Summary of returns May 2020

Greetings to all of you who are interested getting to know how did it go for my returns for May 2020.

First, I want to congratulate everyone with entering the summer period. Also thank you for being responsible during this time towards least protected. Europe statistically seems to be on a good track and many of restrictions are being lifted.

Number of new coronavirus (COVID-19) cases in Europe from January 25 to June 4, 2020

However, unfortunately, we cannot say that about Mexico, Pakistan, India and several other countries. Potentially devastating fight ahead of for them.

Though I really, hope we do not come to experience the cases of Iran or Saudi Arabia here in Europe.

I know you usually do, but please do some extra research before booking that long waited trip when/after it is possible.

With this reminder being said let’s look at how my “exit in progress” portfolio performed in the month of May 2020.

Platform Deposited EUR Portfolio total value EUR Interest income EUR Affiliate commissions & bonuses XIRR
Twino 0 100.63 2.13 5.50 9.83%
Crowdestate 875.6 815.38 0.54 20 -3.57%
Mintos 581.26 1007.09 11.21 180.09 11.21%
Viventor 645.36 676.62 4.97 25 9.47%
Reinvest24 100 98.04 0 0 -2.03%
Robocash 5
Iuvo 5
PeerBerry 5
EstateGuru 1.53
2202.22 2697.76 18.85 245.59
Total Income 264.44
Expenses
Google Ads -146.79
Total Expenses -146.79
Net Income 117.65

My humble thank you all for visiting and using my blog to begin your crowdlending journeys. As one can see most of you chose Mintos.

Finally, as expected nobody came to invest through Fast Invest via my referral.

  • They have withdrawal delays of 4 weeks.
  • They reduced the overgenerous referral commissions to average market rates.
  • Noticed that they have also delays on paying already invoiced referral commissions (pending from March the 20th). Similarly to unfortunate Grupeer’s case.

Here you can (can not) see the returns for May 2020 which are 18.85 EUR.

Highlights for May 2020

Raffle suggestions

I recently published a poll for ideas on how to improve my raffle which takes place once in a while. You are welcome to leave an opinion.

Any feedback is welcome – even if it is “not interested”.

Raffle suggestion options (check max. 3)

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Thanks to all 3 of you who already helped.

Status on my crowldending exit by end of May 2020

In my previous monthly update I wrote about reducing the exposure by 35%.

During the month of May 2020 I managed to exit Twino and the total exposure was reduced by some %. Lets see how far from the exit I am. I still chose not to use any discounts.

In absolute numbers it is as follows.

In total before starting the sell off on 29th of March 2020 I had 4075.95 EUR deposited.

The current total deposit volume is 2202.22 EUR. I reduced the portfolio value by 1873.73 EUR which is about 46% in total. In May it was reduced by 445.59 EUR or about additional 11%.

Here is my top of platforms for withdrawing (no change in ranking).

  1. Twino – by far no. 1, still no doubt. Exited less than in 2 months.
  2. Mintos – in April 2020 sold 62.05 EUR and in May 2020 made 33.63 EUR in sales at par value.
  3. Viventor – made 1 sale on May at par value for 1.89 EUR.
  4. CrowdEstate – still do not even try to sell. I would call these loans as non-liquid assets.
  5. Reinvest24 – no secondary market. As before – not possible to sell.

Wanted to remark on what is left in my Twino portfolio. Those are Defaulted Payment Guarantee loans. Something to keep in mind.

Twino’s defaulted Payment Guarantee loans

For those who are not familiar with Payment Guarantee in Twino.

With buyback you usually get money back if borrower is 60 days late with payments. However, for Payment Guarantee Twino promises to pay all interest and principal throughout all maturity period even if the borrower is not able to pay.

Above mentioned with combination of not allowed to sell defaulted loans in Twino leaves me with “guaranteed money” in up to 24 months. Time will show.

My strategy for future and criteria for comeback

First step would be to differentiate between asset classes. I.e. getting familiar with ETFs/Index funds/Stock picking. This comes late, however, I must admit takes much more time to understand than crowdlending.

I have registered to one of Europe’s largest brokers which you are probably already familiar with – Degiro.

Also would like to get more familiar with real estate crowdlending market and especially with EstateGuru where I plan to invest in the future.

