$52,819.93 | Portfolio HODLing

Hey guys,

Another day another dollar. Over the last few weeks the market just continues to tread ever so slowly upwards. I find myself constantly worrying about the market tanking, but logging on to my account to find that my investments continue to go up. I’m sure this sentiment is shared amongst a lot of you. In addition, I’ve felt very motivated to blog because my Roth IRA portfolio continues to outpace the market. It seems, my strategy is starting to work. Check out the balance below.

There’s a fun investing fact that I love sharing with new investors who are intimidated by the idea of investing. Many people think it’s super complicated and that you need to have some sort of magical powers to understand it and get ahead. The reality is different – studies show that the more you tinker with your investments, buying and selling, timing the market etc., the lower your average returns over long periods of time. A study conducted by Fidelity reports that the best performing investors on their platform had either died, or forgot they had an account. The moral of the story: stop trying to buy and sell to time the market!

While I can’t pretend that I don’t tinker with my investments at all, I try to mimic the principle as much as possible with a disciplined approach in my Roth IRA portfolio. I create a portfolio, sell nothing for an entire year and then rebalance into a new portfolio of stocks based on my investing thesis for the next year. I do this no matter how tempted I am to sell a few stocks and put 20% of my portfolio into Salesforce ;).

Here’s the latest update on my portfolio performance:

  • S&P 500 from January 4th – June 12th: +15.06% ((390.09 – 339.03) / 339.03) x 100
  • My portfolio from January 4th – June 12th: +16.76% ((52,819.93 – 6,000 – 533.75) – 39,641.18) / 39,641.18 x 100

I’ve also been reflecting lately on why I follow or don’t follow certain investment content creators online, as there have been a few that I’ve begun to follow less and less. One component, as harsh as it is to admit, is that I like following people who deliver results. If an investment personality isn’t doing a good job, what is the point of following them? Aren’t we all excited by the possibility of doing better than average, which is why we get so interested in investing in the first place?

My portfolio philosophy and allocation of pies have worked this year, and I hope to continue it into the future because I think it has the potential to outperform in all different type of markets, just as long as I put in the work to make good picks in each category that outperform. This is what everybody thinks that they can do, but only time and many years of results will allow me to determine if I’m onto something. We’ll see!

If you’d like to take a look at the original portfolio philosophy and why I think it’ll be successful, I reviewed it in detail in my first blog post here.

May the investment gains be with all of you, until next time.


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