Spring Portfolio Update

by | May 5, 2004 | Archives

The last couple of years have been kind to me. My portfolio has grown substantially with what I consider a minimal risk portfolio. I have mainly held AAA rated, short term bonds and have still seen my profits rise. Why? Because a lot of my investments were in Euro and related currencies but now I am now making some major changes. See why below.

To get the most from this message see the fundamentals of my financial thought in last Monday's message here.

You can review of my portfolio a year ago at

You can review my portfolio and the changes made six months ago at:

Here is my portfolio today:

Investment Currency Int Rate. Maturity %


Current account USD 1.75% Demand 3.0%

Current account AUD 4.75% Demand 5.0%

Certificates Dep USD 3.41% 1 Year 5.0%

Certificate Dep GBP 3.00% 1 year 4.0%

Current Liquid Percentage Total of Portfolio 17.0%


Ford Motor Credit GBP 7.250% 02.2005 1.0%

Deutsche Bank London USD 0.000% 08.2005 1.0%

Goodyear Tire EUR 6.375% 06.2005 2.0%

Spintab SWE SEK 5.750% 06.2005 3.0%

Great Belt Bonds DKK 4.000% 11.2005 1.0%

Neder Waterschaps AUD 4.750% 12.2006 1.0%

Westpac Trust NZ NZD 6.000% 01.2006 1.0%

GMAC EUR 5.750% 02.2006 1.0%

Landwirt. Rentenban NZD 5.250% 03.2006 1.0%

Lloyds TSB Group GBP 8.500% 03.2006 1.0%

GMAC Intl. Finance NOK 7.750% 04.2006 1.0%

LB Reinland-Phalz AUD 5.875% 07.2006 5.0%

Great Belt Bonds DKK 4.000% 12.2006 3.0%

Landwirt. Rentenban AUD 4.500% 12.2007 3.0%

Norway S467 NOK 6.750% 01.2007 5.0%

Dresdner Bank Bonds EUR 4.000% 01.2007 3.0%

Council of Europe USD 4.875% 01.2007 3.0%

Rabobank NL USD 4.875% 01.2007 1.0%

Westpac Trust NZ NZD 6.000% 03.2007 1.0%

Nederl. Gemeenten USD 5.000% 03.2007 1.0%

Ford Credit Canada GBP 7.250% 12.2007 1.0%

Swedish Export Cred NZD 6.250% 12.2007 3.0%

Scandinavian Airline EUR 6.000% 06.2008 1.0%

Current Bond Percentage Total of Portfolio 44.0%


Jyske Bank Shares DKK Stocks 3.0%

A.P. Maersk-Moeller DKK Stocks Sold

Bank of Florida USD Stocks 3.0%

Current Stock Percentage Total of Portfolio 6.0%

Currencies FOREX: USD. US Dollar, AUD, Australian Dollar, DKK, Danish Kroner, GBP, British Pound, NZD, New Zealand Dollar, EUR, Euro, SEK, Swedish Kroner, NOK, Norwegian Kroner,


Gold Gold 3.0%

Silver Silver 1.0%

Tax Lien Loan @ 7.0% 5.0%

Farm Land 12.0%

Buildings 14.0%

Wellness Business 3.0%

Current Percentage Total of Portfolio 38.0%


Invest Loan CHF 1.875% -5.0%

Here are some facts to note about this portfolio.

First I do not measure my performance with any one benchmark…except my cost of living. I have one simple goal….to pay for my cost of living and end up with a higher value portfolio than before.

Second, I expect the U.S. dollar to weaken in the long run so only 14% of my liquid portfolio is in U.S. dollars at this time.

Third, I have increased my real estate position from 28% to 38% and am looking to put half of my liquidity into real estate which will increase the real estate portion of my portfolio to about 45% of the total portfolio.

Fourth, I believe that U.S. inflation has been understated and will now become more obvious.

Fifth, I have borrowed 5% of my portfolio in Swiss Francs at 1.875% to enhance the earnings from the Euro and European currencies that represent 25% of the portfolio. These investments are earning an average of 4.5% so this loan is earning an extra 2.125% on that portion of the portfolio. In addition the Swiss franc has dropped 1.3% versus the Euro in the past six months so this has added some extra profit.

Sixth, I maintain a 25% trailing stop loss on my equities so when Maersk dropped from 51,000 DKK per share to 39,000 DKK I exited this position. This leaves my portfolio with only two equities at this time, Jyske Bank and Bank of Florida, both institutions that I know well.

Seventh, the percentage of the gold and silver has dropped as an overall part of my portfolio as I have failed to add any new metal positions as the portfolio has grown.

Next message on Friday, looks at the research I have used to make these decisions. Until then, good investing.