How it all started: Like most of you I lost a large chunk of my savings in the financial crisis of 2008-2009. During that period I was working hard to get my master degree in Biomolecular sciences. As most people I watched a lot of messages pass by on the news about the stock market and how deep it was going. Those messages never got trough to me as I didn't care because I didn't see the relevance to my own life. It was beyond my world! My good old father took care of my money and I didn't have to worry about anything! One day it hit me like baseball bat: I got a letter from my good old trusted bank. It showed the variance on the value of my saving accounts. Surprisingly I saw a large part of my money was evaporated. How did this happen? How did they lose my money? Well,... a large chunk of my savings was invested in a 'defensive' fund, but nevertheless value plummeted. In a moment of panic I called my bank. They told me I should just wait and sweat this one out and not to worry. Going up and down is all stock markets are doing. I started following, not really understanding the dynamics of the stock market. Then the bug bit me: Opportunity hit me as I watched the market recover in 2010. Watching industrial stocks rise 500% above their bottom in 2009 was a real eye opener. After my master in molecular sciences, I did an MBA in management in 2010. During this studies I had courses in basic accounting and macro economics. Bit by bit the economic puzzle was getting more clear in my head. Accompanied with a lot of reading I started to get some "fingerspitzengefühl" in the fundamentals. The final push: Making the switch from letting your money rest in peace on your bank account to actively managing your money is a big step. The final push came in 2011 when stock markets crashed as the European dept crisis started. It remembered me that stocks can rise as much as 500% after crashes and I first pressed the buy button! My investement strategy: 1.40 % in businesses that are reasonably priced and have very stable income/dividend. 2.30% in businesses that are priced well below their intrinsic value (Buffet style) 3.10% in businesses with a speculative side 4.10 % in securities 5.10 % in cash
Nico is chief editor of Dutch online investment magazine beurswijzer.com and has 20 years of experience in the financial markets as a trader, analyst, trainer and publisher. Beurswijzer.com is following up on over 600 stocks from the Netherlands, Belgium, Europe, USA and the rest of the world.
Beurswijzer.com has 30 years of experience and manages an own stock portfolio. The average yield for the past 30 years was 9.5% p/a. net.