New Metric in Statistics

I added new cool metric to my statistics page – Implied IR. This is my estimate for the annual return on the invested balance. Compared to ADI% and ADB%, this goes a little bit further. First, the time-space is better aligned. By comparing interest earned in current month to end-of-month balance of previous month it is much more stable and usable metric. If you assume that you are fully invested (and I am running at 99%+ ADI/ADB) this is basically the return you get monthly on your balance (again, assuming you get interest monthly, what is mostly the case). By annualizing the return using (1+ Int/EOM Balance)^12 – 1) you get return estimate that assumes re-investment of the earned interested.

My Mintos page currently says my annual return is 11.98%. With my calculation I run a little bit higher at 12.76% for May/19.

My calculation (link opens new tab with my statistics):

It is good to know that Mintos calculation is somehow close to my own estimates. I mean, I don’t really care about the 0.7% difference. The important thing is that the annual return with earned interest re-investment can run at 12%. For me that is a very good result, especially when compared to my stock portfolio – there I target 12.5% annually, but the volatility is much higher. One day +5%, another -6%. This makes Mintos investment so cool – stable, above average revenue stream.

Strategy that is not working

For a while, I had auto invest strategy investing in short-term loans that have length between 1 month and 1 month. Why I would do that? I commented on this before – the short-term loans are cool, however the return is bigger on longer short-term loans :). Most lenders actually significantly under-deliver on the loans that are very short, like 7 days, or 14 days. Today, this actually stopped working and I wonder what has changed. My strategy is not picking any more 1 month loans anymore. I have question pending with Mintos support and will see what they have to say.

For me, it is unfortunate, as I prefer not to invest into loans shorter than 28 days and don’t really want 2+ months either. If you have some workaround let me know!

Added Funds to Mintos

Today I added additional ~ 19,000 EUR to Mintos, bringing overall invested funds to 145,000 EUR. This is because I have high confidence in Mintos business model. Currently, I have 25% of my liquid assets on Mintos platform. Mintos brings me reasonable revenues, and represents stable counterpart to my USD stock investment portfolio. I really believe and hope that Mintos will be around for next 10-20 years.