Firstly, congratulations to all of our subscribers, we know it takes a lot of effort and trust to pay for a subscription service, read through all the info and take action, putting your hard earned money into anything with some risk attached is not a decision to be taken lightly, it’s stressful! so thanks to all of you for committing to our service, we think it’s been well worth it so far!
(ok it’s s still a new service so there’s only a few of you, but still, we are very happy with the last six months and knowing that if you, our subscribers keep making superior gains, our membership will grow over time)
For those that took the time to follow our recommendations at the time we made them and kept uniform position sizes, congratulations on your outstanding gains! your portfolios are up by an average gain of 154% in six months
We think 2021 is going to be a very exciting year and we hope we can continue to deliver outsized gains into the future.
A little back story for new readers,
We started the decentralized portfolio just a few months ago in August 2020, mainly as a result of friends consistently pushing us to make available our investment research.
(we think maybe our friends wanted to know what exactly we’ve been up to thats enabled us to lead life on our terms) and that’s fine with us.
But ultimately we thought they were on to something, so we decided to share our investment research through a subscription service to make it available to anyone who subscribes.
We even toyed with the idea of making this service free, but unfortunately data shows that typically information that’s paid for is valued more than free information, and we didn’t see the point in making an effort to write up something that might only get your attention in passing and ultimately find its place in the trash along with everything else we all get bombarded with on a daily bases.
We want our subscribers to actually take the time to read through our research and take action on it, if it seems right for them, otherwise it’s all really just a waste of time.
So we charge a small annual subscription fee, mainly in the hope that our subscribers take their investments as seriously as we do.
Our research is based on companies we invest in ourselves, we won’t publish investment ideas that aren’t good enough for our money. we don’t think those ideas would be good enough for your money either.
And so here we are doing our first review of the first six months of this service from august 2020 until the end of January 2021. In the future we may decide to offer quarterly reports or something similar, but for now let’s review the first six months.
So how did all our positions do in our investments, let’s take a look;
Natural resources
Let us start by clarifying if we haven’t previously, natural resource Bull and Bear markets are highly cyclical and do take time, usually measured in years, so we are in this for the long term until we feel our recommendations are overvalued and don’t have much room to run higher, or the underlying fundamentals have changed, so we are not at all bothered that some of our recommendations in this sector haven’t moved much yet, and for the few that have moved lower instead of higher, we suggest using this as a buying opportunity if you’ve been on the fence or if you want to increase your position size.
Barrick Gold
At the time of recommending Barrick Gold, it was trading at $37CAD a share, today its trading at $29CAD so our position is down about 21%, we are not worried about this and will still hold our position.
Ivanhoe mines
At the time of recommending Ivanhoe mines it was trading at $3.6 today its trading at $6.66
Congrats on an 85% gain in six months. We’re not ready to sell Ivanhoe, so keep holding, let’s see where this leads when it’s mines are operational. (Ivanhoe may be in the process of another big copper discovery which is also very exiting)
Pan American silver
At the time of recommending Pan American silver it was trading at $30, today its trading at $34.5
So only a small gain of 15% so far on this one, continue to hold and wait it out, there’s more room to grow. When silver really gets going, it can move high and fast.
Sandstorm Gold
At the time of recommending Sandstorm Gold it was trading at about $8, today its trading at $6.60
our position is down about 17% we are not worried about this and will still hold our position, Sandstorms investments as a royalty company haven’t blossomed yet and we expect to be rewarded in the future as the best is yet to come.
Sprott products,
Sprott is a little different than our usual recommendations, we don’t expect massive returns from Sprott, but we want the broad exposure and low risk. we recommended several of sprotts products including the physical bullion trust “CEF” at the time of recommendation it was at $18 and its now only marginally higher at $18.9 (only a 5% gain so far) this is due to a few months of relatively flat gold and silver bullion prices, we expect it to pick back up in due course as the bull market pushes higher.
We also recommend two of Sprott’s ETFs, Sprott Gold Minors ETF ( SGDM) which was trading at $34 and is now down to $29 a 14% loss)
We’re not worried yet and are continuing to hold, again the best is yet to come, it’s time to be patient.
and the Sprott Junior Gold minors ETF (SGDJ) which was trading at $46 and is back to trading at $46, basically SGDJ thrashed around a bit and didn’t take off or do much meaningful, our advice is to continue to hold.
In summary of our natural resource recommendations, assuming all our position sizes were the same, we currently have 3 losers, 3 winners and 1 that stayd the same, but even with that being the case we are up a modest 9% overall, now is the time to practice patience in our positions in the natural resource sector, and let things ride longer as we are still quite early in the current bull market.
And now, our technology investments in cryptocurrencies
Bitcoin
We first recommended Bitcoin on September 7th 2020 it was trading at around $10,000 as of January 31st it’s up at around $33,500
Congrats on a 235% gain!
Bitcoin still has more to run, so hold tight and fasten your seatbelt!
Ethereum
We first recommended Ethereum on September 22nd 2020 it was trading at around $330 as of January 31st it’s up at around $1,300
Congrats on a 294% gain!
Ethereum is still undervalued and should push much higher than this, let’s wait and see, keep holding.
Zilliqa
We first recommended Zilliqa on September 24th 2020 it was trading at around $0.014 as of January 31st it’s up at around $0.074
Congrats on a 407% gain!
Zilliqa has recently spiked and we think it will continue to do so as it’s still undervalued. Hold tight!
Uniswap
We first recommended Uniswap on November 5th 2020 it was trading at around $2.25 as of January 31st it’s up at around $18
Congrats on a 700% gain!
Uniswap has been on a tier lately along with the whole DeFi space, it’s not done yet, if you can stomach it keep holding!
Ok, so we’ve got a completely different situation with our crypto recommendations, all winners and no losers. If you’ve kept uniform position sizes throughout then your crypto portfolio should be up a massive 409% since September 7th (that’s only four and half months!)
In concluding our first six months mini review of our recommendations.
While we’d hoped our natural resources stocks would’ve pushed higher by now, we are not worried that they haven’t yet, we will continue to hold all our positions as the underlying fundamentals remain the same and therefore the best is yet to come.
With regard to our technology investments In cryptocurrencies, these have all preformed very well and done so perhaps sooner than we expected, but again we think this industry is really only just in its first leg of a bull run, underlying fundamentals remain strong, we are very happy with all our positions in crypto and will continue to hold for now,
As usual, if anything changes, you will be the first to know, and while personally we are not selling any of our positions as we believe there’s plenty more upside in this crypto bullMarket, if any of our subscribers are getting a bit queazy as a result of such massive gains and volatility in such a small time frame, then we suggest considering selling enough of each position to cover your initial investment, and let the rest play out some more, essentially as a free ride! regardless of what happens you can rest assured you can’t loose anything as you’ve already reclaimed it!
As a side note, we always focus on spreading our investments between several industries at all times, in our experience and as can be seen in the last six months and by this write up, while one industry might not have taken off yet and our returns from it are small, another industry has gone up massively, with huge profits, this has consistently allowed us to make much better than average investment gains throughout our portfolios, than if we’d focused solely on one area of interest. Like the saying says, “don’t put all your eggs in one basket”
It’s been an incredible six months for all of us here at Decentralised Portfolio, and I can’t wait to see how things pan out in 2021!
Happy hunting!
Frank
