2020 week 4
Welcome to my weekly update .
A whopping -3.689 € was deducted from my total return this week. I am writing red numbers after exactly one year into my p2p journey. Even a savings account would have done better during this period.
I didn’t make a deposit . I’m trying to keep my cash drag as low as possible so I deposit ‘just-in-time’ and ‘just-enough’
Invested a total of 150 € in two project. I like spreading my money over multiple projects and over multiple platforms to reduce the risk.
The cause of the problems is the end of Envestio. After two years of operation, it all turns out to be a big fake. The website has been demolished, all data has probably disappeared and we will never see the money again. An expensive lesson.
From the start of my journey, my goal has been to spread my investments across as many platforms as possible and across as many sectors as possible (p2p, p2b and real-estate in different categories). This approach has advantages and disadvantages. The advantage is that when a platform falls over, the loss remains reasonably limited. The disadvantage as encountered this month is that the chance that a platform topples in which I have invested will fall, although I did not include the chance that two platforms topple over in a very short time.
An additional danger is the snowball effect. Panic breaks out among
investors (which is a completely understandable response given the money
that is going on in the p2p world) but that may also affect reliable
parties.
Let’s hope that the events with Kuetzal and Envestio
make the p2p market more mature and reliable. I still like the idea of
reducing the role of systemic banks by lending directly to each other.
Looking back, the share in Envestio had become too high compared to other platforms and I should have done more research into the background of this platform.
In any case, I have closed my entire Envestio portfolio. If money ever comes back, that’s a windfall, but I think it’s more likely to win a lottery ticket.
With regard to Kuetzal, the value of the portfolio was better balanced. I have not yet written off Kuetzal as there is still a website where I can log in. As soon as it becomes a 404 I can add another 2.000 € to my losses . I have secured all transaction information. I don’t think the chance that the money will return is that great.
In the coming weeks I will rebalance my portfolio.
Check the charts below for my weekly progress, total income and total invested since the start of my p2p journey in January 2019
for more info on investments see my p2p journeys section