Still trying to figure out which criteria should be met for me to come back to the crowdlending. I think examples of indicators could be the European market growth in Q2 and growth statistics for individual crowdlending platforms. Please do share if you have some ideas.

Summary

Situation in Europe is slowly stabilizing and hopefully we will be able to enjoy more sunshine and arrange more social events with friends and acquaintances.

My exit is still in progress, however, already thinking of a comeback strategy. This mainly is around further diversification across different asset classes. Also prioritizing platforms according to my personal experience – now including the withdrawal experience which gives Twino some extra points.

With this I leave you until next post – unless you would love to comment on something. Thank you for spending time on reading this and I hope you have a good week ahead of you!

7 comments

  1. Thank you for another update, gives me a chance to compare my strategy with others which can be invaluable! I would suggest using social share dealing on Toro (Copy People functionality) and follow traders with a good, long track record, ideally starred and with a good few millions under management. That way you don’t have to figure it out yourself from day one and just gradually ease into it as your knowledge progresses. That option will only apply if you trust someone else to make this decision, some would argue trusting a stranger is crazy. I would argue back is no different from trusting completely unknown manager running share fund. In terms of P2P, I like Peerberry despite their short-term loans, good communication, instant withdrawals throughout the pandemic, good interest and no dreaded pending payments Mintos style. Good luck with strategy turnaround in June!

  2. Withdraw fees in etoro and spreads are quite high (1st thing). 2ndly, you dont buy shares, you buy cfds, be careful with that.

    I wouldnt recommend etoro to anyone (have no conflict of interest, wouldnt recommend plus500 either).

    1. I get what you mean but $5 per withdrawal is only high (to me anyway) if you plan to invest tiny amounts. With $1000 invested (minimum advised by many traders you can copy) it amounts to 0.5%, I could live with that. Include it in your investment as a fixed cost and deduct from the outcome. I’m aware you buy CFDs but if you break it down to bare logic – it doesn’t matter what it is if someone else is making investment decisions for you. You may not like commodities or crypto but if someone can make money on it for you – does it matter? If yes, you can easily change to a more suitable trader, more aligned with your vision of investing.
      Not trying to push eToro sign-ups here either, just haven’t found other platform with social investing aspect at this scale. They aren’t perfect or cheapest but think of all those P2P platforms that recently introduced fees overnight etc. At least with Toro, this is black on white from the beginning.

      1. Dont forget the spreads (can’t remember how many pips they were) fees for carrying for investments over the weekend…
        Tbh, better than copying “someone” who if they were any good, they wouldnt be in etoro, trying to make money out of bonus for getting ppl copying them, I would rather copying “the world”. I would put that money you have in etoro, in a 60/40 index fund wallet, msci world and global bonds. Following dca, that is, investing little amounts (to make it simple) every month, and rebalancing once per year. That, and then if you like, looking for a reasonable good active fund in emerging markets and/or specific sectors like biotech (low fees, if possible below 1%), with a beta value around 1, an a positive alfa, should give you a good revenue in the upcoming years. Again, should, nothing is granted.

        Myself I try to follow the law of the 3 thirds: 1/3 in lands (real estate), 1/3 in your business (in my case, the market) and 1/3 in cash (here I use high liquid investments: short term deposits, saving accounts…)

        My apologies for the off topic.

        Regards.

  3. Thanks Marcin and Martin for your comments – really valuable input!

    I have been with eToro demo account on and off since around 2015. From my initial virtual 100k USD ended up with around 50k USD. This was a due to various no-analysis, no-long-term-strategy and other simply gamble like decisions. I also really like the social aspect of copying other trader portfolios.

    Recently, read various articles on weighting eToro vs Degiro and seems like Degiro usually took the upper hand.

    Marcin, would you like to share which portfolios do you copy in eToro? I could give it a go with my virtual money.

    1. Yes, sure, Richardstroud is very active on his feed, doesn’t force investments and adopted cautious investing tactics, all appeal to me. He has 13k+ followers and 2500 copiers, $2-5M assets under management (according to eToro). He is one I have been copying virtually for a year and soon will change it to real funds. Another person worth mention and test is Social-Investor, similar numbers to above and equally encouraging results, including those worst pandemic months when so many investors lost money.

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