Investing at Interactive Brokers 2025: My €128,088 Portfolio Update and Strategy

11 februari 2025

Empower Your Investment Journey with Insider Insights for Long-Term Growth

Welcome back to my monthly investment update! In this post, I’m sharing a detailed look at my Interactive Brokers (IBKR) account as I navigate the challenges of early 2025. Whether you’re just starting out or looking for new ideas to refine your portfolio, you’ll find inspiration here—from current positions and recent buys and sells to my approach toward cyclical value stocks and high-dividend opportunities. If you’re eager to learn how to manage a portfolio in a challenging market environment and set yourself up for long-term success, keep reading.

The Challenge: Navigating a Tough Market with a Disciplined, Data-Driven Strategy

Right now, the market isn’t exactly throwing bargain deals around, and taking large positions isn’t the best idea. I’ve intentionally maintained high cash levels in my IBKR account, which is my business investment account, to ensure I can act when truly attractive opportunities arise. My strategy focuses on smaller positions in stocks you may not have heard of—primarily cyclical, value stocks that also offer high dividends. These stocks can generate impressive returns over time, but they require a strong stomach because of the inherent volatility, especially in sectors like shipping where commodity cycles drive rapid changes.

The current environment demands patience and a disciplined approach. I’m not chasing every hot stock or market fad; instead, I’m strategically building a portfolio with a mix of undervalued positions and solid dividend payers that align with my long-term growth goals. Even though my portfolio’s overall return started off in the red, I know that staying the course and gradually building positions will pay off.

The Solution: Leveraging Interactive Brokers to Build a Resilient Portfolio

Why I Choose Interactive Brokers

I use Interactive Brokers for my business investment account because it offers low trading costs and attractive interest rates on cash—crucial factors when you’re waiting for the right entry points. Here’s why IBKR is a cornerstone of my investment strategy:

Low Costs & High Interest Rates:
IBKR lets me keep trading fees minimal and earns me attractive interest on my idle cash. This is essential during periods when the market is expensive and I prefer to hold cash until a better buying opportunity presents itself.
Flexibility in Position Sizing:
Given that I’m focusing on smaller positions in lesser-known stocks, IBKR’s platform is perfect. I can experiment with different sizes without committing too much capital, which is especially important when dealing with volatile, cyclical industries.
User-Friendly Trading Interface:
The IBKR platform offers a clean “portfolio” screen that lets me easily view current holdings, track my overall return, and execute trades swiftly. Even though I haven’t made many large investments yet, the interface helps me stay organized and informed.
Tailored for Business Investments:
My IBKR account is directly linked to my business venture, so my investment decisions are integrated with my broader financial goals. This holistic view is invaluable as I balance risk and opportunity across different asset classes.

A Portfolio in the Making

Since the end of 2024 and the start of 2025, my IBKR account has been in a “getting started” phase. I’ve adopted a strategy where I take smaller positions in a diversified mix of stocks rather than overcommitting to any single asset. My approach is built on the belief that long-term growth will come from companies that are small now but have the potential to expand significantly—if you’re willing to wait.

At this stage, my portfolio comprises a mix of cyclical stocks, high-dividend plays, and some investments in sectors that might seem out of favor today but hold promise for the future. While my overall return has been challenging—at one point reflecting an unrealized loss of nearly –177%—I’m not too worried because I’m still building the portfolio, and my cash position remains strong.

A Deep Dive: My Portfolio Overview and Recent Transactions

Portfolio Snapshot and Cash Position

Right now, my IBKR portfolio has a net asset value of approximately €128,088. Despite some early setbacks, I’ve kept a disciplined approach by maintaining high cash levels—currently around 50% of my portfolio. This isn’t a sign of hesitancy; rather, it’s a tactical decision. Holding cash allows me to take advantage of market dips and invest in quality opportunities as they arise, particularly in sectors that are currently undervalued.

The cash reserve comes from recent deposits and additional contributions, positioning me well to invest in sectors that I believe are poised for recovery or long-term growth. For instance, I’m eyeing opportunities in real estate funds, which have experienced a slight drop recently—something I see as a promising entry point.

