Peer to Peer Lending: Portfolio update Jan 2020
Hello everyone with an Investor’s Mindset!
This is an update that I didn’t feel like writing due to the recent events in the P2P space. However I do feel, as a blogger, we need to write about the good and the bad. And when it rains, it pours if we look at both Kuetzal and Envestio in January.
Both platforms have been confirmed scams or Ponzi schemes recently. Kuetzal nearly on all loans, Envestio at least at some. In the mean time both platforms have completely gone offline and disappeared without additional communication.
That makes my table look a little something like this;
So pretty much the worst month in all my updates. Since there is no way of knowing we will recover any of the money – I’ve put that I’ve lost €4000 in the update above. I’m participating in the law suit against Envestio, started on Telegram, since that was the biggest part of my portfolio. So my €10000 start is now worth only €7210,43 currently… ouch!
Anyway, I knew there was a big risk connected to all of this. Luckily I’ve diversiefied enough – with money I don’t need in the short term – that I can absorb the hit. My dividend portfolio helps in balancing out this loss. Either way, this is again a nice lesson to always do enough homework and diversify enough. I’ve broken my own rule a bit by investing too much into Envestio instead of keeping it at €1000.
Not sure what I’ll do yet with the other platforms, but right now I’m not in a panic mode. So for the time being I’m keeping my funds invested in other platforms.
Mintos is by far the safest platform out there due to their massive size compared to some others in the crowdlending space. A good month for Mintos, even though the numbers are two days overdue it’s still good to see some money coming in.
Mintos has ups and downs throughout the year. Currently it’s a nice up with interest percentages going up to 15%, so make sure to stock up!
Also a good month for Robocash, I don’t really worry about the platform disappearing in a similar way as Kuetzal & Envestio. So it was a good month for them, a lot of buybacks triggered.
Since I’ve already tested withdrawing funds in the past – I know that if I’d want to pull out my money, at least Robocash should arrive correctly.
Crowdestor made a good move by addressing the issues with Kuetzal and Envestio in an email to all their investors. I thinkt he email was well written and very professional. I could really tell this is a business being run by a good management team that is known locally.
Even though the platform also originates in the same region as the other two, it gave a lot of confidence. In my opinion it’s fair to say that Crowdestor is not in the same category, nor are they covering the loans.
They’ve also communicated in that email that more transparancy will be added on their platform, aiming for the end of February to do so. We can only commend those actions, so I’m very interested to see if this will bring the platform to a new level and will keep a close eye.
There is still some cashback going on at Grupeer, allowing investors to pick up loans at 13% with a 1% instant cashback to your account. So make sure to make use of this.
Nothing additional to add for the platform, it still has my confidence and January was a decent month on Grupeer.
I could write a whole lot here, but I’ll keep it short.
Envestio sent out an email to all investors on 22/01 that the site was under attack and this was the reason the platform went offline. However, since then there has been no communication anymore. All staff have disappeared and are unable to be reached. On top of that the website seems to have been fully deleted from the Microsoft Azure cloud, where it was hosted.
This seems like an exit strategy. The platform has raised a lot of money (€35 million) from over 15000 investors so I’m hoping the law firm selected for this criminal case will get some results. However, if we can ever expect some money back, this can take years. So perhaps I’ll be able to update my blog with news about this in the distant future. We’ll see, for now I see this as a complete loss of the money.
What started as an email of a wind-down where it was clearly stated Kuetzal wanted to exit and I quote;
We have not been able to make Kuetzal a successful player on crowdfunding market. We will however aim to exit the market quietly with minimum repercussion to our customers and the whole crowdfunding market.
Turned out very quickly to be a lie. Not sure why they would communicate about it in this manner. Seeing as afterwards they’ve responded to investors that the buyback requests placed had been processed.
I guess it was all to win time in the end. I’ll leave it at this and take the loss, as obviously the withdrawal I did didn’t arrive on my bank.
€2,94 monthly interest from Reinvest24. Nothing more to add, this is as far as I’m concerned also one of the more risky investments. At least the properties seem very real and I like the details on their projects. This includes registration documents and project sketches.
I feel the blog might eventually shift more towards stock investing. The stock market has gotten a small beating over the last couple of weeks. For me, this is a buying opportunity. So far I’ve invested €19000 with an average around 4.5% yearly dividend over 16 different stocks. Current stock portfolio value around €21000.
I might invest a bit more if the market keeps being on sale, or even if a crash would come at some point. I’m getting close to €1000 in dividends per year, so perhaps I will push up the invested amount up slowly until €25000 during this year and exceed that milestone.
Let me know in the comments below if you’d like an overview of my individual stocks. It’s a mix of European, US and Asian stocks to keep things well diversified.
That’s it for this horrible January update. Let this be a lesson to all of us that in most cases – if things are looking too good to be true, that’s because they are.
Take care everyone, I hope you’re not too much affected by the Kuetzal and Envestio saga.