Covid-19 crisis

I am starting to write this on March 20, when corona virus pandemic is at the peak in Spain.

During first two weeks of February I am reading a lot of warning on Twitter. Some events are being cancelled in the world already. I urge my wife to stock up some basic food in case of total lockdown.

February 17th to 22d I fly to Riga (with connection in Frankfurt) to Startup Wise Guys graduation and Techchill event.

Lidl meat section midday of March 13

March 12th Spanish government announces that country lock-down begins on Monday – March 16th. That nigh, after an argument with my wife, I decide to not take kids to school on Friday. Friday and Saturday we go for walks with kids (skipping the playgrounds and crowded places). The news are worsening every hour. When the kids go for Friday nap, I go shopping. Some sections are already empty and people are buying a lot – i wait 30 minutes in the line. The lock-down begins 2 days earlier on Saturday night. March 18th my wife goes shopping – the shops are full of food, including toilet and hand paper.

What is the life in quarantine? In general the life did not change much: I work and have meals at home as usual. The good things:

  • I do Yoga / Stretching daily
  • I sleep better (Oura ring average sleep and readiness over 90)
  • Have time to write and read (though i read mostly about covid)
  • Rethink my life: Set your values, goals and principals (Ray Dalio).
  • I speak to parents daily
  • I speak to friends more often – usually about Covid19 and investments.

The negative things are: I workout less actively. All the day is about satisfying kids, we watch at the screens more.

Investments. I was lucky to exit the stock market and crypto (exited BTC at 6700 euros) before huge drop. I am not selling any of my real estate investments through the platforms. Housers secondary market is dead. EstateGuru secondary market is dead and expensive to trade. EvoEstate secondary market is active as never before, but i am holding my investments. I am checking the markets mainly sp500 and ibex35 daily and even though i do not have any positions I feel frustrated with big swings in the market. On one hand a big recession is coming. On the other hand US announces 1.5T and later 2T money printing – stimulus package. Universal Basic Income may start sooner – US government is thinking of giving 1000 USD for each citizen.

I will be coming back to stock market on March 23 making 0,3% of my net-worth investments weekly. I will be buying

BTC (Crypto – Bitcoin)

LYXIB – Spanish index

WBA – Pharmacies in USA

BOL – Ports in Africa and 3 potential spinoffs

TEF Telcom for Spain and LATAM

TEL Telcom for Nordics and SE Asia

SCHB Media company from Norway

New covid19 cases in Spain per day
Daily % increase in Lithuania

Defaults on EstateGuru

I have already had few defaults on EstateGuru and with this post I want to share how the defaults happen and what you can expect. (i have previously shared how Housers manage defaults) The image is my current portfolio stats with the defaults. I have stopped investing in EstateGuru some 6 months ago, as I am currently putting all my Real Estate investments into EvoEstate.

To this date EstateGuru claims they have not lost any principal for the investor. With the rising Real Estate market that was quite easy to sell the defaulted properties for greater value.

52 books in 2020

Inspired by my business partner decided to read more in 2020 and to check how many books I read per year.

Here I will publish my reading list

2019 December:

  • 1984 – George Orwell
  • What it takes – Schwartzman
  • Billion dollar whale

2020 January

  • Quite – study of introverts
  • Man who solved the market
  • LifeSpan: Why we age and why we don’t have to – David Sinclair
  • Pre-suation
  • Solve for Happy – Mo Gawdat

defaults on Housers

I have been investing in Housers for more than a year now. My experience with Housers was negative at the beginning and then I have changed my mind and re-ranked it.

Now I have new experience – default. Defaults are usual in lending industry. The risks and how they are managed – that is what is interesting in this case: MARISMAS DE ODIEL

535k loan was taken with 11,5% yearly interest rate for period of 6 months on July of 2018. 3,5k of interest was paid.

The interesting part is that Housers asked every investor to vote what to do next.

Voting interface. I have chosen to prolong the contract

I like the idea that everybody is allowed to control their fate, but on the other hand, Housers, with 80+ of staff could prepare some analysis and give their opinion on what is better to do.

Another interesting about this Spanish default is that Housers outsource recovery of money for a hefty 12% + VAT fee. (additionaly Housers pays 1.5% from their pocket)

So investors in this project had two options:

  • A. prolong interest (with lower interest rate!!!)
  • B. give for management company the right to recover the debt.

Customer support is terrible. 3 emails sent. No reply. Phone call 3 minutes hold – no answer = promise to call me back.

p.s. Housers earned 8.5% on raising this loan.

Drivy. Renting a car on carsharing

All the car rental companies I have used, and I have used 10s of different ones, try to rip off clients. My latest 15 day rent cost me 90€ and I got 3k km. Ford Focus. Even though I checked that I take from one airport and return in another train station I was additionally charged 50€ one way car relocation and 9€ airport fees at the counter. Still good price 140€ for 15 day rental. Also I was offered full insurance, which I did not take, for a whooping 20% of maximum franchise cost – it is worth buying it if I have an accident more than every fifth time during my rental. I believe that upselling the insurance, is the profit margins of insurance companies as many of users do not do the math or don’t have 1.5k at the checkin. When I wanted to extend my rental agreement for 7 days I was offered 290€, that is how I found the Drivy – aka airbnb for cars. The experience was awesome. First I have tested the hybrid car that I wanted to test and second the company is transparent in rental/insurance and that makes them great – no feeling of being ripped off.

Drivy open – is the third thing i like about this company – start renting the car without interaction to a person.

Continue reading

Coming back to crypto

I am coming back to crypto. Dollar cost averaging only BTC. AVG price 3500€. Will hold for very long. First bitcoin will sell at 50k $, second at 250k $ and the third will pay for my kids education.

My main conviction for BTC is that is better store of value than gold, and with my generation the ratio of gold/btc will change in the favor of later.

My networth distribution

While living in Las Palmas de Gran Canaria, I have listened to podcast, that inspired me think of my networth. With my New Year resolutions i have decided to increase my networth by 5% 2018. To take action for this, every month I started calculating my networth, but just now decided to publish that for my friends.

p.s. I was very bearish previously on Housers, but I have increase my asset allocation to 5% there.

p.s.2 Mintos – I am very bearish now on this platform. 90% of Mintos is in EBV Finance loan originator paying 9%. 10% are split in low risk originators.

p.s.3 I was lucky with startup Revolut investing and just few weeks ago, with new Revolut financing I got a cash offer (which i did not take) to sell my shares. 20x return in 2 years.