Focus on Shipping Stocks

One of the key sectors in my portfolio is shipping. Shipping stocks are inherently cyclical, driven by commodity cycles and global trade dynamics. They often experience rapid ups and downs, which can be nerve-wracking, but they also offer the potential for high returns, especially when dividends are factored in.

In this update, I’m highlighting several shipping stocks that are significant parts of my IBKR account:

Frontline:
Frontline is a central holding for me. I first purchased Frontline when its price dropped by around 17% in June 2024. Since then, the stock fell further—down by about 54% from its big peak. Despite this, I saw an opportunity and bought additional shares on September 13th at a price near the bottom (around €13.7–€13.0 per share). Using a bit of technical analysis, I identified a support level, and after the drop, Frontline has already rebounded by approximately 40% in a short period.
Other Shipping Stocks:
Along with Frontline, I hold positions in several other shipping stocks such as ASC, DHT, and even smaller names like Starbill Carrier. While some of these stocks have seen dramatic drops (with Starbill Carrier falling nearly 50%), they also offer high dividend yields—up to 16% in some cases. However, it’s important to note that high dividends often come with high debt levels. For example, Frontline carries significant debt due to its aggressive acquisition strategy. This means that while the dividend yields are enticing, the downside risk is also considerable. You need to be prepared for volatility in this sector.

Transaction History and Tactical Buys

Let me walk you through a recent transaction example with Frontline, which illustrates my approach:

Initial Entry & Subsequent Buys:
I first bought a small position of 50 shares after a 17% drop in June 2024. Later, on September 13th, after observing further declines (an additional drop of 24%), I added another 50 shares. Finally, I doubled my position by purchasing an extra 100 shares at a price of approximately €13.7–€13.0.
The decision wasn’t solely based on timing—the market never perfectly predicts bottoms—but rather on combining fundamental analysis with technical cues. I noticed that Frontline’s price had hit a support level, and even though market timing is never perfect, I used these indicators to guide my buys.
Since these purchases, Frontline has rebounded roughly 40%, which has helped offset some earlier losses. Currently, the overall unrealized return in my portfolio stands at about –6%. While that might sound discouraging at first, it’s important to remember that these are unrealized losses. I’m not planning to sell Frontline in the short term because I believe in the long-term thesis of the shipping industry.

Understanding the Cyclical Nature of Shipping

The shipping industry is fascinating due to its cyclical behavior. In recent years, fewer new ships have been built, and many of the vessels from the early 2000s are nearing the end of their operational lives. This creates a supply-demand imbalance that could drive up shipping rates when shipbuilders start constructing new fleets—a process that can take months or even years. The management at Frontline has communicated updates about this potential supply squeeze in their quarterly reports, which reinforces my investment thesis.

However, cyclical industries also come with significant downside risks. High levels of debt, for example, mean that a 50% drop in stock price is not uncommon during downturns. For Frontline and other shipping stocks, it’s crucial to balance the enticing high dividend yields (often above 8%) with the risk of steep price declines. That’s why I always take relatively small positions in these stocks—to ensure that even if a downturn occurs, my overall portfolio isn’t severely impacted.

Other Portfolio Movers and Sector Diversification

While shipping stocks are a significant focus in my IBKR account, they’re not the only area where I see potential. My portfolio also includes positions in:

Real Estate Funds:
I’ve invested in real estate funds that have recently dropped slightly, presenting attractive entry points. One standout is Vizy Properties, which currently has a low valuation and a promising dividend yield (around 6%). Factor analysis suggests a strong buy, with metrics such as return on common equity at 11% and return on total assets at 6%. Real estate funds like Vizy Properties provide a balance to the high-risk, high-reward shipping stocks and add a measure of stability with steady dividends.
Smaller Cyclical and Value Stocks:
My strategy includes buying smaller, often lesser-known stocks that are undervalued or have strong cyclicality. Although some of these stocks might seem risky or even volatile, I believe they can generate significant returns over the long term. For example, I hold positions in stocks that operate in niche segments or have shown resilience during market downturns. These stocks might not be household names, but they fit into my broader thesis of investing in companies that can grow from small to big.
Dividend-Paying Stocks:
I’m also focused on securing investments that deliver high dividends. Even if a stock’s price is volatile, high dividend yields help cushion the overall return and provide a steady income stream. This is particularly important in sectors like shipping, where dividend yields can sometimes exceed 10%.

