Quarterly Returns – Q3 2022

Quarterly return posts supplement my monthly Financial Dashboard, covering investments in detail and looking at my yearly targets. Here I track purchases and sales, document progress against my (in progress) investment strategy, and discuss re-balancing and changes over time.

TL:DR Flatline of minimal savings, uptick thanks to property value increase.

Net Worth tracked over 2022

Q3 Returns:

  • Cash Accounts £11,100 (+£700)
  • Investments £12,050 (+£250)
  • Property £70,600 (+£11,100)
  • Cars £8000 (-)

My net worth at the end of Q3 2022 has jumped around £10k. This is purely down to our quarterly review of what Zoopla and Rightmove reckons out house is worth. As previously mentioned, some bonkers person bought (a very extended and tarted up) house on our perpendicular street of the same age and type as ours for £100k over the previous local ceiling price. This, plus a 7 bed HMO up for half a million, has pushed the local valuations up about 25%. I don’t completely believe it (more on that in my October 2022 Financial Dashboard), but it’s what the paper valuation says. Our location is also potentially a bit insulated from any property price fluctuations as it remains in high demand for first-time buying young families/ professionals (maybe wishful thinking). Otherwise my investments are flat, while my savings have gone up a bit offset by work costs on a credit card (which are pending expense acceptance).

Investments:

Core/ Satellite Passive/ Active Split

My 2022 Financial Year ISA is in Vanguard. Still not paid anything in. No spare cash while I build back up my emergency fund. £5k of outstanding invoices for private work may solve that. In my Freetrade ISA account from last year I reinvested some dividends. As I’m overweight active investments I bought a bit of iShares EM ETF (promptly down 5%), and then threw my best-laid plans out the window by also opening a new position in Scottish Mortgage Trust. They have been on my watch list for years, as I sat on the sideline as they went stratospheric to a November 2021 high of around £15.40. Since then they’ve fallen around 50%. I bought at ~£7.80, and they’re now around £7.50 (another 5% loss), and priced more fairly. Some sources seem to have around a 15% discount to NAV, but who knows given the amount of early stage stuff they hold. I like pretty much all of their top holdings, their ethos and approach, and will probably expand this position gradually balancing against my passive holdings.

My general equity holdings are down over the quarter, alongside everything else in the market. That has pushed me further into imbalance, as my crowdfunded holdings have also increased. Freetrade did an 8th (!) round of crowdfunding, but I didn’t partake as I’m a bit dubious as to their plan for growth, burn rate, and general direction vs competitors. It did give me a new approximate price per share, so updating that puts me at about a 250% return. More boring investing needs to be done in Q4, but I’ll likely still be restricted to sticking cash in savings accounts.

Passive to active split of the portfolio
Holding class

Goals

In terms of goals for 2022:

  • Save 35% of my income – 40% prediction

This looks basically impossible now. Kids cost money.

  • Save £8k towards a new car – 40% prediction

Completed in Q2.

  • Finish the house renovations – 75% prediction

Very little progress on this this quarter, as we were variously ill, then away on holiday, then seeing family/ friends. I’ve booked a few days annual leave to finish some brickwork and rendering (weather permitting), and hopefully will find time to build a new log shed. The final pieces of the puzzle after that are a new patio and repainting the hallway. All takes time, and that’s in short supply. It may be that it gets finished over the Christmas period, but we’ll see.

Happy autumn,

The Shrink

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