Responsible Investor Portfolio Weekly Update, October 10th, 2020 | $TCEHY $NEM $BK $SYF $CLIX $GRUB $PCG $LVMUY $LRLCY $PEUGF $WBD.MI $DSV.CO $DANSKE.CO $BRK $DQ $AMWL $AAPL

All stock markets were markedly higher this week, led by the US indices which rallied for most of the week, fueled by the president’s alleged recovery from C-19 and the possibility of another stimulus bill being passed in the not too distant future. Biden has increased his lead in the run for the presidency and while his policies are not considered positive by most Wall Street investors, the markets love clarity and stability, which a clean win would provide. Uncertainty and unpredictability have often led to an increase of volatility.

Up to now very few S&P 500 companies have reported their Q3 earnings and next week the earnings season goes in full swing with some large banks and it will be interesting to see whether or not they will be able to deliver better results compared to previous quarters. Year to date investing in banks has meant being on the losing side and valuations are very currently attractive; whether or not the stock prices will rise will mainly depend on their ability to grow their earnings.

Our Responsible Investor portfolio was up 2.4% this week. We have finally seen some positive movement on Webuild which closed the week 5.3% higher. The opening of the Gerald Desmond Replacement Bridge in the US was a significant milestone: let’s see whether the growth will continue over the next few weeks. The banks and financial stocks in our portfolio were on fire this week: $SYF is now up 34% since we bought it in late May. $GRUB has now reached the 30% mark and I would also like to mention our recent buy in the transportation sector $DSV.CO which is up 7% in less than 3 weeks.

We have made one buy this week, Warren Buffet’s $BRK-B which is a well known diversified business. While the purchase was triggered by a technical signal, it is intended to have a stabilising function similar to the one a position in bonds would have in a portfolio which mainly consists of stocks. In the past I have typically owned a 10-15% position in governmental bonds, mostly from BBB countries, but in this period I find corporate bonds or stable companies like Berkshire -which offer a moderate yet steady capital appreciation in the long term- more attractive.

The current positions of our portfolio amount to about 42% of the available capital, which means that we have 58% in cash. I am therefore always on the lookout for new buys: on my watchlist I have a renewable energy company like $DQ, a telemedicine play like $AMWL as well as $AAPL which will deliver a special event next week during which the launch of the new iPhone 12 is expected.

Some of our stocks pay a dividend, either yearly or quarterly: from this week onwards I will report the dividend adjusted growth of our portfolio. So far the dividends received have increased our overall performance by 0.8%, which is significant given that less than 5 months have passed since inception.

The table below summarises the portfolio performance since inception.

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