I recently met up again with my friend Bernhard Hummel, to discuss the changes he made to his investment portfolio. You may remember him from our last encounter in July.
Here are some of the things I wanted to know:
- Why he recently increased his Peer to Peer Lending Portfolio allocation to a grand total of 230.000€
- Which P2P platforms he added, if any
- How much passive income he’s aiming for via P2P lending
- What his entire investment portfolio looks like now
- His thoughts on real-estate investing at the moment
My Video Interview with Bernhard Hummel
I’ll keep the blog post shorter this time, so make sure you check out the video if you don’t want to miss out on anything we discussed together.
Either way, let’s get to his updated portfolio. Let’s be honest, that’s probably why you’re here in the first place anyway!
229.177€ Invested in P2P Lending: His (updated) P2P Portfolio
| Platform | Allocation | Amount |
| Mintos | 46,67% | 106.954€ |
| EstateGuru | 12,20% | 27.960€ |
| Swaper | 9,93% | 22.759€ |
| Bondora G&G | 6,39% | 14.648€ |
| Peerberry | 5,31% | 12.173€ |
| Viainvest | 5,31% | 12.171€ |
| Twino | 5,18% | 11.873€ |
| Viventor | 4,64% | 10.639€ |
| Bondster | 2,18% | 5.000€ |
| Grupeer | 2,18% | 5.000€ |
| Total | 100% | 229.177€ |
Over the past few months, Bernhard increased his investment in P2P lending to a grand total of 229.177€. He also just added two new platforms to his portfolio, Bondster and Grupeer.
- Note: You can see his accounts 4 minutes into the video.
That’s 76.170€ more then when we last met in July, so of course I was interested to know why.
Why he increased his P2P Allocation
Bernhard mentioned a couple of reasons:
- He’s been waiting for “discounts” on the stock market for a while (which didn’t come) and had a lot of cash lying around uninvested.
- After having been invested in peer to peer lending for close to 4 years, regularly meeting & interviewing the CEOs behind the platforms and gaining a better understanding of the P2P lending business, he feels more confident in this part of his portfolio.
- The attractive returns of 10-14% per year he’s been getting since he started
- Receiving regular cash-flow from his investments is becoming increasingly more important to him. He envisions himself living exclusively from the interest and dividends he receives in the near future.
- He’s aiming for a total of 250.000€ invested in P2P lending by January 2020 and 2.000€ regular passive income from his P2P investments.
To give you some more context, Bernhard is still not going all-in on P2P lending. Like me, he also believes diversification is important.
Here is what his entire investment portfolio looks like at the moment:
Bernhard’s Entire Investment Portfolio
As you can see, stocks still make up the largest part of his asset allocation, with P2P lending as well as cash accounting for 30% each. He also has around 1% in cryptocurrencies, which I didn’t include in the pie chart for simplicity’s sake. I hope you don’t mind.
Long-term, he would like to have 50% of his money in stocks, 25% in P2P lending and the remaining 25% in cash.
His thoughts on Real-Estate Investments
Like me, he doesn’t own any real-estate. That doesn’t mean he’ll never buy a property if he can get it at an interesting price, but definitely not under current market conditions. Prices for real-estate in central Europe have grown way out of proportion, probably because of the low interest rates driven by the ECB.
It’s very hard to achieve solid returns as a new real-estate investor currently, unless you really want to spend a lot of time on your investment, but then it becomes more of an extra job than a passive investment anyway. Properties are not a real passive form of investing in the first place – unless you outsource everything, reducing your returns even further.
What is more, you still have to rely heavily on leverage (by taking on a loan), which adds a lot of extra risk to the investment. Compared to current real-estate prices, the stock market could still be considered cheap.
When economic conditions worsen, the market tanks and we see a lot of people looking to sell their apartment or house, that’s when the asset class will become more interesting for us central European investors. Plus, as P2P investors, we’re still able to invest into real-estate projects with more favorable conditions and without the need to take on extra leverage.
I couldn’t agree more with his thoughts on the subject.
That’s it!
I only covered a small portion of what we discussed together, so make sure you check out the entire video if you don’t want to miss anything.
- What do you think about Bernhard’s current asset allocation, his investment mindset and about the interview in general? I’d love to know in the comments!
You might find this useful as well:
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approximately 40% in the stock market(if true) is ludicrous! Almost half he’s portfolio is subject to shocks! Wow.
You need to meet him in person, he loves going to annual meetings and talking about his investments in the companies he owns. Then you’ll understand why he’s heavily invested, no matter what the market does. It’s part of his lifestyle, he loves that stuff 🙂
He was waiting for the discount!!! Angelo any chances you have another interview with him in the following weeks? It’d be great to have his opinion and view on the current market discounts :). Great job as usual!