November was a big hit!
My Investment Portfolio made the biggest gain in a single month so far, tons of overdue invoices got finally paid, so my cash-flow is as green as it’s ever been while my overall annual profits for 2020 now officially exceed what I made when I was still full-time employed. The entrepreneur game is paying off – slowly but surely.
All of this puts me in a good position for 2021, where removing dangerous dependencies and further scaling of own-built income streams will be the motto.
This is the last monthly update for the year as the next update will be the 2021 annual recap. I hope you enjoyed reading my monthly entrepreneur updates throughout 2020 and I am looking forward to your continued support in 2021.
Have a good end of the year everyone – and see you in the next one.
So, let’s review what was going on in the Dan Schenk Life. Goals, Profits and Losses as usual below.
I hope you enjoy my entrepreneur recap for November. Let me know any questions or comments in the comments section below
Table of contents
- Personal Update
- My monthly goals
- 1. DSL Trading: Proof of Concept on Live Account
- 2. Read 2 Books in the financial space
- Workstream Overview
- Dan Schenk Life
- Profits and Losses
- Overall Portfolio Performance
- DSL Trading
- Consulting with Tritium Growth Partners
- Cash Flow Overview
- Outlook for December 2020
The main highlight last month, was my trip to Sidemen, here in Bali. A magical place, I wanted to visit for a long time and now I finally made it.
It’s tucked away in the north-eastern hills of Bali, close to the majestic Mount Agung, one of the two volcanoes on Bali.
There’s a lot of jungle, rice-rice fields, rivers, waterfalls and other exotic places to explore – or you just relax in a resort. My biggest recommendation goes to Wapa di Ume Sidemen – the first image below is the view from the resort – magical isn’t it?
My monthly goals
On to my monthly goals as outlined in my previous Entrepreneur Recap.
50/50 situation. I keep pushing that trading goal ahead in front of me. Another month, another try.
1. DSL Trading: Proof of Concept on Live Account
Yep, didn’t quite make it again. However, this was the first month with me being back on the UK market, so I was still making a few mistakes and needed to refine the edges of my strategy. Might go better in December – will give it another try.
2. Read 2 Books in the financial space
I finally finished the monstrous investor bible by Ben Graham – The Intelligent Investor. Real solid advice in there, even though the latest version is written in 1970 with “modern” commentary from 2003. Still one of the best books out there ever written, if you’re serious about investing. Go read it.
Then I went on to The Little Book That Still Beats the Market by Joel Greenblatt, which kind of summarises Ben Grahams Intelligent Investor for dummies and packs it in a much more manageable format of about a hundred pages. While Graham’s system may be a bit too complex to actually follow through in real life, the system that Greenblatt consolidated this into, is very simple to actually put to work. I’ll definitely work one KPI into my investing smart-watchlist.
Here you find an overview of my ongoing workstreams, which are Dan Schenk Life, Investing, DSL Trading and Consulting with Tritium Growth Partners. Under Dan Schenk Life I’m grouping all sorts of income-generating streams and not just developments on this very website.
Profits were a bit higher again after the October low and I’m hoping to finish 2020 in strong fashion. I’m currently aiming for total profits in 2020 at £45k. I’ll update the exact figures in my 2020 recap, which will be released early January.
Total Profits November (all workstreams, excluding any gains/losses from investments): £3,509
Total Profits YTD (all workstreams, excluding any gains/losses from investments): £39,623
Dan Schenk Life
dan-schenk-life.com has been very silent in November, apart from a few people reaching out for Investment advice. As you see in the Investing workstream below, I totally smashed out the November numbers with a 25% gain on the month. So, naturally, more people want to know how I’m doing it. If you are amongst those, don’t hesitate to reach out to me, preferably via LinkedIn and I’ll do my best to get back to you as soon as I can.
Other than that, not too much to report on Dan Schenk Life – it wasn’t a major focus in 2020, but hoping to ramp up production in 2021 again.
Profits and Losses
You can see my full monthly portfolio review here. Top-level stats below.
Oh, November, what have you brought me. Explosive growth. Absolutely killing it. My portfolio literally jumped up in value and surpassed all the benchmarks in the 2020 performance so far.
The catalysts making this gain possible came down to the announcement of a vaccine for covid 19 and the outcome of the 2020 presidential election in the US. Both reduced uncertainty in the market, which consequently led to impressive growth rates for a few industries. I managed to concentrate my portfolio in the months before to exactly those industries, hence now enjoying a wild ride to new highs.
Overall Portfolio Performance
September 2020: 25.6%
YTD 2020: 17%
It’s been the first month for me to be back on the UK market and it’s been a slow month.
I essentially had one solid winner and at the end of the month an even bigger loser, which puts me into the red overall. However, luckily not too much in the red, that it would blow my account.
