Disclaimer: This is not legal or financial advice of any kind. It is the opinions of an anonymous group of individuals. Understand that there is risk involved.
Welcome reader! One could argue that this is the final piece of the money-making puzzle since we have already covered the basics of building a career and making internet money. What is left? How to invest your money. If we exclude shilling BTC at 60k, ETH at 3k, and SOL at $140 (source)—there are a few more topics to discuss. It's time to dive deeper into our portfolio and share what has worked for us. The best part? It requires minimal time investment.
General Approach To Portfolio Posts And Updates
You can expect the following: The general approach we will use for this post type is simple. 1) Market update (news), 2) portfolio update (vs. the previous), 3) strategy going forward. This is the best way to explain what is happening in the market, reflect on it with quantitative results), and how we approach it. When it comes to a regular schedule. The goal is not to eliminate any other posts from our standard approach—once per week. The plan is to incorporate portfolio updates and add one more article for everyone to benefit. It is a win-win situation. We aim to publish updates at least once every two months, ensuring at least six yearly updates. This is enough for you to invest and start building your net worth.
Eyes on the prize: Before we dive into the short market overview and the portfolio itself... Investing should be the last piece of the puzzle you focus on. Your priorities must be in the proper order as outlined in the blueprint: 1) Securing a high-paying career or job, and 2) Launching your business asap. Why? One will ensure you have a predictable income you can count on. The second allows you to scale it accordingly. Better said to never be underpaid for your time. That should become your top priority if you’re not 2/2 on those. Does that mean you should not bother investing at all? No. It simply means that you shouldn't expect any miracles to happen if you don't have sufficient cash flow. You will likely waste time micromanaging your portfolio when you could achieve much larger returns by focusing on your business. We bring up this point because it has been spread since the early days of the Internet: "invest to become free." It is the same as the passive income idea. Nothing else but a marketing clickbait for gurus selling you an idea of a perfect lifestyle. One where you are getting paid for doing nothing—it is possible, but only a select few can reach it. You can only gain so much from investing if you don't have cash flow. To keep it simple: ensure cash flow, scale your business, and invest what you have left. This approach creates a support system that won’t break down in the long run, and you will consistently be in a better position than you were yesterday.
Basic old-world approach to return/risk. (source)
Learn to de-risk: Over the last few years, we have heard numerous stories of individuals going from a couple of hundred dollars up to 6 figure crypto portfolios to be back down to a couple of hundred dollars again. If this has happened to you… The reality is that you didn’t de-risk properly or think about it in a long timeframe. Suppose you follow our approach (old WSP) of building multiple income streams and investing. There is no reason at all to sell. Let's say you are gambling, and your meme coin skyrocketed 560x. We can assure you that the same meme coin will eventually drop just as quickly as it rose. Your best bet? Move a portion of that investment (not really investment) into a safer option. The general guideline is to move/sell at least 25-30% into a less risky position. To put it into an example: if you invest $100 the prices go up to $300. The next step you are doing is selling 25% of that $300. This is an easy and clean way to keep. We only follow this rule when it comes to risky assets. The same does not apply to index funds, BTC, or ETH. This approach sounds stupid until you realize that half of the investing game is psychological and requires patience with your actions.
Rebalancing: The same idea applies to rebalancing. Suppose you buy proven assets that go up in the long run (no meme coins). There is so much to worry about when it comes to rebalancing. For example, your ETH goes from 30% of your portfolio to 45% (total weight). We advise investing in other assets to balance it out instead of selling a chunk. Our approach only works for proven assets you want to bet on in the long run. The rebalancing is a rabbit hole that doesn’t make sense for the big majority. Rebalancing makes sense when you are running multi-million portfolios or when, in fact, you know that your exposure is not proper or that something on the market will happen that will have a massive impact on it. The ticking bomb is one way to put it. The reality is that rebalancing it is a waste of time for many. Wasting a few hours at the end of each month to balance out your 50k portfolio... Nonsense. Your time is better spent building your business and ensuring cash flow.
How do we know we are winning: It is the final piece of the puzzle and the only metric that matters. How do we know we are winning? We will use BTC/ETH growth vs. the previous period for reference. BTC is a widely acceptable gold-like equivalent with minimal functionality behind it (slow and inefficient). What about ETH? Sleeping beast that we hope will wake up—considering the possibility it brings. Following both BTC/ETH is a good approach to tracking as we are in a position that allows us to move more towards crypto (it fits with our big picture). We want both to outpace traditional assets in growth. BTC/ETH having a larger % growth over stocks? Win for us.
Any future update of the portfolio will contain a summary of all the key concepts that one should pay attention to - it will be a two-minute read that saves a lot of time for those getting into investing and serves as a reference check.
The stock market is filled with individuals who know the price of everything, but the value of nothing. - Phillip Fisher
Quick Market Update
The newly elected president we told you would win months ago (source) - claims he will set tariffs of 25% for Mexico and Canada plus 10% for China. The results? The decline in stocks considering the instability it brings going forward.
Positive signs of crypto adoption from the new government, along with strategic purchases of ETH and LINK. (source)
Nvidia lost 17% on January 27th—making it the largest single-day loss for any company in US history. Around $590 billion was lost.
FED cut the rate earlier last week by 25 basis points.
Inflation is still above the FED Target, increasing to around 2.9%. PCE inflation is around 2.6%.
Global growth is projected at approximately 3.7%, with the EU at 0.9%.
Earnings reports from tech companies have been mixed—more are expected soon. MSFT, IBM, and META all exceeded expectations. TSLA faced some issues… Companies such as BA, INTC… Underperformed.
The S&P500 is 20 points away from an all-time high. This means more opportunities for everyone and general optimism in the market.
Companies are still enthusiastic about crypto and AI, in general, → leading to further spending and growth across R&D departments.