After my first 12 months investing seriously and long term in the markets I can say that I am quite satisfied 😁.
But there are always buts, and yes, I should have been more careful at the beginning of the year, around December I was blinded by the performance of my investments, I failed to see the risks which seen in hindsight were ENOUGH OBVIOUS let's review them:
- The S&P at 30x Earnings when its average is around 18-21x.
- Three years of growth well above its historical average of 10% with no justification other than the rising expectation of AI 🤖
- A 26% Return in just 6 months in my stock portfolio without much change in EPS simply a price increase due to growing demand.
- Almost 3 years of announced Crisis and many experts (Like Warren Buffet) walking away from the Markets and holding Cash positions.
- A Euro dollar rate among the lowest historically basically at par 1€/1.02$.
In all this context to have shares like $GOOGL (-0,81 %)
$META (-0,38 %) or others that I had at the time such as $AMZN (-0,78 %) were not going to help much being the most affected by the correlation of the index and its high Per not to mention the currency effect.
But I went with a very aggressive portfolio and barely kept 5% in money funds or cash 😔 (which also if I had it was by chance not by planning 🤣).
The important thing Lesson Learned, you have to keep a cool head, and maintain a balanced management according to the risks and not be blinded by these situations of "easy money".
However the year has not ended not so bad many of my "bets" have gone fantastically well as well as. $HPE (-0,82 %) (+30%) $SMSN (-0,61 %) (+15%) $BFIT (+1,65 %) (+10%)
And I have diversified into smaller stocks that are not so correlated to the indices and that according to my criteria have the potential to outperform the index
As well as other alternative investment vehicles such as BME Growth and Urbanitae projects.
And of course I keep a reserve but not too big for when opportunities like the ones we saw just a couple of months ago come along ;)
This is how things have been in the aggregate one year later, in the equity portfolio the profitability is somewhat higher, but still it is important to diversify as we said before, we continue working to improve and grow 🔝📈📈
