“Everyone has a plan until they get punched in the mouth” What Tyson once said and investing is not far from this concept.
My journey in the realm of investing is a testament to the importance of strategic planning, diversification, and a commitment to long-term growth. In this article, I'll share my personal approach to investing and provide a quick look of my current portfolio.
Remember, time is your alley, use it wisely and start investing as soon as possible.
Let me show you how much money you’ll accumulate over time if you invest just $250 a month starting at different ages. It assumes an 8% average annual investment return.
If you start at age:
25: You’ll accumulate $878,570 by age 65
35: You’ll accumulate $375,073 by age 65
45: You’ll accumulate $148,236 by age 65
Ok, let’s jump on my portfolio, I built it after many years of researches and studies, it addressed good and bad times and it make me sleep good in the night.
At the core of my investment philosophy is the belief in the power of informed decisions and patience. I consider investing not just as a means to accumulate wealth, but as a journey of learning and adaptation. I prioritize thorough research, staying abreast of market trends, and understanding the fundamentals.
Diversification:
Diversification is the cornerstone of my investment strategy. Rather than putting all my eggs in one basket, I spread my investments across various asset classes, sectors, and geographies. That’s why I have a portfolio for the sunny and rainy days. This helps mitigate risk and enhances the potential for returns, even in the face of market fluctuations. My diversified portfolio includes stocks, bonds, real estate, and a carefully curated selection of alternative investments.
Stock Portfolio:
My stock portfolio is built on a foundation of well-established companies, mostly in the SP 500. I maintain a balanced mix of large-cap, mid-cap, and small-cap stocks, carefully selected based on their industry prospects and competitive positioning. Regularly reassessing and rebalancing this portion of my portfolio is a key aspect of my strategy to adapt to changing market conditions. Outperform the S&P500 with more than 3% in the long term (> 5 years) is my goal. I invest in the stock market through ETF. Percentage of the portfolio 30%
Bonds:
Fixed-income securities, such as bonds, form another crucial component of my portfolio. They provide stability and income, acting as a counterbalance to the volatility associated with stocks. I carefully choose long and intermediate bonds with solid credit ratings and favorable yield-to-risk profiles to ensure a steady stream of income while preserving capital. Percentage of the portfolio 45%
Commodities:
Diversifying with commodities can enhance portfolio resilience, offering a hedge against inflation, geopolitical uncertainties, and providing unique opportunities for long-term wealth preservation. Percentage in the portfolio. Percentage of the portfolio 5%
Gold:
Gold's timeless value as a tangible asset and store of wealth makes it a crucial component in a well-balanced investment strategy, offering stability and security in times of economic uncertainty. Percentage of the portfolio 5%
Real Estate:
Investing in real estate adds a tangible and diversified dimension to my portfolio. I own some properties which are located in different countries. Percentage of the portfolio 10%
Alternative:
To further diversify and explore unique opportunities, I allocate a portion of my portfolio to alternative investments. This might include private equity, venture capital, start ups, or other unconventional assets that have the potential for high returns, albeit with higher risk. Percentage of the portfolio 5%
Avoid feed and the middle man
I love stocks and bonds as much as I hate fees. A tiny fee to the bank or the middle mad end up in a dramatic result having a devastating impact on your performance if you think in term of compounding. I invest through ETF with minimal fees.
Long-Term Vision:
One of the key tenets of my investment strategy is a focus on the long term. While short-term market movements may present opportunities, my decisions are guided by a vision of sustained growth over the years. I remain disciplined in adhering to my investment plan, avoiding the temptation to succumb to market noise or short-term fluctuations.
My approach to investing is a blend of strategic planning, diversification, and a commitment to long-term growth. By carefully navigating the complexities of the financial landscape, I aim to build a resilient portfolio that stands the test of time. Remember, successful investing is not a sprint but a marathon, and with a well-thought-out strategy, the journey can be as rewarding as the destination.
One more thing, I always save a good amount of cash in case a sweet opportunity knocks on my door.
P.S. I don't invest in cryptocurrencies, for the simple reason that I don't know them and my prudence requires me to put my money in what I know. Investing is not gambling.