Dear donkey disciples,
Time 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 receive unspecific comments that are always the same, such as "You are missing a good dividend payer from the tobacco industry in your portfolio" or "You should throw out the tobacco stocks, people are smoking less and less". At the same time, the reluctance of potential feedback providers grows when they are asked to evaluate the 100th 08/15 portfolio without explanation.
It is therefore time for more individual and high-quality portfolio feedback. You can get this by following the ultimate donkey guide to 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 to be able to live off my portfolio. Realistically, however, I will still need until shortly before I retire, as I still want to live and not restrict myself financially. In addition, I am not betting on my (early) death, which is why my goal is to preserve capital and not to consume it.
Step 2: Set out your strategy and explain how you intend 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 ETFs. With a little bit of crypto, however, there are also a few gambling positions in the portfolio. If these work out, I will reach my target sooner. If not, the stake was small enough so that my long-term goal was not jeopardized.
The 4% rule will probably cause me psychological problems if I still have to withdraw my 4% in a year with a loss. Accordingly, I would like to live largely from dividends. However, as I am still too young to buy high dividends through low growth, I am relying on share price and dividend growth. My calculation is that the dividends will have grown significantly in 20-30 years due to the selection of my positions and in relation to my investments and that I won't have to switch to an ETF with high dividends. I simply want to save myself the high taxes in old age that would be incurred if I switched from accumulating ETFs to ETFs with a high payout ratio. Distributions are of course reinvested directly.
Are you still missing a goal and the right 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 size of your portfolio, it is at least a good idea to talk about the asset categories and / or the most important / most unusual investments. When you mention your assets, remember to mention them in such a way that the reader understands what you mean. Nobody knows what is behind LU0533033667.
The core of my ETF and also of my portfolio is an All World ETF $VGWL (+0.18%) for obvious reasons. In addition, there are currently 2 other ETFs in my portfolio: a Health Care ETF $CBUF (-0.17%) and an IT ETF $AYEW (+0.46%) . These are not too specific, as a cyber security or innovative health care ETF, for example, would be for my taste. I also see huge growth opportunities in both sectors and hope that they will actually outperform the global index in the long term. However, as I don't have a crystal ball and want to minimize my risk, the All World takes up 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 (-0.35%) with some play money and only stopped again in 2017. Despite losing everything twice due to hacks or confiscation by the FBI from centralized exchanges, there is actually not much money in my Bitcoin position. The growth was simply gigantic. As the largest, first and only decentralized currency, Bitcoin should of course not be missing from any crypto portfolio. I also hold Ethereum $ETH (-0.21%) as the second largest currency, which has a bit more to offer than Bitcoin. About IOTA $MIOTA (-0.28%) there is already an article by me [2]. The reasons for my investment in Hedera $HBAR (-0.25%) are quite similar to those of IOTA. Cardano $ADA (-0.55%) is simply a random position from the top 10 for diversification. Could have been BNB or whatnot (just not Solana or Doge). I have fixed and very ambitious prices for my cryptocurrencies at which I will sell shares. If these prices are not reached, I will hodl until the end of my days.
I am aware of the high US 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. Many of the US companies are actually global companies that benefit from American 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 even Russia could overtake the USA. 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?
You can read here why I sold my shares and no longer have any in my portfolio: https://getqu.in/EZANAH620OR1/sP2f6mVSqQ/
Step 4: Give us an insight into how you plan to further expand your portfolio
Personally, I'm not a fan of rebalancing. Swapping assets that are doing well for assets that are doing badly makes little sense to me. Therefore, it is not the balance of the book values in my portfolio that is important to me, but the balance of the invested capital. Specifically, I would like to expand my ETFs every year. A total of 70% in All World and 15% each in IT and Health Care. Crypto is not regularly invested in.
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 ultimately cost returns. One of these is gold, which I don't see as a sensible component in my portfolio. See also [3]. The same applies to bonds. Of course, I have a nest egg in my current and call money account.
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 can the community 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 goal is to be achieved with the portfolio presented. No one can tell you whether this is realistic or not without detailed information.
The detailed presentation and description also forces you to reflect on your portfolio yourself. Is there perhaps a certain position that doesn't fit into your strategy after all? What is your actual goal? Does the path match 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, by the way, this is called rubber duck debugging [4].
Take a look at my profile picture now!
That's right. This is a how-to for you on how to get more meaningful and personalized feedback on your portfolio. I know that my portfolio, my strategy and my goal are perfect and of course I don't need any feedback. So instead, I'll ask you how you like my new, artistic profile picture? Dalle the 2nd has put a lot of effort into making me look perfect [5]. He would be very happy if his art was appreciated.
Anyone who has read this guide, uses it for their own portfolio feedback and would like feedback from me is of course welcome to mention me with @DonkeyInvestor mention me.
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/
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