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Good morning ladies and gentlemen, hope you're having a great day and welcome back to another episode of Casual Cash. This video has been highly requested and by the end of it we're going to show you how much we made from our R400K investment portfolio for the 2021 year, exactly what investments it came from, and lastly my thoughts and predictions for the 2022 year still to come. As you know we invest in a number of things here, and we show you all of the real numbers, profits and the losses and everything in between so that you have a better idea of what to do in your own life and to build wealth and make the right decisions, and today is no different. We've shown our full R125K easy equities portfolio, and the full R400K investment portfolio, along with the gains or losses, and today we're going to go through all of the income or losses that we made during the year of 2021 from January to December. Broken down by each investment type.
So without further ado. Let's jump right into it. When we invest, what is the purpose, of course its to get a return on our money. This can very simply be done in two ways, the first is capital appreciation. This is where you buy an asset, like shares in a company for R1000, 6 months later the shares are worth R1,400. That's capital appreciation. The other way is where you acquire an income generating asset, like a property for R1000 and it pays you R50 every month. Both have their pros and cons, typically you can make or lose more with capital appreciation, but if you get enough income generating assets its easier to retire with less.
Today we're going to go through exactly how much we've made, both income and capital growth over the last year. So let's start with income, then go to capital growth and finish off with the combined total portfolio growth from January to December and maybe there is something you'll pick up on for your own portfolio.
To start with income. First I must say that these amounts are for 2021, and because of the pandemic not all companies were paying dividends this year, or at least not the full dividends. We also changed some shares to cash before the pandemic, seeing the economic effects coming so there is higher interest from this cash as well. We may see dividends increase next year, but lets take a look at this so far. Here you can see the income, month by month from January to December. Typically the middle and end of the year is higher because most dividends are paid during these times.
For a total income of R17,342.61 for the year. But lets have a look with how that’s broken down, in this graph we can see that:
It was a good year, with good income but what really was a surprise was how well the capital markets performed in 2021. This was quite surprising, so lets take a look.
First let me tell you how we worked this out. This table shows the capital growth of each investment we had in 2021. If we had it the entire year, we calculated from the 1st of January, if we bought it during the year, which we did for a few because the markets were recovering, we calculated the growth from date of purchase. Now here is where it gets really, really interesting. You will see here, that for the full year, we did not have a single share that lost value. In fact all of them grew in value, lets take a look from the smallest to largest growth in Rands. Keep in mind we invested different amounts, but we’ll also go into percentages after.
This comes to a total growth of R19,993.51.
But lets see which investments grew the highest percentages over the year.
So from my view I think many of these did well. And some have done better or worse since 2022 started, but we’ll show that in an update video later in the month.
That brings our total portfolio growth, between income and capital growth to an amount of R37,228.13.
And the split between this two is:
Which is pretty even for the most part.
Ok, so as you can see we seem to have done quite well for the year of 2021. Many of these investments were offshore and we made between the beginning to middle of the year when vaccines were starting to take effect and economies were starting to open up. So we saw a lot of growth around the world and luckily we were able to show profits and growth on all our investments. But, I must say, that I do think 2022 will be different. Now the markets have normalised, we will be faced with a tough recall from the economies dealing with normal trading conditions as countries return to, inverted commas, normal. This means interest rates rising, and inflation ramping up, and although 2021 was good growth from 2020, there wont be as much growth to 2022. So its important to keep informed of the markets, and really look for exceptional companies, local or international for growth in the coming year. And we'll do our best here to try and bring you some information on them.
So that's it for todays episode guys, I hope you enjoyed it and if you did please consider to like the video and subscribe to the channel for more information and tips during the year. But other than that, i'll see you guys again, next time, on casual cash. Until then, cheers.