Your Investment Portfolio

[Noel]

@Poundsand

As an aside, this is the first time I’ve seen @Noel’s portfolio laid out; I know from one of his other threads he converted a defined pension plan to a cash-out, but I don’t know whether to be worried for him or admire his giant huevos for retiring early with a portfolio of that size

My portfolio is not at all the same as it was at the beginning of this thread. Funny enough I was just doing some rebalancing, so I can give you an idea:

62% S and P 500 index
20% individual stocks (GOOG , AMZN mostly, and some Canadian dividend stocks for my taxable account),
8% International ETFs (XEF, Mexico, and S America)
REITs: 6%
Crypto ETFs: 4%

Most of my cashed out pension went to the index.

[Brendon]

@Poundsand

So what’s everyone’s portfolio looking like going into 2023?

Same as always: ~2x leveraged on margin, about half SPY (which I’m migrating to VUAA when I do anything – thanks to whoever it was on here that mentioned that), the rest scattered around with a bias toward small-cap value. VIOV has been my best performer for years. The value premium lives!

At some point I need to take the time to figure out whether it’s now more efficient to buy LEAP options than to use IB’s margin. I suspect it’s currently a wash.

A couple years ago I got really into options for a bit, but having no particular market insight I basically just broke even. I might have a play with doing credit spreads to offset margin interest, given that I expect the market to be pretty unexciting. Maybe you feel differently, if you’re going SPXL. I’ve always sort of ignored those funds because my understanding is that volatility decay tends to make them underperform simple margin.

[Poundsand]

What would y’all do differently with your portfolios with $100k or less vs a few hundred $k - $1M vs $2M vs $5M+?

In my mind:

• when you don’t have a whole lot (as long as you have a decent income and / or young enough), it’s easy to take higher risks for the big payoffs as you’re not risking much and you can fix mistakes later on.
• Similarly, once you’re in the $5M+ VHNI category, it becomes easier to take some bigger risks, with a good cushion if things don’t go well.
• In the few hundred $k-$1M range, you want good growth without crazy risk, as you’re at the point where you’re starting to see the benefits of compounding.
• Above $1M, but before you hit VHNI range, some additional strategies to combine income while still seeking outsized growth seems like the approach.

Thoughts?

[The]

Once porfolio grows you take less adjusted risk with lower volatility - depends on your age and preferences too

You have to the do homework and know what you own . Understand in what macro einvoroment we are and how your different asset class are currently correlated and how they will be in future.

For example last year 60/40 porfolio was terrible ffor risk /reward. Still terrible.

Most money managers are there for your comission, not for your ROI. Long term is hard to “beat” sp500