Hello Readers,
The year 2022 has been a whirlwind, particularly in the realm of investments. Much like the fluctuations of today’s tech stocks, my free time has dipped significantly due to increased work demands. This unfortunately led to a hiatus from my blogging and investing activities. However, the silver lining in this scenario was an inadvertent shield from the discouraging tech stock selloff. Now, after an arduous period of work, I’m delighted to revive my blog, enriched with fresh experiences and insights.
Diversifying Investments: The Leap into Real Estate
Recently, I took a significant step in my investment journey. I chose to liquidate a portion of my painstakingly-built investment funds to invest in a condo, currently in its construction phase. This decision, largely influenced by the tech selloff, reminded me of the significance of creating a diverse and secure passive income stream.
This pivot was momentous. It took me 12 years to build my portfolio and just 21 days to substantially alter it. Despite advice from well-meaning friends, urging me to spend more time researching and reflecting, I was resolved to conclude the deal swiftly. Here, I grappled with the concept of opportunity cost – the value of time and mental energy versus securing a potentially better deal. I remain a firm believer in avoiding the ‘analysis paralysis’ trap and making swift decisions, even in high-stakes scenarios.
Refining Stock Portfolio: Lessons from Dave Lee
My stock investments have also undergone significant changes. Influenced by Dave Lee’s investing channel, I’ve trimmed down the number of companies I invest in, focusing more on in-depth qualitative and quantitative analyses. This approach has reinforced the wisdom that one needn’t ‘swing at every pitch’ in the investing world. Instead, it’s essential to understand thoroughly the companies and sectors we invest in.
My revised portfolio now consists of eight companies and an ETF- SPY, with Tesla occupying a staggering 50% of the total. Tesla isn’t just a car company, it’s the ‘machine that builds the machine’. The power of Tesla lies in its innovative giga factories, producing high automobile margins, a testament to their lean practices and principles.
Going forward, I’ll continue dollar-cost averaging into Tesla and SPY monthly, as my conviction in Tesla strengthens. Chinese companies, however, no longer feature in my portfolio, as I redirect my focus to US tech companies I strongly believe in.
Rebuilding the Dividend Portfolio
After selling all my dividend stocks, I realized the appeal of a regular income stream from REITs and bank shares. Although my new condo and options trading are promising income sources, I miss the days of effortless dividend accrual. Hence, I’ve decided to rebuild a dividend-focused portfolio, majorly consisting of REITs and bank shares. Despite the current high-interest environment pressuring REITs prices, I see this as an opportunity to add slowly, focusing on high-quality REITs from reliable sponsors/management.
Navigating the Crypto Landscape
In the crypto world, a major development was my move from Hodlnaut to a Ledger Nano X hardware wallet before their unfortunate meltdown. Now, I only hold Bitcoin and Ethereum and will continue dollar-cost averaging into these cryptocurrencies amid this ‘crypto winter.’ I firmly stand by the mantra, “not your keys, not your coins,” emphasizing the safety of cold wallet storage or Coinbase.
Changes in Blog Update Schedule
Considering my evolving commitments and the nature of investment changes, I have decided to adjust the frequency of my blog updates. While I will strive to provide monthly updates on significant stock developments, comprehensive updates on my portfolio and net worth will now be posted every three months. This schedule will allow me to provide a more detailed and insightful view of the fluctuations in my portfolio. Look forward to my next portfolio and net worth update in June.