On the news TV Channel VTM Financial expert Paul D’Hoore gave his yearly advice on what people should do with 10.000 Euro. He consulted 6 financial institutions to check how they would invest 10.000 euro.
His advice to invest your money in 2018 was as follows in stocks, bonds, savings account, capital protection funds, real estate, gold and hedge funds.
His stock selection for Belgian companies was as follows.
- AB Inbev 2. UCB 3.Telenet 4.KBC 5. Ontex
Review of Paul D’Hoore 2018 Portfolio Performance
2018 was the worst stock market year since 2011. The final result was 8.777 euro.
- Stocks: 5.442 euro > 4.208 euro (-22,7%)
The stocks decreased with a total value of 22,6 %. The 5.442 euro is one year later only 4.208. - Bonds: 2.917 euro > 2.927 euro (+0,35%)
Bonds give little more return than a savings account. 10 euro profit. - Savings Account: 858 euro > 859 euro (+0,11%)
1 euro or 0,11 percent more… - Capital protection funds: 250 euro > 250 euro (=)
Capital protected…same amount. - Real estate: 233 euro > 238 euro (+2,2%)
A return of 2,19 procent - Gold: 167 euro > 172 euro (+3,1%)
3,1 procent profit. - Hedge funds: 133 euro > 123 euro (-7,2%)
So in total Paul’s 10.000 euro lost 12% in value. Our kids portfolio also lost value but we are still above 10.000 euro. We have a total capital of 10.042 Euro which consists of 6229 euro ETF and stock portfolio and the rest cash. In total we accumulated now 4235$ cash thanks to the 866$ addition.
For 2019 Paul has a new asset allocation with 6 stocks that he selected. We will see how this portfolio grows
How to grow your 10.000 Euro Competition
At the end of 2017 Paul’s portfolio was worth 13.257 euro. Now it is only 11.636 euro…
Last year we started a 10K Euro competition. We will measure our kids portfolio against Paul’s portfolio performance. Our kids portfolio generated 866$ cash. That is more than 13% return. See below also a comparison of our portfolio against the BEL20.
Personally I prefer to keep it simple with categories with guaranteed 6% return higher than the inflation instead of 8 categories with no guaranteed return and a lot of complexity that people don’t understand anyways. Only invest in what you understand is important. Paul follows the advice of 6 financial institutions.
We don’t put our kids money in asset classes than generate a return below inflation of 2%. So Paul’s portfolio is still leading. Our portfolio is not fully invested. So 11.636 euro for Paul versus 10.042 for us. Let’s build up our cash position so we can invest more and take the lead…
Well, good luck with your financial strategy and invest in your financial knowledge ! As always we end with a quote.
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