Welcome back to Lendermarket Stars series. This time we talk with Thomas Butz. Lendermarket Stars blog series are interviews with Lendermarket investors, financial bloggers, and influencers. Here we talk about Lendermarket investors’ experiences, learned lessons, and different investment philosophies. Hope you will enjoy reading!
1. Tell us a bit about yourself and what you do.
In my main job, I work as a team leader in software development and deal with large amounts of data in the cloud. Investing money doesn’t play a role in that. However, I already dealt with the topic of investing in the stock market when I was young. So it was apparent that I would deal with investing again later when I had the money for it.
After I had read through some publications, I discovered the fascinating world of investing – especially P2P loans. At that time, not many people reported about this area of the market in detail, so I decided to start my own German blog – P2P game.
Ultimately that’s how I ended up writing a lot about P2P lending today and running the only German-language P2P podcast with Lars called “P2P Kredite Cafe“.
2. How did you first hear about Lendermarket, and what caught your eye about the platform that made you start investing with us?
As a blogger, you are, of course, always close to the P2P investment scene. That is why I was there very early when I first invested in July 2020. Creditstar was known to me as a solid lender, and the interest rates directly on your platform were desirable.
So why should I take the indirect path via another P2P marketplace? For me, it was clear that I wanted to invest in your platform.
3. Do you consider yourself an active or a passive investor?
I try to behave mainly as a passive investor and I implement passive investing almost exclusively via ETFs. However, I also invest part of my portfolio directly in individual stocks, although don’t do classic stock market trading at all.
On the other hand, I am relatively active in my P2P investments – which is undoubtedly also because I am extensively involved in the area of P2P investments.
4. If you could give any advice to someone starting investing in P2P, what would it be?
Start slowly to become aware of the type of investment. Don’t get greedy, be mindful that you are investing in a risky form of investment. Therefore, diversify your portfolio early and not only on one platform.
P2P investments should only make up a small part of your portfolio, especially at the beginning, as a building block to wealth accumulation.
5. What is it that you like most about the platform?
Well, mainly the attractive interest rates, of course! 😉
In addition, the knowledge of a solid creditor. Also, the ease of use of the platform. But above all, your positive track record so far – no irregularities or defaults.
6. What are some recent trends in the P2P investment world that you are looking out for?
The need for security has increased among many investors – no wonder the topic of regulation is on everyone’s lips! But other concepts to protect us investors are also interesting – be it simple proven ones, like skin in the game, or special constructions, like senior bonds.
Furthermore, the current trend is to automate and simplify extensively – many investors do not want to take care of their portfolios daily.
7. What changes do you expect in the P2P lending market in the next five years?
As if I had a crystal ball! 🙂
I hope that P2P loan investments will continue to develop into an independent asset class that is serious and solid. A lot has happened in the last few years – we now see audited annual reports almost everywhere, better communication and much more. This is hopefully just the beginning on the way to something bigger! 😉
8. Tell us, what do you consider to be your best investment to date? And your worst?
Well, the best investment is the time I invest in my family!
Apart from that, I have already picked up a few shares that are doing well. But that’s not so important – I like it better that my diversified portfolio has performed well over the long term so far.
And of course, there have been some bad investments – not only in individual shares, but also on P2P platforms. The most important thing is that you learn from it.
On the one hand – diversification. But on the other hand, pay more attention to solid and serious business models and don’t let yourself be guided too much by emotions.
9. Our last guest in this interview series left a question for you – do you prefer to eat chocolate from the fridge or at room temperature?
Now that’s a great question!
Since I like to eat dark chocolate with a lot of cocoa (80% with pleasure), the answer is clear – they definitely don’t belong in the fridge!
10. And last but not least, in order to continue with this chain, leave a question for our next interviewee to answer!
How do you think P2P loans will perform in a strong inflation scenario?
Hope you enjoyed reading Lendermarket Stars series with Thomas! You can check Lendermarket CEO interview with Thomas and Lars at “P2P Kredite Cafe” here.
By the way, feel free to leave a question for our next interviewee in the comments.