HowTo: Portfolio feedback on GetQuin
Dear Donkey Disciples,
again and again I read here from GetQuin users who ask for feedback on their portfolio, but only write 1 or 2 sentences themselves. These colleagues are then surprised when they get unspecific and always the same comments like "You are missing a good dividend payer from the tobacco industry in your portfolio" or "You should throw out the tobacco stocks, there is less and less smoking". At the same time, the unwillingness of potential feedback providers grows when they are called upon to evaluate the 100th 08/15 portfolio without explanation.
It is therefore time for more individual and high-quality portfolio feedback. You will get them if you follow the ultimate donkey guide for high quality portfolio feedback.
Step 1: Tell us about your investment horizon and goals.
I'm in my mid-30s, so I still have a few years to work before my state pension. My goal is to be financially independent as early as possible and be able to live off my portfolio. Realistically, though, it will still take me until just before retirement to do this, as I also still want to live and not limit myself financially. Furthermore, I do not bet on my (early) demise, which is why my goal is capital preservation and not capital depletion.
Step 2: Outline your strategy and explain how you will use it to achieve your goals
I have realized that it is too exhausting for me to continuously deal with a large number of companies. I also have much more confidence in the markets than in individual companies. I therefore rely to a large extent on ETF. However, with a bit of crypto, there are still a few gambler positions in the portfolio. If those work out, I'll reach my target sooner. If not, the stakes were low enough so that my goal was not jeopardized in the long term.
The 4% rule probably presents me with psychological problems, should I still have to withdraw my 4% in a losing year. Accordingly, I would like to live mostly on dividends. However, since I am still too young to buy high dividends by low growth, I rely on price and dividend growth. My calculation is that the distributions will have grown significantly through the selection of my positions and in relation to my investments in 20-30 years and that I will then not have to shift into an ETF with high distributions. I simply want to save myself the high taxes in retirement that would be incurred if I were to reallocate from accumulating ETFs to high distribution ETFs. Distributions are of course reinvested directly.
You are still missing a goal and the appropriate strategy? Then take a look here: https://app.getquin.com/activity/VAKRkmXgSS
Step 3: Explain why you have chosen exactly the stocks in your portfolio.
Optional, but depending on the portfolio size, it is at least a good idea to talk about the asset categories and / or the most important / extraordinary investments. When you mention your assets, remember to mention them in a way that the reader understands which ones you mean. Nobody knows what is behind LU0533033667.
The core of my ETF and also of my portfolio is an All World ETF $VGWL for obvious reasons. Besides that there are currently 2 more ETF in my portfolio: A Health Care ETF $CBUF and an IT ETF $AYEW . These are not too specific as a Cyber Security or Innovative Health Care ETF would be for my taste. In addition, I see gigantic growth opportunities in both sectors and expect to actually beat the world index in the long term. However, since I don't have a crystal ball either and want to minimize my risk, the All World takes the significantly larger positions in my portfolio. All ETFs are of course distributing.
Yes, what can I say about crypto? I started buying bitcoin in 2011 $BTC with some play money and didn't stop again until 2017. Despite losing everything twice due to hacks/seizures by the FBI of central exchanges, there is actually not much money in my Bitcoin position. The growth has simply been gigantic. Bitcoin, as the largest, first, and as the only decentralized currency, should of course not be missing from any crypto portfolio. Besides that, I consider Ethereum $ETH as the second largest currency that has a bit more going for it than Bitcoin. About IOTA $MIOTA there is already an article of mine [2]. The reasons for my investment in Hedera $HBAR are quite similar to those of IOTA. Cardano $ADA Is simply a random position from the top 10 for diversification. Could have been BNB or whatnot (just not Solana or Doge). For my cryptocurrencies, I have fixed and very ambitious prices at which I will sell shares. If these prices are not reached, I hodle until the end of my days.
I am aware of the high USA weighting in my portfolio and it was a thorn in my side for a long time. In the meantime, however, I have come to terms with it well. Many of the U.S. companies are actually global companies that benefit from U.S. laws and culture. In addition, the last few months have confirmed the dominance of the USA, from my point of view. Until last year, I could have imagined that China or possibly Russia could overtake the US. In my view, this scenario has now receded into the distant future. And Europe is just Europe, not really to be taken seriously. So why not overweight the USA?
Why I sold my stocks and now have none left in my portfolio, you can read here: https://getqu.in/EZANAH620OR1/sP2f6mVSqQ/
Step 4: Give us an insight into how you plan to grow your portfolio further
Personally, I'm not a fan of rebalancing. Swapping assets that are doing well for assets that are doing poorly makes little sense to me. Therefore, it is not the balance of book values in my portfolio that is important to me, but the balance of invested capital. Specifically, I want to grow my ETF each year. A total of 70% in All World and 15% each in IT and Health Care. Crypto will not be saved further on a regular basis.
Step 5: Don't forget to share with the community what you don't want to have in your portfolio, i.e. which tips you can do without.
Due to the ambitious goals and the long investment period, I deliberately decided against stabilizing factors that cost returns in the end. On the one hand, there is gold, which I do not see as a meaningful component in my portfolio. See also [3]. The same applies to bonds. Of course, I have a nest egg in my checking and call money accounts.
Step 6: Share absolute values
Relative values are boring. The curiosity of the GetQuin community wants to be satisfied. So share your absolute values!
Why all this?
Only with this background knowledge and context, the community can give you serious and specific advice that goes beyond any standard phrases. Every goal is individual and every portfolio looks the way it does for different reasons. The strategy determines how the presented depot will achieve the goal. Whether this is realistic or not, no one can tell you without detailed information.
The detailed presentation and description also forces you to reflect on your portfolio yourself. Is there perhaps a certain position that does not fit into your strategy? What is your goal? Does the path fit to what you want to achieve? ...? These questions often lead to a self-awareness that provides you with starting points for improvement, even without community feedback. In software development, this is called Rubber Duck Debugging [4].
Have a look at my profile picture now!
That's right. After all, this is about a HowTo for you on how to get more meaningful and personalized feedback on your portfolio. I know my portfolio, strategy and goal are perfect and of course I don't need feedback. So instead I'm asking you guys how you like my new artistic profile picture? Dalle the 2nd has put a lot of effort into making my picture perfect [5]. He would be very happy if his art would meet with some approval.
Anyone who has read this guide, applies it to their own portfolio feedback, and would like feedback from me is of course welcome to @DonkeyInvestor mention.
Sources
[2] https://app.getquin.com/activity/hCTDRERFED
[3] https://app.getquin.com/activity/lohxnDnlch
[4] https://en.wikipedia.org/wiki/Rubber_duck_debugging
[5] https://openai.com/dall-e-2/
#learn
#portfoliofeedback
#portfolio
#esel
