This portfolio update is a little later than anticipated just because so much has been happening the last few weeks. I know everyone who is invested in US public markets has done well in recent weeks, myself included. Remember, everyone is a genius in a bull market. I remember after a previous +100% return investment I thought I was smart and that I could do it again, however I was very quick to give it a go and took a tough loss shortly after. I am more mature now and have a greater appreciation for slower, concentrated bets. More on that below.
Portfolio Allocation:
Cash & Equivalents (59.1%): Cash & 1-month US Treasuries
Debt Investments (0.0%): US Treasuries, US I-Bonds, and CDs with maturities greater than 1 month
Public Equity (36.6%): Publicly traded stocks and ETFs
Real Estate (0.0%): None at this time
Alternatives (4.3%): Small businesses and internet projects I have invested in, valued at the cost of my investment
Public Equity Portfolio Allocation:
Thoughts on Public Equity
- SoFi stock has performed incredibly well in recent months; I was lucky the calls I sold expired worthless before the stock began its rally. It is now +11% of my entire portfolio, I do not mind that right now as my adjusted cost basis is $6.50 a share and I want to keep my bet on SoFi.
- I reopened my GME position during a time of increased volatility and I have collected healthy covered call premiums on it. Currently this new trade has netted me 22% in pre-tax returns so far.
- I have closed out of my ARGT position and went in and out of MCHI, a China market fund, during their stimulus announcements for a 25% return. I do not believe that direct exposure to various international markets is bad, however my allocation will be more towards companies that are already diversifying into these international markets.
- Since my last update, I have added to my long-term positions in VOO, APO, JEPQ, & SBUX.
- SPAXX is only a temporary position for uninvested cash, I have used it to make opportunistic trades with MCHI and OKLO. I like to keep some uninvested cash to dollar cost average into VOO and APO weekly now.
My Overall Thoughts
- My cash allocation is still heavy for my age, all of my bonds matured the past few weeks. My goal for this was to buy my first home however the market for doing so has been incredibly tough and looks like it will continue to be tough.
- I have thought about making big bets lately and I want to have that exposure to higher risk and higher reward. You only need 3 or 4 consecutive wins on big bets to be really successful and I am going to continue to position myself for big bets long term.
Disclaimer:
This page contains mentions of publicly traded securities. This is not a recommendation to buy, sell, or trade said securities or their derivatives. Consult a financial advisor for your specific situation.