 52 weeks.
But, I believe that this month of October will be difficult to find some bargains as in recent months, because at the time of writing this post, the Brazilian index ended the first day of October with a high of 5.5%, which indicates that the market liked the results of the presidential elections in the first round. But about that I will write next month.
Back to September.... While the world seemed to be singing the song of The Green Day (wake me up when September ends), the main index of the Brazilian stock exchange went against the world and ended the month with a slight increase of 0.47%, while in the United States the S&P 500 dropped 9.34%. On the other hand, my portfolio had a little drop: 0,49%.
The positive performance of the Brazilian market in September is due to the good performance of companies linked to metallic commodities. On the other hand, the external scenario has deteriorated due to the more likely prospects of global recession and the continuation of the war in Ukraine and the energy crisis on European territory.
As a goal, by the way, for this year, I still only have one: to improve the layout here on the blog... By this month, everything will be ready!
Finally, as for my financial spreadsheet, this month I only made corrections to the formulas.
POSITIVE AND NEGATIVE HIGHLIGHTS OF THE PORTFOLIO
FLRY3 was the positive highlight of my portfolio. While on the negative side, the highlight was ARVL.
SEPTEMBER PURCHASES
I bought 300 ITSA4 shares worth R$ 9.01 each (I had written that I would buy 600 shares at R$9.09 each).
I bought 22 PK shares worth $ 12.94 each (I had written that I would buy 04 shares at $ 12.97 each).
I bought 260 ARVL shares worth $ 0.95 each (I had written that I would buy 34 shares at $ 0.96 each).
I bought 10 MMM shares worth $ 116.22 each (I had written that I would buy 01 shares at $ 120.01 each).
I bought 3801 AESB3 shares worth R$ 9.56 each (I had written that I would buy 2801 shares at R$ 9.61 each). In fact, AESB3 had announced a share subscription at R$9.61. I subscribed to quantity 2801 and bought the rest.
I bought 600 SAPR11 shares worth R$ 17.04 each (I had written that I would buy 100 shares at R$ 17.13 each).
So, in September/2022, I bought BRL 58,164.86 in assets.
SEPTEMBER SELLS
As written below and explained in the last few posts, I sold some assets to take advantage of other opportunities.
I sold 03 VOO at USD 355.02 each.
I sold 01 URNM at USD 79.43.
So, in september/2022, I sold BRL 5,960.68 in assets.
NEXT ACQUISITIONS/SELLS
If next month stock prices are below or stay the same as SEPTEMBER-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.
I will continue to buy AESB3 if the price remains at the closing levels or below R$ 9.14.
I will buy ITSA4 if the price remains at the closing levels or below R$ 9.09.
I will buy ABCB4 if the price drops below R$15.00.
I will continue to buy SAPR11 again if the price drops below R$17.13.
I will buy FLRY3 if the price drops below BRL 14.37
I will buy ENBR3 if the price drops below R$19.00
Based on the comments above, I've scheduled the following orders until they're cancelled:
- Sell order: 02 shares of URA at USD 25.08 or another price to take advantage of another opportunity;
- Sell order: 01 URNM share at USD 87.37 or another price to take advantage of another opportunity;
- Sell order: 01 VOO share at USD 402.44 or another price to take advantage of another opportunity;
- Sell order: 01 VNQ share at USD 109.01 or another price to take advantage of another opportunity;
- Sell order: 06 XHR shares at USD 20.99;
- Sell order: 12 BHR share at USD 5.96;
- Purchase order: 20 ARVL share at USD 0.75;
- Purchase order: 05 PK shares at USD 1080;
- Purchase order: 01 MMM share at USD 108.29;
- Purchase order: 200 shares of FLRY3 at R$ 14.37;
- Purchase order: 400 shares of AESB3 at R$ 9.13;
- 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 GRNDK957 at R$ 0.19;
PASSIVE INCOME
September/2022 I received BRL 1,416.56 in passive income, most of it from AESB3, the rest came from MDIA3, VNQ and MMM, as shown in the image below:
NEXT DIVIDENDS
With the end of September, I already received the amount of BRL 44,052.15 in passive income in the year 2022. However, I still have to receive R$ 1,681.34 in dividends from the following companies: ABCB4, ITSA4, MDIA3, VOO, BHR and PK.
EQUITY
I ended the month with a net worth of shares of R$ 1,168,663.80, a value higher than last month. In fixed income, I ended the month with a balance of R$ 121,088.44 due to my active income.
So, at the end of the month, I ended up with an equity of R$ 1,289,752.24
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 that in my portfolio, which corresponds to R$ 10,000.00 or USD 2,000.00. Note: I have already exceeded this limit, but if the price remains low, I will reach 1000 shares.
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$ 1,000,893.31.
And I also ended up with a passive income accumulated in the year of R$ 45,733.49 (graph below), including dividends that I will still receive, thus representing a return on cost of 4.57% (graph above).
Well! I achieved my goal in this year. In December I'll set my next goal.
But now my goal is to improve the blog here.
I have a lot of work ahead of me, but here we go.
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