Risk Management: Balancing Exposure in a Volatile Environment

Investing in cyclical industries and undervalued stocks isn’t for the faint of heart. Here’s how I manage risk within my portfolio:

High Cash Reserves:
By keeping about 50% of my IBKR portfolio in cash, I’m prepared to deploy funds when opportunities arise. This cash cushion helps me avoid overcommitting during periods of market uncertainty, and it ensures that I can take advantage of market dips.
Small Position Sizes:
I deliberately take smaller positions in volatile stocks. For example, even though I’m very interested in shipping stocks like Frontline, I only allocate a small percentage of my overall portfolio to them. This minimizes potential losses if the stock experiences further declines.
Diversification Across Sectors:
My portfolio is diversified not just within shipping, but also across real estate, smaller value stocks, and dividend-paying equities. Diversification spreads the risk, so even if one sector underperforms, the impact on the overall portfolio is less severe.
Technical and Fundamental Analysis:
I combine both fundamental analysis (looking at financial ratios, earnings growth, and debt levels) and technical analysis (monitoring support levels, price trends, and market momentum). This balanced approach helps me make more informed decisions and avoid the pitfalls of purely speculative investments.
Long-Term Perspective:
I understand that some positions, especially in cyclical sectors like shipping, may take time to recover. I’m not in a rush to realize losses, as these are often temporary setbacks in a long-term investment horizon. Patience is key; I remain focused on the potential for future growth rather than short-term fluctuations.

Evidence of Success: What My Portfolio Tells the Story

Despite some early setbacks—like an overall unrealized loss of around –177% in my value position—the trajectory of my portfolio shows promising signs. Here’s what the numbers reveal:

Positive Movement in Key Sectors:
While certain positions are dragging down the overall performance, there’s been a notable rebound in shipping stocks. For instance, Frontline, after significant drops, has now risen by about 40% in a short period. This recovery is a testament to the cyclical nature of the shipping industry and the effectiveness of my tactical buys.
Dividend Contributions:
The dividends from my shipping stocks, particularly Frontline, have provided a steady income that partially offsets the decline in stock prices. In one case, despite a share price drop, the dividend yield contributed nearly €400 in income, showcasing the value of dividend-paying stocks in volatile markets.
Sector-Specific Performance:
Even though my overall portfolio return currently sits at around –6% unrealized, the year-to-date performance of some sectors—especially shipping—has turned positive. The strategic allocation to sectors with cyclical potential means that as the market recovers, these positions are likely to drive overall portfolio growth.
Liquidity and Flexibility:
My IBKR account has seen a healthy increase in available cash, rising from nearly zero to about €9,000. This liquidity not only gives me the flexibility to invest in promising opportunities as they arise but also helps mitigate risk during periods of market stress.
Diversification Impact:
The diversified nature of my portfolio, spanning shipping stocks, real estate funds, and smaller cyclical stocks, has allowed me to capture gains in sectors that are rebounding even while others lag. This balance is essential for long-term stability and growth.

My Investment Thesis: Why I Believe in the Long-Term Potential

When I look at my IBKR portfolio, I see an opportunity to build wealth through a disciplined, data-driven approach. Here’s why I’m confident in my strategy:

