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Wednesday, July 16, 2014

Dividends for financial independence



Dividends for mine holdings:
Investment
Per share, USD
After taxes, in EUR
Annual dividends , % at purchased price
Annual dividends at current price %
Vanguard Energy ETF
2.194
423.86
2.3
1.5
Vanguard S&P 500 ETF**
3.13
210.97
2.2
1.7
Company stocks*
1.75
375*
4.8
4.2
Gazprom
0.42
6,400
5.1
5
Rosneft
0.37
490
5.2
5.3
* Has a tax effective reinvestment policy, where all dividends reinvested straight away avoiding income taxation. Only capital tax is paid once they are sold, however option exists to start receiving dividends only at some point in time.
** I bought Vanguard ETF S&P back in April 2013 and the ETF pays dividends quarterly.

Friday, July 11, 2014

July 2014 update ($349,340 +$29,470 or +9%)



Accumulated $4,000 as part of my annual saving goal
EUR is up to USD,  represents 7,750 USD gain
GBP is up to USD, represents  2,650 USD gain
RUB is up to USD, represents 670 USD gain
Vanguard ETF is up by 1,800 USD
Vanguard S&P 500 is up by 400
Gazprom shares are up by 9,550 USD
Company shares are up 760 USD
Rosneft shares are up by 1,520 USD
Precisous metals up by 370 USD
Grand total additions: US$ 29,740

Thursday, June 12, 2014

The most important thing



         I started catching up on the financial independence reading and Howard Marks wrote the  first book I would like to recommend to you, as worth reading. Howard is current chairman and co-founder of Oaktree Capital Management.
Admittedly, as many other books on financial topics the book is about philosophy and mindset rather than analytical process. There is no surefire recipe for investment success or step-by-step instructions.
         The book helps to understand an investor concept of the risk and tolerance to it. I have to confess that prior reading it I never thought of it that way.
As an example, I liked an analogy an analogy about professional tennis, as a “winner’s game”, in which match goes to the player who’s able to hit most winners: fast-paced, well-placed shots that an opponent can’t return. Given anything other than an outright winner by an opponent, professional tennis players can make the shot they want almost all the time: hard or soft, deep or short, left or right, flat or with spin. Professional players aren’t troubled by the things that make the game challenging for amateurs: bad bounces; wind; sun in the eyes, limitations on speed, stamina and skill; or an opponent’s efforts to put the ball beyond reach.  The pros can get to most shots their opponents hit and do what they want with the ball almost all the time.
          The tennis the rest of us play is a “loser’s game”, with the match going to the player who hits the fewest losers.  The winner just keeps the ball in play until the loser hits it into the net or off the court. In other words, in amateur tennis, points are not won; they lost.
The same goes with the investing – we could not possibly predict future but need to cater for various scenarios and  avoid losing money in the bad times. Controlling the risk in your portfolio is a very important and worth-while pursuit. The fruits, however, come only in the form of losses that don’t happen.

Wednesday, June 4, 2014

June 2014 update ($319,876 +$23,290 or +8%)



Accumulated $4,000 as part of my annual saving goal
Vanguard ETF is up by $300
Vanguard S&P 500 is up by $400
Gazprom stocks are up by $23,248
Rosneft shares are up $532
 Grand total additions: US$ 28,480

EUR is down to USD, represented loss of $4,118
GBP is down to USD, represented loss of $725
Gold is down by $347
 Grand total losses: US$ 5,190

Thursday, May 8, 2014

May 2014 update ($296,600 +$2,600 or +0.9%)



 ↑Accumulated $4,000 as part of my annual saving goal
GBP went up towards USD for my holdings it is gain of US$ 650
Vanguard VDE is up by US$ 2,400
↑ Vanguard S&P500 is up by US$ 300
Company shares went up by US$ 750
Grand total additions: US$ 8,100

Gazprom shares are down US$ 5,000
Rosneft shares are down  US$ 550
 Grand total losses: US$ 5,500

Thursday, April 24, 2014

Energy Stocks Screening

Energy Prices forecast*

2012
2013
2014
2015
2016
2017
Oil $/bbl (Brent)
112
109.5
101
99.5
96
92
Oil $/bbl (WTI)
94.2
98
94.4
93.1
89.5
85.5
Gas $/mcf
2.8
3.7
4
4.15
4.6
5
*The prices are in 2013 money
mcf - hundreds cubic feet.
The prices are a little bit  higher from the previous forecast, either because inflation projected to be much higher or demand stronger.
May 2014 major Energy Companies analysis:
Remaining Reserves
Gazprom*
Exxon Mobil
PetroChina
Shell
Chevron
BP
ENI
Total
Statoil
Rosneft
Oil, mmbbl
11,940
19,700
15,430
13,650
14,220
16,500
6,560
10,190
8,030
42,120
Gas, bcf
547,980
131,620
79,000
83,160
86,500
72,250
35,300
58,950
46,440
71,550
Total, mmboe
100,040
41,630
28,600
27,500
28,700
28,530
12,440
20,000
15,770
52,300
Production Oil, mmboe
990
2,200
2,560
1,540
1,730
2,014
830
1,170
960
4,190
Production Gas, mmscfd**
47,100
11.820
7,680
9,600
5,190
7,020
4,320
6,180
4,740
3,780
Production Total             '000 boe/d
8,830
4,170
3,830
3,150
2,600
3,100
1,550
2,200
1,750
4,860
Reserves, years
31
27
20.5
24
30
25
22
25
25
29
Market Capitalization, USD bn
89
430
222
246
235
150
94
161
93
69
Dividends paid in 2013, %
5.4
2.5
4.5
4.5
3.2
4.5
5.8
4.8
3.9
3.8
US/boe
0.89
10.3
7.8
8.9
8.2
5.25
7.6
8.05
5.90
1.31
* Gazprom has big exposure to one country only - Russia
** 6mscf -1boe