![]() And pay good dividends, for example, Home Depot and Bank of America (Warren Buffet’s favorite stock). The other stocks mentioned here are also great and diversified, and they are less risky than growth stocks because they’ve been on the market for a long time and generate big, stable revenues. But the future is digital, so then we have five growth stocks with exposure to all major trends: EV, fintech, cybersecurity, and e-commerce. We know that investing is a difficult game of beating the market, but instead of competing with it, he uses it as a stabilization point. The first and the largest individual position is in VOO, which is an ETF for S&P 500. And just like Humphrey said, crypto is a ‘magnifier of risk, but the potential upside is also great,’ so it did. However, according to the test, it played out well. His portfolio already seems quite ‘techy’, since it had 25% in growth stocks but then 5% in Apple and Google, and another 5% in crypto, which turns into 35% in rather risky and one-themed assets. ![]() In your case you could do the following:ġ) take out the crypto part and replace with one of 5 ETFs mentioned in his other video Index Funds to Own For LIFE Ģ) add gold to stabilize the portfolio against inflation ģ) add commodities if you want to play along with the economic cycles. However, those who are more risk averse could find such a portfolio too stressful and tech-heavy. Our favorite one is that if you are investing for the long term (as you should be), the best time to invest is now, no matter the market situation. This portfolio is amazing for beginners, and we recommend checking out Humphrey’s video, where he makes some great points. On the graph above you see that you have substantially outperformed the market and have room for correction. If any of this sounds confusing, do not get discouraged. ![]() Or a better example, Shopify - minus 74% in a year. By swings I mean Bitcoin has recently fallen 53% from its peak. They’ll get rewarded for their courage, but one needs guts to watch every swing of Tesla or Bitcoin. This portfolio would be perfect for young investors who are interested in tech and have a slightly-above-average risk tolerance. The portfolio is stable and well-diversified across categories and interests, but it’s not perfect for everyone as there is no one-size-fits-all solution. This result is mostly due to the crazy growth of Bitcoin, Ethereum and (guess what?) Tesla.Īpplying This to Your Unique Individual Self Note: let’s assume we bought all the stocks in this portfolio in the same proportions as in the spreadsheet some time ago (3 years, 1 year, beginning of 2022) and held them until today without rebalancing. Here’s how the portfolio compares with S&P 500 and Nasdaq. The portfolio already seems quite ‘techy’, since we had 25% in growth stocks but then 5% in Apple and Google, and another 5% in crypto, which turns into 35% in rather risky and one-themed assets. Good move!īut the future is digital, so then we have five growth stocks with exposure to all major trends: EV, fintech, cybersecurity, and e-commerce. We know that investing is a difficult game of beating the market, but instead of competing with it he uses it as a stabilization point.
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