So, for December I have made a few adjustments to my strategy, most notably trading with 2 positions at a time, instead of locking my full margin into a single one. This should give me more room for catching set-ups, as I’m not constantly having my full account locked into a single trade, which may take a few days to weeks to play out.
Total Profit: -£212.04
Consulting with Tritium Growth Partners
Some nice profits with the consulting workstream in November. It still is the main (or only) contributor right now to keep the party going here in Bali. For 2021 I will have to come up with a few strong ideas to remove the dependency on this workstream and get some of my other workstreams to bring in the big bucks. I’ll update on my plans for 2021 in my 2020 review, coming out soon.
Cash Flow Overview
Cash Flow was absolutely smashing it in November.
Several of my over-due invoices finally got processed, which was a big relief. But that was pretty much the only incoming cash in November.
On the spending side, I overspent just a little bit. If you deduct the Trading Account and Business Expenses, I’m a little over my current £2300 spending target. But I did want to take that trip to Sidemen, so no regrets here. As long as cash-flow is positive, the party must go on.
- Health Insurance + Health Expenses: £53
- Rent: £799
- Living Expenses: £1,376
- Travel / Leisure / Gifts: £198
- Trading Account: £800
- Business Expenses: £31
- Tritium: £11,655
Total Outgoing: £3,257
Total Incoming: £11,655
Net Cash Flow: £8,398
Outlook for December 2020
My monthly goals are getting a bit repetitive, I’m just past the phase where everything is achievable in a single month. Hence for 2021, I will set quarterly goals instead of monthly ones, which should give me a bit more time to work through it all.
Anyway, here’s what’s on the list for December.
Goals December 2020
- Reach Level 3 of Financial Freedom Goal – £12k in Cash Reserves
- DSL Trading: Proof of Concept on Live Account
- Read 2 Books in the financial space
Number one is part of my path to financial freedom. There are 4 Levels to it and I’ve already unlocked the first 2 in 2020 so far and now looking to get level 3 ticked off. Here are the 4 levels:
- Cash Flow positive on a 1 year period
- Free debt
- Savings pot worth of 6 months of expenses
- Investments worth of 20 years of expenses
Level 1, I unlocked in September this year, which was also the month where I was able to pay off the debt I was accumulating during the first year of my entrepreneurial journey. The first two levels of financial freedom are essentially the basis, without those, you would just incur more debt every month and eventually need to file for bankruptcy.
Level 3 is about creating a savings pot worth of 6 months of expenses, which makes the head free of worries if cash-flow would dip negatively for an extended period. It allows you to always keep going, even if temporarily unprofitable, without incurring any new debt. Essential for stress-free operations.
The final level is about unlocking a work-free, hassle-free environment of financial abundance. Once you have 20 years of expenses locked into investments paying at least a 5% return per year, your return on that investment covers your expenses 100%, so you will never go out of business. (Example: Your expenses are £2000 per month, that’s £24k per year. 20 years of expenses are therefore £480k. A 5% return on £480k is … exactly £24k, your annual expenses are fully covered)
For this model, I set my expenses to £2,000 but will increase that over time. For now, I figured I could always scale back my expenses without any difficulties to £2000, which then keeps me going for a 6 month period, even if my profits were to fall to 0.
My second goal, is the one I’ve always set this year, but never quite reached. Proof of Concept of DSL Trading. I’ll give this another try on the UK market next month and it will be a major focus for 2021 as well.
Finally, to the Q4 reading challenge. I have now finished 3 out of the 6 books I decided to include in the challenge. This means 3 to go, which I won’t be able to fully commit to. Hence, I decided to read in December Principles by Ray Dalio and How to Day Trade for a Living by Andrew Aziz. Tony Robbins will be on the list for Q1 2021 then, as I’ve decided to keep this reading challenge going for next year as well. I actually re-discovered the joy in reading that much, that I’ve started reading some fiction before bed-time now as well.
Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude by Mark Douglas The Intelligent Investor by Benjamin Graham The Little Book That Still Beats the Market by Joel Greenblatt
- Principles: Life and Work by Ray Dalio
- How to Day Trade for a Living: Tools, Tactics, Money Management, Discipline and Trading Psychology by Andrew Aziz
- Unshakeable: Your Guide to Financial Freedom by Tony Robbins
I hope you enjoyed reading this Entrepreneur Recap for November 2020. If you did, you can read other recaps and more content in my entrepreneur lifestyle section.
If you are an entrepreneur out there and you are reading this, please contact me over social or drop me a comment in the comments section below, because I would love to catch-up. I’m also planning to interview other entrepreneurs on this channel, so let me know if you would be interested in that.
And as always, if you have any questions, drop me a comment in the comments section below.
Take it easy!