FIRE,  Life,  Real Estate,  Stock Market

March Net Wealth Update

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Strewth, let’s not have too many months like March 2020 aye?

Just negativity all round.

It’s only in the last couple of weeks that we’ve had some sort of calm, courtesy of governments around the world throwing trillions to solve the crisis.

For context, one trillion is 1,000,000,000,000.

Anyhow, personally the new wealth has been impacted of course.

The bulk of my equity is in real estate – which hasn’t yet been affected as much as the share market.

But it will. Give it time. I wrote about it last time (read here).

Not only values, but of course, tenancy arrears to come as well.

Sigh, that’s a worry future me will look after. For the moment, we live to fight another day.

Oh and it’s times like these in which you are extremely grateful to still be employed. There’s a lot of hurt out there.

Net Wealth

Important Notes

The numbers (apart from the individual shares), are rounded given property is an illiquid asset (meaning values are not representation of sale price), and superannuation is a long-long-term asset.

Also, it is extremely difficult to mark-to-market real estate values on a monthly basis. This is because without any comparable sales, you can only guesstimate.

I will say that I saw a neighbouring property to one I hold, listed for about $20k more than what I have put down. It is of similar land size and building condition.

However I stuck with the old figures, because usually you’ll find asking prices come down anyway (after negotiations).

You can read the February Update here.

March Update

  • Geez, where to begin. Let’s just say if we did a mid-March update, the picture would look a LOT worse.
  • Stock 1 actually HALVED in value from February, and then came roaring back. Indeed you could have doubled your money if you timed it right
  • I suspect it was similar with a lot of stocks absolutely hammered. I was thinking of dabbling in Afterpay if it reached a low enough price; it didn’t. Well not for me. But you could have bought at $8.01 last Monday and sold at $22.15 on Friday. A handy 176% return in 5 days. Or more than 2.5x your money.
  • No one can time the market, so don’t bother.
  • Reallocated some cash out of the investment options in my superfund.
  • Bought another stock in super (stock 5) wayyyy too early. I still believe in it but should have been sitting on a 2x return instead of a 0.4x loss. Be patient grasshopper.
  • Have one property on the market. Unfortunately timing is terrible with the new social distancing restrictions. May have to pull it and put new tenants in instead.

Finally, remember that people must not cough near you. They must cough far away. If you hear someone coughing, tell them to… far cough.

Sorry, sorry, thought I would try and inject some HUMOUR OKAY.

My friend Beffles sent that, he whom is the most good-looking in our group. Thanks Beffles.

Take care everyone!

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P.S. If you are reading this on the mobile version, for some reason some images don’t pop up, if you can’t see the spreadsheet, try it on tablet or desktop.

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