Cyclical Opportunities in Shipping:
The shipping industry is inherently volatile, but it also offers tremendous upside potential. With an aging fleet and the need for new vessels on the horizon, companies like Frontline are well positioned to benefit from future supply chain adjustments. Despite the risks, the dividend yields and low valuations present an attractive entry point for long-term investors.
Value in Undervalued Assets:
Many of the stocks I invest in, including certain real estate funds and smaller cyclical stocks, are currently undervalued relative to their potential. This creates opportunities for significant capital appreciation as these companies grow and improve their fundamentals over time.
Income Generation Through Dividends:
High dividend yields are a key component of my strategy. Even in volatile market conditions, dividends provide a cushion and a source of regular income. This income can be reinvested, compounding returns over the long term.
Adapting to Market Conditions:
I don’t try to time the market perfectly—instead, I maintain flexibility and patience. By holding significant cash reserves and taking small positions, I’m prepared to act when the market presents opportunities. This adaptive strategy is crucial when facing an uncertain economic environment.
Continuous Learning and Improvement:
With over a decade of investing experience, I’ve learned from both my successes and my mistakes. Every trade, whether profitable or not, adds to my understanding of market dynamics. This constant learning process is what enables me to refine my strategy and make more informed decisions over time.

What’s Next? My Outlook for the Coming Months

Looking ahead, I’m excited about the opportunities that lie in wait. While the market may still be challenging—especially for large positions—I’m confident that a disciplined, long-term strategy will pay off. Here’s what I plan to focus on in the coming months:

Increasing Exposure to Promising Sectors:
I plan to gradually build up positions in sectors that show clear signs of recovery, particularly shipping and real estate. As these sectors begin to rebound, the dividends and potential capital gains will help drive overall portfolio performance.
Monitoring and Adjusting Holdings:
I will continue to monitor my portfolio closely, selling positions that become overvalued and reinvesting in undervalued assets. This ongoing rebalancing is key to maintaining a portfolio that is both resilient and poised for growth.
Exploring New Opportunities:
I’m always on the lookout for new investments that align with my long-term thesis. Whether it’s a promising cyclical stock or an undervalued real estate fund, I’m committed to conducting thorough research and seizing opportunities when they arise.
Enhancing My Technical Analysis Skills:
While my primary focus remains on fundamental analysis, I recognize the value of technical analysis—especially for timing entry points in volatile sectors like shipping. I’m continuously working on improving my skills in this area to better support my investment decisions.

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Final Thoughts: Is This the Right Strategy for You?

My IBKR portfolio update is more than just a review of my current positions—it’s a reflection of a disciplined, long-term strategy built on careful research, risk management, and continuous learning. Here are the key takeaways that can help you refine your own investment approach:

Invest for the Long Term:
Focus on growth stocks and undervalued assets that have the potential to increase significantly over time. Patience is essential, as true growth takes time to materialize.
Use a Data-Driven Approach:
Leverage both fundamental and technical analysis to filter out overpriced stocks and identify those with solid potential. Advanced screeners and premium tools can provide the insights you need.
Manage Risk Through Diversification:
Allocate only a small percentage of your portfolio to high-risk, volatile stocks, and maintain a balanced mix across different sectors. This minimizes the impact of any single underperforming asset.
Rebalance and Adapt:
Regularly review your portfolio and adjust your positions based on changing market conditions. Taking profits when stocks are overvalued and reinvesting during dips is a proven strategy for long-term success.
Learn from Experience:
Every trade—whether it’s a win or a loss—offers valuable lessons. Use these experiences to continuously refine your strategy and avoid repeating mistakes.

By following these principles and staying true to a disciplined, data-driven approach, you can build a portfolio that not only withstands market volatility but also positions you for long-term financial freedom. It’s a journey that requires perseverance, adaptability, and a commitment to continuous improvement.

Take Action Now

If you’re ready to optimize your investment strategy and build a resilient, high-growth portfolio, start by reviewing your current holdings and identifying areas where you can improve. Whether you’re using Interactive Brokers, DEGIRO, or another platform, remember that every smart decision—no matter how small—brings you closer to your financial goals.

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Subscribe today, join our community, and start transforming your approach to investing. With the right tools, discipline, and a commitment to learning, you can turn market challenges into opportunities and achieve the financial success you’ve been striving for.

Thank you for following my journey in building a robust IBKR portfolio. I’m excited about the future, and I hope my insights inspire you to take control of your investments. Stay informed, invest wisely, and remember—every smart decision you make is a step toward achieving your financial dreams.

Happy investing, and I look forward to sharing more updates with you next month!