Lesson learned – stick to your strategy

As you probably know I have Divested some of my holdings back in begining of Y2019 and switched to cash accumulation in Y2019 with goal to have 5k€ which we have acheived.

Then at the end of Y2019 realocated some funds from sale of TGT and put it to AUGA bonds and invested some additional funds into Baltic REIT fund – Baltic horizon and in XOM. This has significantly boosted or projected passive income and decreased cash reserve by approx. 3 kEUR. This is were I should have stoped and continue with my cash accumulation strategy.

After change of job I received 7k€ cash and things got out of hands 😦 First invested 1,5 k€ in BP and TKM, then another 1kEUR in RDSA, another 1kEUR in BPY and last 1kEUR in MO. In total 4,5kEUR during 1 month in January. If first purchases were more or less ok, last ones turned out to be worst timing possible. Now we have ~5 kEUR cash reserve, while we could have 12-13 kEUR. And worst part I could have bought more if I stick to my strategy 😦 Just look how my investments look after 1-2 month:

• XOM -28%
• RDSA -30%
• BP -20%
• MO -21%
• BPY -11%

I still think that these companies will do ok in L/T perspective. Its just that I could have bought 20-25% more with same 5 kEUR that was invested during the peak of the market. Now I don’t have spare capital to buy the dip and that was the main idea of my strategy in Y2019 😦

So lesson learned – stick to your strategy, no matter what is it either it is trying to time the market and buy the dips or do it regular and averaging the dollar.